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: June 30, 2021
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.
(a) | The Report to Shareholders is attached herewith. |
BAILLIE GIFFORD FUNDS
Baillie Gifford China A Shares Growth Fund
Baillie Gifford Developed EAFE All Cap Fund
Baillie Gifford EAFE Plus All Cap Fund
Baillie Gifford Emerging Markets Equities Fund
Baillie Gifford Global Alpha Equities Fund
Baillie Gifford Global Stewardship Equities Fund
Baillie Gifford International Alpha Fund
Baillie Gifford International Concentrated Growth Equities Fund
Baillie Gifford International Growth Fund
Baillie Gifford International Smaller Companies Fund
Baillie Gifford Long Term Global Growth Fund
Baillie Gifford Positive Change Equities Fund
Baillie Gifford U.S. Discovery Fund
Baillie Gifford U.S. Equity Growth Fund
Semi-Annual Report
June 30, 2021
(unaudited)
Index
Page Number | |||||||
01 | Fund Expenses | ||||||
Baillie Gifford China A Shares Growth Fund | |||||||
08 | Industry Diversification Table | ||||||
09 | Portfolio of Investments | ||||||
11 | Statement of Assets and Liabilities | ||||||
12 | Statement of Operations | ||||||
13 | Statements of Changes in Net Assets | ||||||
Financial Highlights | |||||||
14 | Selected Data for Class K | ||||||
15 | Selected Data for Institutional Class | ||||||
Baillie Gifford Developed EAFE All Cap Fund | |||||||
16 | Industry Diversification Table | ||||||
17 | Portfolio of Investments | ||||||
21 | Statement of Assets and Liabilities | ||||||
22 | Statement of Operations | ||||||
23 | Statements of Changes in Net Assets | ||||||
Financial Highlights | |||||||
24 | Selected Data for Class 2 | ||||||
25 | Selected Data for Class 3 | ||||||
27 | Selected Data for Class K | ||||||
28 | Selected Data for Institutional Class | ||||||
Baillie Gifford EAFE Plus All Cap Fund | |||||||
29 | Industry Diversification Table | ||||||
30 | Portfolio of Investments | ||||||
34 | Statement of Assets and Liabilities | ||||||
35 | Statement of Operations | ||||||
36 | Statements of Changes in Net Assets | ||||||
Financial Highlights | |||||||
37 | Selected Data for Class 2 | ||||||
39 | Selected Data for Class K | ||||||
40 | Selected Data for Institutional Class | ||||||
Baillie Gifford Emerging Markets Equities Fund | |||||||
41 | Industry Diversification Table | ||||||
42 | Portfolio of Investments | ||||||
46 | Statement of Assets and Liabilities | ||||||
47 | Statement of Operations | ||||||
48 | Statements of Changes in Net Assets | ||||||
Financial Highlights | |||||||
49 | Selected Data for Class 2 | ||||||
50 | Selected Data for Class 3 | ||||||
51 | Selected Data for Class 4 | ||||||
52 | Selected Data for Class 5 | ||||||
53 | Selected Data for Class K | ||||||
54 | Selected Data for Institutional Class | ||||||
Baillie Gifford Global Alpha Equities Fund | |||||||
55 | Industry Diversification Table | ||||||
56 | Portfolio of Investments | ||||||
61 | Statement of Assets and Liabilities | ||||||
62 | Statement of Operations | ||||||
63 | Statements of Changes in Net Assets | ||||||
Financial Highlights | |||||||
64 | Selected Data for Class 2 | ||||||
65 | Selected Data for Class 3 | ||||||
66 | Selected Data for Class 4 | ||||||
67 | Selected Data for Class K | ||||||
68 | Selected Data for Institutional Class | ||||||
Baillie Gifford Global Stewardship Equities Fund | |||||||
69 | Industry Diversification Table | ||||||
70 | Portfolio of Investments | ||||||
74 | Statement of Assets and Liabilities | ||||||
75 | Statement of Operations | ||||||
76 | Statements of Changes in Net Assets | ||||||
Financial Highlights | |||||||
77 | Selected Data for Class K | ||||||
78 | Selected Data for Institutional Class | ||||||
Baillie Gifford International Alpha Fund | |||||||
79 | Industry Diversification Table | ||||||
80 | Portfolio of Investments | ||||||
85 | Statement of Assets and Liabilities | ||||||
86 | Statement of Operations | ||||||
87 | Statements of Changes in Net Assets | ||||||
Financial Highlights | |||||||
88 | Selected Data for Class 2 | ||||||
89 | Selected Data for Class 3 | ||||||
90 | Selected Data for Class 4 | ||||||
91 | Selected Data for Class 5 | ||||||
92 | Selected Data for Class K | ||||||
93 | Selected Data for Institutional Class |
Page Number | |||||||
Baillie Gifford International Concentrated Growth Equities Fund | |||||||
94 | Industry Diversification Table | ||||||
95 | Portfolio of Investments | ||||||
97 | Statement of Assets and Liabilities | ||||||
98 | Statement of Operations | ||||||
99 | Statements of Changes in Net Assets | ||||||
Financial Highlights | |||||||
100 | Selected Data for Class K | ||||||
101 | Selected Data for Institutional Class | ||||||
Baillie Gifford International Growth Fund | |||||||
102 | Industry Diversification Table | ||||||
103 | Portfolio of Investments | ||||||
107 | Statement of Assets and Liabilities | ||||||
108 | Statement of Operations | ||||||
109 | Statements of Changes in Net Assets | ||||||
Financial Highlights | |||||||
110 | Selected Data for Class 2 | ||||||
111 | Selected Data for Class 3 | ||||||
112 | Selected Data for Class 4 | ||||||
113 | Selected Data for Class 5 | ||||||
114 | Selected Data for Class K | ||||||
115 | Selected Data for Institutional Class | ||||||
Baillie Gifford International Smaller Companies Fund | |||||||
116 | Industry Diversification Table | ||||||
117 | Portfolio of Investments | ||||||
121 | Statement of Assets and Liabilities | ||||||
122 | Statement of Operations | ||||||
123 | Statements of Changes in Net Assets | ||||||
Financial Highlights | |||||||
124 | Selected Data for Class K | ||||||
125 | Selected Data for Institutional Class | ||||||
Baillie Gifford Long Term Global Growth Fund | |||||||
126 | Industry Diversification Table | ||||||
127 | Portfolio of Investments | ||||||
129 | Statement of Assets and Liabilities | ||||||
130 | Statement of Operations | ||||||
131 | Statements of Changes in Net Assets | ||||||
Financial Highlights | |||||||
132 | Selected Data for Class 2 | ||||||
133 | Selected Data for Class 5 | ||||||
134 | Selected Data for Class K | ||||||
135 | Selected Data for Institutional Class | ||||||
Baillie Gifford Positive Change Equities Fund | |||||||
136 | Industry Diversification Table | ||||||
137 | Portfolio of Investments | ||||||
140 | Statement of Assets and Liabilities | ||||||
141 | Statement of Operations | ||||||
142 | Statements of Changes in Net Assets | ||||||
Financial Highlights | |||||||
143 | Selected Data for Class K | ||||||
144 | Selected Data for Institutional Class | ||||||
Baillie Gifford U.S. Discovery Fund | |||||||
145 | Industry Diversification Table | ||||||
146 | Portfolio of Investments | ||||||
148 | Statement of Assets and Liabilities | ||||||
149 | Statement of Operations | ||||||
150 | Statements of Changes in Net Assets | ||||||
Financial Highlights | |||||||
151 | Selected Data for Class K | ||||||
152 | Selected Data for Institutional Class | ||||||
Baillie Gifford U.S. Equity Growth Fund | |||||||
153 | Industry Diversification Table | ||||||
154 | 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 | ||||||
161 | Notes to Financial Statements | ||||||
Supplemental Information | |||||||
187 | Management of the Trust | ||||||
188 | Board Considerations Regarding 2021 Contract Renewal | ||||||
195 | Board Considerations Regarding New Fund Advisory Agreement Approval |
This report is intended for shareholders of the funds listed on the front of this report (each, a "Fund", and collectively the "Funds") and may not be used as sales literature unless preceded or accompanied by a current prospectus for each Fund.
The statements and views expressed in this report are as of this report's period end and are subject to change at any time. All investments entail risk, including the possible loss of principal.
Scenic view of Bostadh Beach and Luskentyre Beach in Summer, Isle of Harris, Scotland
Source: © Markus Keller/Shutterstock
Fund Expenses (unaudited)
Semi-Annual Report June 30, 2021
As a shareholder of Baillie Gifford China A Shares Growth Fund, Baillie Gifford Developed EAFE All Cap Fund, Baillie Gifford EAFE Plus All Cap Fund, Baillie Gifford Emerging Markets Equities Fund, Baillie Gifford Global Alpha Equities Fund, Baillie Gifford Global Stewardship Equities Fund, Baillie Gifford International Alpha Fund, Baillie Gifford International Concentrated Growth Equities Fund, Baillie Gifford International Growth Fund, Baillie Gifford International Smaller Companies Fund, Baillie Gifford Long Term Global Growth Fund, Baillie Gifford Positive Change Equities Fund, Baillie Gifford U.S. Discovery Fund and/or Baillie Gifford U.S. Equity Growth Fund, you incur two types of costs: (1) transaction costs, and (2) ongoing costs, including advisory fees, administration and supervisory 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 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 January 1, 2021 to June 30, 2021.
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 labeled "Hypothetical (5% return before expenses)" 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.
01
Fund Expenses (unaudited)
Semi-Annual Report June 30, 2021
Beginning Account Value January 1, 2021 | Ending Account Value June 30, 2021 | Annualized Expense Ratios Based on the Period January 1, 2021 to June 30, 2021 | Expenses Paid During Period* | ||||||||||||||||
Baillie Gifford China A Shares Growth Fund — Class K | |||||||||||||||||||
Actual | $ | 1,000 | $ | 1,073.80 | 0.87 | % | $ | 4.47 | |||||||||||
Hypothetical (5% return before expenses) | $ | 1,000 | $ | 1,020.48 | 0.87 | % | $ | 4.36 | |||||||||||
Baillie Gifford China A Shares Growth Fund — Institutional Class | |||||||||||||||||||
Actual | $ | 1,000 | $ | 1,073.80 | 0.87 | % | $ | 4.47 | |||||||||||
Hypothetical (5% return before expenses) | $ | 1,000 | $ | 1,020.48 | 0.87 | % | $ | 4.36 | |||||||||||
Baillie Gifford Developed EAFE All Cap Fund — Class 2 | |||||||||||||||||||
Actual | $ | 1,000 | $ | 1,060.00 | 0.61 | % | $ | 3.12 | |||||||||||
Hypothetical (5% return before expenses) | $ | 1,000 | $ | 1,021.77 | 0.61 | % | $ | 3.06 | |||||||||||
Baillie Gifford Developed EAFE All Cap Fund — Class 3 | |||||||||||||||||||
Actual | $ | 1,000 | $ | 1,060.40 | 0.54 | % | $ | 2.76 | |||||||||||
Hypothetical (5% return before expenses) | $ | 1,000 | $ | 1,022.12 | 0.54 | % | $ | 2.71 | |||||||||||
Baillie Gifford Developed EAFE All Cap Fund — Class 4(1) | |||||||||||||||||||
Actual | $ | 1,000 | $ | 1,032.80 | 0.51 | % | $ | 5.01 | |||||||||||
Hypothetical (5% return before expenses) | $ | 1,000 | $ | 1,022.27 | 0.51 | % | $ | 2.56 | |||||||||||
Baillie Gifford Developed EAFE All Cap Fund — Class K | |||||||||||||||||||
Actual | $ | 1,000 | $ | 1,060.20 | 0.61 | % | $ | 3.12 | |||||||||||
Hypothetical (5% return before expenses) | $ | 1,000 | $ | 1,021.77 | 0.61 | % | $ | 3.06 | |||||||||||
Baillie Gifford Developed EAFE All Cap Fund — Institutional Class | |||||||||||||||||||
Actual | $ | 1,000 | $ | 1,059.70 | 0.70 | % | $ | 3.57 | |||||||||||
Hypothetical (5% return before expenses) | $ | 1,000 | $ | 1,021.32 | 0.70 | % | $ | 3.51 | |||||||||||
Baillie Gifford EAFE Plus All Cap Fund — Class 2 | |||||||||||||||||||
Actual | $ | 1,000 | $ | 1,050.10 | 0.61 | % | $ | 3.10 | |||||||||||
Hypothetical (5% return before expenses) | $ | 1,000 | $ | 1,021.77 | 0.61 | % | $ | 3.06 | |||||||||||
Baillie Gifford EAFE Plus All Cap Fund — Class 3 | |||||||||||||||||||
Actual | $ | 1,000 | $ | 1,050.40 | 0.54 | % | $ | 2.75 | |||||||||||
Hypothetical (5% return before expenses) | $ | 1,000 | $ | 1,022.12 | 0.54 | % | $ | 2.71 |
02
Fund Expenses (unaudited)
Semi-Annual Report June 30, 2021
Beginning Account Value January 1, 2021 | Ending Account Value June 30, 2021 | Annualized Expense Ratios Based on the Period January 1, 2021 to June 30, 2021 | Expenses Paid During Period* | ||||||||||||||||
Baillie Gifford EAFE Plus All Cap Fund — Class K | |||||||||||||||||||
Actual | $ | 1,000 | $ | 1,050.30 | 0.61 | % | $ | 3.10 | |||||||||||
Hypothetical (5% return before expenses) | $ | 1,000 | $ | 1,021.77 | 0.61 | % | $ | 3.06 | |||||||||||
Baillie Gifford EAFE Plus All Cap Fund — Institutional Class | |||||||||||||||||||
Actual | $ | 1,000 | $ | 1,049.40 | 0.71 | % | $ | 3.61 | |||||||||||
Hypothetical (5% return before expenses) | $ | 1,000 | $ | 1,021.27 | 0.71 | % | $ | 3.56 | |||||||||||
Baillie Gifford Emerging Markets Equities Fund — Class 2 | |||||||||||||||||||
Actual | $ | 1,000 | $ | 1,061.50 | 0.77 | % | $ | 3.94 | |||||||||||
Hypothetical (5% return before expenses) | $ | 1,000 | $ | 1,020.98 | 0.77 | % | $ | 3.86 | |||||||||||
Baillie Gifford Emerging Markets Equities Fund — Class 3 | |||||||||||||||||||
Actual | $ | 1,000 | $ | 1,061.90 | 0.70 | % | $ | 3.58 | |||||||||||
Hypothetical (5% return before expenses) | $ | 1,000 | $ | 1,021.32 | 0.70 | % | $ | 3.51 | |||||||||||
Baillie Gifford Emerging Markets Equities Fund — Class 4 | |||||||||||||||||||
Actual | $ | 1,000 | $ | 1,062.10 | 0.67 | % | $ | 3.43 | |||||||||||
Hypothetical (5% return before expenses) | $ | 1,000 | $ | 1,021.47 | 0.67 | % | $ | 3.36 | |||||||||||
Baillie Gifford Emerging Markets Equities Fund — Class 5 | |||||||||||||||||||
Actual | $ | 1,000 | $ | 1,062.40 | 0.62 | % | $ | 3.17 | |||||||||||
Hypothetical (5% return before expenses) | $ | 1,000 | $ | 1,021.72 | 0.62 | % | $ | 3.11 | |||||||||||
Baillie Gifford Emerging Markets Equities Fund — Class K | |||||||||||||||||||
Actual | $ | 1,000 | $ | 1,061.70 | 0.77 | % | $ | 3.94 | |||||||||||
Hypothetical (5% return before expenses) | $ | 1,000 | $ | 1,020.98 | 0.77 | % | $ | 3.86 | |||||||||||
Baillie Gifford Emerging Markets Equities Fund — Institutional Class | |||||||||||||||||||
Actual | $ | 1,000 | $ | 1,061.40 | 0.86 | % | $ | 4.40 | |||||||||||
Hypothetical (5% return before expenses) | $ | 1,000 | $ | 1,020.53 | 0.86 | % | $ | 4.31 | |||||||||||
Baillie Gifford Global Alpha Equities Fund — Class 2 | |||||||||||||||||||
Actual | $ | 1,000 | $ | 1,107.50 | 0.64 | % | $ | 3.34 | |||||||||||
Hypothetical (5% return before expenses) | $ | 1,000 | $ | 1,021.62 | 0.64 | % | $ | 3.21 |
03
Fund Expenses (unaudited)
Semi-Annual Report June 30, 2021
Beginning Account Value January 1, 2021 | Ending Account Value June 30, 2021 | Annualized Expense Ratios Based on the Period January 1, 2021 to June 30, 2021 | Expenses Paid During Period* | ||||||||||||||||
Baillie Gifford Global Alpha Equities Fund — Class 3 | |||||||||||||||||||
Actual | $ | 1,000 | $ | 1,107.90 | 0.57 | % | $ | 2.98 | |||||||||||
Hypothetical (5% return before expenses) | $ | 1,000 | $ | 1,021.97 | 0.57 | % | $ | 2.86 | |||||||||||
Baillie Gifford Global Alpha Equities Fund — Class 4 | |||||||||||||||||||
Actual | $ | 1,000 | $ | 1,108.10 | 0.54 | % | $ | 2.82 | |||||||||||
Hypothetical (5% return before expenses) | $ | 1,000 | $ | 1,022.12 | 0.54 | % | $ | 2.71 | |||||||||||
Baillie Gifford Global Alpha Equities Fund — Class K | |||||||||||||||||||
Actual | $ | 1,000 | $ | 1,107.50 | 0.64 | % | $ | 3.34 | |||||||||||
Hypothetical (5% return before expenses) | $ | 1,000 | $ | 1,021.62 | 0.64 | % | $ | 3.21 | |||||||||||
Baillie Gifford Global Alpha Equities Fund — Institutional Class | |||||||||||||||||||
Actual | $ | 1,000 | $ | 1,106.90 | 0.72 | % | $ | 3.76 | |||||||||||
Hypothetical (5% return before expenses) | $ | 1,000 | $ | 1,021.22 | 0.72 | % | $ | 3.61 | |||||||||||
Baillie Gifford Global Stewardship Equities Fund — Class K | |||||||||||||||||||
Actual | $ | 1,000 | $ | 1,095.20 | 0.65 | % | $ | 3.38 | |||||||||||
Hypothetical (5% return before expenses) | $ | 1,000 | $ | 1,021.57 | 0.65 | % | $ | 3.26 | |||||||||||
Baillie Gifford Global Stewardship Equities Fund — Institutional Class | |||||||||||||||||||
Actual | $ | 1,000 | $ | 1,095.20 | 0.65 | % | $ | 3.38 | |||||||||||
Hypothetical (5% return before expenses) | $ | 1,000 | $ | 1,021.57 | 0.65 | % | $ | 3.26 | |||||||||||
Baillie Gifford International Alpha Fund — Class 2 | |||||||||||||||||||
Actual | $ | 1,000 | $ | 1,056.70 | 0.57 | % | $ | 2.91 | |||||||||||
Hypothetical (5% return before expenses) | $ | 1,000 | $ | 1,021.97 | 0.57 | % | $ | 2.86 | |||||||||||
Baillie Gifford International Alpha Fund — Class 3 | |||||||||||||||||||
Actual | $ | 1,000 | $ | 1,057.10 | 0.50 | % | $ | 2.55 | |||||||||||
Hypothetical (5% return before expenses) | $ | 1,000 | $ | 1,022.32 | 0.50 | % | $ | 2.51 | |||||||||||
Baillie Gifford International Alpha Fund — Class 4 | |||||||||||||||||||
Actual | $ | 1,000 | $ | 1,057.20 | 0.47 | % | $ | 2.40 | |||||||||||
Hypothetical (5% return before expenses) | $ | 1,000 | $ | 1,022.46 | 0.47 | % | $ | 2.36 |
04
Fund Expenses (unaudited)
Semi-Annual Report June 30, 2021
Beginning Account Value January 1, 2021 | Ending Account Value June 30, 2021 | Annualized Expense Ratios Based on the Period January 1, 2021 to June 30, 2021 | Expenses Paid During Period* | ||||||||||||||||
Baillie Gifford International Alpha Fund — Class 5 | |||||||||||||||||||
Actual | $ | 1,000 | $ | 1,057.50 | 0.42 | % | $ | 2.14 | |||||||||||
Hypothetical (5% return before expenses) | $ | 1,000 | $ | 1,022.71 | 0.42 | % | $ | 2.11 | |||||||||||
Baillie Gifford International Alpha Fund — Class K | |||||||||||||||||||
Actual | $ | 1,000 | $ | 1,056.90 | 0.57 | % | $ | 2.91 | |||||||||||
Hypothetical (5% return before expenses) | $ | 1,000 | $ | 1,021.97 | 0.57 | % | $ | 2.86 | |||||||||||
Baillie Gifford International Alpha Fund — Institutional Class | |||||||||||||||||||
Actual | $ | 1,000 | $ | 1,056.70 | 0.67 | % | $ | 3.42 | |||||||||||
Hypothetical (5% return before expenses) | $ | 1,000 | $ | 1,021.47 | 0.67 | % | $ | 3.36 | |||||||||||
Baillie Gifford International Concentrated Growth Equities Fund — Class K | |||||||||||||||||||
Actual | $ | 1,000 | $ | 1,085.40 | 0.72 | % | $ | 3.72 | |||||||||||
Hypothetical (5% return before expenses) | $ | 1,000 | $ | 1,021.22 | 0.72 | % | $ | 3.61 | |||||||||||
Baillie Gifford International Concentrated Growth Equities Fund — Institutional Class | |||||||||||||||||||
Actual | $ | 1,000 | $ | 1,085.40 | 0.78 | % | $ | 4.03 | |||||||||||
Hypothetical (5% return before expenses) | $ | 1,000 | $ | 1,020.93 | 0.78 | % | $ | 3.91 | |||||||||||
Baillie Gifford International Growth Fund — Class 2 | |||||||||||||||||||
Actual | $ | 1,000 | $ | 1,033.30 | 0.56 | % | $ | 2.82 | |||||||||||
Hypothetical (5% return before expenses) | $ | 1,000 | $ | 1,022.02 | 0.56 | % | $ | 2.81 | |||||||||||
Baillie Gifford International Growth Fund — Class 3 | |||||||||||||||||||
Actual | $ | 1,000 | $ | 1,033.70 | 0.49 | % | $ | 2.47 | |||||||||||
Hypothetical (5% return before expenses) | $ | 1,000 | $ | 1,022.36 | 0.49 | % | $ | 2.46 | |||||||||||
Baillie Gifford International Growth Fund — Class 4 | |||||||||||||||||||
Actual | $ | 1,000 | $ | 1,033.90 | 0.46 | % | $ | 2.32 | |||||||||||
Hypothetical (5% return before expenses) | $ | 1,000 | $ | 1,022.51 | 0.46 | % | $ | 2.31 | |||||||||||
Baillie Gifford International Growth Fund — Class 5 | |||||||||||||||||||
Actual | $ | 1,000 | $ | 1,034.10 | 0.41 | % | $ | 2.07 | |||||||||||
Hypothetical (5% return before expenses) | $ | 1,000 | $ | 1,022.76 | 0.41 | % | $ | 2.06 |
05
Fund Expenses (unaudited)
Semi-Annual Report June 30, 2021
Beginning Account Value January 1, 2021 | Ending Account Value June 30, 2021 | Annualized Expense Ratios Based on the Period January 1, 2021 to June 30, 2021 | Expenses Paid During Period* | ||||||||||||||||
Baillie Gifford International Growth Fund — Class K | |||||||||||||||||||
Actual | $ | 1,000 | $ | 1,033.40 | 0.56 | % | $ | 2.82 | |||||||||||
Hypothetical (5% return before expenses) | $ | 1,000 | $ | 1,022.02 | 0.56 | % | $ | 2.81 | |||||||||||
Baillie Gifford International Growth Fund — Institutional Class | |||||||||||||||||||
Actual | $ | 1,000 | $ | 1,033.10 | 0.63 | % | $ | 3.18 | |||||||||||
Hypothetical (5% return before expenses) | $ | 1,000 | $ | 1,021.67 | 0.63 | % | $ | 3.16 | |||||||||||
Baillie Gifford International Smaller Companies Fund — Class K | |||||||||||||||||||
Actual | $ | 1,000 | $ | 1,052.00 | 0.90 | % | $ | 4.58 | |||||||||||
Hypothetical (5% return before expenses) | $ | 1,000 | $ | 1,020.33 | 0.90 | % | $ | 4.51 | |||||||||||
Baillie Gifford International Smaller Companies Fund — Institutional Class | |||||||||||||||||||
Actual | $ | 1,000 | $ | 1,052.00 | 0.90 | % | $ | 4.58 | |||||||||||
Hypothetical (5% return before expenses) | $ | 1,000 | $ | 1,020.33 | 0.90 | % | $ | 4.51 | |||||||||||
Baillie Gifford Long Term Global Growth Fund — Class 2 | |||||||||||||||||||
Actual | $ | 1,000 | $ | 1,113.20 | 0.69 | % | $ | 3.62 | |||||||||||
Hypothetical (5% return before expenses) | $ | 1,000 | $ | 1,021.37 | 0.69 | % | $ | 3.46 | |||||||||||
Baillie Gifford Long Term Global Growth Fund — Class 5 | |||||||||||||||||||
Actual | $ | 1,000 | $ | 1,114.00 | 0.54 | % | $ | 2.83 | |||||||||||
Hypothetical (5% return before expenses) | $ | 1,000 | $ | 1,022.12 | 0.54 | % | $ | 2.71 | |||||||||||
Baillie Gifford Long Term Global Growth Fund — Class K | |||||||||||||||||||
Actual | $ | 1,000 | $ | 1,113.10 | 0.69 | % | $ | 3.62 | |||||||||||
Hypothetical (5% return before expenses) | $ | 1,000 | $ | 1,021.37 | 0.69 | % | $ | 3.46 | |||||||||||
Baillie Gifford Long Term Global Growth Fund — Institutional Class | |||||||||||||||||||
Actual | $ | 1,000 | $ | 1,112.80 | 0.78 | % | $ | 4.09 | |||||||||||
Hypothetical (5% return before expenses) | $ | 1,000 | $ | 1,020.93 | 0.78 | % | $ | 3.91 | |||||||||||
Baillie Gifford Positive Change Equities Fund — Class K | |||||||||||||||||||
Actual | $ | 1,000 | $ | 1,128.50 | 0.65 | % | $ | 3.43 | |||||||||||
Hypothetical (5% return before expenses) | $ | 1,000 | $ | 1,021.57 | 0.65 | % | $ | 3.26 |
06
Fund Expenses (unaudited)
Semi-Annual Report June 30, 2021
Beginning Account Value January 1, 2021 | Ending Account Value June 30, 2021 | Annualized Expense Ratios Based on the Period January 1, 2021 to June 30, 2021 | Expenses Paid During Period* | ||||||||||||||||
Baillie Gifford Positive Change Equities Fund — Institutional Class | |||||||||||||||||||
Actual | $ | 1,000 | $ | 1,128.20 | 0.69 | % | $ | 3.64 | |||||||||||
Hypothetical (5% return before expenses) | $ | 1,000 | $ | 1,021.37 | 0.69 | % | $ | 3.46 | |||||||||||
Baillie Gifford U.S. Discovery Fund — Class K(2) | |||||||||||||||||||
Actual | $ | 1,000 | $ | 1,095.00 | 0.82 | % | $ | 5.65 | |||||||||||
Hypothetical (5% return before expenses) | $ | 1,000 | $ | 1,020.73 | 0.82 | % | $ | 4.11 | |||||||||||
Baillie Gifford U.S. Discovery Fund — Institutional Class(2) | |||||||||||||||||||
Actual | $ | 1,000 | $ | 1,095.00 | 0.82 | % | $ | 5.65 | |||||||||||
Hypothetical (5% return before expenses) | $ | 1,000 | $ | 1,020.73 | 0.82 | % | $ | 4.11 | |||||||||||
Baillie Gifford U.S. Equity Growth Fund — Class K | |||||||||||||||||||
Actual | $ | 1,000 | $ | 1,146.00 | 0.65 | % | $ | 3.46 | |||||||||||
Hypothetical (5% return before expenses) | $ | 1,000 | $ | 1,021.57 | 0.65 | % | $ | 3.26 | |||||||||||
Baillie Gifford U.S. Equity Growth Fund — Institutional Class | |||||||||||||||||||
Actual | $ | 1,000 | $ | 1,145.80 | 0.74 | % | $ | 3.94 | |||||||||||
Hypothetical (5% return before expenses) | $ | 1,000 | $ | 1,021.12 | 0.74 | % | $ | 3.71 |
* Unless otherwise indicated, expenses are calculated using the Fund's annualized expense ratio, multiplied by the average account value for the period, multiplied by 181/365 (to reflect the six-month period).
(1) Commencement of operation January 13, 2021. Expenses are calculated using the Fund's annualized expense ratio, multiplied by the ending value for the period, multiplied by 169/365 (to reflect recommencement of operations).
(2) Commencement of operation May 6, 2021. Expenses are calculated using the Fund's annualized expense ratio, multiplied by the ending value for the period, multiplied by 56/365 (to reflect recommencement of operations).
Expenses are calculated using the annualized expense ratio for the Fund, which represents the ongoing expenses as a percentage of net assets for the period ended June 30, 2021. 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 most recent fiscal half-year; and then dividing that result by the number of days in the calendar year.
07
Industry Diversification Table
Semi-Annual Report June 30, 2021
June 30, 2021 (unaudited)
Baillie Gifford China A Shares Growth Fund
Value | % of Total Net Assets | ||||||||||
Beverages | $ | 131,870 | 6.2 | % | |||||||
Chemicals | 44,448 | 2.1 | |||||||||
Commercial Services | 190,614 | 9.0 | |||||||||
Cosmetics/Personal Care | 39,547 | 1.9 | |||||||||
Electrical Components & Equipment | 156,746 | 7.4 | |||||||||
Electronics | 143,590 | 6.8 | |||||||||
Energy-Alternate Sources | 45,810 | 2.1 | |||||||||
Food | 39,469 | 1.8 | |||||||||
Healthcare — Products | 133,218 | 6.3 | |||||||||
Healthcare — Services | 343,448 | 16.2 | |||||||||
Home Furnishings | 131,087 | 6.2 | |||||||||
Insurance | 79,522 | 3.7 | |||||||||
Internet | 64,612 | 3.0 | |||||||||
Machinery — Diversified | 33,637 | 1.6 | |||||||||
Metal Fabricate/Hardware | 93,494 | 4.4 | |||||||||
Pharmaceuticals | 190,973 | 9.0 | |||||||||
Semiconductors | 46,937 | 2.2 | |||||||||
Software | 159,287 | 7.5 | |||||||||
Transportation | 53,351 | 2.5 | |||||||||
Total Value of Investments | 2,121,660 | 99.9 | |||||||||
Other assets less liabilities | 2,632 | 0.1 | |||||||||
Net Assets | $ | 2,124,292 | 100.0 | % |
The table above is based on Bloomberg Industry Group classifications. For compliance monitoring purposes, sub-industry classifications are used which results in less concentration across industry sectors.
08
Portfolio of Investments
Semi-Annual Report June 30, 2021
June 30, 2021 (unaudited)
Baillie Gifford China A Shares Growth Fund
Shares | Value | ||||||||||
COMMON STOCKS — 99.9% | |||||||||||
CHINA — 99.9% | |||||||||||
Asymchem Laboratories Tianjin Co., Ltd., Class A * | 2,100 | $ | 120,918 | ||||||||
Beijing United Information Technology Co., Ltd., Class A | 2,900 | 44,820 | |||||||||
Berry Genomics Co., Ltd., Class A * | 5,800 | 26,957 | |||||||||
BGI Genomics Co., Ltd., Class A | 2,700 | 49,538 | |||||||||
Centre Testing International Group Co., Ltd., Class A | 9,600 | 47,319 | |||||||||
Contemporary Amperex Technology Co., Ltd., Class A * | 1,900 | 156,746 | |||||||||
Foshan Haitian Flavouring & Food Co., Ltd., Class A | 1,980 | 39,469 | |||||||||
Glodon Co., Ltd., Class A | 8,100 | 85,305 | |||||||||
Guangzhou Kingmed Diagnostics Group Co., Ltd., Class A | 4,000 | 98,800 | |||||||||
Hangzhou Tigermed Consulting Co., Ltd., Class A | 4,800 | 143,294 | |||||||||
Hefei Meiya Optoelectronic Technology, Inc., Class A | 3,900 | 33,637 | |||||||||
Iflytek Co., Ltd., Class A | 3,500 | 36,549 | |||||||||
Jafron Biomedical Co., Ltd., Class A | 3,400 | 45,394 | |||||||||
Jiangsu Hengrui Medicine Co., Ltd., Class A | 3,432 | 36,054 | |||||||||
Kweichow Moutai Co., Ltd., Class A | 300 | 95,425 | |||||||||
LONGi Green Energy Technology Co., Ltd., Class A | 3,339 | 45,810 | |||||||||
Luzhou Laojiao Co., Ltd., Class A | 1,000 | 36,445 | |||||||||
Midea Group Co., Ltd., Class A | 8,300 | 91,554 | |||||||||
NanJi E-Commerce Co., Ltd., Class A | 13,100 | 19,792 | |||||||||
Oppein Home Group, Inc., Class A | 1,800 | 39,533 | |||||||||
Ping An Insurance Group Co. of China Ltd., Class A | 8,000 | 79,522 | |||||||||
Proya Cosmetics Co., Ltd., Class A | 1,300 | 39,547 | |||||||||
SF Holding Co., Ltd., Class A | 5,100 | 53,351 | |||||||||
SG Micro Corp., Class A | 1,200 | 46,937 | |||||||||
Shandong Sinocera Functional Material Co., Ltd., Class A | 5,900 | 44,448 | |||||||||
Shenzhen Inovance Technology Co., Ltd., Class A | 9,150 | 104,933 | |||||||||
Shenzhen Megmeet Electrical Co., Ltd., Class A | 8,000 | 38,658 | |||||||||
Sinocare, Inc., Class A | 7,900 | 38,287 | |||||||||
Topchoice Medical Corp., Class A * | 1,700 | 107,945 | |||||||||
WuXi AppTec Co., Ltd., Class A | 4,536 | 109,745 | |||||||||
Yonyou Network Technology Co., Ltd., Class A | 7,280 | 37,433 | |||||||||
Yunnan Baiyao Group Co., Ltd., Class A | 1,900 | 34,001 | |||||||||
Zhejiang Sanhua Intelligent Controls Co., Ltd., Class A | 25,220 | 93,494 | |||||||||
2,121,660 | |||||||||||
TOTAL INVESTMENTS — 99.9% | |||||||||||
(cost $1,177,334) | $ | 2,121,660 | |||||||||
Other assets less liabilities — 0.1% | 2,632 | ||||||||||
NET ASSETS — 100.0% | $ | 2,124,292 |
* Non-income producing security.
This report classifies issuers geographically by their country of risk. For compliance monitoring purposes, Baillie Gifford Overseas Limited (the "Manager") retains discretion to consider a number of factors in determining where a particular issuer is located, as described in further detail in each Fund's prospectus.
The accompanying notes are an integral part of the financial statements.
09
Portfolio of Investments
Semi-Annual Report June 30, 2021
June 30, 2021 (unaudited)
Baillie Gifford China A Shares Growth Fund
Fair Value Measurement
The following is a summary of the inputs used as of June 30, 2021 in valuing the Fund's investments carried at fair value:
Investments in Securities | Level 1 | Level 2 | Level 3 | Total | |||||||||||||||
Common Stocks ** | $ | — | $ | 2,121,660 | $ | — | $ | 2,121,660 | |||||||||||
Total | $ | — | $ | 2,121,660 | $ | — | $ | 2,121,660 |
** Refer to Portfolio of Investments for further detail.
The accompanying notes are an integral part of the financial statements.
10
Statement of Assets and Liabilities
Semi-Annual Report June 30, 2021
June 30, 2021 (unaudited)
Baillie Gifford China A Shares Growth Fund
ASSETS | |||||||
Investments, at value (cost $1,177,334) | $ | 2,121,660 | |||||
Cash | 37,185 | ||||||
Foreign cash, at value (cost $807) | 806 | ||||||
Due from Investment Advisor | 19,081 | ||||||
Prepaid assets | 12 | ||||||
Total Assets | 2,178,744 | ||||||
LIABILITIES | |||||||
Advisory fee payable | 2,689 | ||||||
Administration & Supervisory fee payable | 831 | ||||||
Trustee fee payable | 12 | ||||||
Commitment fee payable | 3 | ||||||
Accrued expenses | 50,917 | ||||||
Total Liabilities | 54,452 | ||||||
NET ASSETS | $ | 2,124,292 | |||||
COMPOSITION OF NET ASSETS | |||||||
Paid-in capital | $ | 1,013,851 | |||||
Total distributable earnings | 1,110,441 | ||||||
$ | 2,124,292 | ||||||
NET ASSET VALUE, PER SHARE | |||||||
Class K ( $1,062,146 / 50,373 shares outstanding), unlimited authorized, no par value | $ | 21.09 | |||||
Institutional Class ( $1,062,146 / 50,373 shares outstanding), unlimited authorized, no par value | $ | 21.09 |
The accompanying notes are an integral part of the financial statements.
11
Statement of Operations
Semi-Annual Report June 30, 2021
For the Six Months Ended June 30, 2021 (unaudited)
Baillie Gifford China A Shares Growth Fund
INVESTMENT INCOME | |||||||
Dividends (net of foreign withholding taxes of $1,188) | $ | 10,547 | |||||
Interest | 1 | ||||||
Total Investment Income | 10,548 | ||||||
EXPENSES | |||||||
Advisory fee (Note B) | 5,437 | ||||||
Administration & Supervisory fee — Class K shares (Note B) | 840 | ||||||
Administration & Supervisory fee — Institutional Class shares (Note B) | 840 | ||||||
Transfer agency | 15,810 | ||||||
Fund accounting | 47,996 | ||||||
Professional fees | 14,258 | ||||||
Custody | 1,306 | ||||||
Legal | 104 | ||||||
Registration fees | 44 | ||||||
Trustees' fees | 22 | ||||||
Commitment fees | 5 | ||||||
Miscellaneous | 1,932 | ||||||
Total Expenses | 88,594 | ||||||
Fees waived/expenses reimbursed | (79,994 | ) | |||||
Total Expenses after waiver | 8,600 | ||||||
Net Investment Income | 1,948 | ||||||
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS AND FOREIGN CURRENCY TRANSACTIONS | |||||||
Net realized gain from: | |||||||
Investments | 111,418 | ||||||
Foreign currency transactions | 37 | ||||||
111,455 | |||||||
Net change in unrealized appreciation (depreciation) on: | |||||||
Investments | 32,616 | ||||||
Translation of net assets and liabilities denominated in foreign currencies | (1 | ) | |||||
32,615 | |||||||
Net realized and unrealized gain | 144,070 | ||||||
NET INCREASE IN NET ASSETS FROM OPERATIONS | $ | 146,018 |
The accompanying notes are an integral part of the financial statements.
12
Statements of Changes in Net Assets
Semi-Annual Report June 30, 2021
Baillie Gifford China A Shares Growth Fund
For the Six Months Ended June 30, 2021 (unaudited) | For the Year Ended December 31, 2020 | ||||||||||
INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS | |||||||||||
Net investment income (loss) | $ | 1,948 | $ | (2,062 | ) | ||||||
Net realized gain | 111,455 | 70,326 | |||||||||
Net change in unrealized appreciation | 32,615 | 881,406 | |||||||||
Net increase in net assets from operations | 146,018 | 949,670 | |||||||||
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS FROM: | |||||||||||
Distributable earnings | |||||||||||
Class K | — | (7,058 | ) | ||||||||
Institutional Class | — | (7,057 | ) | ||||||||
Total Distributions to Shareholders | — | (14,115 | ) | ||||||||
TRANSACTIONS IN SHARES OF BENEFICIAL INTEREST | |||||||||||
Net proceeds from shares subscribed: | |||||||||||
Class K | — | — | |||||||||
Institutional Class | — | — | |||||||||
Dividends reinvested: | |||||||||||
Class K | — | 7,058 | |||||||||
Institutional Class | — | 7,057 | |||||||||
Increase in Net Assets from Transactions in Shares of Beneficial Interest | — | 14,115 | |||||||||
Total Increase in Net Assets | 146,018 | 949,670 | |||||||||
NET ASSETS | |||||||||||
Beginning of period | 1,978,274 | 1,028,604 | |||||||||
End of period | $ | 2,124,292 | $ | 1,978,274 |
The accompanying notes are an integral part of the financial statements.
13
Financial Highlights
Semi-Annual Report June 30, 2021
Baillie Gifford China A Shares Growth Fund
Selected data for a Class K share outstanding throughout each period:
For the Six Months Ended June 30, 2021 (unaudited) | For the Year Ended December 31, 2020 | For the Period December 19, 2019(a) through December 31, 2019 | |||||||||||||
Net asset value, beginning of period | $ | 19.64 | $ | 10.29 | $ | 10.00 | |||||||||
From Investment Operations | |||||||||||||||
Net investment income (loss)(b) | 0.02 | (0.02 | ) | (0.00 | )(c) | ||||||||||
Net realized and unrealized gain on investments and foreign currency | 1.43 | 9.51 | 0.29 | ||||||||||||
Net increase in net asset value from investment operations | 1.45 | 9.49 | 0.29 | ||||||||||||
Dividends and Distributions to Shareholders | |||||||||||||||
From net realized gain on investments | — | (0.14 | ) | — | |||||||||||
Total Dividends and Distributions | — | (0.14 | ) | — | |||||||||||
Net asset value, end of period | $ | 21.09 | $ | 19.64 | $ | 10.29 | |||||||||
Total Return | |||||||||||||||
Total return based on net asset value(d) | 7.38 | % | 92.29 | % | 2.90 | % | |||||||||
Ratios/Supplemental Data | |||||||||||||||
Net assets, end of period (000's omitted) | $ | 1,062 | $ | 989 | $ | 514 | |||||||||
Ratio of net expenses to average net assets, before waiver | 8.96 | %* | 10.52 | % | 90.51 | %* | |||||||||
Ratio of net expenses to average net assets, after waiver | 0.87 | %* | 0.87 | % | 0.87 | %* | |||||||||
Ratio of net investment income (loss) to average net assets | 0.20 | %* | (0.15 | )% | (0.80 | )%* | |||||||||
Portfolio turnover rate(e) | 12 | % | 20 | % | 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.
(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.
14
Financial Highlights
Semi-Annual Report June 30, 2021
Baillie Gifford China A Shares Growth Fund
Selected data for an Institutional Class share outstanding throughout each period:
For the Six Months Ended June 30, 2021 (unaudited) | For the Year Ended December 31, 2020 | For the Period December 19, 2019(a) through December 31, 2019 | |||||||||||||
Net asset value, beginning of period | $ | 19.64 | $ | 10.29 | $ | 10.00 | |||||||||
From Investment Operations | |||||||||||||||
Net investment income (loss)(b) | 0.02 | (0.02 | ) | (0.00 | )(c) | ||||||||||
Net realized and unrealized gain on investments and foreign currency | 1.43 | 9.51 | 0.29 | ||||||||||||
Net increase in net asset value from investment operations | 1.45 | 9.49 | 0.29 | ||||||||||||
Dividends and Distributions to Shareholders | |||||||||||||||
From net realized gain on investments | — | (0.14 | ) | — | |||||||||||
Total Dividends and Distributions | — | (0.14 | ) | — | |||||||||||
Net asset value, end of period | $ | 21.09 | $ | 19.64 | $ | 10.29 | |||||||||
Total Return | |||||||||||||||
Total return based on net asset value(d) | 7.38 | % | 92.29 | % | 2.90 | % | |||||||||
Ratios/Supplemental Data | |||||||||||||||
Net assets, end of period (000's omitted) | $ | 1,062 | $ | 989 | $ | 514 | |||||||||
Ratio of net expenses to average net assets, before waiver | 8.96 | %* | 10.52 | % | 90.51 | %* | |||||||||
Ratio of net expenses to average net assets, after waiver | 0.87 | %* | 0.87 | % | 0.87 | %* | |||||||||
Ratio of net investment income (loss) to average net assets | 0.20 | %* | (0.15 | )% | (0.80 | )%* | |||||||||
Portfolio turnover rate(e) | 12 | % | 20 | % | 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.
(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.
15
Industry Diversification Table
Semi-Annual Report June 30, 2021
June 30, 2021 (unaudited)
Baillie Gifford Developed EAFE All Cap Fund
Value | % of Total Net Assets | ||||||||||
Apparel | $ | 40,469,358 | 5.9 | % | |||||||
Auto Manufacturers | 7,094,344 | 1.0 | |||||||||
Auto Parts & Equipment | 9,239,950 | 1.3 | |||||||||
Banks | 10,620,243 | 1.6 | |||||||||
Beverages | 11,950,014 | 1.7 | |||||||||
Building Materials | 18,371,280 | 2.7 | |||||||||
Chemicals | 15,951,019 | 2.3 | |||||||||
Commercial Services | 14,838,332 | 2.2 | |||||||||
Computers | 12,333,864 | 1.8 | |||||||||
Cosmetics/Personal Care | 21,219,684 | 3.1 | |||||||||
Diversified Financial Services | 31,179,606 | 4.5 | |||||||||
Electronics | 62,573,339 | 9.1 | |||||||||
Engineering & Construction | 5,232,000 | 0.8 | |||||||||
Food | 9,495,263 | 1.4 | |||||||||
Hand/Machine Tools | 14,255,264 | 2.1 | |||||||||
Healthcare — Products | 41,061,266 | 6.0 | |||||||||
Healthcare — Services | 5,209,902 | 0.8 | |||||||||
Home Furnishings | 5,974,012 | 0.9 | |||||||||
Insurance | 18,605,887 | 2.7 | |||||||||
Internet | 83,583,108 | 12.4 | |||||||||
Investment Companies | 5,984,556 | 0.9 | |||||||||
Leisure Time | 15,988,488 | 2.3 | |||||||||
Machinery — Construction & Mining | 12,033,075 | 1.7 | |||||||||
Machinery — Diversified | 53,098,063 | 7.7 | |||||||||
Oil & Gas Services | 2,149,224 | 0.3 | |||||||||
Retail | 56,772,776 | 8.3 | |||||||||
Semiconductors | 27,719,077 | 4.0 | |||||||||
Software | 21,998,132 | 3.3 | |||||||||
Telecommunications | 10,419,428 | 1.5 | |||||||||
Toys/Games/Hobbies | 8,970,146 | 1.3 | |||||||||
Total Value of Investments | 654,390,700 | 95.6 | |||||||||
Other assets less liabilities | 30,345,550 | 4.4 | |||||||||
Net Assets | $ | 684,736,250 | 100.0 | % |
The table above is based on Bloomberg Industry Group classifications. For compliance monitoring purposes, sub-industry classifications are used which results in less concentration across industry sectors.
16
Portfolio of Investments
Semi-Annual Report June 30, 2021
June 30, 2021 (unaudited)
Baillie Gifford Developed EAFE All Cap Fund
Shares | Value | ||||||||||
COMMON STOCKS — 93.3% | |||||||||||
AUSTRALIA — 3.7% | |||||||||||
Cochlear Ltd. | 77,052 | $ | 14,537,177 | ||||||||
SEEK Ltd. | 433,558 | 10,777,813 | |||||||||
25,314,990 | |||||||||||
CHINA — 1.0% | |||||||||||
Prosus NV * | 67,681 | 6,630,545 | |||||||||
FINLAND — 1.5% | |||||||||||
Kone Oyj, B Shares | 128,922 | 10,521,869 | |||||||||
FRANCE — 6.4% | |||||||||||
Kering | 12,599 | 11,039,468 | |||||||||
LVMH Moet Hennessy Louis Vuitton SE | 16,859 | 13,262,250 | |||||||||
Remy Cointreau SA | 57,863 | 11,950,014 | |||||||||
Ubisoft Entertainment SA * | 104,357 | 7,291,184 | |||||||||
43,542,916 | |||||||||||
GERMANY — 8.8% | |||||||||||
adidas AG | 24,788 | 9,249,838 | |||||||||
Auto1 Group SE * | 70,939 | 3,116,495 | |||||||||
Bechtle AG | 66,361 | 12,333,864 | |||||||||
Nemetschek SE | 60,162 | 4,605,192 | |||||||||
Rational AG | 6,594 | 5,974,012 | |||||||||
Zalando SE * | 207,603 | 25,107,490 | |||||||||
60,386,891 | |||||||||||
HONG KONG — 4.8% | |||||||||||
AIA Group Ltd. | 1,499,800 | 18,605,887 | |||||||||
Techtronic Industries Co., Ltd. | 818,000 | 14,255,264 | |||||||||
32,861,151 | |||||||||||
JAPAN — 22.6% | |||||||||||
Denso Corp. | 135,500 | 9,239,950 | |||||||||
Kakaku.com, Inc. | 286,700 | 8,625,115 | |||||||||
Kao Corp. | 107,500 | 6,628,459 | |||||||||
Keyence Corp. | 15,700 | 7,906,888 | |||||||||
Murata Manufacturing Co., Ltd. | 119,200 | 9,080,046 |
The accompanying notes are an integral part of the financial statements.
17
Portfolio of Investments
Semi-Annual Report June 30, 2021
June 30, 2021 (unaudited)
Baillie Gifford Developed EAFE All Cap Fund
Shares | Value | ||||||||||
Nidec Corp. | 106,100 | $ | 12,200,464 | ||||||||
Olympus Corp. | 762,100 | 15,158,881 | |||||||||
Pigeon Corp. | 106,500 | 3,003,723 | |||||||||
Recruit Holdings Co., Ltd. | 161,700 | 7,929,574 | |||||||||
Shimano, Inc. | 67,200 | 15,988,488 | |||||||||
Shiseido Co., Ltd. | 157,100 | 11,587,502 | |||||||||
SMC Corp. | 26,100 | 15,440,623 | |||||||||
SoftBank Group Corp. | 149,400 | 10,419,428 | |||||||||
Sugi Holdings Co., Ltd. | 46,800 | 3,414,489 | |||||||||
Suzuki Motor Corp. | 167,400 | 7,094,344 | |||||||||
Sysmex Corp. | 95,800 | 11,365,208 | |||||||||
155,083,182 | |||||||||||
NETHERLANDS — 5.1% | |||||||||||
ASML Holding NV | 40,154 | 27,719,077 | |||||||||
IMCD NV | 44,117 | 7,029,384 | |||||||||
34,748,461 | |||||||||||
NEW ZEALAND — 2.2% | |||||||||||
Ryman Healthcare Ltd. | 567,735 | 5,209,902 | |||||||||
Xero Ltd. * | 98,209 | 10,101,755 | |||||||||
15,311,657 | |||||||||||
PORTUGAL — 1.4% | |||||||||||
Jeronimo Martins SGPS SA | 520,664 | 9,495,263 | |||||||||
SINGAPORE — 1.6% | |||||||||||
United Overseas Bank Ltd. | 551,489 | 10,620,243 | |||||||||
SPAIN — 1.8% | |||||||||||
Industria de Diseno Textil SA | 354,511 | 12,516,656 | |||||||||
SWEDEN — 10.2% | |||||||||||
Atlas Copco AB, A Shares | 313,128 | 19,228,682 | |||||||||
Avanza Bank Holding AB | 593,753 | 18,524,473 | |||||||||
Epiroc AB, A Shares | 21,605 | 491,809 | |||||||||
Epiroc AB, B Shares | 365,705 | 7,179,751 | |||||||||
Investor AB, B Shares | 259,629 | 5,984,555 | |||||||||
Nibe Industrier AB, B Shares | 1,743,436 | 18,371,280 | |||||||||
69,780,550 |
The accompanying notes are an integral part of the financial statements.
18
Portfolio of Investments
Semi-Annual Report June 30, 2021
June 30, 2021 (unaudited)
Baillie Gifford Developed EAFE All Cap Fund
Shares | Value | ||||||||||
SWITZERLAND — 2.3% | |||||||||||
Compagnie Financiere Richemont SA | 129,789 | $ | 15,734,141 | ||||||||
UNITED KINGDOM — 14.2% | |||||||||||
ASOS PLC * | 146,627 | 10,076,708 | |||||||||
Auto Trader Group PLC * | 1,568,810 | 13,739,647 | |||||||||
Burberry Group PLC * | 241,888 | 6,917,803 | |||||||||
Games Workshop Group PLC | 56,880 | 8,970,146 | |||||||||
Hargreaves Lansdown PLC | 575,118 | 12,655,133 | |||||||||
HomeServe PLC | 395,600 | 5,232,000 | |||||||||
Intertek Group PLC | 90,270 | 6,908,758 | |||||||||
John Wood Group PLC * | 705,464 | 2,149,224 | |||||||||
Johnson Matthey PLC | 209,545 | 8,921,636 | |||||||||
Rightmove PLC | 1,413,085 | 12,701,099 | |||||||||
Trainline PLC * | 1,070,671 | 4,348,390 | |||||||||
Weir Group PLC (The) * | 169,903 | 4,361,516 | |||||||||
96,982,060 | |||||||||||
UNITED STATES — 5.7% | |||||||||||
Mettler-Toledo International, Inc. * | 18,356 | 25,429,301 | |||||||||
Spotify Technology SA * | 49,230 | 13,567,296 | |||||||||
38,996,597 | |||||||||||
Total Common Stocks | |||||||||||
(cost $399,331,289) | 638,527,172 | ||||||||||
PREFERRED STOCKS — 2.3% | |||||||||||
GERMANY — 2.3% | |||||||||||
Sartorius AG 0.15% (cost $5,021,564) | 30,477 | 15,863,528 | |||||||||
TOTAL INVESTMENTS — 95.6% | |||||||||||
(cost $404,352,853) | $ | 654,390,700 | |||||||||
Other assets less liabilities — 4.4% | 30,345,550 | ||||||||||
NET ASSETS — 100.0% | $ | 684,736,250 |
* Non-income producing security.
This report classifies issuers geographically by their country of risk. For compliance monitoring purposes, the Manager retains discretion to consider a number of factors in determining where a particular issuer is located, as described in further detail in each Fund's prospectus.
The accompanying notes are an integral part of the financial statements.
19
Portfolio of Investments
Semi-Annual Report June 30, 2021
June 30, 2021 (unaudited)
Baillie Gifford Developed EAFE All Cap Fund
Fair Value Measurement
The following is a summary of the inputs used as of June 30, 2021 in valuing the Fund's investments carried at fair value:
Investments in Securities | Level 1 | Level 2 | Level 3 | Total | |||||||||||||||
Common Stocks ** | $ | 55,956,745 | $ | 582,570,427 | $ | — | $ | 638,527,172 | |||||||||||
Preferred Stocks ** | — | 15,863,528 | — | 15,863,528 | |||||||||||||||
Total | $ | 55,956,745 | $ | 598,433,955 | $ | — | $ | 654,390,700 |
** Refer to Portfolio of Investments for further detail.
The accompanying notes are an integral part of the financial statements.
20
Statement of Assets and Liabilities
Semi-Annual Report June 30, 2021
June 30, 2021 (unaudited)
Baillie Gifford Developed EAFE All Cap Fund
ASSETS | |||||||
Investments, at value (cost $404,352,853) | $ | 654,390,700 | |||||
Cash | 15,411,849 | ||||||
Foreign cash, at value (cost $106,530) | 104,223 | ||||||
Capital shares sold receivable | 14,630,605 | ||||||
Tax reclaims receivable | 779,055 | ||||||
Dividends receivable | 324,634 | ||||||
Prepaid assets | 16,025 | ||||||
Total Assets | 685,657,091 | ||||||
LIABILITIES | |||||||
Advisory fee payable | 548,282 | ||||||
Administration & Supervisory fee payable | 120,748 | ||||||
Shareholder Servicing fee payable | 98,393 | ||||||
Capital shares purchased payable | 6,119 | ||||||
Trustee fee payable | 3,596 | ||||||
Commitment fee payable | 751 | ||||||
Accrued expenses | 142,952 | ||||||
Total Liabilities | 920,841 | ||||||
NET ASSETS | $ | 684,736,250 | |||||
COMPOSITION OF NET ASSETS | |||||||
Paid-in capital | $ | 426,949,275 | |||||
Total distributable earnings | 257,786,975 | ||||||
$ | 684,736,250 | ||||||
NET ASSET VALUE, PER SHARE | |||||||
Class 2 ( $123,049,484 / 6,977,130 shares outstanding), unlimited authorized, no par value | $ | 17.64 | |||||
Class 3 ( $107,318,881 / 6,023,514 shares outstanding), unlimited authorized, no par value | $ | 17.82 | |||||
Class 4 ( $115,305,159 / 6,448,597 shares outstanding), unlimited authorized, no par value | $ | 17.88 | |||||
Class K ( $319,066,207 / 18,121,909 shares outstanding), unlimited authorized, no par value | $ | 17.61 | |||||
Institutional Class ( $19,996,519 / 1,137,452 shares outstanding), unlimited authorized, no par value | $ | 17.58 |
The accompanying notes are an integral part of the financial statements.
21
Statement of Operations
Semi-Annual Report June 30, 2021
For the Six Months Ended June 30, 2021 (unaudited)
Baillie Gifford Developed EAFE All Cap Fund
INVESTMENT INCOME | |||||||
Dividends (net of foreign withholding taxes of $475,403) | $ | 3,330,663 | |||||
Interest | 519 | ||||||
Total Investment Income | 3,331,182 | ||||||
EXPENSES | |||||||
Advisory fee (Note B) | 1,063,755 | ||||||
Shareholder Servicing fees — Class 2 shares (Note B) | 107,626 | ||||||
Shareholder Servicing fees — Class 3 shares (Note B) | 52,389 | ||||||
Shareholder Servicing fees — Class 4 shares (Note B) | 36,670 | ||||||
Administration & Supervisory fee — Class K shares (Note B) | 219,243 | ||||||
Administration & Supervisory fee — Institutional Class shares (Note B) | 11,695 | ||||||
Transfer agency | 43,687 | ||||||
Sub-transfer agency — Institutional Class shares | 6,517 | ||||||
Fund accounting | 92,471 | ||||||
Custody | 43,575 | ||||||
Legal | 33,148 | ||||||
Registration fees | 27,651 | ||||||
Professional fees | 14,335 | ||||||
Trustees' fees | 6,314 | ||||||
Commitment fees | 1,413 | ||||||
Miscellaneous | 9,972 | ||||||
Total Expenses | 1,770,461 | ||||||
Net Investment Income | 1,560,721 | ||||||
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS AND FOREIGN CURRENCY TRANSACTIONS | |||||||
Net realized gain (loss) from: | |||||||
Investments | 8,987,694 | ||||||
Foreign currency transactions | (22,695 | ) | |||||
8,964,999 | |||||||
Net change in unrealized appreciation (depreciation) on: | |||||||
Investments | 24,502,967 | ||||||
Translation of net assets and liabilities denominated in foreign currencies | (59,075 | ) | |||||
24,443,892 | |||||||
Net realized and unrealized gain | 33,408,891 | ||||||
NET INCREASE IN NET ASSETS FROM OPERATIONS | $ | 34,969,612 |
The accompanying notes are an integral part of the financial statements.
22
Statements of Changes in Net Assets
Semi-Annual Report June 30, 2021
Baillie Gifford Developed EAFE All Cap Fund
For the Six Months Ended June 30, 2021 (unaudited) | For the Year Ended December 31, 2020 | ||||||||||
INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS | |||||||||||
Net investment income | $ | 1,560,721 | $ | 2,705,662 | |||||||
Net realized gain | 8,964,999 | 11,744,538 | |||||||||
Net change in unrealized appreciation | 24,443,892 | 121,526,290 | |||||||||
Net increase in net assets from operations | 34,969,612 | 135,976,490 | |||||||||
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS FROM: | |||||||||||
Distributable earnings | |||||||||||
Class 2 | — | (2,184,122 | ) | ||||||||
Class 3 | — | (1,158,667 | ) | ||||||||
Class 4 | — | — | |||||||||
Class K | — | (2,481,439 | ) | ||||||||
Institutional Class | — | (109,348 | ) | ||||||||
Class 4 | — | — | |||||||||
Total Distributions to Shareholders | — | (5,933,576 | ) | ||||||||
TRANSACTIONS IN SHARES OF BENEFICIAL INTEREST | |||||||||||
Net proceeds from shares subscribed: | |||||||||||
Class 2 | 3,000 | 6,000 | |||||||||
Class 3 | 103,921,278 | * | — | ||||||||
Class 4 | 111,639,409 | * | — | ||||||||
Class K | 79,877,575 | 9,101,965 | |||||||||
Institutional Class | 11,517,882 | 17,007,484 | |||||||||
Dividends reinvested: | |||||||||||
Class 2 | — | 2,184,122 | |||||||||
Class 3 | — | 1,158,667 | |||||||||
Class K | — | 2,359,735 | |||||||||
Institutional Class | — | 109,348 | |||||||||
Cost of shares redeemed: | |||||||||||
Class 2 | (107,921,279 | )* | (65,191,959 | ) | |||||||
Class 3 | (111,639,409 | )* | — | ||||||||
Class K | (21,356,826 | ) | (62,538,353 | ) | |||||||
Institutional Class | (4,605,087 | ) | (17,016,373 | ) | |||||||
Increase (Decrease) in Net Assets from Transactions in Shares of Beneficial Interest | 61,436,543 | (112,819,364 | ) | ||||||||
Total Increase in Net Assets | 96,406,155 | 17,223,550 | |||||||||
NET ASSETS | |||||||||||
Beginning of period | 588,330,095 | 571,106,545 | |||||||||
End of period | $ | 684,736,250 | $ | 588,330,095 |
* See Note D for details of share class conversions.
The accompanying notes are an integral part of the financial statements.
23
Financial Highlights
Semi-Annual Report June 30, 2021
Baillie Gifford Developed EAFE All Cap Fund
Selected data for a Class 2 share outstanding throughout each period:
For the Six Months Ended June 30, 2021 (unaudited) | For the Year Ended December 31, 2020 | For the Year Ended December 31, 2019 | For the Year Ended December 31, 2018 | For the Year Ended December 31, 2017 | For the Year Ended December 31, 2016 | ||||||||||||||||||||||
Net asset value, beginning of period | $ | 16.64 | $ | 13.13 | $ | 10.04 | $ | 12.06 | $ | 9.55 | $ | 9.70 | |||||||||||||||
From Investment Operations | |||||||||||||||||||||||||||
Net investment income(a) | 0.04 | 0.07 | 0.13 | 0.15 | 0.14 | 0.17 | |||||||||||||||||||||
Net realized and unrealized gain (loss) on investments and foreign currency | 0.96 | 3.61 | 3.11 | (2.08 | ) | 2.58 | (0.18 | ) | |||||||||||||||||||
Net increase (decrease) in net asset value from investment operations | 1.00 | 3.68 | 3.24 | (1.93 | ) | 2.72 | (0.01 | ) | |||||||||||||||||||
Dividends and Distributions to Shareholders | |||||||||||||||||||||||||||
From net investment income | — | (0.17 | ) | (0.15 | ) | (0.03 | ) | (0.22 | ) | (0.14 | ) | ||||||||||||||||
From net realized gain on investments | — | — | — | (0.06 | ) | — | — | ||||||||||||||||||||
Total Dividends and Distributions | — | (0.17 | ) | (0.15 | ) | (0.09 | ) | (0.22 | ) | (0.14 | ) | ||||||||||||||||
Proceeds from Purchase Fees and Redemption Fees(a) | — | — | — | — | 0.01 | (0.00 | )(b) | ||||||||||||||||||||
Net asset value, end of period | $ | 17.64 | $ | 16.64 | $ | 13.13 | $ | 10.04 | $ | 12.06 | $ | 9.55 | |||||||||||||||
Total Return | |||||||||||||||||||||||||||
Total return based on net asset value(c) | 6.00 | % | 27.95 | % | 32.33 | % | (16.05 | )% | 28.59 | % | (0.20 | )% | |||||||||||||||
Ratios/Supplemental Data | |||||||||||||||||||||||||||
Net assets, end of period (000's omitted) | $ | 123,049 | $ | 221,181 | $ | 229,861 | $ | 181,679 | $ | 221,316 | $ | 172,316 | |||||||||||||||
Ratio of net expenses to average net assets | 0.61 | %* | 0.64 | % | 0.66 | % | 0.67 | % | 0.66 | % | 0.66 | % | |||||||||||||||
Ratio of net investment income to average net assets | 0.42 | %* | 0.50 | % | 1.08 | % | 1.23 | % | 1.22 | % | 1.73 | % | |||||||||||||||
Portfolio turnover rate(d) | 7 | % | 12 | % | 19 | % | 14 | % | 21 | % | 13 | % |
* Annualized.
(a) Calculated based upon average shares outstanding during the period.
(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.
24
Financial Highlights
Semi-Annual Report June 30, 2021
Baillie Gifford Developed EAFE All Cap Fund
Selected data for a Class 3 share outstanding throughout each period:
For the Six Months Ended June 30, 2021 (unaudited) | For the Year Ended December 31, 2020 | For the Year Ended December 31, 2019 | For the Year Ended December 31, 2018 | For the Period March 24, 2017(a) through December 31, 2017 | |||||||||||||||||||
Net asset value, beginning of period | $ | 16.80 | $ | 13.26 | $ | 10.13 | $ | 12.17 | $ | 10.49 | |||||||||||||
From Investment Operations | |||||||||||||||||||||||
Net investment income(b) | 0.05 | 0.07 | 0.14 | 0.16 | 0.12 | ||||||||||||||||||
Net realized and unrealized gain (loss) on investments and foreign currency | 0.97 | 3.65 | 3.15 | (2.11 | ) | 1.79 | |||||||||||||||||
Net increase (decrease) in net asset value from investment operations | 1.02 | 3.72 | 3.29 | (1.95 | ) | 1.91 | |||||||||||||||||
Dividends and Distributions to Shareholders | |||||||||||||||||||||||
From net investment income | — | (0.18 | ) | (0.16 | ) | (0.03 | ) | (0.23 | ) | ||||||||||||||
From net realized gain on investments | — | — | — | (0.06 | ) | — | |||||||||||||||||
Total Dividends and Distributions | — | (0.18 | ) | (0.16 | ) | (0.09 | ) | (0.23 | ) | ||||||||||||||
Proceeds from Purchase Fees and Redemption Fees(b) | — | — | — | — | 0.00 | (c) | |||||||||||||||||
Net asset value, end of period | $ | 17.82 | $ | 16.80 | $ | 13.26 | $ | 10.13 | $ | 12.17 | |||||||||||||
Total Return | |||||||||||||||||||||||
Total return based on net asset value(d) | 6.04 | % | 28.04 | % | 32.42 | % | (15.99 | )% | 18.25 | % | |||||||||||||
Ratios/Supplemental Data | |||||||||||||||||||||||
Net assets, end of period (000's omitted) | $ | 107,319 | $ | 108,722 | $ | 84,911 | $ | 64,123 | $ | 82,523 | |||||||||||||
Ratio of net expenses to average net assets | 0.54 | %* | 0.57 | % | 0.59 | % | 0.60 | % | 0.58 | %* | |||||||||||||
Ratio of net investment income to average net assets | 0.55 | %* | 0.55 | % | 1.16 | % | 1.31 | % | 1.32 | %* | |||||||||||||
Portfolio turnover rate(e) | 7 | % | 12 | % | 19 | % | 14 | % | 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.
(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.
25
Financial Highlights
Semi-Annual Report June 30, 2021
Baillie Gifford Developed EAFE All Cap Fund
Selected data for a Class 4 share outstanding throughout the period:
For the Period January 13, 2021(a) through June 30, 2021 (unaudited) | |||||||
Net asset value, beginning of period | $ | 17.31 | |||||
From Investment Operations | |||||||
Net investment income(b) | 0.05 | ||||||
Net realized and unrealized gain on investments and foreign currency | 0.52 | ||||||
Net increase in net asset value from investment operations | 0.57 | ||||||
Net asset value, end of period | $ | 17.88 | |||||
Total Return | |||||||
Total return based on net asset value(c) | 3.28 | % | |||||
Ratios/Supplemental Data | |||||||
Net assets, end of period (000's omitted) | $ | 115,305 | |||||
Ratio of net expenses to average net assets | 0.51 | %* | |||||
Ratio of net investment income to average net assets | 0.71 | %* | |||||
Portfolio turnover rate(d) | 7 | % |
* Annualized.
(a) Commencement of investment operations.
(b) Calculated based upon average shares outstanding during the period.
(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.
26
Financial Highlights
Semi-Annual Report June 30, 2021
Baillie Gifford Developed EAFE All Cap Fund
Selected data for a Class K share outstanding throughout each period:
For the Six Months Ended June 30, 2021 (unaudited) | For the Year Ended December 31, 2020 | For the Year Ended December 31, 2019 | For the Year Ended December 31, 2018 | For the Period April 28, 2017(a) through December 31, 2017 | |||||||||||||||||||
Net asset value, beginning of period | $ | 16.61 | $ | 13.11 | $ | 10.03 | $ | 12.06 | $ | 10.74 | |||||||||||||
From Investment Operations | |||||||||||||||||||||||
Net investment income(b) | 0.04 | 0.06 | 0.12 | 0.11 | 0.07 | ||||||||||||||||||
Net realized and unrealized gain (loss) on investments and foreign currency | 0.96 | 3.61 | 3.11 | (2.04 | ) | 1.47 | |||||||||||||||||
Net increase (decrease) in net asset value from investment operations | 1.00 | 3.67 | 3.23 | (1.93 | ) | 1.54 | |||||||||||||||||
Dividends and Distributions to Shareholders | |||||||||||||||||||||||
From net investment income | — | (0.17 | ) | (0.15 | ) | (0.04 | ) | (0.22 | ) | ||||||||||||||
From net realized gain on investments | — | — | — | (0.06 | ) | — | |||||||||||||||||
Total Dividends and Distributions | — | (0.17 | ) | (0.15 | ) | (0.10 | ) | (0.22 | ) | ||||||||||||||
Net asset value, end of period | $ | 17.61 | $ | 16.61 | $ | 13.11 | $ | 10.03 | $ | 12.06 | |||||||||||||
Total Return | |||||||||||||||||||||||
Total return based on net asset value(c) | 6.02 | % | 27.98 | % | 32.24 | % | (16.05 | )% | 14.39 | % | |||||||||||||
Ratios/Supplemental Data | |||||||||||||||||||||||
Net assets, end of period (000's omitted) | $ | 319,066 | $ | 246,283 | $ | 247,155 | $ | 152,397 | $ | 6 | |||||||||||||
Ratio of net expenses to average net assets | 0.61 | %* | 0.64 | % | 0.66 | % | 0.67 | % | 0.66 | %* | |||||||||||||
Ratio of net investment income to average net assets | 0.49 | %* | 0.49 | % | 1.04 | % | 0.99 | % | 0.87 | %* | |||||||||||||
Portfolio turnover rate(d) | 7 | % | 12 | % | 19 | % | 14 | % | 21 | % |
* Annualized.
(a) Commencement of investment operations.
(b) Calculated based upon average shares outstanding during the period.
(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.
27
Financial Highlights
Semi-Annual Report June 30, 2021
Baillie Gifford Developed EAFE All Cap Fund
Selected data for an Institutional Class share outstanding throughout each period:
For the Six Months Ended June 30, 2021 (unaudited) | For the Year Ended December 31, 2020 | For the Year Ended December 31, 2019 | For the Year Ended December 31, 2018 | For the Period April 28, 2017(a) through December 31, 2017 | |||||||||||||||||||
Net asset value, beginning of period | $ | 16.59 | $ | 13.10 | $ | 10.02 | $ | 12.06 | $ | 10.74 | |||||||||||||
From Investment Operations | |||||||||||||||||||||||
Net investment income(b) | 0.04 | 0.06 | 0.11 | 0.06 | 0.07 | ||||||||||||||||||
Net realized and unrealized gain (loss) on investments and foreign currency | 0.95 | 3.58 | 3.13 | (2.00 | ) | 1.47 | |||||||||||||||||
Net increase (decrease) in net asset value from investment operations | 0.99 | 3.64 | 3.24 | (1.94 | ) | 1.54 | |||||||||||||||||
Dividends and Distributions to Shareholders | |||||||||||||||||||||||
From net investment income | — | (0.15 | ) | (0.16 | ) | (0.04 | ) | (0.22 | ) | ||||||||||||||
From net realized gain on investments | — | — | — | (0.06 | ) | — | |||||||||||||||||
Total Dividends and Distributions | — | (0.15 | ) | (0.16 | ) | (0.10 | ) | (0.22 | ) | ||||||||||||||
Net asset value, end of period | $ | 17.58 | $ | 16.59 | $ | 13.10 | $ | 10.02 | $ | 12.06 | |||||||||||||
Total Return | |||||||||||||||||||||||
Total return based on net asset value(c) | 5.97 | % | 27.77 | % | 32.28 | % | (16.13 | )% | 14.39 | % | |||||||||||||
Ratios/Supplemental Data | |||||||||||||||||||||||
Net assets, end of period (000's omitted) | $ | 19,997 | $ | 12,143 | $ | 9,179 | $ | 1,862 | $ | 6 | |||||||||||||
Ratio of net expenses to average net assets | 0.70 | %* | 0.76 | % | 0.73 | % | 0.77 | % | 0.66 | %* | |||||||||||||
Ratio of net investment income to average net assets | 0.42 | %* | 0.43 | % | 0.89 | % | 0.59 | % | 0.87 | %* | |||||||||||||
Portfolio turnover rate(d) | 7 | % | 12 | % | 19 | % | 14 | % | 21 | % |
* Annualized.
(a) Commencement of investment operations.
(b) Calculated based upon average shares outstanding during the period.
(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.
28
Industry Diversification Table
Semi-Annual Report June 30, 2021
June 30, 2021 (unaudited)
Baillie Gifford EAFE Plus All Cap Fund
Value | % of Total Net Assets | ||||||||||
Apparel | $ | 33,555,800 | 5.0 | % | |||||||
Auto Manufacturers | 5,878,050 | 0.9 | |||||||||
Auto Parts & Equipment | 8,305,726 | 1.3 | |||||||||
Banks | 9,117,858 | 1.4 | |||||||||
Beverages | 16,354,656 | 2.4 | |||||||||
Building Materials | 14,732,347 | 2.2 | |||||||||
Chemicals | 13,645,704 | 2.0 | |||||||||
Commercial Services | 15,032,153 | 2.3 | |||||||||
Computers | 12,365,646 | 1.9 | |||||||||
Cosmetics/Personal Care | 21,481,705 | 3.2 | |||||||||
Diversified Financial Services | 9,854,896 | 1.5 | |||||||||
Electronics | 66,379,925 | 10.0 | |||||||||
Engineering & Construction | 5,056,259 | 0.8 | |||||||||
Food | 8,477,265 | 1.3 | |||||||||
Hand/Machine Tools | 11,266,538 | 1.7 | |||||||||
Healthcare — Products | 36,427,325 | 5.5 | |||||||||
Home Furnishings | 6,252,147 | 0.9 | |||||||||
Insurance | 24,445,120 | 3.7 | |||||||||
Internet | 123,737,485 | 18.7 | |||||||||
Investment Companies | 11,831,246 | 1.8 | |||||||||
Leisure Time | 10,349,691 | 1.6 | |||||||||
Machinery — Construction & Mining | 11,375,231 | 1.8 | |||||||||
Machinery — Diversified | 49,189,390 | 7.4 | |||||||||
Oil & Gas Services | 2,260,566 | 0.3 | |||||||||
Retail | 54,313,144 | 8.2 | |||||||||
Semiconductors | 37,593,616 | 5.7 | |||||||||
Software | 20,935,230 | 3.2 | |||||||||
Telecommunications | 8,801,418 | 1.3 | |||||||||
Toys/Games/Hobbies | 8,135,267 | 1.2 | |||||||||
Total Value of Investments | 657,151,404 | 99.2 | |||||||||
Other assets less liabilities | 5,314,784 | 0.8 | |||||||||
Net Assets | $ | 662,466,188 | 100.0 | % |
The table above is based on Bloomberg Industry Group classifications. For compliance monitoring purposes, sub-industry classifications are used which results in less concentration across industry sectors.
29
Portfolio of Investments
Semi-Annual Report June 30, 2021
June 30, 2021 (unaudited)
Baillie Gifford EAFE Plus All Cap Fund
Shares | Value | ||||||||||
COMMON STOCKS — 96.5% | |||||||||||
ARGENTINA — 1.6% | |||||||||||
MercadoLibre, Inc. * | 6,758 | $ | 10,527,545 | ||||||||
AUSTRALIA — 3.2% | |||||||||||
Cochlear Ltd. | 64,834 | 12,232,043 | |||||||||
SEEK Ltd. | 371,075 | 9,224,548 | |||||||||
21,456,591 | |||||||||||
BRAZIL — 0.6% | |||||||||||
Raia Drogasil SA | 818,100 | 4,079,151 | |||||||||
CHINA — 6.6% | |||||||||||
Alibaba Group Holding Ltd. ADR * | 42,336 | 9,600,958 | |||||||||
Baidu, Inc. ADR * | 20,109 | 4,100,225 | |||||||||
Meituan, Class B * | 303,000 | 12,499,103 | |||||||||
Ping An Insurance Group Co. of China Ltd., Class H | 491,500 | 4,804,608 | |||||||||
Prosus NV * | 38,031 | 3,725,806 | |||||||||
Trip.com Group Ltd. ADR * | 100,728 | 3,571,815 | |||||||||
Tsingtao Brewery Co., Ltd., Class H * | 517,943 | 5,570,049 | |||||||||
43,872,564 | |||||||||||
FINLAND — 1.5% | |||||||||||
Kone Oyj, B Shares | 121,333 | 9,902,498 | |||||||||
FRANCE — 5.0% | |||||||||||
Kering | 9,234 | 8,090,995 | |||||||||
LVMH Moet Hennessy Louis Vuitton SE | 10,799 | 8,495,109 | |||||||||
Remy Cointreau SA | 52,220 | 10,784,607 | |||||||||
Ubisoft Entertainment SA * | 86,524 | 6,045,234 | |||||||||
33,415,945 | |||||||||||
GERMANY — 9.2% | |||||||||||
adidas AG | 30,906 | 11,532,817 | |||||||||
Auto1 Group SE * | 79,816 | 3,506,480 | |||||||||
Bechtle AG | 66,532 | 12,365,646 | |||||||||
Nemetschek SE | 65,648 | 5,025,127 | |||||||||
Rational AG | 6,901 | 6,252,147 | |||||||||
Zalando SE * | 185,303 | 22,410,530 | |||||||||
61,092,747 |
The accompanying notes are an integral part of the financial statements.
30
Portfolio of Investments
Semi-Annual Report June 30, 2021
June 30, 2021 (unaudited)
Baillie Gifford EAFE Plus All Cap Fund
Shares | Value | ||||||||||
HONG KONG — 4.7% | |||||||||||
AIA Group Ltd. | 1,583,200 | $ | 19,640,512 | ||||||||
Techtronic Industries Co., Ltd. | 646,500 | 11,266,538 | |||||||||
30,907,050 | |||||||||||
INDIA — 0.4% | |||||||||||
MakeMyTrip Ltd. * | 90,774 | 2,727,759 | |||||||||
JAPAN — 21.1% | |||||||||||
Denso Corp. | 121,800 | 8,305,726 | |||||||||
Kakaku.com, Inc. | 184,700 | 5,556,536 | |||||||||
Kao Corp. | 87,100 | 5,370,593 | |||||||||
Keyence Corp. | 16,000 | 8,057,975 | |||||||||
Murata Manufacturing Co., Ltd. | 125,900 | 9,590,417 | |||||||||
Nidec Corp. | 99,600 | 11,453,027 | |||||||||
Olympus Corp. | 581,800 | 11,572,546 | |||||||||
Pigeon Corp. | 117,500 | 3,313,966 | |||||||||
Recruit Holdings Co., Ltd. | 147,500 | 7,233,223 | |||||||||
Shimano, Inc. | 43,500 | 10,349,691 | |||||||||
Shiseido Co., Ltd. | 173,500 | 12,797,146 | |||||||||
SMC Corp. | 25,000 | 14,789,869 | |||||||||
SoftBank Group Corp. | 126,200 | 8,801,418 | |||||||||
Sugi Holdings Co., Ltd. | 53,700 | 3,917,908 | |||||||||
Suzuki Motor Corp. | 138,700 | 5,878,050 | |||||||||
Sysmex Corp. | 106,400 | 12,622,736 | |||||||||
139,610,827 | |||||||||||
NETHERLANDS — 4.1% | |||||||||||
ASML Holding NV | 29,604 | 20,436,210 | |||||||||
IMCD NV | 43,215 | 6,885,663 | |||||||||
27,321,873 | |||||||||||
NEW ZEALAND — 1.5% | |||||||||||
Xero Ltd. * | 95,906 | 9,864,869 | |||||||||
PORTUGAL — 1.3% | |||||||||||
Jeronimo Martins SGPS SA | 464,843 | 8,477,265 | |||||||||
SINGAPORE — 1.4% | |||||||||||
United Overseas Bank Ltd. | 473,473 | 9,117,858 |
The accompanying notes are an integral part of the financial statements.
31
Portfolio of Investments
Semi-Annual Report June 30, 2021
June 30, 2021 (unaudited)
Baillie Gifford EAFE Plus All Cap Fund
Shares | Value | ||||||||||
SOUTH AFRICA — 1.2% | |||||||||||
Naspers Ltd., N Shares | 36,192 | $ | 7,630,974 | ||||||||
SOUTH KOREA — 0.5% | |||||||||||
Coupang, Inc. * | 84,069 | 3,515,765 | |||||||||
SPAIN — 1.6% | |||||||||||
Industria de Diseno Textil SA | 297,351 | 10,498,518 | |||||||||
SWEDEN — 7.6% | |||||||||||
Atlas Copco AB, A Shares | 155,977 | 9,578,295 | |||||||||
Atlas Copco AB, B Shares | 130,268 | 6,860,754 | |||||||||
Epiroc AB, B Shares | 358,796 | 7,044,109 | |||||||||
Investor AB, B Shares | 513,277 | 11,831,246 | |||||||||
Nibe Industrier AB, B Shares | 1,398,101 | 14,732,347 | |||||||||
50,046,751 | |||||||||||
SWITZERLAND — 2.0% | |||||||||||
Compagnie Financiere Richemont SA | 110,593 | 13,407,037 | |||||||||
TAIWAN — 2.6% | |||||||||||
Taiwan Semiconductor Manufacturing Co., Ltd. ADR | 142,788 | 17,157,406 | |||||||||
UNITED KINGDOM — 12.9% | |||||||||||
ASOS PLC * | 111,327 | 7,650,771 | |||||||||
Auto Trader Group PLC * | 1,405,482 | 12,309,219 | |||||||||
Burberry Group PLC * | 190,106 | 5,436,879 | |||||||||
Games Workshop Group PLC | 51,586 | 8,135,267 | |||||||||
Hargreaves Lansdown PLC | 447,860 | 9,854,896 | |||||||||
HomeServe PLC | 382,312 | 5,056,259 | |||||||||
Intertek Group PLC | 101,901 | 7,798,930 | |||||||||
John Wood Group PLC * | 742,011 | 2,260,566 | |||||||||
Johnson Matthey PLC | 158,775 | 6,760,041 | |||||||||
Rightmove PLC | 1,252,023 | 11,253,441 | |||||||||
Trainline PLC * | 1,128,956 | 4,585,107 | |||||||||
Weir Group PLC (The) * | 168,719 | 4,331,122 | |||||||||
85,432,498 |
The accompanying notes are an integral part of the financial statements.
32
Portfolio of Investments
Semi-Annual Report June 30, 2021
June 30, 2021 (unaudited)
Baillie Gifford EAFE Plus All Cap Fund
Shares | Value | ||||||||||
UNITED STATES — 5.9% | |||||||||||
Mettler-Toledo International, Inc. * | 19,651 | $ | 27,223,316 | ||||||||
Spotify Technology SA * | 42,641 | 11,751,433 | |||||||||
38,974,749 | |||||||||||
Total Common Stocks | |||||||||||
(cost $389,093,275) | 639,038,240 | ||||||||||
PREFERRED STOCKS — 2.7% | |||||||||||
GERMANY — 2.7% | |||||||||||
Sartorius AG 0.15% (cost $7,157,968) | 34,799 | 18,113,164 | |||||||||
TOTAL INVESTMENTS — 99.2% | |||||||||||
(cost $396,251,243) | $ | 657,151,404 | |||||||||
Other assets less liabilities — 0.8% | 5,314,784 | ||||||||||
NET ASSETS — 100.0% | $ | 662,466,188 |
* Non-income producing security.
ADR — American Depositary Receipt
This report classifies issuers geographically by their country of risk. For compliance monitoring purposes, the Manager retains discretion to consider a number of factors in determining where a particular issuer is located, as described in further detail in each Fund's prospectus.
Fair Value Measurement
The following is a summary of the inputs used as of June 30, 2021 in valuing the Fund's investments carried at fair value:
Investments in Securities | Level 1 | Level 2 | Level 3 | Total | |||||||||||||||
Common Stocks ** | $ | 110,824,224 | $ | 528,214,016 | $ | — | $ | 639,038,240 | |||||||||||
Preferred Stocks ** | — | 18,113,164 | — | 18,113,164 | |||||||||||||||
Total | $ | 110,824,224 | $ | 546,327,180 | $ | — | $ | 657,151,404 |
** Refer to Portfolio of Investments for further detail.
The accompanying notes are an integral part of the financial statements.
33
Statement of Assets and Liabilities
Semi-Annual Report June 30, 2021
June 30, 2021 (unaudited)
Baillie Gifford EAFE Plus All Cap Fund
ASSETS | |||||||
Investments, at value (cost $396,251,243) | $ | 657,151,404 | |||||
Cash | 7,485,517 | ||||||
Foreign cash, at value (cost $120,172) | 121,301 | ||||||
Tax reclaims receivable | 503,122 | ||||||
Dividends receivable | 344,651 | ||||||
Capital shares sold receivable | 53,000 | ||||||
Prepaid assets | 21,724 | ||||||
Total Assets | 665,680,719 | ||||||
LIABILITIES | |||||||
Advisory fee payable | 588,763 | ||||||
Capital shares purchased payable | 2,241,800 | ||||||
Shareholder Servicing fee payable | 160,657 | ||||||
Administration & Supervisory fee payable | 101,588 | ||||||
Trustee fee payable | 4,617 | ||||||
Commitment fee payable | 929 | ||||||
Accrued expenses | 116,177 | ||||||
Total Liabilities | 3,214,531 | ||||||
NET ASSETS | $ | 662,466,188 | |||||
COMPOSITION OF NET ASSETS | |||||||
Paid-in capital | $ | 363,027,177 | |||||
Total distributable earnings | 299,439,011 | ||||||
$ | 662,466,188 | ||||||
NET ASSET VALUE, PER SHARE | |||||||
Class 2 ( $300,948,475 / 13,548,518 shares outstanding), unlimited authorized, no par value | $ | 22.21 | |||||
Class 3 ( $126,490,777 / 5,697,200 shares outstanding), unlimited authorized, no par value | $ | 22.20 | |||||
Class K ( $191,274,518 / 8,636,894 shares outstanding), unlimited authorized, no par value | $ | 22.15 | |||||
Institutional Class ( $43,752,418 / 1,980,850 shares outstanding), unlimited authorized, no par value | $ | 22.09 |
The accompanying notes are an integral part of the financial statements.
34
Statement of Operations
Semi-Annual Report June 30, 2021
For the Six Months Ended June 30, 2021 (unaudited)
Baillie Gifford EAFE Plus All Cap Fund
INVESTMENT INCOME | |||||||
Dividends (net of foreign withholding taxes of $517,544) | $ | 3,402,653 | |||||
Interest | 631 | ||||||
Total Investment Income | 3,403,284 | ||||||
EXPENSES | |||||||
Advisory fee (Note B) | 1,206,015 | ||||||
Shareholder Servicing fees — Class 2 shares (Note B) | 262,346 | ||||||
Shareholder Servicing fees — Class 3 shares (Note B) | 70,027 | ||||||
Administration & Supervisory fee — Class K shares (Note B) | 168,187 | ||||||
Administration & Supervisory fee — Institutional Class shares (Note B) | 36,199 | ||||||
Transfer agency | 45,448 | ||||||
Sub-transfer agency — Institutional Class shares | 20,914 | ||||||
Fund accounting | 106,284 | ||||||
Custody | 50,482 | ||||||
Legal | 36,347 | ||||||
Registration fees | 28,298 | ||||||
Professional fees | 16,810 | ||||||
Trustees' fees | 8,027 | ||||||
Commitment fees | 1,798 | ||||||
Miscellaneous | 9,473 | ||||||
Total Expenses | 2,066,655 | ||||||
Net Investment Income | 1,336,629 | ||||||
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS AND FOREIGN CURRENCY TRANSACTIONS | |||||||
Net realized gain (loss) from: | |||||||
Investments | 38,582,877 | ||||||
Foreign currency transactions | (155,396 | ) | |||||
38,427,481 | |||||||
Net change in unrealized depreciation on: | |||||||
Investments | (5,168,766 | ) | |||||
Translation of net assets and liabilities denominated in foreign currencies | (28,342 | ) | |||||
(5,197,108 | ) | ||||||
Net realized and unrealized gain | 33,230,373 | ||||||
NET INCREASE IN NET ASSETS FROM OPERATIONS | $ | 34,567,002 |
The accompanying notes are an integral part of the financial statements.
35
Statements of Changes in Net Assets
Semi-Annual Report June 30, 2021
Baillie Gifford EAFE Plus All Cap Fund
For the Six Months Ended June 30, 2021 (unaudited) | For the Year Ended December 31, 2020 | ||||||||||
INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS | |||||||||||
Net investment income | $ | 1,336,629 | $ | 2,090,625 | |||||||
Net realized gain | 38,427,481 | 11,700,117 | |||||||||
Net change in unrealized appreciation (depreciation) | (5,197,108 | ) | 147,139,024 | ||||||||
Net increase in net assets from operations | 34,567,002 | 160,929,766 | |||||||||
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS FROM: | |||||||||||
Distributable earnings | |||||||||||
Class 2 | — | (5,732,100 | ) | ||||||||
Class 3 | — | (2,604,537 | ) | ||||||||
Class K | — | (3,457,873 | ) | ||||||||
Institutional Class | — | (652,549 | ) | ||||||||
Total Distributions to Shareholders | — | (12,447,059 | ) | ||||||||
TRANSACTIONS IN SHARES OF BENEFICIAL INTEREST | |||||||||||
Net proceeds from shares subscribed: | |||||||||||
Class 2 | 3,000 | 786,000 | |||||||||
Class 3 | — | 118,434,820 | |||||||||
Class K | 3,127,000 | 70,360,885 | |||||||||
Institutional Class | 3,919,173 | 11,245,159 | |||||||||
Dividends reinvested: | |||||||||||
Class 2 | — | 5,732,100 | |||||||||
Class 3 | — | 2,604,536 | |||||||||
Class K | — | 3,452,561 | |||||||||
Institutional Class | — | 650,466 | |||||||||
Cost of shares redeemed: | |||||||||||
Class 2 | (58,635,039 | ) | (45,075,399 | ) | |||||||
Class 3 | (27,500,000 | ) | — | ||||||||
Class K | (23,825,000 | ) | (28,250,000 | ) | |||||||
Institutional Class | (2,051,833 | ) | (3,196,880 | ) | |||||||
Increase (Decrease) in Net Assets from Transactions in Shares of Beneficial Interest | (104,962,699 | ) | 136,744,248 | ||||||||
Total Increase (Decrease) in Net Assets | (70,395,697 | ) | 285,226,955 | ||||||||
NET ASSETS | |||||||||||
Beginning of period | 732,861,885 | 447,634,930 | |||||||||
End of period | $ | 662,466,188 | $ | 732,861,885 |
The accompanying notes are an integral part of the financial statements.
36
Financial Highlights
Semi-Annual Report June 30, 2021
Baillie Gifford EAFE Plus All Cap Fund
Selected data for a Class 2 share outstanding throughout each period:
For the Six Months Ended June 30, 2021 (unaudited) | For the Year Ended December 31, 2020 | For the Year Ended December 31, 2019 | For the Year Ended December 31, 2018 | For the Year Ended December 31, 2017 | For the Year Ended December 31, 2016 | ||||||||||||||||||||||
Net asset value, beginning of period | $ | 21.15 | $ | 16.71 | $ | 13.15 | $ | 16.11 | $ | 12.46 | $ | 12.55 | |||||||||||||||
From Investment Operations | |||||||||||||||||||||||||||
Net investment income(a) | 0.04 | 0.07 | 0.27 | 0.17 | 0.16 | 0.19 | |||||||||||||||||||||
Net realized and unrealized gain (loss) on investments and foreign currency | 1.02 | 4.73 | 3.91 | (2.81 | ) | 3.74 | (0.13 | ) | |||||||||||||||||||
Net increase (decrease) in net asset value from investment operations | 1.06 | 4.80 | 4.18 | (2.64 | ) | 3.90 | 0.06 | ||||||||||||||||||||
Dividends and Distributions to Shareholders | |||||||||||||||||||||||||||
From net investment income | — | (0.14 | ) | (0.33 | ) | (0.09 | ) | (0.25 | ) | (0.16 | ) | ||||||||||||||||
From net realized gain on investments | — | (0.22 | ) | (0.29 | ) | (0.23 | ) | — | — | ||||||||||||||||||
Total Dividends and Distributions | — | (0.36 | ) | (0.62 | ) | (0.32 | ) | (0.25 | ) | (0.16 | ) | ||||||||||||||||
Proceeds from Purchase Fees and Redemption Fees(a) | — | — | — | — | 0.00 | (b) | 0.01 | ||||||||||||||||||||
Net asset value, end of period | $ | 22.21 | $ | 21.15 | $ | 16.71 | $ | 13.15 | $ | 16.11 | $ | 12.46 | |||||||||||||||
Total Return | |||||||||||||||||||||||||||
Total return based on net asset value(c) | 5.01 | % | 28.77 | % | 31.73 | % | (16.39 | )% | 31.28 | % | 0.59 | % | |||||||||||||||
Ratios/Supplemental Data | |||||||||||||||||||||||||||
Net assets, end of period (000's omitted) | $ | 300,948 | $ | 343,888 | $ | 309,335 | $ | 232,937 | $ | 280,488 | $ | 272,338 | |||||||||||||||
Ratio of net expenses to average net assets | 0.61 | %* | 0.62 | % | 0.65 | % | 0.68 | % | 0.67 | % | 0.65 | % | |||||||||||||||
Ratio of net investment income to average net assets | 0.37 | %* | 0.42 | % | 1.76 | % | 1.06 | % | 1.06 | % | 1.46 | % | |||||||||||||||
Portfolio turnover rate(d) | 5 | % | 20 | % | 11 | % | 26 | % | 12 | % | 23 | % |
* Annualized.
(a) Calculated based upon average shares outstanding during the period.
(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.
37
Financial Highlights
Semi-Annual Report June 30, 2021
Baillie Gifford EAFE Plus All Cap Fund
Selected data for a Class 3 share outstanding throughout each period:
For the Six Months Ended June 30, 2021 (unaudited) | For the Period August 3, 2020(a) through December 31, 2020 | For the Year Ended December 31, 2017 | For the Year Ended December 31, 2016 | ||||||||||||||||
Net asset value, beginning of period | $ | 21.14 | $ | 17.57 | $ | 12.58 | $ | 12.67 | |||||||||||
From Investment Operations | |||||||||||||||||||
Net investment income(b) | 0.05 | 0.03 | 0.16 | 0.2 | |||||||||||||||
Net realized and unrealized gain (loss) on investments and foreign currency | 1.01 | 3.93 | 3.79 | (0.13 | ) | ||||||||||||||
Net increase in net asset value from investment operations | 1.06 | 3.96 | 3.95 | 0.07 | |||||||||||||||
Dividends and Distributions to Shareholders | |||||||||||||||||||
From net investment income | — | (0.17 | ) | (0.27 | ) | (0.17 | ) | ||||||||||||
From net realized gain on investments | — | (0.22 | ) | — | — | ||||||||||||||
Return of capital | — | — | — | — | |||||||||||||||
Total Dividends and Distributions | — | (0.39 | ) | (0.27 | ) | (0.17 | ) | ||||||||||||
Proceeds from Purchase Fees and Redemption Fees(b) | — | — | 0.00 | (c) | 0.01 | ||||||||||||||
Net asset value, end of period | $ | 22.20 | $ | 21.14 | $ | 16.26 | $ | 12.58 | |||||||||||
Total Return | |||||||||||||||||||
Total return based on net asset value(d) | 5.04 | % | 22.49 | % | 31.37 | % | 0.66 | % | |||||||||||
Ratios/Supplemental Data | |||||||||||||||||||
Net assets, end of period (000's omitted) | $ | 126,491 | $ | 146,565 | $ | 26,932 | $ | 19,890 | |||||||||||
Ratio of net expenses to average net assets | 0.54 | %* | 0.54 | %* | 0.60 | % | 0.58 | % | |||||||||||
Ratio of net investment income to average net assets | 0.46 | %* | 0.35 | %* | 1.06 | % | 1.59 | % | |||||||||||
Portfolio turnover rate(e) | 5 | % | 20 | % | 12 | % | 23 | % |
* Annualized.
(a) Recommencement of investment operations. Class had no shareholders from April 9, 2018 to August 2, 2020. All shares of this class were redeemed at $16.18 on April 9, 2018. New shares were issued at $17.57 on August 3, 2020.
(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.
38
Financial Highlights
Semi-Annual Report June 30, 2021
Baillie Gifford EAFE Plus All Cap Fund
Selected data for a Class K share outstanding throughout each period:
For the Six Months Ended June 30, 2021 (unaudited) | For the Year Ended December 31, 2020 | For the Year Ended December 31, 2019 | For the Year Ended December 31, 2018 | For the Period April 28, 2017(a) through December 31, 2017 | |||||||||||||||||||
Net asset value, beginning of period | $ | 21.09 | $ | 16.66 | $ | 13.12 | $ | 16.10 | $ | 14.15 | |||||||||||||
From Investment Operations | |||||||||||||||||||||||
Net investment income(b) | 0.04 | 0.07 | 0.26 | 0.04 | 0.08 | ||||||||||||||||||
Net realized and unrealized gain (loss) on investments and foreign currency | 1.02 | 4.73 | 3.91 | (2.68 | ) | 2.13 | |||||||||||||||||
Net increase (decrease) in net asset value from investment operations | 1.06 | 4.80 | 4.17 | (2.64 | ) | 2.21 | |||||||||||||||||
Dividends and Distributions to Shareholders | |||||||||||||||||||||||
From net investment income | — | (0.15 | ) | (0.34 | ) | (0.11 | ) | (0.26 | ) | ||||||||||||||
From net realized gain on investments | — | (0.22 | ) | (0.29 | ) | (0.23 | ) | — | |||||||||||||||
Total Dividends and Distributions | — | (0.37 | ) | (0.63 | ) | (0.34 | ) | (0.26 | ) | ||||||||||||||
Net asset value, end of period | $ | 22.15 | $ | 21.09 | $ | 16.66 | $ | 13.12 | $ | 16.10 | |||||||||||||
Total Return | |||||||||||||||||||||||
Total return based on net asset value(c) | 5.03 | % | 28.78 | % | 31.72 | % | (16.36 | )% | 15.63 | % | |||||||||||||
Ratios/Supplemental Data | |||||||||||||||||||||||
Net assets, end of period (000's omitted) | $ | 191,275 | $ | 202,514 | $ | 114,922 | $ | 64,827 | $ | 6 | |||||||||||||
Ratio of net expenses to average net assets | 0.61 | %* | 0.62 | % | 0.65 | % | 0.68 | % | 0.68 | %* | |||||||||||||
Ratio of net investment income to average net assets | 0.39 | %* | 0.40 | % | 1.73 | % | 0.42 | % | 0.73 | %* | |||||||||||||
Portfolio turnover rate(d) | 5 | % | 20 | % | 11 | % | 26 | % | 12 | % |
* Annualized.
(a) Commencement of investment operations.
(b) Calculated based upon average shares outstanding during the period.
(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.
39
Financial Highlights
Semi-Annual Report June 30, 2021
Baillie Gifford EAFE Plus All Cap Fund
Selected data for an Institutional Class share outstanding throughout each period:
For the Six Months Ended June 30, 2021 (unaudited) | For the Year Ended December 31, 2020 | For the Year Ended December 31, 2019 | For the Year Ended December 31, 2018 | For the Period April 28, 2017(a) through December 31, 2017 | |||||||||||||||||||
Net asset value, beginning of period | $ | 21.05 | $ | 16.63 | $ | 13.10 | $ | 16.09 | $ | 14.15 | |||||||||||||
From Investment Operations | |||||||||||||||||||||||
Net investment income(b) | 0.03 | 0.05 | 0.26 | 0.07 | 0.01 | ||||||||||||||||||
Net realized and unrealized gain (loss) on investments and foreign currency | 1.01 | 4.72 | 3.88 | (2.73 | ) | 2.21 | |||||||||||||||||
Net increase (decrease) in net asset value from investment operations | 1.04 | 4.77 | 4.14 | (2.66 | ) | 2.22 | |||||||||||||||||
Dividends and Distributions to Shareholders | |||||||||||||||||||||||
From net investment income | — | (0.13 | ) | (0.32 | ) | (0.10 | ) | (0.28 | ) | ||||||||||||||
From net realized gain on investments | — | (0.22 | ) | (0.29 | ) | (0.23 | ) | — | |||||||||||||||
Total Dividends and Distributions | — | (0.35 | ) | (0.61 | ) | (0.33 | ) | (0.28 | ) | ||||||||||||||
Net asset value, end of period | $ | 22.09 | $ | 21.05 | $ | 16.63 | $ | 13.10 | $ | 16.09 | |||||||||||||
Total Return | |||||||||||||||||||||||
Total return based on net asset value(c) | 4.94 | % | 28.68 | % | 31.60 | % | (16.50 | )% | 15.68 | % | |||||||||||||
Ratios/Supplemental Data | |||||||||||||||||||||||
Net assets, end of period (000's omitted) | $ | 43,752 | $ | 39,894 | $ | 23,378 | $ | 10,768 | $ | 201 | |||||||||||||
Ratio of net expenses to average net assets | 0.71 | %* | 0.72 | % | 0.75 | % | 0.78 | % | 0.68 | %* | |||||||||||||
Ratio of net investment income to average net assets | 0.31 | %* | 0.30 | % | 1.72 | % | 0.47 | % | 0.14 | %* | |||||||||||||
Portfolio turnover rate(d) | 5 | % | 20 | % | 11 | % | 26 | % | 12 | % |
* Annualized.
(a) Commencement of investment operations.
(b) Calculated based upon average shares outstanding during the period.
(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.
40
Industry Diversification Table
Semi-Annual Report June 30, 2021
June 30, 2021 (unaudited)
Baillie Gifford Emerging Markets Equities Fund
Value | % of Total Net Assets | ||||||||||
Airlines | $ | 46,245,012 | 0.7 | % | |||||||
Apparel | 62,793,598 | 0.9 | |||||||||
Auto Manufacturers | 276,538,788 | 3.9 | |||||||||
Auto Parts & Equipment | 33,018,106 | 0.5 | |||||||||
Banks | 722,348,460 | 10.2 | |||||||||
Biotechnology | 171,357,629 | 2.4 | |||||||||
Building Materials | 116,728,275 | 1.6 | |||||||||
Chemicals | 125,955,818 | 1.8 | |||||||||
Commercial Services | 14,097,219 | 0.2 | |||||||||
Computers | 77,186,069 | 1.1 | |||||||||
Diversified Financial Services | 298,564,836 | 4.2 | |||||||||
Electrical Components & Equipment | 134,013,032 | 1.9 | |||||||||
Food | 24,868,823 | 0.4 | |||||||||
Home Furnishings | 83,602,886 | 1.2 | |||||||||
Insurance | 267,399,687 | 3.8 | |||||||||
Internet | 1,696,324,072 | 23.8 | |||||||||
Iron/Steel | 158,872,631 | 2.2 | |||||||||
Machinery — Construction & Mining | 36,906,844 | 0.5 | |||||||||
Mining | 468,771,369 | 6.6 | |||||||||
Oil & Gas | 516,305,898 | 7.2 | |||||||||
Real Estate | 34,263,563 | 0.5 | |||||||||
Retail | 111,781,776 | 1.5 | |||||||||
Semiconductors | 1,276,140,569 | 17.9 | |||||||||
Software | 151,231,257 | 2.1 | |||||||||
Telecommunications | 121,115,167 | 1.7 | |||||||||
Total Value of Investments | 7,026,431,384 | 98.8 | |||||||||
Other assets less liabilities | 84,818,440 | 1.2 | |||||||||
Net Assets | $ | 7,111,249,824 | 100.0 | % |
The table above is based on Bloomberg Industry Group classifications. For compliance monitoring purposes, sub-industry classifications are used which results in less concentration across industry sectors.
41
Portfolio of Investments
Semi-Annual Report June 30, 2021
June 30, 2021 (unaudited)
Baillie Gifford Emerging Markets Equities Fund
Shares | Value | ||||||||||
COMMON STOCKS — 97.2% | |||||||||||
ARGENTINA — 1.9% | |||||||||||
MercadoLibre, Inc. * | 87,755 | $ | 136,703,862 | ||||||||
BRAZIL — 9.0% | |||||||||||
B3 SA — Brasil Bolsa Balcao | 23,498,700 | 79,135,314 | |||||||||
Banco Bradesco SA ADR | 15,874,684 | 81,437,129 | |||||||||
Petroleo Brasileiro SA ADR | 19,410,506 | 237,390,488 | |||||||||
Petroleo Brasileiro SA ADR | 5,887,580 | 69,532,320 | |||||||||
StoneCo Ltd., Class A * | 210,218 | 14,097,219 | |||||||||
Vale SA ADR | 6,965,043 | 158,872,631 | |||||||||
640,465,101 | |||||||||||
CANADA — 0.0%(1) | |||||||||||
Valeura Energy, Inc. * | 4,672,400 | 1,790,408 | |||||||||
CHILE — 1.1% | |||||||||||
Lundin Mining Corp. | 8,296,207 | 74,823,810 | |||||||||
CHINA — 33.6% | |||||||||||
Alibaba Group Holding Ltd. * | 15,019,020 | 425,846,867 | |||||||||
BeiGene Ltd. ADR * | 126,448 | 43,395,689 | |||||||||
Brilliance China Automotive Holdings Ltd. (a) | 35,694,000 | 16,779,761 | |||||||||
Burning Rock Biotech Ltd. ADR * | 1,232,049 | 36,296,164 | |||||||||
China Merchants Bank Co., Ltd., Class H | 19,249,000 | 163,966,697 | |||||||||
Contemporary Amperex Technology Co., Ltd., Class A * | 1,624,443 | 134,013,032 | |||||||||
Dada Nexus Ltd. ADR * | 1,087,973 | 31,562,097 | |||||||||
Geely Automobile Holdings Ltd. | 24,235,000 | 76,116,300 | |||||||||
Haier Smart Home Co., Ltd., Class H * | 14,656,880 | 51,117,130 | |||||||||
HUYA, Inc. ADR * | 1,637,959 | 28,909,976 | |||||||||
JD.com, Inc., Class A * | 1,592,402 | 63,414,342 | |||||||||
KE Holdings, Inc. ADR * | 718,615 | 34,263,563 | |||||||||
Kingdee International Software Group Co., Ltd. * | 1,847,000 | 6,255,535 | |||||||||
Kingsoft Cloud Holdings Ltd. ADR * | 1,658,500 | 56,272,905 | |||||||||
Kuaishou Technology * | 2,446,900 | 61,537,709 | |||||||||
Li Ning Co., Ltd. | 6,589,000 | 80,374,677 | |||||||||
Lufax Holding Ltd. ADR * | 4,007,489 | 45,284,626 | |||||||||
Meituan, Class B * | 4,165,200 | 171,819,351 | |||||||||
Midea Group Co., Ltd., Class A | 2,945,062 | 32,485,756 | |||||||||
Minth Group Ltd. | 6,962,000 | 33,018,106 |
The accompanying notes are an integral part of the financial statements.
42
Portfolio of Investments
Semi-Annual Report June 30, 2021
June 30, 2021 (unaudited)
Baillie Gifford Emerging Markets Equities Fund
Shares | Value | ||||||||||
Ping An Bank Co., Ltd., Class A | 19,169,442 | $ | 67,093,715 | ||||||||
Ping An Insurance Group Co. of China Ltd., Class H | 17,075,500 | 166,919,811 | |||||||||
Shenzhou International Group Holdings Ltd. | 2,486,600 | 62,793,598 | |||||||||
Tencent Holdings Ltd. | 4,170,600 | 314,014,943 | |||||||||
Tencent Music Entertainment Group ADR * | 3,258,592 | 50,443,004 | |||||||||
Yatsen Holding Ltd. ADR * | 1,337,823 | 12,535,401 | |||||||||
Zai Lab Ltd. ADR * | 517,915 | 91,665,776 | |||||||||
Zijin Mining Group Co., Ltd., Class H | 21,762,000 | 29,202,178 | |||||||||
2,387,398,709 | |||||||||||
INDIA — 10.7% | |||||||||||
HDFC Life Insurance Co., Ltd. | 4,045,198 | 37,392,041 | |||||||||
Housing Development Finance Corp., Ltd. | 4,198,857 | 140,129,085 | |||||||||
ICICI Lombard General Insurance Co., Ltd. | 1,460,056 | 30,808,431 | |||||||||
ICICI Prudential Life Insurance Co., Ltd. | 3,912,112 | 32,279,404 | |||||||||
IDFC First Bank Ltd. * | 66,000,351 | 48,222,736 | |||||||||
Mahindra & Mahindra Ltd. | 3,430,557 | 35,967,251 | |||||||||
Maruti Suzuki India Ltd. | 372,115 | 37,681,701 | |||||||||
Reliance Industries Ltd. | 7,300,251 | 207,592,682 | |||||||||
Tata Consultancy Services Ltd. | 1,712,750 | 77,186,069 | |||||||||
Tech Mahindra Ltd. | 4,052,180 | 59,792,841 | |||||||||
UltraTech Cement Ltd. | 566,899 | 51,738,222 | |||||||||
758,790,463 | |||||||||||
INDONESIA — 0.9% | |||||||||||
Bank Rakyat Indonesia Persero Tbk PT | 240,184,100 | 65,304,888 | |||||||||
MEXICO — 2.0% | |||||||||||
Cemex SAB de CV, Participating Certificates ADR * | 7,736,911 | 64,990,052 | |||||||||
Grupo Financiero Banorte SAB de CV, Class O | 7,660,397 | 49,327,208 | |||||||||
Wal-Mart de Mexico SAB de CV | 9,615,560 | 31,407,099 | |||||||||
145,724,359 | |||||||||||
PANAMA — 0.7% | |||||||||||
Copa Holdings SA, Class A * | 613,899 | 46,245,012 | |||||||||
POLAND — 1.5% | |||||||||||
Allegro.eu SA * | 3,717,023 | 63,968,279 | |||||||||
KGHM Polska Miedz SA | 838,822 | 41,272,552 | |||||||||
105,240,831 |
The accompanying notes are an integral part of the financial statements.
43
Portfolio of Investments
Semi-Annual Report June 30, 2021
June 30, 2021 (unaudited)
Baillie Gifford Emerging Markets Equities Fund
Shares | Value | ||||||||||
RUSSIA — 7.2% | |||||||||||
Magnit PJSC GDR Reg S | 1,714,500 | $ | 24,868,822 | ||||||||
MMC Norilsk Nickel PJSC ADR | 5,686,847 | 194,030,539 | |||||||||
Moscow Exchange MICEX-RTS PJSC | 14,566,030 | 34,015,811 | |||||||||
Ozon Holdings PLC ADR * | 720,793 | 42,252,886 | |||||||||
Sberbank of Russia PJSC ADR | 13,216,286 | 219,614,985 | |||||||||
514,783,043 | |||||||||||
SOUTH AFRICA — 2.2% | |||||||||||
Naspers Ltd., N Shares | 736,735 | 155,338,363 | |||||||||
SOUTH KOREA — 12.2% | |||||||||||
Coupang, Inc. * | 504,391 | 21,093,632 | |||||||||
Doosan Bobcat, Inc. * | 865,167 | 36,906,844 | |||||||||
Hyundai Motor Co. | 516,934 | 109,993,775 | |||||||||
LG Chem Ltd. | 166,809 | 125,955,818 | |||||||||
NAVER Corp. | 161,252 | 59,835,575 | |||||||||
Samsung Electronics Co., Ltd. | 4,275,839 | 306,090,879 | |||||||||
Samsung SDI Co., Ltd. | 195,619 | 121,115,167 | |||||||||
SK Hynix, Inc. | 767,249 | 86,598,351 | |||||||||
867,590,041 | |||||||||||
TAIWAN — 12.0% | |||||||||||
MediaTek, Inc. | 4,817,000 | 166,120,228 | |||||||||
Sea Ltd. ADR * | 313,029 | 85,957,763 | |||||||||
Taiwan Semiconductor Manufacturing Co., Ltd. | 27,944,310 | 601,865,461 | |||||||||
853,943,452 | |||||||||||
THAILAND — 0.4% | |||||||||||
Siam Commercial Bank PCL (The) NVDR | 8,939,100 | 27,381,102 | |||||||||
ZAMBIA — 1.8% | |||||||||||
First Quantum Minerals Ltd. | 5,616,264 | 129,442,290 | |||||||||
Total Common Stocks | |||||||||||
(cost $4,385,335,122) | 6,910,965,734 |
The accompanying notes are an integral part of the financial statements.
44
Portfolio of Investments
Semi-Annual Report June 30, 2021
June 30, 2021 (unaudited)
Baillie Gifford Emerging Markets Equities Fund
Shares | Value | ||||||||||
PREFERRED STOCKS — 1.6% | |||||||||||
SOUTH KOREA — 1.6% | |||||||||||
Samsung Electronics Co., Ltd. 3.60% (cost $50,773,836) | 1,764,179 | $ | 115,465,650 | ||||||||
TOTAL INVESTMENTS — 98.8% | |||||||||||
(cost $4,436,108,958) | $ | 7,026,431,384 | |||||||||
Other assets less liabilities — 1.2% | 84,818,440 | ||||||||||
NET ASSETS — 100.0% | $ | 7,111,249,824 |
(1) Amount rounds to less than 0.1%.
(a) Investment was valued using significant unobservable inputs.
* 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). These securities have been deemed liquid under procedures approved by the Fund's Board of Trustees. At June 30, 2021, the net value of these securities was $24,868,822 representing 0.3% of net assets.
This report classifies issuers geographically by their country of risk. For compliance monitoring purposes, the Manager retains discretion to consider a number of factors in determining where a particular issuer is located, as described in further detail in each Fund's prospectus.
Fair Value Measurement
The following is a summary of the inputs used as of June 30, 2021 in valuing the Fund's investments carried at fair value:
Investments in Securities | Level 1 | Level 2 | Level 3 | Total | |||||||||||||||
Common Stocks ** | $ | 1,843,965,425 | $ | 5,050,220,548 | $ | 16,779,761 | $ | 6,910,965,734 | |||||||||||
Preferred Stocks ** | — | 115,465,650 | — | 115,465,650 | |||||||||||||||
Total | $ | 1,843,965,425 | $ | 5,165,686,198 | $ | 16,779,761 | $ | 7,026,431,384 |
** Refer to Portfolio of Investments for further detail.
The accompanying notes are an integral part of the financial statements.
45
Statement of Assets and Liabilities
Semi-Annual Report June 30, 2021
June 30, 2021 (unaudited)
Baillie Gifford Emerging Markets Equities Fund
ASSETS | |||||||
Investments, at value (cost $4,436,108,958) | $ | 7,026,431,384 | |||||
Cash | 103,489,815 | ||||||
Receivable for investments sold | 69,718,224 | ||||||
Capital shares sold receivable | 14,306,729 | ||||||
Dividends receivable | 11,266,524 | ||||||
Receivable for India capital gains tax refunds (Note A) | 1,347,063 | ||||||
Tax reclaims receivable | 205,868 | ||||||
Prepaid assets | 80,386 | ||||||
Total Assets | 7,226,845,993 | ||||||
LIABILITIES | |||||||
Due to foreign custodian (cost $2,189) | 2,189 | ||||||
Advisory fee payable | 8,871,308 | ||||||
Payable for investment purchased | 77,645,920 | ||||||
Deferred India capital gains tax liability (Note A) | 24,179,526 | ||||||
Administration & Supervisory fee payable | 1,809,244 | ||||||
Capital shares purchased payable | 1,732,937 | ||||||
Shareholder Servicing fee payable | 265,638 | ||||||
Trustee fee payable | 34,844 | ||||||
Commitment fee payable | 7,605 | ||||||
Accrued expenses | 1,046,958 | ||||||
Total Liabilities | 115,596,169 | ||||||
NET ASSETS | $ | 7,111,249,824 | |||||
COMPOSITION OF NET ASSETS | |||||||
Paid-in capital | $ | 4,561,981,409 | |||||
Total distributable earnings | 2,549,268,415 | ||||||
$ | 7,111,249,824 | ||||||
NET ASSET VALUE, PER SHARE | |||||||
Class 2 ( $77,126,227 / 2,626,468 shares outstanding), unlimited authorized, no par value | $ | 29.37 | |||||
Class 3 ( $345,005,818 / 11,636,684 shares outstanding), unlimited authorized, no par value | $ | 29.65 | |||||
Class 4 ( $293,979,782 / 9,779,002 shares outstanding), unlimited authorized, no par value | $ | 30.06 | |||||
Class 5 ( $1,969,837,140 / 64,620,683 shares outstanding), unlimited authorized, no par value | $ | 30.48 | |||||
Class K ( $3,025,767,648 / 103,408,532 shares outstanding), unlimited authorized, no par value | $ | 29.26 | |||||
Institutional Class ( $1,399,533,210 / 47,871,508 shares outstanding), unlimited authorized, no par value | $ | 29.24 |
The accompanying notes are an integral part of the financial statements.
46
Statement of Operations
Semi-Annual Report June 30, 2021
For the Six Months Ended June 30, 2021 (unaudited)
Baillie Gifford Emerging Markets Equities Fund
INVESTMENT INCOME | |||||||
Dividends (net of foreign withholding taxes of $9,779,223) | $ | 68,229,845 | |||||
Interest | 4,165 | ||||||
Total Investment Income | 68,234,010 | ||||||
EXPENSES | |||||||
Advisory fee (Note B) | 17,450,013 | ||||||
Shareholder Servicing fees — Class 2 shares (Note B) | 115,747 | ||||||
Shareholder Servicing fees — Class 3 shares (Note B) | 123,610 | ||||||
Shareholder Servicing fees — Class 4 shares (Note B) | 101,628 | ||||||
Shareholder Servicing fees — Class 5 shares (Note B) | 194,720 | ||||||
Administration & Supervisory fee — Class K shares (Note B) | 2,363,381 | ||||||
Administration & Supervisory fee — Institutional Class shares (Note B) | 1,153,210 | ||||||
Transfer agency | 99,089 | ||||||
Sub-transfer agency — Institutional Class shares | 595,886 | ||||||
Custody | 1,170,508 | ||||||
Fund accounting | 916,036 | ||||||
Legal | 356,859 | ||||||
Registration fees | 77,393 | ||||||
Trustees' fees | 73,472 | ||||||
Professional fees | 20,842 | ||||||
Commitment fees | 16,257 | ||||||
Miscellaneous | 96,149 | ||||||
Total Expenses | 24,924,800 | ||||||
Net Investment Income | 43,309,210 | ||||||
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS AND FOREIGN CURRENCY TRANSACTIONS | |||||||
Net realized gain (loss) from: | |||||||
Investments (net of India capital gains tax expense of $2,437,274) | 151,792,092 | ||||||
Foreign currency transactions | (1,252,333 | ) | |||||
150,539,759 | |||||||
Net change in unrealized appreciation (depreciation) on: | |||||||
Investments (net of deferred India capital gains tax expense of $311,980) (Note A) | 195,890,459 | ||||||
Translation of net assets and liabilities denominated in foreign currencies | (315,403 | ) | |||||
195,575,056 | |||||||
Net realized and unrealized gain | 346,114,815 | ||||||
NET INCREASE IN NET ASSETS FROM OPERATIONS | $ | 389,424,025 |
The accompanying notes are an integral part of the financial statements.
47
Statements of Changes in Net Assets
Semi-Annual Report June 30, 2021
Baillie Gifford Emerging Markets Equities Fund
For the Six Months Ended June 30, 2021 (unaudited) | For the Year Ended December 31, 2020 | ||||||||||
INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS | |||||||||||
Net investment income | $ | 43,309,210 | $ | 42,529,223 | |||||||
Net realized gain (loss) | 150,539,759 | (142,423,101 | ) | ||||||||
Net change in unrealized appreciation | 195,575,056 | 1,560,067,025 | |||||||||
Net increase in net assets from operations | 389,424,025 | 1,460,173,147 | |||||||||
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS FROM: | |||||||||||
Distributable earnings | |||||||||||
Class 2 | — | (1,826,111 | ) | ||||||||
Class 3 | — | (2,184,364 | ) | ||||||||
Class 4 | — | (3,613,950 | ) | ||||||||
Class 5 | — | (25,856,284 | ) | ||||||||
Class K | — | (31,409,509 | ) | ||||||||
Institutional Class | — | (14,749,236 | ) | ||||||||
Total Distributions to Shareholders | — | (79,639,454 | ) | ||||||||
TRANSACTIONS IN SHARES OF BENEFICIAL INTEREST | |||||||||||
Net proceeds from shares subscribed: | |||||||||||
Class 2 | 90,003,000 | 10,006,000 | |||||||||
Class 3 | 160,385,840 | * | — | ||||||||
Class 4 | — | 218,894,438 | * | ||||||||
Class 5 | 50,000,000 | 232,200,000 | |||||||||
Class K | 686,438,305 | 851,114,264 | |||||||||
Institutional Class | 317,196,605 | 497,607,207 | |||||||||
Dividends reinvested: | |||||||||||
Class 2 | — | 1,826,111 | |||||||||
Class 3 | — | 2,184,364 | |||||||||
Class 4 | — | 3,613,950 | |||||||||
Class 5 | — | 25,856,285 | |||||||||
Class K | — | 24,127,144 | |||||||||
Institutional Class | — | 14,702,902 | |||||||||
Cost of shares redeemed: | |||||||||||
Class 2 | (160,385,840 | )* | (13,000,000 | ) | |||||||
Class 3 | — | (218,894,438 | )* | ||||||||
Class 5 | (160,060,000 | ) | (112,120,000 | ) | |||||||
Class K | (258,555,878 | ) | (280,870,445 | ) | |||||||
Institutional Class | (214,381,515 | ) | (214,228,570 | ) | |||||||
Increase in Net Assets from Transactions in Shares of Beneficial Interest | 510,640,517 | 1,043,019,212 | |||||||||
Total Increase in Net Assets | 900,064,542 | 2,423,552,905 | |||||||||
NET ASSETS | |||||||||||
Beginning of period | 6,211,185,282 | 3,787,632,377 | |||||||||
End of period | $ | 7,111,249,824 | $ | 6,211,185,282 |
* See Note D for details of share class conversions.
The accompanying notes are an integral part of the financial statements.
48
Financial Highlights
Semi-Annual Report June 30, 2021
Baillie Gifford Emerging Markets Equities Fund
Selected data for a Class 2 share outstanding throughout each period:
For the Six Months Ended June 30, 2021 (unaudited) | For the Year Ended December 31, 2020 | For the Year Ended December 31, 2019 | For the Year Ended December 31, 2018 | For the Year Ended December 31, 2017 | For the Year Ended December 31, 2016 | ||||||||||||||||||||||
Net asset value, beginning of year | $ | 27.66 | $ | 21.71 | $ | 17.62 | $ | 22.82 | $ | 15.20 | $ | 14.88 | |||||||||||||||
From Investment Operations | |||||||||||||||||||||||||||
Net investment income(a) | 0.12 | 0.19 | 0.63 | 0.28 | 0.16 | 0.07 | |||||||||||||||||||||
Net realized and unrealized gain (loss) on investments and foreign currency | 1.59 | 6.11 | 4.30 | (3.70 | ) | 7.89 | 0.38 | ||||||||||||||||||||
Net increase (decrease) in net asset value from investment operations | 1.71 | 6.30 | 4.93 | (3.42 | ) | 8.05 | 0.45 | ||||||||||||||||||||
Dividends and Distributions to Shareholders | |||||||||||||||||||||||||||
From net investment income | — | (0.35 | ) | (0.65 | ) | (0.23 | ) | (0.25 | ) | (0.14 | ) | ||||||||||||||||
From net realized gain on investments | — | — | (0.19 | ) | (1.55 | ) | (0.18 | ) | — | ||||||||||||||||||
Total Dividends and Distributions | — | (0.35 | ) | (0.84 | ) | (1.78 | ) | (0.43 | ) | (0.14 | ) | ||||||||||||||||
Proceeds from Purchase Fees and Redemption Fees(a) | — | — | — | — | (0.00 | )(b) | 0.01 | ||||||||||||||||||||
Net asset value, end of period | $ | 29.37 | $ | 27.66 | $ | 21.71 | $ | 17.62 | $ | 22.82 | $ | 15.20 | |||||||||||||||
Total Return | |||||||||||||||||||||||||||
Total return based on net asset value(c) | 6.15 | %(f) | 29.06 | % | 28.00 | % | (14.92 | )% | 53.02 | % | 3.10 | % | |||||||||||||||
Ratios/Supplemental Data | |||||||||||||||||||||||||||
Net assets, end of period (000's omitted) | $ | 77,126 | $ | 144,906 | $ | 118,856 | $ | 191,177 | $ | 203,830 | $ | 121,739 | |||||||||||||||
Ratio of net expenses to average net assets | 0.77 | %* | 0.80 | % | 0.83 | % | 0.84 | % | 0.85 | % | 0.87 | % | |||||||||||||||
Ratio of net investment income to average net assets | 0.84 | %* | 0.90 | % | 3.29 | %(d) | 1.31 | % | 0.82 | % | 0.52 | % | |||||||||||||||
Portfolio turnover rate(e) | 11 | % | 24 | % | 15 | % | 22 | % | 33 | % | 24 | % |
* Annualized.
(a) Calculated based upon average shares outstanding during the period.
(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) Large increase due to one-off taxable stock dividends that were treated as income.
(e) Portfolio turnover rate calculated at Fund level.
(f) The total return disclosed include adjustments made for financial reporting purposes in conformity with U.S. generally accepted accounting principles.
The accompanying notes are an integral part of the financial statements.
49
Financial Highlights
Semi-Annual Report June 30, 2021
Baillie Gifford Emerging Markets Equities Fund
Selected data for a Class 3 share outstanding throughout each period:
For the Six Months Ended June 30, 2021 (unaudited) | For the Year Ended December 31, 2020 | For the Year Ended December 31, 2019 | For the Year Ended December 31, 2018 | For the Year Ended December 31, 2017 | For the Period April 1, 2016(a) through December 31, 2016 | ||||||||||||||||||||||
Net asset value, beginning of period | $ | 27.92 | $ | 21.91 | $ | 17.77 | $ | 23.00 | $ | 15.32 | $ | 14.72 | |||||||||||||||
From Investment Operations | |||||||||||||||||||||||||||
Net investment income(b) | 0.23 | 0.20 | 0.71 | 0.29 | 0.17 | 0.12 | |||||||||||||||||||||
Net realized and unrealized gain (loss) on investments and foreign currency | 1.50 | 6.18 | 4.29 | (3.72 | ) | 7.96 | 0.62 | ||||||||||||||||||||
Net increase (decrease) in net asset value from investment operations | 1.73 | 6.38 | 5.00 | (3.43 | ) | 8.13 | 0.74 | ||||||||||||||||||||
Dividends and Distributions to Shareholders | |||||||||||||||||||||||||||
From net investment income | — | (0.37 | ) | (0.67 | ) | (0.25 | ) | (0.27 | ) | (0.14 | ) | ||||||||||||||||
From net realized gain on investments | — | — | (0.19 | ) | (1.55 | ) | (0.18 | ) | — | ||||||||||||||||||
Total Dividends and Distributions | — | (0.37 | ) | (0.86 | ) | (1.80 | ) | (0.45 | ) | (0.14 | ) | ||||||||||||||||
Proceeds from Purchase Fees and Redemption Fees(b) | — | — | — | — | 0.00 | (c) | 0.00 | (c) | |||||||||||||||||||
Net asset value, end of period | $ | 29.65 | $ | 27.92 | $ | 21.91 | $ | 17.77 | $ | 23.00 | $ | 15.32 | |||||||||||||||
Total Return | |||||||||||||||||||||||||||
Total return based on net asset value(d) | 6.19 | %(g) | 29.15 | % | 28.09 | % | (14.86 | )% | 53.13 | % | 5.05 | % | |||||||||||||||
Ratios/Supplemental Data | |||||||||||||||||||||||||||
Net assets, end of period (000's omitted) | $ | 345,006 | $ | 168,460 | $ | 344,702 | $ | 167,268 | $ | 196,468 | $ | 128,303 | |||||||||||||||
Ratio of net expenses to average net assets | 0.70 | %* | 0.73 | % | 0.76 | % | 0.77 | % | 0.78 | % | 0.80 | %* | |||||||||||||||
Ratio of net investment income to average net assets | 1.59 | %* | 0.95 | % | 3.45 | %(e) | 1.33 | % | 0.84 | % | 1.09 | %* | |||||||||||||||
Portfolio turnover rate(f) | 11 | % | 24 | % | 15 | % | 22 | % | 33 | % | 24 | % |
* Annualized.
(a) 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.
(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) Large increase due to one-off taxable stock dividends that were treated as income.
(f) Portfolio turnover rate calculated at Fund level.
(g) The total return disclosed include adjustments made for financial reporting purposes in conformity with U.S. generally accepted accounting principles.
The accompanying notes are an integral part of the financial statements.
50
Financial Highlights
Semi-Annual Report June 30, 2021
Baillie Gifford Emerging Markets Equities Fund
Selected data for a Class 4 share outstanding throughout each period:
For the Six Months Ended June 30, 2021 (unaudited) | For the Period January 10, 2020(a) through December 31, 2020 | For the Period January 1, 2016 through October 10, 2016(a) | For the Period November 2, 2015(b) through December 31, 2015 | ||||||||||||||||
Net asset value, beginning of period | $ | 28.30 | $ | 22.69 | $ | 15.12 | $ | 15.40 | |||||||||||
From Investment Operations | |||||||||||||||||||
Net investment income(a) | 0.20 | 0.22 | 0.11 | 0.02 | |||||||||||||||
Net realized and unrealized gain (loss) on investments and foreign currency | 1.56 | 5.76 | 1.69 | (0.28 | ) | ||||||||||||||
Net increase in net asset value from investment operations | 1.76 | 5.98 | 1.80 | (0.26 | ) | ||||||||||||||
Dividends and Distributions to Shareholders | |||||||||||||||||||
From net investment income | — | (0.37 | ) | — | (0.06 | ) | |||||||||||||
From net realized gain on investments | — | — | — | (0.00 | )(d) | ||||||||||||||
Total Dividends and Distributions | — | (0.37 | ) | — | (0.06 | ) | |||||||||||||
Proceeds from Purchase Fees and Redemption Fees(a) | — | — | 0.01 | 0.04 | |||||||||||||||
Net asset value, end of period | $ | 30.06 | $ | 28.30 | $ | 16.93 | $ | 15.12 | |||||||||||
Total Return | |||||||||||||||||||
Total return based on net asset value(b) | 6.21 | %(g) | 26.45 | % | 12.04 | % | (1.40 | )% | |||||||||||
Ratios/Supplemental Data | |||||||||||||||||||
Net assets, end of period (000's omitted) | $ | 293,980 | $ | 276,791 | $ | 110,086 | $ | 98,273 | |||||||||||
Ratio of net expenses to average net assets | 0.67 | %* | 0.70 | %* | 0.73 | %* | 0.76 | %* | |||||||||||
Ratio of net investment income to average net assets | 1.32 | %* | 1.05 | %* | 1.29 | %* | 0.88 | %* | |||||||||||
Portfolio turnover rate(d) | 11 | % | 24 | % | 24 | % | 46 | % |
* Annualized.
(a) Recommencement of investment operations. Class had no shareholders from October 10, 2016 to January 9, 2020. All shares of this class were redeemed on October 10, 2016 at $16.93. New shares were issued at $22.69 on January 10, 2020.
(b) Commencement of investment operations.
(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.
(g) The total return disclosed include adjustments made for financial reporting purposes in conformity with U.S. generally accepted accounting principles.
The accompanying notes are an integral part of the financial statements.
51
Financial Highlights
Semi-Annual Report June 30, 2021
Baillie Gifford Emerging Markets Equities Fund
Selected data for a Class 5 share outstanding throughout each period:
For the Six Months Ended June 30, 2021 (unaudited) | For the Year Ended December 31, 2020 | For the Year Ended December 31, 2019 | For the Year Ended December 31, 2018 | For the Year Ended December 31, 2017 | For the Year Ended December 31, 2016 | ||||||||||||||||||||||
Net asset value, beginning of period | $ | 28.69 | $ | 22.50 | $ | 18.23 | $ | 23.55 | $ | 15.67 | $ | 15.33 | |||||||||||||||
From Investment Operations | |||||||||||||||||||||||||||
Net investment income(a) | 0.21 | 0.24 | 0.72 | 0.31 | 0.19 | 0.13 | |||||||||||||||||||||
Net realized and unrealized gain (loss) on investments and foreign currency | 1.58 | 6.33 | 4.42 | (3.81 | ) | 8.15 | 0.35 | ||||||||||||||||||||
Net increase (decrease) in net asset value from investment operations | 1.79 | 6.57 | 5.14 | (3.50 | ) | 8.34 | 0.48 | ||||||||||||||||||||
Dividends and Distributions to Shareholders | |||||||||||||||||||||||||||
From net investment income | — | (0.38 | ) | (0.68 | ) | (0.27 | ) | (0.28 | ) | (0.15 | ) | ||||||||||||||||
From net realized gain on investments | — | — | (0.19 | ) | (1.55 | ) | (0.18 | ) | — | ||||||||||||||||||
Total Dividends and Distributions | — | (0.38 | ) | (0.87 | ) | (1.82 | ) | (0.46 | ) | (0.15 | ) | ||||||||||||||||
Proceeds from Purchase Fees and Redemption Fees(a) | — | — | — | — | 0.00 | (b) | 0.01 | ||||||||||||||||||||
Net asset value, end of period | $ | 30.48 | $ | 28.69 | $ | 22.50 | $ | 18.23 | $ | 23.55 | $ | 15.67 | |||||||||||||||
Total Return | |||||||||||||||||||||||||||
Total return based on net asset value(c) | 6.24 | %(f) | 29.25 | % | 28.19 | % | (14.80 | )% | 53.25 | % | 3.24 | % | |||||||||||||||
Ratios/Supplemental Data | |||||||||||||||||||||||||||
Net assets, end of period (000's omitted) | $ | 1,969,837 | $ | 1,953,356 | $ | 1,331,946 | $ | 1,063,434 | $ | 1,232,137 | $ | 1,075,176 | |||||||||||||||
Ratio of net expenses to average net assets | 0.62 | %* | 0.65 | % | 0.68 | % | 0.69 | % | 0.70 | % | 0.71 | % | |||||||||||||||
Ratio of net investment income to average net assets | 1.37 | %* | 1.08 | % | 3.47 | %(d) | 1.41 | % | 0.91 | % | 0.83 | % | |||||||||||||||
Portfolio turnover rate(e) | 11 | % | 24 | % | 15 | % | 22 | % | 33 | % | 24 | % |
* Annualized.
(a) Calculated based upon average shares outstanding during the period.
(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) Large increase due to one-off taxable stock dividends that were treated as income.
(e) Portfolio turnover rate calculated at Fund level.
(f) The total return disclosed include adjustments made for financial reporting purposes in conformity with U.S. generally accepted accounting principles.
The accompanying notes are an integral part of the financial statements.
52
Financial Highlights
Semi-Annual Report June 30, 2021
Baillie Gifford Emerging Markets Equities Fund
Selected data for a Class K share outstanding throughout each period:
For the Six Months Ended June 30, 2021 (unaudited) | For the Year Ended December 31, 2020 | For the Year Ended December 31, 2019 | For the Year Ended December 31, 2018 | For the Period April 28, 2017(a) through December 31, 2017 | |||||||||||||||||||
Net asset value, beginning of period | $ | 27.56 | $ | 21.64 | $ | 17.57 | $ | 22.79 | $ | 18.22 | |||||||||||||
From Investment Operations | |||||||||||||||||||||||
Net investment income(b) | 0.18 | 0.20 | 0.71 | 0.34 | 0.02 | ||||||||||||||||||
Net realized and unrealized gain (loss) on investments and foreign currency | 1.52 | 6.08 | 4.21 | (3.75 | ) | 5.00 | |||||||||||||||||
Net increase (decrease) in net asset value from investment operations | 1.70 | 6.28 | 4.92 | (3.41 | ) | 5.02 | |||||||||||||||||
Dividends and Distributions to Shareholders | |||||||||||||||||||||||
From net investment income | — | (0.36 | ) | (0.66 | ) | (0.26 | ) | (0.27 | ) | ||||||||||||||
From net realized gain on investments | — | — | (0.19 | ) | (1.55 | ) | (0.18 | ) | |||||||||||||||
Total Dividends and Distributions | — | (0.36 | ) | (0.85 | ) | (1.81 | ) | (0.45 | ) | ||||||||||||||
Net asset value, end of period | $ | 29.26 | $ | 27.56 | $ | 21.64 | $ | 17.57 | $ | 22.79 | |||||||||||||
Total Return | |||||||||||||||||||||||
Total return based on net asset value(c) | 6.17 | %(f) | 29.04 | % | 28.00 | % | (14.91 | )% | 27.57 | % | |||||||||||||
Ratios/Supplemental Data | |||||||||||||||||||||||
Net assets, end of period (000's omitted) | $ | 3,025,768 | $ | 2,441,338 | $ | 1,328,535 | $ | 499,172 | $ | 73,349 | |||||||||||||
Ratio of net expenses to average net assets | 0.77 | %* | 0.80 | % | 0.83 | % | 0.84 | % | 0.85 | %* | |||||||||||||
Ratio of net investment income to average net assets | 1.27 | %* | 0.95 | % | 3.55 | %(d) | 1.65 | % | 0.18 | %* | |||||||||||||
Portfolio turnover rate(e) | 11 | % | 24 | % | 15 | % | 22 | % | 33 | % |
* Annualized.
(a) Commencement of investment operations.
(b) Calculated based upon average shares outstanding during the period.
(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) Large increase due to one-off taxable stock dividends that were treated as income.
(e) Portfolio turnover rate calculated at Fund level.
(f) The total return disclosed include adjustments made for financial reporting purposes in conformity with U.S. generally accepted accounting principles.
The accompanying notes are an integral part of the financial statements.
53
Financial Highlights
Semi-Annual Report June 30, 2021
Baillie Gifford Emerging Markets Equities Fund
Selected data for an Institutional Class share outstanding throughout each period:
For the Six Months Ended June 30, 2021 (unaudited) | For the Year Ended December 31, 2020 | For the Year Ended December 31, 2019 | For the Year Ended December 31, 2018 | For the Period April 28, 2017(a) through December 31, 2017 | |||||||||||||||||||
Net asset value, beginning of period | $ | 27.55 | $ | 21.64 | $ | 17.56 | $ | 22.80 | $ | 18.22 | |||||||||||||
From Investment Operations | |||||||||||||||||||||||
Net investment income(b) | 0.17 | 0.18 | 0.79 | 0.11 | 0.16 | ||||||||||||||||||
Net realized and unrealized gain (loss) on investments and foreign currency | 1.52 | 6.07 | 4.12 | (3.54 | ) | 4.86 | |||||||||||||||||
Net increase (decrease) in net asset value from investment operations | 1.69 | 6.25 | 4.91 | (3.43 | ) | 5.02 | |||||||||||||||||
Dividends and Distributions to Shareholders | |||||||||||||||||||||||
From net investment income | — | (0.34 | ) | (0.64 | ) | (0.26 | ) | (0.26 | ) | ||||||||||||||
From net realized gain on investments | — | — | (0.19 | ) | (1.55 | ) | (0.18 | ) | |||||||||||||||
Total Dividends and Distributions | — | (0.34 | ) | (0.83 | ) | (1.81 | ) | (0.44 | ) | ||||||||||||||
Net asset value, end of period | $ | 29.24 | $ | 27.55 | $ | 21.64 | $ | 17.56 | $ | 22.80 | |||||||||||||
Total Return | |||||||||||||||||||||||
Total return based on net asset value(c) | 6.14 | %(f) | 28.91 | % | 27.94 | % | (14.98 | )% | 27.61 | % | |||||||||||||
Ratios/Supplemental Data | |||||||||||||||||||||||
Net assets, end of period (000's omitted) | $ | 1,399,533 | $ | 1,226,335 | $ | 663,593 | $ | 255,795 | $ | 6 | |||||||||||||
Ratio of net expenses to average net assets | 0.86 | %* | 0.89 | % | 0.92 | % | 0.95 | % | 0.85 | %* | |||||||||||||
Ratio of net investment income to average net assets | 1.16 | %* | 0.86 | % | 3.81 | %(d) | 0.68 | % | 1.13 | %* | |||||||||||||
Portfolio turnover rate(e) | 11 | % | 24 | % | 15 | % | 22 | % | 33 | % |
* Annualized.
(a) Commencement of investment operations.
(b) Calculated based upon average shares outstanding during the period.
(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) Large increase due to one-off taxable stock dividends that were treated as income.
(e) Portfolio turnover rate calculated at Fund level.
(f) The total return disclosed include adjustments made for financial reporting purposes in conformity with U.S. generally accepted accounting principles.
The accompanying notes are an integral part of the financial statements.
54
Industry Diversification Table
Semi-Annual Report June 30, 2021
June 30, 2021 (unaudited)
Baillie Gifford Global Alpha Equities Fund
Value | % of Total Net Assets | ||||||||||
Advertising | $ | 14,815,755 | 1.0 | % | |||||||
Airlines | 34,720,612 | 2.4 | |||||||||
Apparel | 13,609,068 | 1.0 | |||||||||
Auto Manufacturers | 33,211,397 | 2.4 | |||||||||
Banks | 16,246,471 | 1.2 | |||||||||
Beverages | 22,328,695 | 1.6 | |||||||||
Biotechnology | 60,047,574 | 4.3 | |||||||||
Building Materials | 41,629,074 | 2.9 | |||||||||
Chemicals | 13,739,766 | 1.0 | |||||||||
Commercial Services | 89,319,226 | 6.4 | |||||||||
Cosmetics/Personal Care | 16,937,442 | 1.2 | |||||||||
Distribution/Wholesale | 12,142,205 | 0.9 | |||||||||
Diversified Financial Services | 69,224,431 | 4.9 | |||||||||
Environmental Control | 6,113,304 | 0.4 | |||||||||
Healthcare — Products | 91,816,104 | 6.5 | |||||||||
Healthcare — Services | 38,075,062 | 2.7 | |||||||||
Home Furnishings | 3,865,349 | 0.3 | |||||||||
Insurance | 97,983,468 | 6.9 | |||||||||
Internet | 374,777,524 | 26.5 | |||||||||
Lodging | 5,682,367 | 0.4 | |||||||||
Machinery — Construction & Mining | 9,213,809 | 0.6 | |||||||||
Machinery — Diversified | 30,746,282 | 2.1 | |||||||||
Media | 10,988,183 | 0.8 | |||||||||
Mining | 42,098,785 | 3.0 | |||||||||
Miscellaneous Manufacturing | 15,442,194 | 1.1 | |||||||||
Oil & Gas | 19,366,711 | 1.4 | |||||||||
Real Estate | 25,017,629 | 1.8 | |||||||||
Retail | 24,544,548 | 1.8 | |||||||||
Semiconductors | 61,218,076 | 4.3 | |||||||||
Software | 99,185,596 | 7.0 | |||||||||
Total Value of Investments | 1,394,106,707 | 98.8 | |||||||||
Other assets less liabilities | 16,751,347 | 1.2 | |||||||||
Net Assets | $ | 1,410,858,054 | 100.0 | % |
The table above is based on Bloomberg Industry Group classifications. For compliance monitoring purposes, sub-industry classifications are used which results in less concentration across industry sectors.
55
Portfolio of Investments
Semi-Annual Report June 30, 2021
June 30, 2021 (unaudited)
Baillie Gifford Global Alpha Equities Fund
Shares | Value | ||||||||||
COMMON STOCKS — 98.8% | |||||||||||
AUSTRALIA — 3.2% | |||||||||||
BHP Group PLC | 706,502 | $ | 20,906,083 | ||||||||
Orica Ltd. | 314,581 | 3,128,604 | |||||||||
Rio Tinto PLC | 256,609 | 21,192,703 | |||||||||
45,227,390 | |||||||||||
BRAZIL — 0.5% | |||||||||||
B3 SA — Brasil Bolsa Balcao | 2,208,800 | 7,438,458 | |||||||||
CANADA — 2.8% | |||||||||||
Fairfax Financial Holdings Ltd. | 14,319 | 6,279,290 | |||||||||
Shopify, Inc., Class A * | 22,378 | 32,693,811 | |||||||||
38,973,101 | |||||||||||
CHINA — 7.5% | |||||||||||
Alibaba Group Holding Ltd. ADR * | 104,402 | 23,676,285 | |||||||||
Autohome, Inc. ADR | 52,778 | 3,375,681 | |||||||||
Brilliance China Automotive Holdings Ltd. (a) | 6,366,000 | 2,992,659 | |||||||||
KE Holdings, Inc. ADR * | 48,180 | 2,297,222 | |||||||||
Li Auto, Inc. ADR * | 273,649 | 9,561,296 | |||||||||
Meituan, Class B * | 644,300 | 26,578,125 | |||||||||
Ping An Healthcare and Technology Co., Ltd. * | 409,300 | 5,098,923 | |||||||||
Ping An Insurance Group Co. of China Ltd., Class H | 1,381,000 | 13,499,825 | |||||||||
Prosus NV * | 127,432 | 12,484,207 | |||||||||
Tencent Music Entertainment Group ADR * | 379,514 | 5,874,877 | |||||||||
105,439,100 | |||||||||||
DENMARK — 0.6% | |||||||||||
Genmab A/S * | 19,985 | 8,188,711 | |||||||||
FRANCE — 2.6% | |||||||||||
Adevinta ASA * | 532,453 | 10,214,030 | |||||||||
Pernod Ricard SA | 100,461 | 22,328,695 | |||||||||
Ubisoft Entertainment SA * | 61,884 | 4,323,693 | |||||||||
36,866,418 |
The accompanying notes are an integral part of the financial statements.
56
Portfolio of Investments
Semi-Annual Report June 30, 2021
June 30, 2021 (unaudited)
Baillie Gifford Global Alpha Equities Fund
Shares | Value | ||||||||||
GERMANY — 1.5% | |||||||||||
adidas AG | 36,470 | $ | 13,609,068 | ||||||||
Deutsche Boerse AG | 47,300 | 8,256,038 | |||||||||
21,865,106 | |||||||||||
HONG KONG — 1.6% | |||||||||||
AIA Group Ltd. | 1,848,800 | 22,935,434 | |||||||||
INDIA — 2.4% | |||||||||||
Housing Development Finance Corp., Ltd. | 393,915 | 13,146,185 | |||||||||
ICICI Bank Ltd. ADR * | 479,310 | 8,196,201 | |||||||||
Reliance Industries Ltd. GDR | 228,212 | 12,916,799 | |||||||||
34,259,185 | |||||||||||
IRELAND — 3.2% | |||||||||||
CRH PLC | 348,381 | 17,686,996 | |||||||||
Ryanair Holdings PLC ADR * | 252,261 | 27,297,163 | |||||||||
44,984,159 | |||||||||||
JAPAN — 5.6% | |||||||||||
Advantest Corp. | 186,000 | 16,700,349 | |||||||||
CyberAgent, Inc. | 576,500 | 12,346,943 | |||||||||
Hoshizaki Corp. | 45,500 | 3,865,349 | |||||||||
Olympus Corp. | 941,800 | 18,733,282 | |||||||||
SMC Corp. | 19,700 | 11,654,417 | |||||||||
Sysmex Corp. | 127,600 | 15,137,792 | |||||||||
78,438,132 | |||||||||||
MACAU — 0.4% | |||||||||||
Sands China Ltd. * | 1,350,000 | 5,682,366 | |||||||||
NETHERLANDS — 0.6% | |||||||||||
Adyen NV * | 3,403 | 8,345,283 | |||||||||
NORWAY — 0.8% | |||||||||||
Schibsted ASA, Class A | 227,776 | 10,988,183 |
The accompanying notes are an integral part of the financial statements.
57
Portfolio of Investments
Semi-Annual Report June 30, 2021
June 30, 2021 (unaudited)
Baillie Gifford Global Alpha Equities Fund
Shares | Value | ||||||||||
RUSSIA — 0.8% | |||||||||||
Mail.Ru Group Ltd. GDR Reg S * | 150,608 | $ | 3,423,737 | ||||||||
Sberbank of Russia PJSC ADR | 484,460 | 8,050,270 | |||||||||
11,474,007 | |||||||||||
SOUTH AFRICA — 2.8% | |||||||||||
Naspers Ltd., N Shares | 189,985 | 40,057,767 | |||||||||
SWEDEN — 1.6% | |||||||||||
Atlas Copco AB, B Shares | 248,662 | 13,096,145 | |||||||||
Epiroc AB, B Shares | 469,311 | 9,213,809 | |||||||||
22,309,954 | |||||||||||
SWITZERLAND — 1.3% | |||||||||||
Compagnie Financiere Richemont SA | 89,643 | 10,867,297 | |||||||||
Wizz Air Holdings PLC * | 114,819 | 7,423,449 | |||||||||
18,290,746 | |||||||||||
TAIWAN — 4.3% | |||||||||||
Sea Ltd. ADR * | 116,610 | 32,021,106 | |||||||||
Taiwan Semiconductor Manufacturing Co., Ltd. | 1,320,000 | 28,430,203 | |||||||||
60,451,309 | |||||||||||
UNITED KINGDOM — 3.0% | |||||||||||
Farfetch Ltd., Class A * | 229,780 | 11,571,721 | |||||||||
Hays PLC * | 1,750,673 | 3,840,826 | |||||||||
Prudential PLC | 1,390,375 | 26,452,966 | |||||||||
41,865,513 | |||||||||||
UNITED STATES — 51.7% | |||||||||||
ABIOMED, Inc. * | 22,673 | 7,076,470 | |||||||||
Albemarle Corp. | 81,561 | 13,739,766 | |||||||||
Alnylam Pharmaceuticals, Inc. * | 83,534 | 14,160,684 | |||||||||
Alphabet, Inc., Class C * | 12,732 | 31,910,466 | |||||||||
Amazon.com, Inc. * | 8,287 | 28,508,606 | |||||||||
Anthem, Inc. | 72,090 | 27,523,962 | |||||||||
Arthur J Gallagher & Co. | 142,097 | 19,904,948 | |||||||||
Axon Enterprise, Inc. * | 69,647 | 12,313,590 |
The accompanying notes are an integral part of the financial statements.
58
Portfolio of Investments
Semi-Annual Report June 30, 2021
June 30, 2021 (unaudited)
Baillie Gifford Global Alpha Equities Fund
Shares | Value | ||||||||||
Booking Holdings, Inc. * | 6,188 | $ | 13,539,901 | ||||||||
Broadridge Financial Solutions, Inc. | 71,524 | 11,553,272 | |||||||||
Carvana Co. * | 28,422 | 8,578,328 | |||||||||
CBRE Group, Inc., Class A * | 195,531 | 16,762,873 | |||||||||
Charles Schwab Corp. (The) | 135,939 | 9,897,719 | |||||||||
Chegg, Inc. * | 99,712 | 8,287,064 | |||||||||
Cloudflare, Inc., Class A * | 159,189 | 16,848,564 | |||||||||
CoStar Group, Inc. * | 84,940 | 7,034,731 | |||||||||
Datadog, Inc., Class A * | 68,813 | 7,162,057 | |||||||||
DoorDash, Inc., Class A * | 59,982 | 10,696,590 | |||||||||
EOG Resources, Inc. | 77,300 | 6,449,912 | |||||||||
Estee Lauder Cos., Inc. (The), Class A | 53,249 | 16,937,442 | |||||||||
Exact Sciences Corp. * | 53,870 | 6,696,580 | |||||||||
Facebook, Inc., Class A * | 51,316 | 17,843,086 | |||||||||
Howard Hughes Corp. (The) * | 61,128 | 5,957,535 | |||||||||
IAC/InterActiveCorp * | 34,101 | 5,257,351 | |||||||||
Illumina, Inc. * | 25,228 | 11,938,142 | |||||||||
LendingTree, Inc. * | 14,932 | 3,163,792 | |||||||||
Lyft, Inc., Class A * | 134,459 | 8,132,080 | |||||||||
Markel Corp. * | 7,509 | 8,911,005 | |||||||||
Martin Marietta Materials, Inc. | 68,054 | 23,942,078 | |||||||||
Mastercard, Inc., Class A | 74,837 | 27,322,240 | |||||||||
Microsoft Corp. | 117,763 | 31,901,997 | |||||||||
Moderna, Inc. * | 81,128 | 19,063,457 | |||||||||
Moody's Corp. | 98,519 | 35,700,330 | |||||||||
Netflix, Inc. * | 16,104 | 8,506,294 | |||||||||
Novocure Ltd.* | 69,185 | 15,346,617 | |||||||||
Oscar Health, Inc., Class A * | 207,419 | 4,459,508 | |||||||||
ResMed, Inc. | 56,540 | 13,938,241 | |||||||||
S&P Global, Inc. | 33,303 | 13,669,216 | |||||||||
Service Corp. International | 232,166 | 12,441,776 | |||||||||
SiteOne Landscape Supply, Inc. * | 71,737 | 12,142,205 | |||||||||
Snowflake, Inc., Class A * | 30,398 | 7,350,236 | |||||||||
Spotify Technology SA * | 21,444 | 5,909,752 | |||||||||
STAAR Surgical Co. * | 52,147 | 7,952,417 | |||||||||
Stericycle, Inc. * | 85,441 | 6,113,304 | |||||||||
Teladoc Health, Inc. * | 63,450 | 10,551,100 | |||||||||
Teradyne, Inc. | 120,092 | 16,087,524 |
The accompanying notes are an integral part of the financial statements.
59
Portfolio of Investments
Semi-Annual Report June 30, 2021
June 30, 2021 (unaudited)
Baillie Gifford Global Alpha Equities Fund
Shares | Value | ||||||||||
Tesla, Inc. * | 30,392 | $ | 20,657,442 | ||||||||
Thermo Fisher Scientific, Inc. | 27,021 | 13,631,284 | |||||||||
Trade Desk, Inc. (The), Class A * | 191,517 | 14,815,755 | |||||||||
Twilio, Inc., Class A * | 39,543 | 15,586,269 | |||||||||
Vimeo, Inc. * | 74,299 | 3,640,651 | |||||||||
Wayfair, Inc., Class A * | 44,466 | 14,038,361 | |||||||||
Westinghouse Air Brake Technologies Corp. | 72,852 | 5,995,720 | |||||||||
Zillow Group, Inc., Class C * | 102,079 | 12,476,095 | |||||||||
730,026,385 | |||||||||||
TOTAL INVESTMENTS — 98.8% | |||||||||||
(cost $741,982,288) | $ | 1,394,106,707 | |||||||||
Other assets less liabilities — 1.2% | 16,751,347 | ||||||||||
NET ASSETS — 100.0% | $ | 1,410,858,054 |
(a) Investment was valued using significant unobservable inputs.
* Non-income producing security.
ADR — American Depositary Receipt
GDR — Global 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). These securities have been deemed liquid under procedures approved by the Fund's Board of Trustees. At June 30, 2021, the net value of these securities was $3,423,737 representing 0.2% of net assets.
This report classifies issuers geographically by their country of risk. For compliance monitoring purposes, the Manager retains discretion to consider a number of factors in determining where a particular issuer is located, as described in further detail in each Fund's prospectus.
Fair Value Measurement
The following is a summary of the inputs used as of June 30, 2021 in valuing the Fund's investments carried at fair value:
Investments in Securities | Level 1 | Level 2 | Level 3 | Total | |||||||||||||||
Common Stocks ** | $ | 917,067,121 | $ | 474,046,927 | $ | 2,992,659 | $ | 1,394,106,707 | |||||||||||
Total | $ | 917,067,121 | $ | 474,046,927 | $ | 2,992,659 | $ | 1,394,106,707 |
** Refer to Portfolio of Investments for further detail.
The accompanying notes are an integral part of the financial statements.
60
Statement of Assets and Liabilities
Semi-Annual Report June 30, 2021
June 30, 2021 (unaudited)
Baillie Gifford Global Alpha Equities Fund
ASSETS | |||||||
Investments, at value (cost $741,982,288) | $ | 1,394,106,707 | |||||
Cash | 14,801,970 | ||||||
Foreign cash, at value (cost $2,117,899) | 2,112,789 | ||||||
Receivable for investments sold | 4,113,166 | ||||||
Capital shares sold receivable | 1,718,374 | ||||||
Dividends receivable | 448,605 | ||||||
Tax reclaims receivable | 418,736 | ||||||
Receivable for India gains tax refunds (Note A) | 76,898 | ||||||
Prepaid assets | 35,311 | ||||||
Total Assets | 1,417,832,556 | ||||||
LIABILITIES | |||||||
Advisory fee payable | 1,534,080 | ||||||
Payable for investment purchased | 4,383,879 | ||||||
Deferred India capital gains tax liability (Note A) | 402,037 | ||||||
Shareholder Servicing fee payable | 298,525 | ||||||
Administration & Supervisory fee payable | 149,868 | ||||||
Trustee fee payable | 8,714 | ||||||
Commitment fee payable | 1,940 | ||||||
Accrued expenses | 195,459 | ||||||
Total Liabilities | 6,974,502 | ||||||
NET ASSETS | $ | 1,410,858,054 | |||||
COMPOSITION OF NET ASSETS | |||||||
Paid-in capital | $ | 607,268,329 | |||||
Total distributable earnings | 803,589,725 | ||||||
$ | 1,410,858,054 | ||||||
NET ASSET VALUE, PER SHARE | |||||||
Class 2 ( $263,287,739 / 11,221,931 shares outstanding), unlimited authorized, no par value | $ | 23.46 | |||||
Class 3 ( $125,609,329 / 5,199,617 shares outstanding), unlimited authorized, no par value | $ | 24.16 | |||||
Class 4 ( $654,541,292 / 26,391,627 shares outstanding), unlimited authorized, no par value | $ | 24.80 | |||||
Class K ( $323,886,531 / 13,845,877 shares outstanding), unlimited authorized, no par value | $ | 23.39 | |||||
Institutional Class ( $43,533,163 / 1,859,335 shares outstanding), unlimited authorized, no par value | $ | 23.41 |
The accompanying notes are an integral part of the financial statements.
61
Statement of Operations
Semi-Annual Report June 30, 2021
For the Six Months Ended June 30, 2021 (unaudited)
Baillie Gifford Global Alpha Equities Fund
INVESTMENT INCOME | |||||||
Dividends (net of foreign withholding taxes of $502,751) | $ | 7,115,308 | |||||
Interest | 3,551 | ||||||
Total Investment Income | 7,118,859 | ||||||
EXPENSES | |||||||
Advisory fee (Note B) | 3,078,216 | ||||||
Shareholder Servicing fees — Class 2 shares (Note B) | 248,468 | ||||||
Shareholder Servicing fees — Class 3 shares (Note B) | 97,636 | ||||||
Shareholder Servicing fees — Class 4 shares (Note B) | 250,027 | ||||||
Administration & Supervisory fee — Class K shares (Note B) | 257,143 | ||||||
Administration & Supervisory fee — Institutional Class shares (Note B) | 29,441 | ||||||
Transfer agency | 48,852 | ||||||
Sub-transfer agency — Institutional Class shares | 15,150 | ||||||
Fund accounting | 225,304 | ||||||
Legal | 83,562 | ||||||
Custody | 67,868 | ||||||
Registration fees | 33,783 | ||||||
Trustees' fees | 17,084 | ||||||
Professional fees | 16,426 | ||||||
Commitment fees | 3,820 | ||||||
Line of Credit | 235 | ||||||
Miscellaneous | 16,953 | ||||||
Total Expenses | 4,489,968 | ||||||
Net Investment Income | 2,628,891 | ||||||
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS AND FOREIGN CURRENCY TRANSACTIONS | |||||||
Net realized gain from: | |||||||
Investments (net of India capital gains tax benefit of $48,930) | 155,022,782 | ||||||
Foreign currency transactions | 51,904 | ||||||
155,074,686 | |||||||
Net change in unrealized depreciation on: | |||||||
Investments (net of deferred India capital gains tax benefit of $1,656) (Note A) | (1,279,807 | ) | |||||
Translation of net assets and liabilities denominated in foreign currencies | (32,439 | ) | |||||
(1,312,246 | ) | ||||||
Net realized and unrealized gain | 153,762,440 | ||||||
NET INCREASE IN NET ASSETS FROM OPERATIONS | $ | 156,391,331 |
The accompanying notes are an integral part of the financial statements.
62
Statements of Changes in Net Assets
Semi-Annual Report June 30, 2021
Baillie Gifford Global Alpha Equities Fund
For the Six Months Ended June 30, 2021 (unaudited) | For the Year Ended December 31, 2020 | ||||||||||
INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS | |||||||||||
Net investment income | $ | 2,628,891 | $ | 3,240,769 | |||||||
Net realized gain | 155,074,686 | 76,002,418 | |||||||||
Net change in unrealized appreciation (depreciation) | (1,312,246 | ) | 317,960,026 | ||||||||
Net increase in net assets from operations | 156,391,331 | 397,203,213 | |||||||||
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS FROM: | |||||||||||
Distributable earnings | |||||||||||
Class 2 | — | (13,975,367 | ) | ||||||||
Class 3 | — | (15,207,662 | ) | ||||||||
Class 4 | — | (36,754,305 | ) | ||||||||
Class K | — | (15,897,931 | ) | ||||||||
Institutional Class | — | (1,590,334 | ) | ||||||||
Total Distributions to Shareholders | — | (83,425,599 | ) | ||||||||
TRANSACTIONS IN SHARES OF BENEFICIAL INTEREST | |||||||||||
Net proceeds from shares subscribed: | |||||||||||
Class 2 | 170,718,384 | * | 21,406,000 | ||||||||
Class 3 | — | — | |||||||||
Class 4 | — | 453,824,236 | * | ||||||||
Class K | 52,602,004 | 162,657,595 | |||||||||
Institutional Class | 13,384,727 | 22,514,998 | |||||||||
Dividends reinvested: | |||||||||||
Class 2 | — | 13,975,368 | |||||||||
Class 3 | — | 15,207,661 | |||||||||
Class 4 | — | 36,754,305 | |||||||||
Class K | — | 15,897,930 | |||||||||
Institutional Class | — | 1,590,334 | |||||||||
Cost of shares redeemed: | |||||||||||
Class 2 | (186,409,999 | ) | (12,867,763 | ) | |||||||
Class 3 | (180,167,937 | )* | (440,824,236 | )* | |||||||
Class 4 | (100,000,000 | ) | (25,000,000 | ) | |||||||
Class K | (26,385,561 | ) | (36,392,473 | ) | |||||||
Institutional Class | (749,303 | ) | (1,613,033 | ) | |||||||
Increase (Decrease) in Net Assets from Transactions in Shares of Beneficial Interest | (257,007,685 | ) | 227,130,922 | ||||||||
Total Increase (Decrease) in Net Assets | (100,616,354 | ) | 540,908,536 | ||||||||
NET ASSETS | |||||||||||
Beginning of period | 1,511,474,408 | 970,565,872 | |||||||||
End of period | $ | 1,410,858,054 | $ | 1,511,474,408 |
* See Note D for details of share class conversions.
The accompanying notes are an integral part of the financial statements.
63
Financial Highlights
Semi-Annual Report June 30, 2021
Baillie Gifford Global Alpha Equities Fund
Selected data for a Class 2 share outstanding throughout each period:
For the Six Months Ended June 30, 2021 (unaudited) | For the Year Ended December 31, 2020 | For the Year Ended December 31, 2019 | For the Year Ended December 31, 2018 | For the Year Ended December 31, 2017 | For the Year Ended December 31, 2016 | ||||||||||||||||||||||
Net asset value, beginning of period | $ | 21.18 | $ | 16.46 | $ | 13.13 | $ | 18.85 | $ | 14.52 | $ | 13.96 | |||||||||||||||
From Investment Operations | |||||||||||||||||||||||||||
Net investment income(a) | 0.03 | 0.04 | 0.39 | 0.11 | 0.10 | 0.10 | |||||||||||||||||||||
Net realized and unrealized gain (loss) on investments and foreign currency | 2.25 | 5.93 | 3.89 | (1.93 | ) | 4.91 | 0.59 | ||||||||||||||||||||
Net increase (decrease) in net asset value from investment operations | 2.28 | 5.97 | 4.28 | (1.82 | ) | 5.01 | 0.69 | ||||||||||||||||||||
Dividends and Distributions to Shareholders | |||||||||||||||||||||||||||
From net investment income | — | (0.13 | ) | (0.57 | ) | (0.13 | ) | (0.11 | ) | (0.08 | ) | ||||||||||||||||
From net realized gain on investments | — | (1.12 | ) | (0.38 | ) | (3.77 | ) | (0.57 | ) | (0.05 | ) | ||||||||||||||||
Total Dividends and Distributions | — | (1.25 | ) | (0.95 | ) | (3.90 | ) | (0.68 | ) | (0.13 | ) | ||||||||||||||||
Proceeds from Purchase Fees and Redemption Fees(a) | — | — | — | — | 0.00 | (b) | 0.00 | (b) | |||||||||||||||||||
Net asset value, end of period | $ | 23.46 | $ | 21.18 | $ | 16.46 | $ | 13.13 | $ | 18.85 | $ | 14.52 | |||||||||||||||
Total Return | |||||||||||||||||||||||||||
Total return based on net asset value(c) | 10.75 | %(f) | 36.31 | % | 32.56 | % | (9.44 | )% | 34.56 | % | 4.95 | % | |||||||||||||||
Ratios/Supplemental Data | |||||||||||||||||||||||||||
Net assets, end of period (000's omitted) | $ | 263,288 | $ | 250,776 | $ | 173,625 | $ | 129,690 | $ | 154,523 | $ | 225,095 | |||||||||||||||
Ratio of net expenses to average net assets | 0.64 | %* | 0.65 | % | 0.67 | % | 0.68 | % | 0.67 | % | 0.67 | % | |||||||||||||||
Ratio of net investment income to average net assets | 0.29 | %* | 0.25 | % | 2.52 | %(d) | 0.59 | % | 0.59 | % | 0.69 | % | |||||||||||||||
Portfolio turnover rate(e) | 14 | % | 23 | % | 17 | % | 18 | % | 27 | % | 20 | % |
* Annualized.
(a) Calculated based upon average shares outstanding during the period.
(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) Large increase due to one-off taxable stock dividends that were treated as income.
(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.
(f) The total return disclosed include adjustments made for financial reporting purposes in conformity with U.S. generally accepted accounting principles.
The accompanying notes are an integral part of the financial statements.
64
Financial Highlights
Semi-Annual Report June 30, 2021
Baillie Gifford Global Alpha Equities Fund
Selected data for a Class 3 share outstanding throughout each period:
For the Six Months Ended June 30, 2021 (unaudited) | For the Year Ended December 31, 2020 | For the Year Ended December 31, 2019 | For the Year Ended December 31, 2018 | For the Year Ended December 31, 2017 | For the Year Ended December 31, 2016 | ||||||||||||||||||||||
Net asset value, beginning of period | $ | 21.80 | $ | 16.90 | $ | 13.46 | $ | 19.22 | $ | 14.79 | $ | 14.23 | |||||||||||||||
From Investment Operations | |||||||||||||||||||||||||||
Net investment income(a) | 0.04 | 0.07 | 0.41 | 0.13 | 0.10 | 0.10 | |||||||||||||||||||||
Net realized and unrealized gain (loss) on investments and foreign currency | 2.32 | 6.07 | 3.99 | (1.97 | ) | 5.04 | 0.61 | ||||||||||||||||||||
Net increase (decrease) in net asset value from investment operations | 2.36 | 6.14 | 4.40 | (1.84 | ) | 5.14 | 0.71 | ||||||||||||||||||||
Dividends and Distributions to Shareholders | |||||||||||||||||||||||||||
From net investment income | — | (0.12 | ) | (0.58 | ) | (0.15 | ) | (0.14 | ) | (0.10 | ) | ||||||||||||||||
From net realized gain on investments | — | (1.12 | ) | (0.38 | ) | (3.77 | ) | (0.57 | ) | (0.05 | ) | ||||||||||||||||
Total Dividends and Distributions | — | (1.24 | ) | (0.96 | ) | (3.92 | ) | (0.71 | ) | (0.15 | ) | ||||||||||||||||
Proceeds from Purchase Fees and Redemption Fees(a) | — | — | — | — | 0.00 | (b) | 0.00 | (b) | |||||||||||||||||||
Net asset value, end of period | $ | 24.16 | $ | 21.80 | $ | 16.90 | $ | 13.46 | $ | 19.22 | $ | 14.79 | |||||||||||||||
Total Return | |||||||||||||||||||||||||||
Total return based on net asset value(c) | 10.79 | %(f) | 36.40 | % | 32.65 | % | (9.37 | )% | 34.65 | % | 5.02 | % | |||||||||||||||
Ratios/Supplemental Data | |||||||||||||||||||||||||||
Net assets, end of period (000's omitted) | $ | 125,609 | $ | 282,859 | $ | 568,608 | $ | 449,177 | $ | 564,714 | $ | 593,513 | |||||||||||||||
Ratio of net expenses to average net assets | 0.57 | %* | 0.58 | % | 0.60 | % | 0.61 | % | 0.60 | % | 0.60 | % | |||||||||||||||
Ratio of net investment income to average net assets | 0.35 | %* | 0.41 | % | 2.61 | %(d) | 0.67 | % | 0.60 | % | 0.75 | % | |||||||||||||||
Portfolio turnover rate(e) | 14 | % | 23 | % | 17 | % | 18 | % | 27 | % | 20 | % |
* Annualized.
(a) Calculated based upon average shares outstanding during the period.
(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) Large increase due to one-off taxable stock dividends that were treated as income.
(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.
(f) The total return disclosed include adjustments made for financial reporting purposes in conformity with U.S. generally accepted accounting principles.
The accompanying notes are an integral part of the financial statements.
65
Financial Highlights
Semi-Annual Report June 30, 2021
Baillie Gifford Global Alpha Equities Fund
Selected data for a Class 4 share outstanding throughout each period:
For the Six Months Ended June 30, 2021 (unaudited) | For the Year Ended December 31, 2020 | For the Year Ended December 31, 2019 | For the Year Ended December 31, 2018 | For the Period July 10, 2017(a) through December 31, 2017 | |||||||||||||||||||
Net asset value, beginning of period | $ | 22.38 | $ | 17.34 | $ | 13.79 | $ | 19.58 | $ | 17.99 | |||||||||||||
From Investment Operations | |||||||||||||||||||||||
Net investment income(b) | 0.05 | 0.03 | 0.42 | 0.11 | 0.01 | ||||||||||||||||||
Net realized and unrealized gain (loss) on investments and foreign currency | 2.37 | 6.28 | 4.10 | (1.98 | ) | 2.31 | |||||||||||||||||
Net increase (decrease) in net asset value from investment operations | 2.42 | 6.31 | 4.52 | (1.87 | ) | 2.32 |
Dividends and Distributions to Shareholders |
From net investment income | — | (0.15 | ) | (0.59 | ) | (0.15 | ) | (0.16 | ) | ||||||||||||||
From net realized gain on investments | — | (1.12 | ) | (0.38 | ) | (3.77 | ) | (0.57 | ) | ||||||||||||||
Total Dividends and Distributions | — | (1.27 | ) | (0.97 | ) | (3.92 | ) | (0.73 | ) | ||||||||||||||
Net asset value, end of period | $ | 24.80 | $ | 22.38 | $ | 17.34 | $ | 13.79 | $ | 19.58 | |||||||||||||
Total Return | |||||||||||||||||||||||
Total return based on net asset value(c) | 10.81 | %(f) | 36.45 | % | 32.69 | % | (9.35 | )% | 12.87 | % | |||||||||||||
Ratios/Supplemental Data | |||||||||||||||||||||||
Net assets, end of period (000's omitted) | $ | 654,541 | $ | 682,239 | $ | 147,092 | $ | 110,854 | $ | 367,908 | |||||||||||||
Ratio of net expenses to average net assets | 0.54 | %* | 0.55 | % | 0.57 | % | 0.58 | % | 0.58 | %* | |||||||||||||
Ratio of net investment income to average net assets | 0.39 | %* | 0.16 | % | 2.62 | %(d) | 0.57 | % | 0.15 | %* | |||||||||||||
Portfolio turnover rate(e) | 14 | % | 23 | % | 17 | % | 18 | % | 27 | % |
* Annualized.
(a) Commencement of investment operations.
(b) Calculated based upon average shares outstanding during the period.
(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) Large increase due to one-off taxable stock dividends that were treated as income.
(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.
(f) The total return disclosed include adjustments made for financial reporting purposes in conformity with U.S. generally accepted accounting principles.
The accompanying notes are an integral part of the financial statements.
66
Financial Highlights
Semi-Annual Report June 30, 2021
Baillie Gifford Global Alpha Equities Fund
Selected data for a Class K share outstanding throughout each period:
For the Six Months Ended June 30, 2021 (unaudited) | For the Year Ended December 31, 2020 | For the Year Ended December 31, 2019 | For the Year Ended December 31, 2018 | For the Period April 28, 2017(a) through December 31, 2017 | |||||||||||||||||||
Net asset value, beginning of period | $ | 21.12 | $ | 16.42 | $ | 13.11 | $ | 18.82 | $ | 16.56 | |||||||||||||
From Investment Operations | |||||||||||||||||||||||
Net investment income(b) | 0.03 | 0.03 | 0.35 | 0.11 | 0.02 | ||||||||||||||||||
Net realized and unrealized gain (loss) on investments and foreign currency | 2.24 | 5.93 | 3.92 | (1.92 | ) | 2.96 | |||||||||||||||||
Net increase (decrease) in net asset value from investment operations | 2.27 | 5.96 | 4.27 | (1.81 | ) | 2.98 |
Dividends and Distributions to Shareholders |
From net investment income | — | (0.14 | ) | (0.58 | ) | (0.13 | ) | (0.15 | ) | ||||||||||||||
From net realized gain on investments | — | (1.12 | ) | (0.38 | ) | (3.77 | ) | (0.57 | ) | ||||||||||||||
Total Dividends and Distributions | — | (1.26 | ) | (0.96 | ) | (3.90 | ) | (0.72 | ) | ||||||||||||||
Net asset value, end of period | $ | 23.39 | $ | 21.12 | $ | 16.42 | $ | 13.11 | $ | 18.82 | |||||||||||||
Total Return | |||||||||||||||||||||||
Total return based on net asset value(c) | 10.75 | %(f) | 36.35 | % | 32.48 | % | (9.38 | )% | 17.97 | % | |||||||||||||
Ratios/Supplemental Data | |||||||||||||||||||||||
Net assets, end of period (000's omitted) | $ | 323,887 | $ | 267,923 | $ | 81,234 | $ | 41,427 | $ | 56,163 | |||||||||||||
Ratio of net expenses to average net assets | 0.64 | %* | 0.65 | % | 0.67 | % | 0.68 | % | 0.68 | %* | |||||||||||||
Ratio of net investment income to average net assets | 0.29 | %* | 0.18 | % | 2.22 | %(d) | 0.56 | % | 0.17 | %* | |||||||||||||
Portfolio turnover rate(e) | 14 | % | 23 | % | 17 | % | 18 | % | 27 | % |
* Annualized.
(a) Commencement of investment operations.
(b) Calculated based upon average shares outstanding during the period.
(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) Large increase due to one-off taxable stock dividends that were treated as income.
(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.
(f) The total return disclosed include adjustments made for financial reporting purposes in conformity with U.S. generally accepted accounting principles.
The accompanying notes are an integral part of the financial statements.
67
Financial Highlights
Semi-Annual Report June 30, 2021
Baillie Gifford Global Alpha Equities Fund
Selected data for an Institutional Class share outstanding throughout each period:
For the Six Months Ended June 30, 2021 (unaudited) | For the Year Ended December 31, 2020 | For the Year Ended December 31, 2019 | For the Year Ended December 31, 2018 | For the Period April 28, 2017(a) through December 31, 2017 | |||||||||||||||||||
Net asset value, beginning of period | $ | 21.15 | $ | 16.45 | $ | 13.12 | $ | 18.84 | $ | 16.56 | |||||||||||||
From Investment Operations | |||||||||||||||||||||||
Net investment income(b) | 0.02 | 0.02 | 0.39 | 0.12 | 0.04 | ||||||||||||||||||
Net realized and unrealized gain (loss) on investments and foreign currency | 2.24 | 5.93 | 3.89 | (1.94 | ) | 2.95 | |||||||||||||||||
Net increase (decrease) in net asset value from investment operations | 2.26 | 5.95 | 4.28 | (1.82 | ) | 2.99 |
Dividends and Distributions to Shareholders |
From net investment income | — | (0.13 | ) | (0.57 | ) | (0.13 | ) | (0.14 | ) | ||||||||||||||
From net realized gain on investments | — | (1.12 | ) | (0.38 | ) | (3.77 | ) | (0.57 | ) | ||||||||||||||
Total Dividends and Distributions | — | (1.25 | ) | (0.95 | ) | (3.90 | ) | (0.71 | ) | ||||||||||||||
Net asset value, end of period | $ | 23.41 | $ | 21.15 | $ | 16.45 | $ | 13.12 | $ | 18.84 | |||||||||||||
Total Return | |||||||||||||||||||||||
Total return based on net asset value(c) | 10.69 | %(f) | 36.22 | % | 32.56 | % | (9.42 | )% | 18.03 | % | |||||||||||||
Ratios/Supplemental Data | |||||||||||||||||||||||
Net assets, end of period (000's omitted) | $ | 43,533 | $ | 27,677 | $ | 7 | $ | 5 | $ | 6 | |||||||||||||
Ratio of net expenses to average net assets | 0.72 | %* | 0.74 | % | 0.67 | % | 0.68 | % | 0.67 | %* | |||||||||||||
Ratio of net investment income to average net assets | 0.22 | %* | 0.09 | % | 2.56 | %(d) | 0.62 | % | 0.35 | %* | |||||||||||||
Portfolio turnover rate(e) | 14 | % | 23 | % | 17 | % | 18 | % | 27 | % |
* Annualized.
(a) Commencement of investment operations.
(b) Calculated based upon average shares outstanding during the period.
(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) Large increase due to one-off taxable stock dividends that were treated as income.
(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.
(f) The total return disclosed include adjustments made for financial reporting purposes in conformity with U.S. generally accepted accounting principles.
The accompanying notes are an integral part of the financial statements.
68
Industry Diversification Table
Semi-Annual Report June 30, 2021
June 30, 2021 (unaudited)
Baillie Gifford Global Stewardship Equities Fund
Value | % of Total Net Assets | ||||||||||
Advertising | $ | 118,361 | 1.7 | % | |||||||
Apparel | 83,214 | 1.2 | |||||||||
Auto Manufacturers | 207,988 | 3.0 | |||||||||
Auto Parts & Equipment | 134,099 | 2.0 | |||||||||
Banks | 218,615 | 3.2 | |||||||||
Biotechnology | 351,007 | 5.1 | |||||||||
Building Materials | 63,224 | 0.9 | |||||||||
Chemicals | 161,939 | 2.4 | |||||||||
Commercial Services | 422,838 | 6.2 | |||||||||
Distribution/Wholesale | 135,703 | 2.0 | |||||||||
Diversified Financial Services | 291,501 | 4.3 | |||||||||
Electronics | 49,077 | 0.7 | |||||||||
Food | 30,506 | 0.5 | |||||||||
Hand/Machine Tools | 75,527 | 1.1 | |||||||||
Healthcare — Products | 426,598 | 6.2 | |||||||||
Home Furnishings | 43,893 | 0.6 | |||||||||
Insurance | 285,482 | 4.2 | |||||||||
Internet | 1,875,128 | 27.4 | |||||||||
Machinery — Diversified | 356,249 | 5.2 | |||||||||
Metal Fabricate/Hardware | 71,068 | 1.0 | |||||||||
Pharmaceuticals | 118,003 | 1.7 | |||||||||
Real Estate | 114,455 | 1.7 | |||||||||
Retail | 89,375 | 1.3 | |||||||||
Semiconductors | 317,922 | 4.6 | |||||||||
Software | 423,028 | 6.1 | |||||||||
Telecommunications | 240,368 | 3.5 | |||||||||
Toys/Games/Hobbies | 64,914 | 1.0 | |||||||||
Total Value of Investments | 6,770,082 | 98.8 | |||||||||
Other assets less liabilities | 85,636 | 1.2 | |||||||||
Net Assets | $ | 6,855,718 | 100.0 | % |
The table above is based on Bloomberg Industry Group classifications. For compliance monitoring purposes, sub-industry classifications are used which results in less concentration across industry sectors.
69
Portfolio of Investments
Semi-Annual Report June 30, 2021
June 30, 2021 (unaudited)
Baillie Gifford Global Stewardship Equities Fund
Shares | Value | ||||||||||
COMMON STOCKS — 98.8% | |||||||||||
ARGENTINA — 1.0% | |||||||||||
MercadoLibre, Inc. * | 43 | $ | 66,985 | ||||||||
CANADA — 5.7% | |||||||||||
Shopify, Inc., Class A * | 266 | 388,621 | |||||||||
CHINA — 6.8% | |||||||||||
Alibaba Group Holding Ltd. * | 4,332 | 122,829 | |||||||||
Baidu, Inc. ADR * | 125 | 25,487 | |||||||||
JD.com, Inc., Class A * | 2,502 | 99,637 | |||||||||
Meituan, Class B * | 2,300 | 94,878 | |||||||||
Tencent Holdings Ltd. | 1,600 | 120,468 | |||||||||
463,299 | |||||||||||
FRANCE — 2.8% | |||||||||||
Adevinta ASA * | 2,615 | 50,164 | |||||||||
Dassault Systemes SE * | 236 | 57,276 | |||||||||
Sartorius Stedim Biotech | 180 | 85,192 | |||||||||
192,632 | |||||||||||
GERMANY — 2.5% | |||||||||||
adidas AG | 223 | 83,214 | |||||||||
Zalando SE * | 739 | 89,375 | |||||||||
172,589 | |||||||||||
HONG KONG — 2.5% | |||||||||||
AIA Group Ltd. | 9,400 | 116,612 | |||||||||
Hong Kong Exchanges & Clearing Ltd. | 900 | 53,577 | |||||||||
170,189 | |||||||||||
IRELAND — 0.5% | |||||||||||
COSMO Pharmaceuticals NV * | 400 | 36,874 | |||||||||
JAPAN — 11.0% | |||||||||||
Bridgestone Corp. | 1,300 | 59,088 | |||||||||
Denso Corp. | 1,100 | 75,011 | |||||||||
DMG Mori Seiki Co., Ltd. | 4,200 | 75,527 | |||||||||
FANUC Corp. ADR | 3,312 | 79,389 |
The accompanying notes are an integral part of the financial statements.
70
Portfolio of Investments
Semi-Annual Report June 30, 2021
June 30, 2021 (unaudited)
Baillie Gifford Global Stewardship Equities Fund
Shares | Value | ||||||||||
FANUC Corp. | 200 | $ | 47,959 | ||||||||
Kubota Corp. | 4,800 | 97,103 | |||||||||
MISUMI Group, Inc. | 2,100 | 71,068 | |||||||||
Nintendo Co., Ltd. ADR | 895 | 64,914 | |||||||||
SoftBank Group Corp. | 1,600 | 111,587 | |||||||||
Sumitomo Mitsui Trust Holdings, Inc. | 2,300 | 73,370 | |||||||||
755,016 | |||||||||||
NETHERLANDS — 1.7% | |||||||||||
IMCD NV | 712 | 113,447 | |||||||||
SOUTH KOREA — 1.9% | |||||||||||
Samsung SDI Co., Ltd. | 208 | 128,781 | |||||||||
SWEDEN — 2.8% | |||||||||||
Atlas Copco AB, B Shares | 1,490 | 78,473 | |||||||||
Beijer Ref AB | 2,991 | 53,325 | |||||||||
Nibe Industrier AB, B Shares | 6,000 | 63,224 | |||||||||
195,022 | |||||||||||
TAIWAN — 2.5% | |||||||||||
Taiwan Semiconductor Manufacturing Co., Ltd. | 8,000 | 172,304 | |||||||||
UNITED KINGDOM — 4.2% | |||||||||||
Hargreaves Lansdown PLC | 1,800 | 39,608 | |||||||||
Just Group PLC * | 36,025 | 46,465 | |||||||||
Ocado Group PLC * | 1,101 | 30,506 | |||||||||
Prudential PLC | 4,999 | 95,110 | |||||||||
St James's Place PLC | 3,811 | 77,923 | |||||||||
289,612 | |||||||||||
UNITED STATES — 52.9% | |||||||||||
10X Genomics, Inc., Class A * | 360 | 70,495 | |||||||||
ABIOMED, Inc. * | 240 | 74,906 | |||||||||
Affirm Holdings, Inc. * | 771 | 51,927 | |||||||||
Alphabet, Inc., Class A * | 42 | 102,555 | |||||||||
Amazon.com, Inc. * | 58 | 199,529 | |||||||||
Chegg, Inc. * | 2,254 | 187,330 | |||||||||
Codexis, Inc. * | 2,140 | 48,492 | |||||||||
Denali Therapeutics, Inc. * | 1,671 | 131,073 |
The accompanying notes are an integral part of the financial statements.
71
Portfolio of Investments
Semi-Annual Report June 30, 2021
June 30, 2021 (unaudited)
Baillie Gifford Global Stewardship Equities Fund
Shares | Value | ||||||||||
Exact Sciences Corp. * | 612 | $ | 76,078 | ||||||||
Fastenal Co. | 1,193 | 62,036 | |||||||||
First Republic Bank | 776 | 145,244 | |||||||||
Glaukos Corp. * | 387 | 32,829 | |||||||||
Illumina, Inc. * | 304 | 143,856 | |||||||||
iRobot Corp. * | 470 | 43,893 | |||||||||
LendingTree, Inc. * | 246 | 52,123 | |||||||||
Lyft, Inc., Class A * | 509 | 30,784 | |||||||||
Markel Corp. * | 23 | 27,294 | |||||||||
MarketAxess Holdings, Inc. | 396 | 183,582 | |||||||||
Mastercard, Inc., Class A | 187 | 68,272 | |||||||||
Netflix, Inc. * | 292 | 154,237 | |||||||||
NVIDIA Corp. | 182 | 145,618 | |||||||||
Pacira BioSciences, Inc. * | 1,337 | 81,129 | |||||||||
Redfin Corp. * | 1,805 | 114,455 | |||||||||
Spotify Technology SA * | 312 | 85,984 | |||||||||
STAAR Surgical Co. * | 1,070 | 163,175 | |||||||||
Tesla, Inc. * | 306 | 207,988 | |||||||||
Trade Desk, Inc. (The), Class A * | 1,530 | 118,361 | |||||||||
Twilio, Inc., Class A * | 313 | 123,372 | |||||||||
Upwork, Inc. * | 3,210 | 187,111 | |||||||||
Waters Corp. * | 142 | 49,077 | |||||||||
Watsco, Inc. | 257 | 73,667 | |||||||||
Wayfair, Inc., Class A * | 462 | 145,858 | |||||||||
Workday, Inc., Class A * | 490 | 116,983 | |||||||||
Zoom Video Communications, Inc., Class A * | 324 | 125,398 | |||||||||
3,624,711 | |||||||||||
TOTAL INVESTMENTS — 98.8% | |||||||||||
(cost $3,573,501) | $ | 6,770,082 | |||||||||
Other assets less liabilities — 1.2% | 85,636 | ||||||||||
NET ASSETS — 100.0% | $ | 6,855,718 |
* Non-income producing security.
ADR — American Depositary Receipt
This report classifies issuers geographically by their country of risk. For compliance monitoring purposes, the Manager retains discretion to consider a number of factors in determining where a particular issuer is located, as described in further detail in each Fund's prospectus.
The accompanying notes are an integral part of the financial statements.
72
Portfolio of Investments
Semi-Annual Report June 30, 2021
June 30, 2021 (unaudited)
Baillie Gifford Global Stewardship Equities Fund
Fair Value Measurement
The following is a summary of the inputs used as of June 30, 2021 in valuing the Fund's investments carried at fair value:
Investments in Securities | Level 1 | Level 2 | Level 3 | Total | |||||||||||||||
Common Stocks ** | $ | 4,250,106 | $ | 2,519,976 | $ | — | $ | 6,770,082 | |||||||||||
Total | $ | 4,250,106 | $ | 2,519,976 | $ | — | $ | 6,770,082 |
** Refer to Portfolio of Investments for further detail.
The accompanying notes are an integral part of the financial statements.
73
Statement of Assets and Liabilities
Semi-Annual Report June 30, 2021
June 30, 2021 (unaudited)
Baillie Gifford Global Stewardship Equities Fund
ASSETS | |||||||
Investments, at value (cost $3,573,501) | $ | 6,770,082 | |||||
Cash | 109,830 | ||||||
Due from Investment Advisor | 16,161 | ||||||
Dividends receivable | 3,912 | ||||||
Tax reclaims receivable | 639 | ||||||
Prepaid assets | 20,757 | ||||||
Total Assets | 6,921,381 | ||||||
LIABILITIES | |||||||
Advisory fee payable | 5,384 | ||||||
Administration & Supervisory fee payable | 2,774 | ||||||
Trustee fee payable | 39 | ||||||
Commitment fee payable | 7 | ||||||
Accrued expenses | 57,459 | ||||||
Total Liabilities | 65,663 | ||||||
NET ASSETS | $ | 6,855,718 | |||||
COMPOSITION OF NET ASSETS | |||||||
Paid-in capital | $ | 3,296,639 | |||||
Total distributable earnings | 3,559,079 | ||||||
$ | 6,855,718 | ||||||
NET ASSET VALUE, PER SHARE | |||||||
Class K ( $3,427,859 / 159,245 shares outstanding), unlimited authorized, no par value | $ | 21.53 | |||||
Institutional Class ( $3,427,859 / 159,244 shares outstanding), unlimited authorized, no par value | $ | 21.53 |
The accompanying notes are an integral part of the financial statements.
74
Statement of Operations
Semi-Annual Report June 30, 2021
For the Six Months Ended June 30, 2021 (unaudited)
Baillie Gifford Global Stewardship Equities Fund
INVESTMENT INCOME | |||||||
Dividends (net of foreign withholding taxes of $1,540) | $ | 18,339 | |||||
Interest | 6 | ||||||
Total Investment Income | 18,345 | ||||||
EXPENSES | |||||||
Advisory fee (Note B) | 10,824 | ||||||
Administration & Supervisory fee — Class K shares (Note B) | 2,788 | ||||||
Administration & Supervisory fee — Institutional Class shares (Note B) | 2,788 | ||||||
Transfer agency | 16,228 | ||||||
Fund accounting | 47,607 | ||||||
Registration fees | 19,835 | ||||||
Professional fees | 15,979 | ||||||
Custody | 1,188 | ||||||
Legal | 349 | ||||||
Trustees' fees | 73 | ||||||
Commitment fees | 15 | ||||||
Miscellaneous | 2,573 | ||||||
Total Expenses | 120,247 | ||||||
Fees waived/expenses reimbursed | (98,926 | ) | |||||
Total Expenses after waiver | 21,321 | ||||||
Net Investment Loss | (2,976 | ) | |||||
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS AND FOREIGN CURRENCY TRANSACTIONS | |||||||
Net realized gain from: | |||||||
Investments | 355,764 | ||||||
Foreign currency transactions | 46 | ||||||
355,810 | |||||||
Net change in unrealized appreciation (depreciation) on: | |||||||
Investments | 243,959 | ||||||
Translation of net assets and liabilities denominated in foreign currencies | (16 | ) | |||||
243,943 | |||||||
Net realized and unrealized gain | 599,753 | ||||||
NET INCREASE IN NET ASSETS FROM OPERATIONS | $ | 596,777 |
The accompanying notes are an integral part of the financial statements.
75
Statements of Changes in Net Assets
Semi-Annual Report June 30, 2021
Baillie Gifford Global Stewardship Equities Fund
For the Six Months Ended June 30, 2021 (unaudited) | For the Year Ended December 31, 2020 | ||||||||||
INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS | |||||||||||
Net investment loss | $ | (2,976 | ) | $ | (4,320 | ) | |||||
Net realized gain | 355,810 | 240,045 | |||||||||
Net change in unrealized appreciation | 243,943 | 2,456,180 | |||||||||
Net increase in net assets from operations | 596,777 | 2,691,905 | |||||||||
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS FROM: | |||||||||||
Distributable earnings | |||||||||||
Class K | — | (111,795 | ) | ||||||||
Institutional Class | — | (111,795 | ) | ||||||||
Total Distributions to Shareholders | — | (223,590 | ) | ||||||||
TRANSACTIONS IN SHARES OF BENEFICIAL INTEREST | |||||||||||
Dividends reinvested: | |||||||||||
Class K | — | 111,795 | |||||||||
Institutional Class | — | 111,795 | |||||||||
Increase in Net Assets from Transactions in Shares of Beneficial Interest | — | 223,590 | |||||||||
Total Increase in Net Assets | 596,777 | 2,691,905 | |||||||||
NET ASSETS | |||||||||||
Beginning of period | 6,258,941 | 3,567,036 | |||||||||
End of period | $ | 6,855,718 | $ | 6,258,941 |
The accompanying notes are an integral part of the financial statements.
76
Financial Highlights
Semi-Annual Report June 30, 2021
Baillie Gifford Global Stewardship Equities Fund
Selected data for a Class K share outstanding throughout each period:
For the Six Months Ended June 30, 2021 (unaudited) | For the Year Ended December 31, 2020 | For the Year Ended December 31, 2019 | For the Year Ended December 31, 2018 | For the Period December 14, 2017(a) through December 31, 2017 | |||||||||||||||||||
Net asset value, beginning of period | $ | 19.65 | $ | 11.62 | $ | 9.09 | $ | 10.15 | $ | 10.00 | |||||||||||||
From Investment Operations | |||||||||||||||||||||||
Net investment income (loss)(b) | (0.01 | ) | (0.01 | ) | 0.03 | 0.03 | (0.00 | )(c) | |||||||||||||||
Net realized and unrealized gain (loss) on investments and foreign currency | 1.89 | 8.77 | 2.64 | (0.99 | ) | 0.15 | |||||||||||||||||
Net increase (decrease) in net asset value from investment operations | 1.88 | 8.76 | 2.67 | (0.96 | ) | 0.15 | |||||||||||||||||
Dividends and Distributions to Shareholders | |||||||||||||||||||||||
From net investment income | — | — | (0.03 | ) | (0.02 | ) | — | ||||||||||||||||
From net realized gain on investments | — | (0.73 | ) | (0.11 | ) | (0.08 | ) | — | |||||||||||||||
Total Dividends and Distributions | — | (0.73 | ) | (0.14 | ) | (0.10 | ) | — | |||||||||||||||
Net asset value, end of period | $ | 21.53 | $ | 19.65 | $ | 11.62 | $ | 9.09 | $ | 10.15 | |||||||||||||
Total Return | |||||||||||||||||||||||
Total return based on net asset value(d) | 9.52 | % | 75.39 | % | 29.37 | % | (9.43 | )% | 1.50 | % | |||||||||||||
Ratios/Supplemental Data | |||||||||||||||||||||||
Net assets, end of period (000's omitted) | $ | 3,428 | $ | 3,129 | $ | 1,784 | $ | 1,378 | $ | 1,523 | |||||||||||||
Ratio of net expenses to average net assets, before waiver | 3.67 | %* | 5.22 | % | 6.60 | % | 5.53 | % | 18.55 | %* | |||||||||||||
Ratio of net expenses to average net assets, after waiver | 0.65 | %* | 0.65 | % | 0.65 | % | 0.65 | % | 0.65 | %* | |||||||||||||
Ratio of net investment income (loss) to average net assets | (0.09 | )%* | (0.10 | )% | 0.24 | % | 0.25 | % | (0.31 | )%* | |||||||||||||
Portfolio turnover rate(e) | 9 | % | 17 | % | 21 | % | 14 | % | 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.
(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.
77
Financial Highlights
Semi-Annual Report June 30, 2021
Baillie Gifford Global Stewardship Equities Fund
Selected data for an Institutional Class share outstanding throughout each period:
For the Six Months Ended June 30, 2021 (unaudited) | For the Year Ended December 31, 2020 | For the Year Ended December 31, 2019 | For the Year Ended December 31, 2018 | For the Period December 14, 2017(a) through December 31, 2017 | |||||||||||||||||||
Net asset value, beginning of period | $ | 19.65 | $ | 11.62 | $ | 9.09 | $ | 10.15 | $ | 10.00 | |||||||||||||
From Investment Operations | |||||||||||||||||||||||
Net investment income (loss)(b) | (0.01 | ) | (0.01 | ) | 0.03 | 0.03 | (0.00 | )(c) | |||||||||||||||
Net realized and unrealized gain (loss) on investments and foreign currency | 1.89 | 8.77 | 2.64 | (0.99 | ) | 0.15 | |||||||||||||||||
Net increase (decrease) in net asset value from investment operations | 1.88 | 8.76 | 2.67 | (0.96 | ) | 0.15 | |||||||||||||||||
Dividends and Distributions to Shareholders | |||||||||||||||||||||||
From net investment income | — | — | (0.03 | ) | (0.02 | ) | — | ||||||||||||||||
From net realized gain on investments | — | (0.73 | ) | (0.11 | ) | (0.08 | ) | — | |||||||||||||||
Total Dividends and Distributions | — | (0.73 | ) | (0.14 | ) | (0.10 | ) | — | |||||||||||||||
Net asset value, end of period | $ | 21.53 | $ | 19.65 | $ | 11.62 | $ | 9.09 | $ | 10.15 | |||||||||||||
Total Return | |||||||||||||||||||||||
Total return based on net asset value(d) | 9.52 | % | 75.39 | % | 29.37 | % | (9.43 | )% | 1.50 | % | |||||||||||||
Ratios/Supplemental Data | |||||||||||||||||||||||
Net assets, end of period (000's omitted) | $ | 3,428 | $ | 3,129 | $ | 1,784 | $ | 1,379 | $ | 1,523 | |||||||||||||
Ratio of net expenses to average net assets, before waiver | 3.67 | %* | 5.22 | % | 6.60 | % | 5.53 | % | 18.55 | %* | |||||||||||||
Ratio of net expenses to average net assets, after waiver | 0.65 | %* | 0.65 | % | 0.65 | % | 0.65 | % | 0.80 | %* | |||||||||||||
Ratio of net investment income (loss) to average net assets | (0.09 | )%* | (0.10 | )% | 0.24 | % | 0.25 | % | (0.31 | )%* | |||||||||||||
Portfolio turnover rate(e) | 9 | % | 17 | % | 21 | % | 14 | % | 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.
(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.
78
Industry Diversification Table
Semi-Annual Report June 30, 2021
June 30, 2021 (unaudited)
Baillie Gifford International Alpha Fund
Value | % of Total Net Assets | ||||||||||
Airlines | $ | 106,049,838 | 2.5 | % | |||||||
Apparel | 30,004,019 | 0.7 | |||||||||
Auto Parts & Equipment | 53,953,122 | 1.3 | |||||||||
Banks | 98,228,820 | 2.3 | |||||||||
Beverages | 40,977,038 | 1.0 | |||||||||
Biotechnology | 61,061,339 | 1.5 | |||||||||
Building Materials | 143,472,259 | 3.4 | |||||||||
Chemicals | 197,895,205 | 4.6 | |||||||||
Commercial Services | 228,659,149 | 5.4 | |||||||||
Cosmetics/Personal Care | 49,986,316 | 1.2 | |||||||||
Distribution/Wholesale | 47,150,506 | 1.1 | |||||||||
Diversified Financial Services | 304,008,737 | 7.2 | |||||||||
Electronics | 69,937,061 | 1.7 | |||||||||
Food | 155,073,405 | 3.6 | |||||||||
Healthcare — Products | 39,963,465 | 1.0 | |||||||||
Home Furnishings | 103,817,158 | 2.5 | |||||||||
Insurance | 279,105,574 | 6.6 | |||||||||
Internet | 731,217,722 | 17.4 | |||||||||
Leisure Time | 57,196,913 | 1.4 | |||||||||
Machinery — Construction & Mining | 58,239,330 | 1.4 | |||||||||
Machinery — Diversified | 253,987,626 | 6.0 | |||||||||
Mining | 101,906,016 | 2.4 | |||||||||
Pharmaceuticals | 29,569,368 | 0.7 | |||||||||
Real Estate | 22,258,597 | 0.5 | |||||||||
Retail | 132,390,221 | 3.2 | |||||||||
Semiconductors | 345,569,154 | 8.3 | |||||||||
Software | 251,399,345 | 6.0 | |||||||||
Toys/Games/Hobbies | 40,680,713 | 1.0 | |||||||||
Transportation | 127,797,152 | 3.0 | |||||||||
Total Value of Investments | 4,161,555,168 | 98.9 | |||||||||
Other assets less liabilities | 47,239,850 | 1.1 | |||||||||
Net Assets | $ | 4,208,795,018 | 100.0 | % |
The table above is based on Bloomberg Industry Group classifications. For compliance monitoring purposes, sub-industry classifications are used which results in less concentration across industry sectors.
79
Portfolio of Investments
Semi-Annual Report June 30, 2021
June 30, 2021 (unaudited)
Baillie Gifford International Alpha Fund
Shares | Value | ||||||||||
COMMON STOCKS — 98.8% | |||||||||||
ARGENTINA — 4.2% | |||||||||||
MercadoLibre, Inc. * | 112,436 | $ | 175,151,676 | ||||||||
AUSTRALIA — 4.1% | |||||||||||
Cochlear Ltd. | 211,820 | 39,963,465 | |||||||||
CSL Ltd. | 268,547 | 57,433,752 | |||||||||
Rio Tinto PLC | 911,711 | 75,295,958 | |||||||||
172,693,175 | |||||||||||
BELGIUM — 0.9% | |||||||||||
Umicore SA | 583,233 | 35,681,099 | |||||||||
BRAZIL — 0.8% | |||||||||||
Itau Unibanco Holding SA ADR | 5,710,647 | 34,320,988 | |||||||||
CANADA — 1.6% | |||||||||||
Constellation Software, Inc. | 23,185 | 35,114,352 | |||||||||
Ritchie Bros. Auctioneers, Inc. | 525,565 | 31,155,493 | |||||||||
66,269,845 | |||||||||||
CHINA — 10.9% | |||||||||||
Alibaba Group Holding Ltd. * | 3,407,688 | 96,621,035 | |||||||||
Hangzhou Tigermed Consulting Co., Ltd., Class H | 15,000 | 351,555 | |||||||||
KE Holdings, Inc. ADR * | 466,833 | 22,258,597 | |||||||||
Meituan, Class B * | 1,554,100 | 64,108,435 | |||||||||
Ping An Healthcare and Technology Co., Ltd. * | 3,023,400 | 37,664,507 | |||||||||
Ping An Insurance Group Co. of China Ltd., Class H | 6,095,500 | 59,585,940 | |||||||||
Prosus NV * | 334,801 | 32,799,650 | |||||||||
Tencent Holdings Ltd. | 1,306,100 | 98,339,547 | |||||||||
Tencent Music Entertainment Group ADR * | 2,787,887 | 43,156,491 | |||||||||
Zai Lab Ltd. ADR * | 20,496 | 3,627,587 | |||||||||
458,513,344 | |||||||||||
DENMARK — 3.9% | |||||||||||
Chr. Hansen Holding A/S | 282,409 | 25,488,299 | |||||||||
DSV Panalpina A/S | 307,439 | 71,767,936 | |||||||||
Novozymes A/S, B Shares | 896,216 | 67,619,178 | |||||||||
164,875,413 |
The accompanying notes are an integral part of the financial statements.
80
Portfolio of Investments
Semi-Annual Report June 30, 2021
June 30, 2021 (unaudited)
Baillie Gifford International Alpha Fund
Shares | Value | ||||||||||
FINLAND — 1.5% | |||||||||||
Kone Oyj, B Shares | 783,780 | $ | 63,967,596 | ||||||||
FRANCE — 3.5% | |||||||||||
Danone SA | 654,563 | 46,051,747 | |||||||||
Dassault Systemes SE * | 190,766 | 46,298,185 | |||||||||
Edenred | 973,561 | 55,509,288 | |||||||||
147,859,220 | |||||||||||
GERMANY — 7.7% | |||||||||||
Deutsche Boerse AG | 466,223 | 81,377,480 | |||||||||
Just Eat Takeaway * | 235,166 | 21,810,805 | |||||||||
Rational AG | 54,483 | 49,360,343 | |||||||||
SAP SE | 589,878 | 82,854,120 | |||||||||
Scout24 AG | 1,024,735 | 86,460,719 | |||||||||
321,863,467 | |||||||||||
HONG KONG — 3.4% | |||||||||||
AIA Group Ltd. | 7,157,800 | 88,796,652 | |||||||||
Hong Kong Exchanges & Clearing Ltd. | 924,300 | 55,023,374 | |||||||||
143,820,026 | |||||||||||
INDIA — 2.5% | |||||||||||
Housing Development Finance Corp., Ltd. | 2,409,510 | 80,412,939 | |||||||||
ICICI Lombard General Insurance Co., Ltd. | 1,253,349 | 26,446,736 | |||||||||
106,859,675 | |||||||||||
IRELAND — 5.3% | |||||||||||
CRH PLC | 1,479,680 | 75,122,047 | |||||||||
Kingspan Group PLC | 723,181 | 68,350,212 | |||||||||
Ryanair Holdings PLC ADR * | 739,399 | 80,010,366 | |||||||||
223,482,625 | |||||||||||
ITALY — 0.9% | |||||||||||
FinecoBank Banca Fineco SpA * | 2,241,338 | 39,114,314 |
The accompanying notes are an integral part of the financial statements.
81
Portfolio of Investments
Semi-Annual Report June 30, 2021
June 30, 2021 (unaudited)
Baillie Gifford International Alpha Fund
Shares | Value | ||||||||||
JAPAN — 12.6% | |||||||||||
Denso Corp. | 791,200 | $ | 53,953,122 | ||||||||
FANUC Corp. | 191,300 | 45,873,324 | |||||||||
Japan Exchange Group, Inc. | 1,984,200 | 44,199,974 | |||||||||
Nidec Corp. | 608,200 | 69,937,061 | |||||||||
Nintendo Co., Ltd. | 70,300 | 40,680,713 | |||||||||
Shimano, Inc. | 240,400 | 57,196,913 | |||||||||
Shiseido Co., Ltd. | 677,700 | 49,986,316 | |||||||||
SMC Corp. | 113,700 | 67,264,324 | |||||||||
Sony Corp. | 561,600 | 54,456,815 | |||||||||
Toyota Tsusho Corp. | 993,400 | 47,150,506 | |||||||||
530,699,068 | |||||||||||
NETHERLANDS — 5.7% | |||||||||||
Adyen NV * | 11,243 | 27,571,559 | |||||||||
ASML Holding NV | 108,114 | 74,633,170 | |||||||||
Heineken Holding NV | 406,080 | 40,977,038 | |||||||||
IMCD NV | 433,719 | 69,106,629 | |||||||||
Topicus.com, Inc. * | 392,651 | 28,523,897 | |||||||||
240,812,293 | |||||||||||
PANAMA — 0.6% | |||||||||||
Copa Holdings SA, Class A * | 345,672 | 26,039,472 | |||||||||
PERU — 0.6% | |||||||||||
Credicorp Ltd. * | 204,719 | 24,793,518 | |||||||||
RUSSIA — 1.1% | |||||||||||
Magnit PJSC GDR Reg S | 1,297,573 | 18,821,296 | |||||||||
MMC Norilsk Nickel PJSC ADR | 779,915 | 26,610,058 | |||||||||
45,431,354 | |||||||||||
SOUTH AFRICA — 1.0% | |||||||||||
Discovery Ltd. * | 4,809,879 | 42,531,052 | |||||||||
SOUTH KOREA — 3.5% | |||||||||||
NAVER Corp. | 114,313 | 42,417,980 | |||||||||
Samsung Electronics Co., Ltd. | 1,463,552 | 104,770,062 | |||||||||
147,188,042 |
The accompanying notes are an integral part of the financial statements.
82
Portfolio of Investments
Semi-Annual Report June 30, 2021
June 30, 2021 (unaudited)
Baillie Gifford International Alpha Fund
Shares | Value | ||||||||||
SPAIN — 2.8% | |||||||||||
Amadeus IT Group SA * | 758,174 | $ | 53,448,716 | ||||||||
Grifols SA | 576,138 | 15,623,066 | |||||||||
Grifols SA ADR | 496,946 | 8,622,013 | |||||||||
Industria de Diseno Textil SA | 1,141,330 | 40,296,731 | |||||||||
117,990,526 | |||||||||||
SWEDEN — 3.2% | |||||||||||
Atlas Copco AB, B Shares | 1,459,798 | 76,882,383 | |||||||||
Epiroc AB, B Shares | 2,966,456 | 58,239,330 | |||||||||
135,121,713 | |||||||||||
SWITZERLAND — 6.2% | |||||||||||
Compagnie Financiere Richemont SA | 448,978 | 54,428,983 | |||||||||
Kuehne + Nagel International AG | 163,704 | 56,029,216 | |||||||||
Nestle SA | 723,646 | 90,200,362 | |||||||||
Temenos AG | 364,540 | 58,608,790 | |||||||||
259,267,351 | |||||||||||
TAIWAN — 4.4% | |||||||||||
Sea Ltd. ADR * | 68,611 | 18,840,580 | |||||||||
Taiwan Semiconductor Manufacturing Co., Ltd. | 7,715,000 | 166,165,922 | |||||||||
185,006,502 | |||||||||||
UNITED KINGDOM — 4.7% | |||||||||||
Burberry Group PLC * | 1,049,121 | 30,004,019 | |||||||||
Experian PLC | 1,570,159 | 60,622,538 | |||||||||
Hargreaves Lansdown PLC | 1,953,925 | 42,994,970 | |||||||||
Prudential PLC | 3,245,344 | 61,745,195 | |||||||||
195,366,722 | |||||||||||
UNITED STATES — 1.2% | |||||||||||
Spotify Technology SA * | 186,911 | 51,510,803 | |||||||||
Total Common Stocks | |||||||||||
(cost $2,452,753,275) | 4,156,230,879 |
The accompanying notes are an integral part of the financial statements.
83
Portfolio of Investments
Semi-Annual Report June 30, 2021
June 30, 2021 (unaudited)
Baillie Gifford International Alpha Fund
Shares | Value | ||||||||||
PREFERRED STOCKS — 0.1% | |||||||||||
SPAIN — 0.1% | |||||||||||
Grifols SA, B Shares 3.72% (cost $7,287,616) | 305,136 | $ | 5,324,289 | ||||||||
TOTAL INVESTMENTS — 98.9% | |||||||||||
(cost $2,460,040,891) | $ | 4,161,555,168 | |||||||||
Other assets less liabilities — 1.1% | 47,239,850 | ||||||||||
NET ASSETS — 100.0% | $ | 4,208,795,018 |
* Non-income producing security.
ADR — American Depositary Receipt
GDR — Global 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). These securities have been deemed liquid under procedures approved by the Fund's Board of Trustees. At June 30, 2021, the net value of these securities was $18,821,296 representing 0.4% of net assets.
This report classifies issuers geographically by their country of risk. For compliance monitoring purposes, the Manager retains discretion to consider a number of factors in determining where a particular issuer is located, as described in further detail in each Fund's prospectus.
Fair Value Measurement
The following is a summary of the inputs used as of June 30, 2021 in valuing the Fund's investments carried at fair value:
Investments in Securities | Level 1 | Level 2 | Level 3 | Total | |||||||||||||||
Common Stocks ** | $ | 669,966,480 | $ | 3,486,264,399 | $ | — | $ | 4,156,230,879 | |||||||||||
Preferred Stocks ** | — | 5,324,289 | — | 5,324,289 | |||||||||||||||
Total | $ | 669,966,480 | $ | 3,491,588,688 | $ | — | $ | 4,161,555,168 |
** Refer to Portfolio of Investments for further detail.
The accompanying notes are an integral part of the financial statements.
84
Statement of Assets and Liabilities
Semi-Annual Report June 30, 2021
June 30, 2021 (unaudited)
Baillie Gifford International Alpha Fund
ASSETS | |||||||
Investments, at value (cost $2,460,040,891) | $ | 4,161,555,168 | |||||
Cash | 45,257,415 | ||||||
Foreign cash, at value (cost $1,089,216) | 1,088,186 | ||||||
Receivable for investments sold | 10,974,747 | ||||||
Tax reclaims receivable | 6,013,701 | ||||||
Capital shares sold receivable | 3,615,005 | ||||||
Dividends receivable | 3,041,483 | ||||||
Prepaid assets | 55,439 | ||||||
Total Assets | 4,231,601,144 | ||||||
LIABILITIES | |||||||
Advisory fee payable | 3,483,438 | ||||||
Payable for investment purchased | 13,877,540 | ||||||
Deferred India capital gains tax liability (Note A) | 2,536,199 | ||||||
Administration & Supervisory fee payable | 838,302 | ||||||
Shareholder Servicing fee payable | 525,421 | ||||||
Capital shares purchased payable | 936,920 | ||||||
Trustee fee payable | 25,683 | ||||||
Commitment fee payable | 5,464 | ||||||
Accrued expenses | 577,159 | ||||||
Total Liabilities | 22,806,126 | ||||||
NET ASSETS | $ | 4,208,795,018 | |||||
COMPOSITION OF NET ASSETS | |||||||
Paid-in capital | $ | 2,299,913,327 | |||||
Total distributable earnings | 1,908,881,691 | ||||||
$ | 4,208,795,018 | ||||||
NET ASSET VALUE, PER SHARE | |||||||
Class 2 ( $404,126,115 / 22,797,202 shares outstanding), unlimited authorized, no par value | $ | 17.73 | |||||
Class 3 ( $608,309,903 / 33,803,491 shares outstanding), unlimited authorized, no par value | $ | 18.00 | |||||
Class 4 ( $1,078,424,192 / 58,905,843 shares outstanding), unlimited authorized, no par value | $ | 18.31 | |||||
Class 5 ( $141,329,525 / 7,574,062 shares outstanding), unlimited authorized, no par value | $ | 18.66 | |||||
Class K ( $1,204,778,814 / 68,217,129 shares outstanding), unlimited authorized, no par value | $ | 17.66 | |||||
Institutional Class ( $771,826,469 / 43,594,399 shares outstanding), unlimited authorized, no par value | $ | 17.70 |
The accompanying notes are an integral part of the financial statements.
85
Statement of Operations
Semi-Annual Report June 30, 2021
For the Six Months Ended June 30, 2021 (unaudited)
Baillie Gifford International Alpha Fund
INVESTMENT INCOME | |||||||
Dividends (net of foreign withholding taxes of $5,874,567) | $ | 36,398,674 | |||||
Interest | 3,494 | ||||||
Total Investment Income | 36,402,168 | ||||||
Expenses | |||||||
Advisory fee (Note B) | 6,996,374 | ||||||
Shareholder Servicing fees — Class 2 shares (Note B) | 330,373 | ||||||
Shareholder Servicing fees — Class 3 shares (Note B) | 350,730 | ||||||
Shareholder Servicing fees — Class 4 shares (Note B) | 380,927 | ||||||
Shareholder Servicing fees — Class 5 shares (Note B) | 15,176 | ||||||
Administration & Supervisory fee — Class K shares (Note B) | 982,136 | ||||||
Administration & Supervisory fee — Institutional Class shares (Note B) | 656,317 | ||||||
Transfer agency | 75,248 | ||||||
Sub-transfer agency — Institutional Class shares | 397,142 | ||||||
Fund accounting | 607,566 | ||||||
Custody | 364,575 | ||||||
Legal | 231,167 | ||||||
Registration fees | 77,303 | ||||||
Trustees' fees | 47,864 | ||||||
Professional fees | 25,034 | ||||||
Commitment fees | 10,671 | ||||||
Miscellaneous | 77,567 | ||||||
Total Expenses | 11,626,170 | ||||||
Net Investment Income | 24,775,998 | ||||||
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS AND FOREIGN CURRENCY TRANSACTIONS | |||||||
Net realized gain from: | |||||||
Investments (net of India capital gains tax expense of $172,272) | 142,732,148 | ||||||
Foreign currency transactions | 278,427 | ||||||
143,010,575 | |||||||
Net change in unrealized appreciation (depreciation) on: | |||||||
Investments (net of deferred India capital gains tax expense of $219,247) (Note A) | 66,110,461 | ||||||
Translation of net assets and liabilities denominated in foreign currencies | (179,386 | ) | |||||
65,931,075 | |||||||
Net realized and unrealized gain | 208,941,650 | ||||||
NET INCREASE IN NET ASSETS FROM OPERATIONS | $ | 233,717,648 |
The accompanying notes are an integral part of the financial statements.
86
Statements of Changes in Net Assets
Semi-Annual Report June 30, 2021
Baillie Gifford International Alpha Fund
For the Six Months Ended June 30, 2021 (unaudited) | For the Year Ended December 31, 2020 | ||||||||||
INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS | |||||||||||
Net investment income | $ | 24,775,998 | $ | 24,867,498 | |||||||
Net realized gain | 143,010,575 | 132,765,822 | |||||||||
Net change in unrealized appreciation | 65,931,075 | 752,927,715 | |||||||||
Net increase in net assets from operations | 233,717,648 | 910,561,035 | |||||||||
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS FROM: | |||||||||||
Distributable earnings | |||||||||||
Class 2 | — | (8,221,408 | ) | ||||||||
Class 3 | — | (17,027,749 | ) | ||||||||
Class 4 | — | (24,650,239 | ) | ||||||||
Class 5 | — | (3,388,104 | ) | ||||||||
Class K | — | (24,860,209 | ) | ||||||||
Institutional Class | — | (16,563,536 | ) | ||||||||
Total Distributions to Shareholders | — | (94,711,245 | ) | ||||||||
TRANSACTIONS IN SHARES OF BENEFICIAL INTEREST | |||||||||||
Net proceeds from shares subscribed: | |||||||||||
Class 2 | 21,777,010 | 72,006,000 | |||||||||
Class 3 | 143,460,858 | * | 295,090,505 | * | |||||||
Class 4 | 206,823,199 | * | 397,280,701 | ||||||||
Class 5 | 74 | 11,000,000 | |||||||||
Class K | 106,512,804 | 488,403,549 | |||||||||
Institutional Class | 157,643,292 | 572,999,510 | |||||||||
Dividends reinvested: | |||||||||||
Class 2 | — | 8,221,408 | |||||||||
Class 3 | — | 17,027,749 | |||||||||
Class 4 | — | 24,650,239 | |||||||||
Class 5 | — | 3,388,104 | |||||||||
Class K | — | 21,998,469 | |||||||||
Institutional Class | — | 16,542,889 | |||||||||
Cost of shares redeemed: | |||||||||||
Class 2 | (7,000,000 | ) | (294,390,504 | )* | |||||||
Class 3 | (331,948,889 | )* | (453,876,207 | ) | |||||||
Class 4 | (272,060,543 | )* | (84,000,000 | ) | |||||||
Class 5 | (16,778,434 | ) | — | ||||||||
Class K | (49,317,725 | ) | (180,996,529 | ) | |||||||
Institutional Class | (154,354,705 | ) | (120,707,617 | ) | |||||||
Increase (Decrease) in Net Assets from Transactions in Shares of Beneficial Interest | (195,243,059 | ) | 794,638,266 | ||||||||
Total Increase in Net Assets | 38,474,589 | 1,610,488,056 | |||||||||
NET ASSETS | |||||||||||
Beginning of period | 4,170,320,429 | 2,559,832,373 | |||||||||
End of period | $ | 4,208,795,018 | $ | 4,170,320,429 |
* See Note D for details of share class conversions.
The accompanying notes are an integral part of the financial statements.
87
Financial Highlights
Semi-Annual Report June 30, 2021
Baillie Gifford International Alpha Fund
Selected data for a Class 2 share outstanding throughout each period:
For the Six Months Ended June 30, 2021 (unaudited) | For the Year Ended December 31, 2020 | For the Year Ended December 31, 2019 | For the Year Ended December 31, 2018 | For the Year Ended December 31, 2017 | For the Year Ended December 31, 2016 | ||||||||||||||||||||||
Net asset value, beginning of period | $ | 16.78 | $ | 13.57 | $ | 10.78 | $ | 14.20 | $ | 10.90 | $ | 10.65 | |||||||||||||||
From Investment Operations | |||||||||||||||||||||||||||
Net investment income(a) | 0.10 | 0.12 | 0.27 | 0.22 | 0.18 | 0.17 | |||||||||||||||||||||
Net realized and unrealized gain (loss) on investments and foreign currency | 0.85 | 3.47 | 3.20 | (2.59 | ) | 3.62 | 0.39 | ||||||||||||||||||||
Net increase (decrease) in net asset value from investment operations | 0.95 | 3.59 | 3.47 | (2.37 | ) | 3.80 | 0.56 | ||||||||||||||||||||
Dividends and Distributions to Shareholders | |||||||||||||||||||||||||||
From net investment income | — | (0.10 | ) | (0.34 | ) | (0.17 | ) | (0.14 | ) | (0.15 | ) | ||||||||||||||||
From net realized gain on investments | — | (0.28 | ) | (0.34 | ) | (0.88 | ) | (0.36 | ) | (0.16 | ) | ||||||||||||||||
Total Dividends and Distributions | — | (0.38 | ) | (0.68 | ) | (1.05 | ) | (0.50 | ) | (0.31 | ) | ||||||||||||||||
Proceeds from Purchase Fees and Redemption Fees(a) | — | — | — | — | 0.00 | (b) | 0.00 | (b) | |||||||||||||||||||
Net asset value, end of period | $ | 17.73 | $ | 16.78 | $ | 13.57 | $ | 10.78 | $ | 14.20 | $ | 10.90 | |||||||||||||||
Total Return | |||||||||||||||||||||||||||
Total return based on net asset value(c) | 5.67 | %(f) | 26.45 | % | 32.14 | % | (16.57 | )% | 34.96 | % | 5.24 | % | |||||||||||||||
Ratios/Supplemental Data | |||||||||||||||||||||||||||
Net assets, end of period (000's omitted) | $ | 404,126 | $ | 367,841 | $ | 513,803 | $ | 335,450 | $ | 478,079 | $ | 578,606 | |||||||||||||||
Ratio of net expenses to average net assets | 0.57 | %* | 0.59 | % | 0.61 | % | 0.62 | % | 0.61 | % | 0.61 | % | |||||||||||||||
Ratio of net investment income to average net assets | 1.15 | %* | 0.85 | % | 2.11 | %(d) | 1.57 | % | 1.41 | % | 1.53 | % | |||||||||||||||
Portfolio turnover rate(e) | 7 | % | 24 | % | 13 | % | 33 | % | 12 | % | 12 | % |
* Annualized.
(a) Calculated based upon average shares outstanding during the period.
(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) Large increase due to one-off taxable stock dividends that were treated as income.
(e) Portfolio turnover rate calculated at Fund level.
(f) The total return disclosed include adjustments made for financial reporting purposes in conformity with U.S. generally accepted accounting principles.
The accompanying notes are an integral part of the financial statements.
88
Financial Highlights
Semi-Annual Report June 30, 2021
Baillie Gifford International Alpha Fund
Selected data for a Class 3 share outstanding throughout each period:
For the Six Months Ended June 30, 2021 (unaudited) | For the Year Ended December 31, 2020 | For the Year Ended December 31, 2019 | For the Year Ended December 31, 2018 | For the Year Ended December 31, 2017 | For the Year Ended December 31, 2016 | ||||||||||||||||||||||
Net asset value, beginning of period | $ | 17.02 | $ | 13.76 | $ | 10.92 | $ | 14.37 | $ | 11.03 | $ | 10.79 | |||||||||||||||
From Investment Operations | |||||||||||||||||||||||||||
Net investment income(a) | 0.10 | 0.13 | 0.28 | 0.22 | 0.18 | 0.17 | |||||||||||||||||||||
Net realized and unrealized gain (loss) on investments and foreign currency | 0.88 | 3.52 | 3.24 | (2.60 | ) | 3.68 | 0.40 | ||||||||||||||||||||
Net increase (decrease) in net asset value from investment operations | 0.98 | 3.65 | 3.52 | (2.38 | ) | 3.86 | 0.57 | ||||||||||||||||||||
Dividends and Distributions to Shareholders | |||||||||||||||||||||||||||
From net investment income | — | (0.11 | ) | (0.34 | ) | (0.19 | ) | (0.16 | ) | (0.17 | ) | ||||||||||||||||
From net realized gain on investments | — | (0.28 | ) | (0.34 | ) | (0.88 | ) | (0.36 | ) | (0.16 | ) | ||||||||||||||||
Total Dividends and Distributions | — | (0.39 | ) | (0.68 | ) | (1.07 | ) | (0.52 | ) | (0.33 | ) | ||||||||||||||||
Proceeds from Purchase Fees and Redemption Fees(a) | — | — | — | — | 0.00 | (b) | 0.00 | (b) | |||||||||||||||||||
Net asset value, end of period | $ | 18.00 | $ | 17.02 | $ | 13.76 | $ | 10.92 | $ | 14.37 | $ | 11.03 | |||||||||||||||
Total Return | |||||||||||||||||||||||||||
Total return based on net asset value(c) | 5.71 | %(f) | 26.54 | % | 32.23 | % | (16.51 | )% | 35.05 | % | 5.31 | % | |||||||||||||||
Ratios/Supplemental Data | |||||||||||||||||||||||||||
Net assets, end of period (000's omitted) | $ | 608,310 | $ | 757,194 | $ | 668,206 | $ | 613,224 | $ | 1,119,162 | $ | 915,782 | |||||||||||||||
Ratio of net expenses to average net assets | 0.50 | %* | 0.52 | % | 0.54 | % | 0.55 | % | 0.55 | % | 0.54 | % | |||||||||||||||
Ratio of net investment income to average net assets | 1.18 | %* | 0.92 | % | 2.18 | %(d) | 1.58 | % | 1.35 | % | 1.54 | % | |||||||||||||||
Portfolio turnover rate(e) | 7 | % | 24 | % | 13 | % | 33 | % | 12 | % | 12 | % |
* Annualized.
(a) Calculated based upon average shares outstanding during the period.
(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) Large increase due to one-off taxable stock dividends that were treated as income.
(e) Portfolio turnover rate calculated at Fund level.
(f) The total return disclosed include adjustments made for financial reporting purposes in conformity with U.S. generally accepted accounting principles.
The accompanying notes are an integral part of the financial statements.
89
Financial Highlights
Semi-Annual Report June 30, 2021
Baillie Gifford International Alpha Fund
Selected data for a Class 4 share outstanding throughout each period:
For the Six Months Ended June 30, 2021 (unaudited) | For the Year Ended December 31, 2020 | For the Year Ended December 31, 2019 | For the Year Ended December 31, 2018 | For the Period July 10, 2017(a) through December 31, 2017 | For the Period January 1, 2015 through December 10, 2015(a) | For the Year Ended December 31, 2014 | |||||||||||||||||||||||||
Net asset value, beginning of period | $ | 17.32 | $ | 14.00 | $ | 11.10 | $ | 14.59 | $ | 13.43 | $ | 11.60 | $ | 12.20 | |||||||||||||||||
From Investment Operations | |||||||||||||||||||||||||||||||
Net investment income(b) | 0.11 | 0.12 | 0.28 | 0.23 | 0.05 | 0.19 | 0.22 | ||||||||||||||||||||||||
Net realized and unrealized gain (loss) on investments and foreign currency | 0.88 | 3.60 | 3.31 | (2.65 | ) | 1.64 | (0.33 | ) | (0.57 | ) | |||||||||||||||||||||
Net increase (decrease) in net asset value from investment operations | 0.99 | 3.72 | 3.59 | (2.42 | ) | 1.69 | (0.14 | ) | (0.35 | ) | |||||||||||||||||||||
Dividends and Distributions to Shareholders | |||||||||||||||||||||||||||||||
From net investment income | — | (0.12 | ) | (0.35 | ) | (0.19 | ) | (0.17 | ) | (0.01 | ) | (0.21 | ) | ||||||||||||||||||
From net realized gain on investments | — | (0.28 | ) | (0.34 | ) | (0.88 | ) | (0.36 | ) | — | (0.05 | ) | |||||||||||||||||||
Total Dividends and Distributions | — | (0.40 | ) | (0.69 | ) | (1.07 | ) | (0.53 | ) | (0.01 | ) | (0.26 | ) | ||||||||||||||||||
Proceeds from Purchase Fees and Redemption Fees(b) | — | — | — | — | — | 0.01 | 0.01 | ||||||||||||||||||||||||
Net asset value, end of period | $ | 18.31 | $ | 17.32 | $ | 14.00 | $ | 11.10 | $ | 14.59 | $ | 11.46 | $ | 11.60 | |||||||||||||||||
Total Return | |||||||||||||||||||||||||||||||
Total return based on net asset value(c) | 5.72 | %(f) | 26.57 | % | 32.27 | % | (16.49 | )% | 12.60 | % | (1.04 | )% | (2.82 | )% | |||||||||||||||||
Ratios/Supplemental Data | |||||||||||||||||||||||||||||||
Net assets, end of period (000's omitted) | $ | 1,078,424 | $ | 1,082,123 | $ | 580,146 | $ | 438,616 | $ | 232,741 | $ | 59 | $ | 352,890 | |||||||||||||||||
Ratio of net expenses to average net assets | 0.47 | %* | 0.49 | % | 0.51 | % | 0.52 | % | 0.53 | %* | 0.52 | %* | 0.51 | % | |||||||||||||||||
Ratio of net investment income to average net assets | 1.24 | %* | 0.82 | % | 2.20 | %(d) | 1.61 | % | 0.77 | %* | 1.72 | %* | 1.82 | % | |||||||||||||||||
Portfolio turnover rate(e) | 7 | % | 24 | % | 13 | % | 33 | % | 12 | % | 15 | % | 11 | % |
* Annualized.
(a) Recommencement of investment operations.
(b) Calculated based upon average shares outstanding during the period.
(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) Large increase due to one-off taxable stock dividends that were treated as income.
(e) Portfolio turnover rate calculated at Fund level.
(f) The total return disclosed include adjustments made for financial reporting purposes in conformity with U.S. generally accepted accounting principles.
The accompanying notes are an integral part of the financial statements.
90
Financial Highlights
Semi-Annual Report June 30, 2021
Baillie Gifford International Alpha Fund
Selected data for a Class 5 share outstanding throughout each period:
For the Six Months Ended June 30, 2021 (unaudited) | For the Year Ended December 31, 2020 | For the Year Ended December 31, 2019 | For the Year Ended December 31, 2018 | For the Year Ended December 31, 2017 | For the Year Ended December 31, 2016 | ||||||||||||||||||||||
Net asset value, beginning of period | $ | 17.65 | $ | 14.26 | $ | 11.30 | $ | 14.82 | $ | 11.36 | $ | 11.11 | |||||||||||||||
From Investment Operations | |||||||||||||||||||||||||||
Net investment income(a) | 0.12 | 0.14 | 0.30 | 0.21 | 0.20 | 0.19 | |||||||||||||||||||||
Net realized and unrealized gain (loss) on investments and foreign currency | 0.89 | 3.66 | 3.35 | (2.65 | ) | 3.79 | 0.41 | ||||||||||||||||||||
Net increase (decrease) in net asset value from investment operations | 1.01 | 3.80 | 3.65 | (2.44 | ) | 3.99 | 0.60 | ||||||||||||||||||||
Dividends and Distributions to Shareholders | |||||||||||||||||||||||||||
From net investment income | — | (0.13 | ) | (0.35 | ) | (0.20 | ) | (0.17 | ) | (0.19 | ) | ||||||||||||||||
From net realized gain on investments | — | (0.28 | ) | (0.34 | ) | (0.88 | ) | (0.36 | ) | (0.16 | ) | ||||||||||||||||
Total Dividends and Distributions | — | (0.41 | ) | (0.69 | ) | (1.08 | ) | (0.53 | ) | (0.35 | ) | ||||||||||||||||
Proceeds from Purchase Fees and Redemption Fees(a) | — | — | — | — | 0.00 | (b) | 0.00 | (b) | |||||||||||||||||||
Net asset value, end of period | $ | 18.66 | $ | 17.65 | $ | 14.26 | $ | 11.30 | $ | 14.82 | $ | 11.36 | |||||||||||||||
Total Return | |||||||||||||||||||||||||||
Total return based on net asset value(c) | 5.75 | %(f) | 26.64 | % | 32.34 | % | (16.44 | )% | 35.16 | % | 5.40 | % | |||||||||||||||
Ratios/Supplemental Data | |||||||||||||||||||||||||||
Net assets, end of period (000's omitted) | $ | 141,330 | $ | 149,745 | $ | 104,935 | $ | 79,293 | $ | 183,384 | $ | 167,297 | |||||||||||||||
Ratio of net expenses to average net assets | 0.42 | %* | 0.44 | % | 0.46 | % | 0.47 | % | 0.47 | % | 0.46 | % | |||||||||||||||
Ratio of net investment income to average net assets | 1.29 | %* | 0.94 | % | 2.25 | %(d) | 1.55 | % | 1.45 | % | 1.66 | % | |||||||||||||||
Portfolio turnover rate(e) | 7 | % | 24 | % | 13 | % | 33 | % | 12 | % | 12 | % |
* Annualized.
(a) Calculated based upon average shares outstanding during the period.
(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) Large increase due to one-off taxable stock dividends that were treated as income.
(e) Portfolio turnover rate calculated at Fund level.
(f) The total return disclosed include adjustments made for financial reporting purposes in conformity with U.S. generally accepted accounting principles.
The accompanying notes are an integral part of the financial statements.
91
Financial Highlights
Semi-Annual Report June 30, 2021
Baillie Gifford International Alpha Fund
Selected data for a Class K share outstanding throughout each period:
For the Six Months Ended June 30, 2021 (unaudited) | For the Year Ended December 31, 2020 | For the Year Ended December 31, 2019 | For the Year Ended December 31, 2018 | For the Period April 28, 2017(a) through December 31, 2017 | |||||||||||||||||||
Net asset value, beginning of period | $ | 16.71 | $ | 13.53 | $ | 10.75 | $ | 14.17 | $ | 12.44 | |||||||||||||
From Investment Operations | |||||||||||||||||||||||
Net investment income(b) | 0.10 | 0.10 | 0.26 | 0.17 | 0.01 | ||||||||||||||||||
Net realized and unrealized gain (loss) on investments and foreign currency | 0.85 | 3.47 | 3.20 | (2.52 | ) | 2.25 | |||||||||||||||||
Net increase (decrease) in net asset value from investment operations | 0.95 | 3.57 | 3.46 | (2.35 | ) | 2.26 | |||||||||||||||||
Dividends and Distributions to Shareholders |
| ||||||||||||||||||||||
From net investment income | — | (0.11 | ) | (0.34 | ) | (0.19 | ) | (0.17 | ) | ||||||||||||||
From net realized gain on investments | — | (0.28 | ) | (0.34 | ) | (0.88 | ) | (0.36 | ) | ||||||||||||||
Total Dividends and Distributions | — | (0.39 | ) | (0.68 | ) | (1.07 | ) | (0.53 | ) | ||||||||||||||
Net asset value, end of period | $ | 17.66 | $ | 16.71 | $ | 13.53 | $ | 10.75 | $ | 14.17 | |||||||||||||
Total Return | |||||||||||||||||||||||
Total return based on net asset value(c) | 5.69 | %(f) | 26.40 | % | 32.16 | % | (16.54 | )% | 18.19 | % | |||||||||||||
Ratios/Supplemental Data | |||||||||||||||||||||||
Net assets, end of period (000's omitted) | $ | 1,204,779 | $ | 1,083,711 | $ | 566,554 | $ | 290,186 | $ | 108,728 | |||||||||||||
Ratio of net expenses to average net assets | 0.57 | %* | 0.59 | % | 0.61 | % | 0.62 | % | 0.63 | %* | |||||||||||||
Ratio of net investment income to average net assets | 1.15 | %* | 0.74 | % | 2.09 | %(d) | 1.26 | % | 0.12 | %* | |||||||||||||
Portfolio turnover rate(e) | 7 | % | 24 | % | 13 | % | 33 | % | 12 | % |
* Annualized.
(a) Commencement of investment operations.
(b) Calculated based upon average shares outstanding during the period.
(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) Large increase due to one-off taxable stock dividends that were treated as income.
(e) Portfolio turnover rate calculated at Fund level.
(f) The total return disclosed include adjustments made for financial reporting purposes in conformity with U.S. generally accepted accounting principles.
The accompanying notes are an integral part of the financial statements.
92
Financial Highlights
Semi-Annual Report June 30, 2021
Baillie Gifford International Alpha Fund
Selected data for an Institutional Class share outstanding throughout each period:
For the Six Months Ended June 30, 2021 (unaudited) | For the Year Ended December 31, 2020 | For the Year Ended December 31, 2019 | For the Year Ended December 31, 2018 | For the Period April 28, 2017(a) through December 31, 2017 | |||||||||||||||||||
Net asset value, beginning of period | $ | 16.76 | $ | 13.58 | $ | 10.79 | $ | 14.19 | $ | 12.44 | |||||||||||||
From Investment Operations | |||||||||||||||||||||||
Net investment income(b) | 0.09 | 0.08 | 0.25 | 0.22 | 0.09 | ||||||||||||||||||
Net realized and unrealized gain (loss) on investments and foreign currency | 0.85 | 3.49 | 3.22 | (2.59 | ) | 2.17 | |||||||||||||||||
Net increase (decrease) in net asset value from investment operations | 0.94 | 3.57 | 3.47 | (2.37 | ) | 2.26 | |||||||||||||||||
Dividends and Distributions to Shareholders |
| ||||||||||||||||||||||
From net investment income | — | (0.11 | ) | (0.34 | ) | (0.15 | ) | (0.15 | ) | ||||||||||||||
From net realized gain on investments | — | (0.28 | ) | (0.34 | ) | (0.88 | ) | (0.36 | ) | ||||||||||||||
Total Dividends and Distributions | — | (0.39 | ) | (0.68 | ) | (1.03 | ) | (0.51 | ) | ||||||||||||||
Net asset value, end of period | $ | 17.70 | $ | 16.76 | $ | 13.58 | $ | 10.79 | $ | 14.19 | |||||||||||||
Total Return | |||||||||||||||||||||||
Total return based on net asset value(c) | 5.67 | %(f) | 26.29 | % | 32.11 | % | (16.68 | )% | 18.25 | % | |||||||||||||
Ratios/Supplemental Data | |||||||||||||||||||||||
Net assets, end of period (000's omitted) | $ | 771,826 | $ | 729,705 | $ | 126,189 | $ | 38,019 | $ | 6 | |||||||||||||
Ratio of net expenses to average net assets | 0.67 | %* | 0.67 | % | 0.67 | % | 0.72 | % | 0.62 | %* | |||||||||||||
Ratio of net investment income to average net assets | 1.05 | %* | 0.52 | % | 1.93 | %(d) | 1.58 | % | 1.01 | %* | |||||||||||||
Portfolio turnover rate(e) | 7 | % | 24 | % | 13 | % | 33 | % | 12 | % |
* Annualized.
(a) Commencement of investment operations.
(b) Calculated based upon average shares outstanding during the period.
(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) Large increase due to one-off taxable stock dividends that were treated as income.
(e) Portfolio turnover rate calculated at Fund level.
(f) The total return disclosed include adjustments made for financial reporting purposes in conformity with U.S. generally accepted accounting principles.
The accompanying notes are an integral part of the financial statements.
93
Industry Diversification Table
Semi-Annual Report June 30, 2021
June 30, 2021 (unaudited)
Baillie Gifford International Concentrated Growth Equities Fund
Value | % of Total Net Assets | ||||||||||
Apparel | $ | 10,429,791 | 7.6 | % | |||||||
Auto Manufacturers | 14,770,570 | 10.7 | |||||||||
Biotechnology | 14,082,381 | 10.2 | |||||||||
Commercial Services | 5,966,522 | 4.3 | |||||||||
Cosmetics/Personal Care | 1,734,570 | 1.3 | |||||||||
Food | 3,586,232 | 2.6 | |||||||||
Insurance | 2,541,603 | 1.9 | |||||||||
Internet | 52,972,767 | 38.4 | |||||||||
Investment Companies | 1,801,737 | 1.3 | |||||||||
Machinery — Diversified | 1,302,231 | 1.0 | |||||||||
Retail | 7,331,741 | 5.3 | |||||||||
Semiconductors | 18,518,738 | 13.5 | |||||||||
Total Value of Investments | 135,038,883 | 98.1 | |||||||||
Other assets less liabilities | 2,671,701 | 1.9 | |||||||||
Net Assets | $ | 137,710,584 | 100.0 | % |
The table above is based on Bloomberg Industry Group classifications. For compliance monitoring purposes, sub-industry classifications are used which results in less concentration across industry sectors.
94
Portfolio of Investments
Semi-Annual Report June 30, 2021
June 30, 2021 (unaudited)
Baillie Gifford International Concentrated Growth Equities Fund
Shares | Value | ||||||||||
COMMON STOCKS — 98.1% | |||||||||||
ARGENTINA — 8.6% | |||||||||||
MercadoLibre, Inc. * | 7,578 | $ | 11,804,933 | ||||||||
CANADA — 2.5% | |||||||||||
Shopify, Inc., Class A * | 2,294 | 3,351,488 | |||||||||
CHINA — 21.5% | |||||||||||
Alibaba Group Holding Ltd. ADR * | 25,612 | 5,808,289 | |||||||||
Meituan, Class B * | 243,100 | 10,028,158 | |||||||||
NIO, Inc. ADR * | 70,755 | 3,764,166 | |||||||||
Ping An Insurance Group Co. of China Ltd., Class H | 260,000 | 2,541,604 | |||||||||
Tencent Holdings Ltd. | 99,200 | 7,469,017 | |||||||||
29,611,234 | |||||||||||
DENMARK — 2.2% | |||||||||||
Genmab A/S * | 7,460 | 3,056,682 | |||||||||
FRANCE — 8.8% | |||||||||||
Hermes International | 3,449 | 5,033,166 | |||||||||
Kering | 6,159 | 5,396,625 | |||||||||
L'Oreal SA | 3,884 | 1,734,571 | |||||||||
12,164,362 | |||||||||||
GERMANY — 5.3% | |||||||||||
Zalando SE * | 60,623 | 7,331,741 | |||||||||
ITALY — 2.7% | |||||||||||
Ferrari NV | 17,937 | 3,703,028 | |||||||||
JAPAN — 3.2% | |||||||||||
M3, Inc. | 60,800 | 4,429,787 | |||||||||
NETHERLANDS — 16.5% | |||||||||||
Adyen NV * | 2,433 | 5,966,521 | |||||||||
ASML Holding NV | 24,273 | 16,756,118 | |||||||||
22,722,639 |
The accompanying notes are an integral part of the financial statements.
95
Portfolio of Investments
Semi-Annual Report June 30, 2021
June 30, 2021 (unaudited)
Baillie Gifford International Concentrated Growth Equities Fund
Shares | Value | ||||||||||
SAUDI ARABIA — 3.9% | |||||||||||
Delivery Hero SE * | 40,421 | $ | 5,340,671 | ||||||||
SWEDEN — 2.3% | |||||||||||
Atlas Copco AB, B Shares | 24,726 | 1,302,230 | |||||||||
Kinnevik AB, B Shares * | 44,994 | 1,801,737 | |||||||||
3,103,967 | |||||||||||
UNITED KINGDOM — 2.6% | |||||||||||
Ocado Group PLC * | 129,430 | 3,586,232 | |||||||||
UNITED STATES — 18.0% | |||||||||||
Illumina, Inc. * | 12,715 | 6,016,865 | |||||||||
Moderna, Inc. * | 21,316 | 5,008,834 | |||||||||
NVIDIA Corp. | 2,203 | 1,762,620 | |||||||||
Spotify Technology SA * | 17,201 | 4,740,424 | |||||||||
Tesla, Inc. * | 10,745 | 7,303,376 | |||||||||
24,832,119 | |||||||||||
TOTAL INVESTMENTS — 98.1% | |||||||||||
(cost $101,171,116) | $ | 135,038,883 | |||||||||
Other assets less liabilities — 1.9% | 2,671,701 | ||||||||||
NET ASSETS — 100.0% | $ | 137,710,584 |
* Non-income producing security.
ADR — American Depositary Receipt
This report classifies issuers geographically by their country of risk. For compliance monitoring purposes, the Manager retains discretion to consider a number of factors in determining where a particular issuer is located, as described in further detail in each Fund's prospectus.
Fair Value Measurement
The following is a summary of the inputs used as of June 30, 2021 in valuing the Fund's investments carried at fair value:
Investments in Securities | Level 1 | Level 2 | Level 3 | Total | |||||||||||||||
Common Stocks ** | $ | 49,560,995 | $ | 85,477,888 | $ | — | $ | 135,038,883 | |||||||||||
Total | $ | 49,560,995 | $ | 85,477,888 | $ | — | $ | 135,038,883 |
** Refer to Portfolio of Investments for further detail.
The accompanying notes are an integral part of the financial statements.
96
Statement of Assets and Liabilities
Semi-Annual Report June 30, 2021
June 30, 2021 (unaudited)
Baillie Gifford International Concentrated Growth Equities Fund
ASSETS | |||||||
Investments, at value (cost $101,171,116) | $ | 135,038,883 | |||||
Cash | 2,766,082 | ||||||
Capital shares sold receivable | 518,109 | ||||||
Due from Investment Advisor | 9,029 | ||||||
Tax reclaims receivable | 13,692 | ||||||
Dividends receivable | 226 | ||||||
Prepaid assets | 36,382 | ||||||
Total Assets | 138,382,403 | ||||||
LIABILITIES | |||||||
Due to foreign custodian (cost $240) | 240 | ||||||
Advisory fee payable | 134,956 | ||||||
Payable for investment purchased | 417,562 | ||||||
Administration & Supervisory fee payable | 57,411 | ||||||
Capital shares purchased payable | 10,000 | ||||||
Trustee fee payable | 338 | ||||||
Commitment fee payable | 104 | ||||||
Accrued expenses | 51,208 | ||||||
Total Liabilities | 671,819 | ||||||
NET ASSETS | $ | 137,710,584 | |||||
COMPOSITION OF NET ASSETS | |||||||
Paid-in capital | $ | 84,033,119 | |||||
Total distributable earnings | 53,677,465 | ||||||
$ | 137,710,584 | ||||||
NET ASSET VALUE, PER SHARE | |||||||
Class K ( $66,606,096 / 4,988,686 shares outstanding), unlimited authorized, no par value | $ | 13.35 | |||||
Institutional Class ( $71,104,488 / 5,378,109 shares outstanding), unlimited authorized, no par value | $ | 13.22 |
The accompanying notes are an integral part of the financial statements.
97
Statement of Operations
Semi-Annual Report June 30, 2021
For the Six Months Ended June 30, 2021 (unaudited)
Baillie Gifford International Concentrated Growth Equities Fund
INVESTMENT INCOME | |||||||
Dividends (net of foreign withholding taxes of $52,745) | $ | 1,171,008 | |||||
Interest | 105 | ||||||
Total Investment Income | 1,171,113 | ||||||
EXPENSES | |||||||
Advisory fee (Note B) | 250,053 | ||||||
Administration & Supervisory fee — Class K shares (Note B) | 53,108 | ||||||
Administration & Supervisory fee — Institutional Class shares (Note B) | 53,165 | ||||||
Transfer agency | 19,854 | ||||||
Sub-transfer agency — Institutional Class shares | 18,236 | ||||||
Fund accounting | 46,795 | ||||||
Registration fees | 25,528 | ||||||
Custody | 18,108 | ||||||
Professional fees | 13,964 | ||||||
Legal | 7,900 | ||||||
Line of Credit | 1,305 | ||||||
Trustees' fees | 1,047 | ||||||
Commitment fees | 268 | ||||||
Miscellaneous | 4,213 | ||||||
Total Expenses | 513,544 | ||||||
Fees waived/expenses reimbursed | (45,214 | ) | |||||
Total Expenses after waiver | 468,330 | ||||||
Net Investment Income | 702,783 | ||||||
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS AND FOREIGN CURRENCY TRANSACTIONS | |||||||
Net realized gain from: | |||||||
Investments | 331,370 | ||||||
Foreign currency transactions | 2,783 | ||||||
334,153 | |||||||
Net change in unrealized appreciation on: | |||||||
Investments | 2,038,715 | ||||||
Translation of net assets and liabilities denominated in foreign currencies | 89,381 | ||||||
2,128,096 | |||||||
Net realized and unrealized gain | 2,462,249 | ||||||
NET INCREASE IN NET ASSETS FROM OPERATIONS | $ | 3,165,032 |
The accompanying notes are an integral part of the financial statements.
98
Statements of Changes in Net Assets
Semi-Annual Report June 30, 2021
Baillie Gifford International Concentrated Growth Equities Fund
For the Six Months Ended June 30, 2021 (unaudited) | For the Year Ended December 31, 2020 | ||||||||||
INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS | |||||||||||
Net investment income (loss) | $ | 702,783 | $ | (353,242 | ) | ||||||
Net realized gain | 334,153 | 78,019,857 | |||||||||
Net change in unrealized appreciation | 2,128,096 | 18,689,189 | |||||||||
Net increase in net assets from operations | 3,165,032 | 96,355,804 | |||||||||
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS FROM: | |||||||||||
Distributable earnings | |||||||||||
Class K | — | (40,877,596 | ) | ||||||||
Institutional Class | — | (13,601,434 | ) | ||||||||
Total Distributions to Shareholders | — | (54,479,030 | ) | ||||||||
TRANSACTIONS IN SHARES OF BENEFICIAL INTEREST | |||||||||||
Net proceeds from shares subscribed: | |||||||||||
Class K | 27,127,020 | 33,989,078 | |||||||||
Institutional Class | 80,047,706 | 21,921,486 | |||||||||
Dividends reinvested: | |||||||||||
Class K | — | 38,023,629 | |||||||||
Institutional Class | — | 13,601,434 | |||||||||
Cost of shares redeemed: | |||||||||||
Class K | (6,804,979 | ) | (178,597,888 | ) | |||||||
Institutional Class | (26,193,438 | ) | (13,118,779 | ) | |||||||
Increase (Decrease) in Net Assets from Transactions in Shares of Beneficial Interest | 74,176,309 | (84,181,040 | ) | ||||||||
Total Increase (Decrease) in Net Assets | 77,341,341 | (42,304,266 | ) | ||||||||
NET ASSETS | |||||||||||
Beginning of period | 60,369,243 | 102,673,509 | |||||||||
End of period | $ | 137,710,584 | $ | 60,369,243 |
The accompanying notes are an integral part of the financial statements.
99
Financial Highlights
Semi-Annual Report June 30, 2021
Baillie Gifford International Concentrated Growth Equities Fund
Selected data for a Class K share outstanding throughout each period:
For the Six Months Ended June 30, 2021 (unaudited) | For the Year Ended December 31, 2020 | For the Year Ended December 31, 2019 | For the Year Ended December 31, 2018 | For the Period December 14, 2017(a) through December 31, 2017 | |||||||||||||||||||
Net asset value, beginning of period | $ | 12.31 | $ | 12.70 | $ | 8.75 | $ | 10.05 | $ | 10.00 | |||||||||||||
From Investment Operations | |||||||||||||||||||||||
Net investment income (loss)(b) | 0.07 | (0.04 | ) | 0.03 | (0.03 | ) | (0.00 | )(c) | |||||||||||||||
Net realized and unrealized gain (loss) on investments and foreign currency | 0.97 | 12.16 | 3.94 | (1.27 | ) | 0.05 | |||||||||||||||||
Net increase (decrease) in net asset value from investment operations | 1.04 | 12.12 | 3.97 | (1.30 | ) | 0.05 | |||||||||||||||||
Dividends and Distributions to Shareholders | |||||||||||||||||||||||
From net investment income | — | — | (0.02 | ) | — | — | |||||||||||||||||
From net realized gain on investments | — | (12.51 | ) | — | — | — | |||||||||||||||||
Total Dividends and Distributions | — | (12.51 | ) | (0.02 | ) | — | — | ||||||||||||||||
Net asset value, end of period | $ | 13.35 | $ | 12.31 | $ | 12.70 | $ | 8.75 | $ | 10.05 | |||||||||||||
Total Return | |||||||||||||||||||||||
Total return based on net asset value(d) | 8.54 | % | 97.24 | % | 45.26 | % | (12.84 | )% | 0.50 | % | |||||||||||||
Ratios/Supplemental Data | |||||||||||||||||||||||
Net assets, end of period (000's omitted) | $ | 66,606 | $ | 42,357 | $ | 101,797 | $ | 55,852 | $ | 502 | |||||||||||||
Ratio of net expenses to average net assets, before waiver | 0.79 | %* | 0.79 | % | 0.90 | % | 1.07 | % | 53.29 | %* | |||||||||||||
Ratio of net expenses to average net assets, after waiver | 0.72 | %* | 0.72 | % | 0.72 | % | 0.72 | % | 0.72 | %* | |||||||||||||
Ratio of net investment income (loss) to average net assets | 1.19 | %* | (0.26 | )% | 0.26 | %(e) | (0.26 | )% | (0.68 | )%* | |||||||||||||
Portfolio turnover rate(f) | 30 | % | 59 | % | 4 | % | 32 | % | 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.
(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) Large increase due to one-off taxable stock dividends that were treated as income.
(f) Portfolio turnover rate calculated at Fund level.
The accompanying notes are an integral part of the financial statements.
100
Financial Highlights
Semi-Annual Report June 30, 2021
Baillie Gifford International Concentrated Growth Equities Fund
Selected data for an Institutional Class share outstanding throughout each period:
For the Six Months Ended June 30, 2021 (unaudited) | For the Year Ended December 31, 2020 | For the Year Ended December 31, 2019 | For the Year Ended December 31, 2018 | For the Period December 14, 2017(a) through December 31, 2017 | |||||||||||||||||||
Net asset value, beginning of period | $ | 12.19 | $ | 12.65 | $ | 8.72 | $ | 10.05 | $ | 10.00 | |||||||||||||
From Investment Operations | |||||||||||||||||||||||
Net investment income (loss)(b) | 0.07 | (0.09 | ) | 0.03 | (0.06 | ) | (0.00 | )(c) | |||||||||||||||
Net realized and unrealized gain (loss) on investments and foreign currency | 0.96 | 12.14 | 3.92 | (1.27 | ) | 0.05 | |||||||||||||||||
Net increase (decrease) in net asset value from investment operations | 1.03 | 12.05 | 3.95 | (1.33 | ) | 0.05 | |||||||||||||||||
Dividends and Distributions to Shareholders | |||||||||||||||||||||||
From net investment income | — | — | (0.02 | ) | — | — | |||||||||||||||||
From net realized gain on investments | — | (12.51 | ) | — | — | — | |||||||||||||||||
Total Dividends and Distributions | — | (12.51 | ) | (0.02 | ) | — | — | ||||||||||||||||
Net asset value, end of period | $ | 13.22 | $ | 12.19 | $ | 12.65 | $ | 8.72 | $ | 10.05 | |||||||||||||
Total Return | |||||||||||||||||||||||
Total return based on net asset value(d) | 8.54 | % | 97.09 | % | 45.32 | % | (13.23 | )% | 0.50 | % | |||||||||||||
Ratios/Supplemental Data | |||||||||||||||||||||||
Net assets, end of period (000's omitted) | $ | 71,105 | $ | 18,012 | $ | 876 | $ | 476 | $ | 502 | |||||||||||||
Ratio of net expenses to average net assets, before waiver | 0.85 | %* | 0.87 | % | 0.91 | % | 1.16 | % | 53.29 | %* | |||||||||||||
Ratio of net expenses to average net assets, after waiver | 0.78 | %* | 0.80 | % | 0.73 | % | 0.81 | % | 0.87 | %* | |||||||||||||
Ratio of net investment income (loss) to average net assets | 1.06 | %* | (0.47 | )% | 0.30 | %(e) | (0.53 | )% | (0.68 | )%* | |||||||||||||
Portfolio turnover rate(f) | 30 | % | 59 | % | 4 | % | 32 | % | 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.
(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) Large increase due to one-off taxable stock dividends that were treated as income.
(f) Portfolio turnover rate calculated at Fund level.
The accompanying notes are an integral part of the financial statements.
101
Industry Diversification Table
Semi-Annual Report June 30, 2021
June 30, 2021 (unaudited)
Baillie Gifford International Growth Fund
Value | % of Total Net Assets | ||||||||||
Apparel | $ | 199,150,281 | 4.5 | % | |||||||
Auto Manufacturers | 305,566,104 | 7.0 | |||||||||
Beverages | 30,182,759 | 0.7 | |||||||||
Biotechnology | 215,205,639 | 4.9 | |||||||||
Chemicals | 122,676,038 | 2.8 | |||||||||
Commercial Services | 264,538,288 | 6.0 | |||||||||
Cosmetics/Personal Care | 108,806,173 | 2.5 | |||||||||
Diversified Financial Services | 79,213,702 | 1.8 | |||||||||
Electronics | 142,656,692 | 3.3 | |||||||||
Energy-Alternate Sources | 42,422,398 | 1.0 | |||||||||
Food | 175,609,858 | 3.9 | |||||||||
Healthcare — Products | 54,153,958 | 1.2 | |||||||||
Healthcare — Services | 40,758,712 | 0.9 | |||||||||
Insurance | 141,690,488 | 3.2 | |||||||||
Internet | 1,293,721,793 | 29.4 | |||||||||
Investment Companies | 95,426,174 | 2.2 | |||||||||
Machinery — Diversified | 159,907,750 | 3.6 | |||||||||
Media | 23,630,187 | 0.5 | |||||||||
Retail | 306,207,686 | 7.0 | |||||||||
Semiconductors | 390,718,396 | 8.9 | |||||||||
Software | 107,021,384 | 2.4 | |||||||||
Telecommunications | 29,668,172 | 0.7 | |||||||||
Total Value of Investments | 4,328,932,632 | 98.4 | |||||||||
Other assets less liabilities | 72,506,026 | 1.6 | |||||||||
Net Assets | $ | 4,401,438,658 | 100.0 | % |
The table above is based on Bloomberg Industry Group classifications. For compliance monitoring purposes, sub-industry classifications are used which results in less concentration across industry sectors.
102
Portfolio of Investments
Semi-Annual Report June 30, 2021
June 30, 2021 (unaudited)
Baillie Gifford International Growth Fund
Shares | Value | ||||||||||
COMMON STOCKS — 97.1% | |||||||||||
ARGENTINA — 5.0% | |||||||||||
MercadoLibre, Inc. * | 139,989 | $ | 218,073,464 | ||||||||
AUSTRALIA — 2.0% | |||||||||||
Afterpay Ltd. * | 630,434 | 55,957,451 | |||||||||
WiseTech Global Ltd. | 1,309,250 | 31,286,695 | |||||||||
87,244,146 | |||||||||||
BELGIUM — 2.0% | |||||||||||
Umicore SA | 1,462,889 | 89,496,799 | |||||||||
CHINA — 18.5% | |||||||||||
Alibaba Group Holding Ltd. * | 5,696,608 | 161,520,703 | |||||||||
Meituan, Class B * | 5,288,900 | 218,173,285 | |||||||||
NIO, Inc. ADR * | 1,866,744 | 99,310,781 | |||||||||
Ping An Insurance Group Co. of China Ltd., Class H | 5,283,500 | 51,648,316 | |||||||||
TAL Education Group ADR * | 1,115,272 | 28,138,313 | |||||||||
Tencent Holdings Ltd. | 2,863,200 | 215,577,515 | |||||||||
Wuxi Biologics Cayman, Inc. * | 2,226,000 | 40,758,712 | |||||||||
815,127,625 | |||||||||||
DENMARK — 5.6% | |||||||||||
Ambu A/S, B Shares | 1,407,401 | 54,153,958 | |||||||||
Chr. Hansen Holding A/S | 46,143 | 4,164,551 | |||||||||
Genmab A/S * | 289,743 | 118,720,122 | |||||||||
Novozymes A/S, B Shares | 384,557 | 29,014,689 | |||||||||
Vestas Wind Systems A/S | 1,085,749 | 42,422,398 | |||||||||
248,475,718 | |||||||||||
FRANCE — 7.1% | |||||||||||
Adevinta ASA * | 626,550 | 12,019,090 | |||||||||
Kering | 227,284 | 199,150,281 | |||||||||
L'Oreal SA | 226,761 | 101,270,072 | |||||||||
312,439,443 | |||||||||||
GERMANY — 8.2% | |||||||||||
Aixtron SE | 1,145,970 | 31,076,026 | |||||||||
CureVac NV * | 233,787 | 17,178,669 |
The accompanying notes are an integral part of the financial statements.
103
Portfolio of Investments
Semi-Annual Report June 30, 2021
June 30, 2021 (unaudited)
Baillie Gifford International Growth Fund
Shares | Value | ||||||||||
HelloFresh SE * | 1,016,019 | $ | 98,766,330 | ||||||||
MorphoSys AG * | 162,909 | 12,641,639 | |||||||||
Zalando SE * | 1,668,920 | 201,839,050 | |||||||||
361,501,714 | |||||||||||
HONG KONG — 2.9% | |||||||||||
AIA Group Ltd. | 7,258,200 | 90,042,171 | |||||||||
Hong Kong Exchanges & Clearing Ltd. | 658,201 | 39,182,560 | |||||||||
129,224,731 | |||||||||||
INDIA — 0.4% | |||||||||||
Housing Development Finance Corp., Ltd. | 564,415 | 18,836,306 | |||||||||
ISRAEL — 2.0% | |||||||||||
Wix.com Ltd. * | 295,656 | 85,823,024 | |||||||||
ITALY — 3.8% | |||||||||||
Ferrari NV | 804,654 | 166,117,869 | |||||||||
JAPAN — 8.9% | |||||||||||
M3, Inc. | 2,180,600 | 158,874,913 | |||||||||
Nidec Corp. | 752,800 | 86,564,649 | |||||||||
Pan Pacific International Holdings Corp. | 973,300 | 20,239,760 | |||||||||
Pigeon Corp. | 267,200 | 7,536,101 | |||||||||
SBI Holdings, Inc. | 897,300 | 21,194,836 | |||||||||
SMC Corp. | 113,100 | 66,909,367 | |||||||||
SoftBank Group Corp. | 425,400 | 29,668,172 | |||||||||
390,987,798 | |||||||||||
NETHERLANDS — 13.9% | |||||||||||
Adyen NV * | 73,580 | 180,442,524 | |||||||||
Argenx SE * | 220,954 | 66,665,210 | |||||||||
ASML Holding NV | 458,174 | 316,286,310 | |||||||||
EXOR NV | 576,951 | 46,302,276 | |||||||||
609,696,320 | |||||||||||
NEW ZEALAND — 0.6% | |||||||||||
Xero Ltd. * | 271,911 | 27,968,702 |
The accompanying notes are an integral part of the financial statements.
104
Portfolio of Investments
Semi-Annual Report June 30, 2021
June 30, 2021 (unaudited)
Baillie Gifford International Growth Fund
Shares | Value | ||||||||||
NORWAY — 0.5% | |||||||||||
Schibsted ASA, Class A | 241,038 | $ | 11,627,958 | ||||||||
Schibsted ASA, B Shares | 288,179 | 12,002,229 | |||||||||
23,630,187 | |||||||||||
SAUDI ARABIA — 2.0% | |||||||||||
Delivery Hero SE * | 659,450 | 87,130,584 | |||||||||
SPAIN — 1.9% | |||||||||||
Industria de Diseno Textil SA | 2,382,794 | 84,128,875 | |||||||||
SWEDEN — 3.2% | |||||||||||
Atlas Copco AB, A Shares | 1,514,425 | 92,998,383 | |||||||||
Kinnevik AB, B Shares * | 1,226,750 | 49,123,898 | |||||||||
142,122,281 | |||||||||||
SWITZERLAND — 1.1% | |||||||||||
Temenos AG | 297,099 | 47,765,987 | |||||||||
TAIWAN — 1.0% | |||||||||||
Taiwan Semiconductor Manufacturing Co., Ltd. | 2,013,000 | 43,356,060 | |||||||||
UNITED KINGDOM — 1.8% | |||||||||||
Ocado Group PLC * | 2,773,345 | 76,843,528 | |||||||||
UNITED STATES — 4.7% | |||||||||||
Oatly Group AB ADR * | 1,233,964 | 30,182,759 | |||||||||
Spotify Technology SA * | 495,407 | 136,529,215 | |||||||||
Stellantis NV | 2,040,190 | 40,137,454 | |||||||||
206,849,428 | |||||||||||
Total Common Stocks | |||||||||||
(cost $1,743,019,030) | 4,272,840,589 |
The accompanying notes are an integral part of the financial statements.
105
Portfolio of Investments
Semi-Annual Report June 30, 2021
June 30, 2021 (unaudited)
Baillie Gifford International Growth Fund
Shares | Value | ||||||||||
PREFERRED STOCKS — 1.3% | |||||||||||
GERMANY — 1.3% | |||||||||||
Sartorius AG 0.15% (cost $11,065,751) | 107,764 | $ | 56,092,043 | ||||||||
TOTAL INVESTMENTS — 98.4% | |||||||||||
(cost $1,754,084,781) | $ | 4,328,932,632 | |||||||||
Other assets less liabilities — 1.6% | 72,506,026 | ||||||||||
NET ASSETS — 100.0% | $ | 4,401,438,658 |
* Non-income producing security.
ADR — American Depositary Receipt
This report classifies issuers geographically by their country of risk. For compliance monitoring purposes, the Manager retains discretion to consider a number of factors in determining where a particular issuer is located, as described in further detail in each Fund's prospectus.
Fair Value Measurement
The following is a summary of the inputs used as of June 30, 2021 in valuing the Fund's investments carried at fair value:
Investments in Securities | Level 1 | Level 2 | Level 3 | Total | |||||||||||||||
Common Stocks ** | $ | 631,403,005 | $ | 3,641,437,584 | $ | — | $ | 4,272,840,589 | |||||||||||
Preferred Stocks ** | — | 56,092,043 | — | 56,092,043 | |||||||||||||||
Total | $ | 631,403,005 | $ | 3,697,529,627 | $ | — | $ | 4,328,932,632 |
** Refer to Portfolio of Investments for further detail.
The accompanying notes are an integral part of the financial statements.
106
Statement of Assets and Liabilities
Semi-Annual Report June 30, 2021
June 30, 2021 (unaudited)
Baillie Gifford International Growth Fund
ASSETS | |||||||
Investments, at value (cost $1,754,084,781) | $ | 4,328,932,632 | |||||
Cash | 70,571,432 | ||||||
Foreign cash, at value (cost $247,996) | 246,616 | ||||||
Capital shares sold receivable | 4,583,328 | ||||||
Tax reclaims receivable | 2,962,567 | ||||||
Receivable for investments sold | 2,761,128 | ||||||
Dividends receivable | 415,579 | ||||||
Prepaid assets | 57,114 | ||||||
Total Assets | 4,410,530,396 | ||||||
LIABILITIES | |||||||
Advisory fee payable | 3,504,546 | ||||||
Payable for investment purchased | 2,430,746 | ||||||
Capital shares purchased payable | 1,339,153 | ||||||
Shareholder Servicing fee payable | 608,770 | ||||||
Deferred India capital gains tax liability (Note A) | 393,804 | ||||||
Administration & Supervisory fee payable | 214,265 | ||||||
Trustee fee payable | 24,861 | ||||||
Commitment fee payable | 5,274 | ||||||
Accrued expenses | 570,319 | ||||||
Total Liabilities | 9,091,738 | ||||||
NET ASSETS | $ | 4,401,438,658 | |||||
COMPOSITION OF NET ASSETS | |||||||
Paid-in capital | $ | 1,359,196,436 | |||||
Total distributable earnings | 3,042,242,222 | ||||||
$ | 4,401,438,658 | ||||||
NET ASSET VALUE, PER SHARE | |||||||
Class 2 ( $529,841,196 / 23,785,716 shares outstanding), unlimited authorized, no par value | $ | 22.28 | |||||
Class 3 ( $553,017,054 / 24,739,525 shares outstanding), unlimited authorized, no par value | $ | 22.35 | |||||
Class 4 ( $999,896,647 / 44,675,041 shares outstanding), unlimited authorized, no par value | $ | 22.38 | |||||
Class 5 ( $1,781,105,206 / 79,368,660 shares outstanding), unlimited authorized, no par value | $ | 22.44 | |||||
Class K ( $127,896,953 / 5,746,689 shares outstanding), unlimited authorized, no par value | $ | 22.26 | |||||
Institutional Class ( $409,681,602 / 18,461,554 shares outstanding), unlimited authorized, no par value | $ | 22.19 |
The accompanying notes are an integral part of the financial statements.
107
Statement of Operations
Semi-Annual Report June 30, 2021
For the Six Months Ended June 30, 2021 (unaudited)
Baillie Gifford International Growth Fund
INVESTMENT INCOME | |||||||
Dividends (net of foreign withholding taxes of $2,582,677) | $ | 21,574,805 | |||||
Non-cash income | 26,274,207 | ||||||
Interest | 2,047 | ||||||
Total Investment Income | 47,851,059 | ||||||
EXPENSES | |||||||
Advisory fee (Note B) | 7,134,393 | ||||||
Shareholder Servicing fees — Class 2 shares (Note B) | 422,459 | ||||||
Shareholder Servicing fees — Class 3 shares (Note B) | 312,028 | ||||||
Shareholder Servicing fees — Class 4 shares (Note B) | 343,346 | ||||||
Shareholder Servicing fees — Class 5 shares (Note B) | 175,200 | ||||||
Administration & Supervisory fee — Class K shares (Note B) | 109,970 | ||||||
Administration & Supervisory fee — Institutional Class shares (Note B) | 308,943 | ||||||
Transfer agency | 66,599 | ||||||
Sub-transfer agency — Institutional Class shares | 126,787 | ||||||
Fund accounting | 629,343 | ||||||
Custody | 290,609 | ||||||
Legal | 245,489 | ||||||
Registration fees | 50,865 | ||||||
Trustees' fees | 47,911 | ||||||
Professional fees | 20,303 | ||||||
Commitment fees | 10,909 | ||||||
Miscellaneous | 43,546 | ||||||
Total Expenses | 10,338,700 | ||||||
Net Investment Income | 37,512,359 | ||||||
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS AND FOREIGN CURRENCY TRANSACTIONS | |||||||
Net realized gain (loss) from: | |||||||
Investments | 360,362,527 | ||||||
Foreign currency transactions | (146,678 | ) | |||||
360,215,849 | |||||||
Net change in unrealized depreciation on: | |||||||
Investments (net of deferred India capital gains tax expense of $45,370) (Note A) | (242,833,643 | ) | |||||
Translation of net assets and liabilities denominated in foreign currencies | (59,826 | ) | |||||
(242,893,469 | ) | ||||||
Net realized and unrealized gain | 117,322,380 | ||||||
NET INCREASE IN NET ASSETS FROM OPERATIONS | $ | 154,834,739 |
The accompanying notes are an integral part of the financial statements.
108
Statements of Changes in Net Assets
Semi-Annual Report June 30, 2021
Baillie Gifford International Growth Fund
For the Six Months Ended June 30, 2021 (unaudited) | For the Year Ended December 31, 2020 | ||||||||||
INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS | |||||||||||
Net investment income | $ | 37,512,359 | $ | 2,279,011 | |||||||
Net realized gain | 360,215,849 | 470,418,997 | |||||||||
Net change in unrealized appreciation (depreciation) | (242,893,469 | ) | 1,383,834,789 | ||||||||
Net increase in net assets from operations | 154,834,739 | 1,856,532,797 | |||||||||
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS FROM: | |||||||||||
Distributable earnings | |||||||||||
Class 2 | — | (55,541,011 | ) | ||||||||
Class 3 | — | (64,060,790 | ) | ||||||||
Class 4 | — | (91,315,840 | ) | ||||||||
Class 5 | — | (170,297,829 | ) | ||||||||
Class K | — | (8,879,140 | ) | ||||||||
Institutional Class | — | (29,144,231 | ) | ||||||||
Total Distributions to Shareholders | — | (419,238,841 | ) | ||||||||
TRANSACTIONS IN SHARES OF BENEFICIAL INTEREST | |||||||||||
Net proceeds from shares subscribed: | |||||||||||
Class 2 | 94,859,331 | * | 81,506,000 | ||||||||
Class 3 | 131,196,174 | * | 592,448,173 | * | |||||||
Class 4 | — | 434,310,417 | * | ||||||||
Class 5 | 2,000,000 | — | |||||||||
Class K | 4,276,122 | 115,840,279 | |||||||||
Institutional Class | 134,479,065 | 230,631,609 | |||||||||
Dividends reinvested: | |||||||||||
Class 2 | — | 55,541,011 | |||||||||
Class 3 | — | 64,060,790 | |||||||||
Class 4 | — | 91,315,840 | |||||||||
Class 5 | — | 170,297,829 | |||||||||
Class K | — | 6,873,455 | |||||||||
Institutional Class | — | 28,803,483 | |||||||||
Cost of shares redeemed: | |||||||||||
Class 2 | (185,281,174 | )* | (695,348,173 | )* | |||||||
Class 3 | (296,974,945 | )* | (764,520,237 | )* | |||||||
Class 4 | (2,362,580 | ) | (78,000,000 | ) | |||||||
Class 5 | (125,000,000 | ) | (225,000,000 | ) | |||||||
Class K | (10,916,230 | ) | (229,035 | ) | |||||||
Institutional Class | (42,361,093 | ) | (32,662,300 | ) | |||||||
Increase (Decrease) in Net Assets from Transactions in Shares of Beneficial Interest | (296,085,330 | ) | 75,869,141 | ||||||||
Total Increase (Decrease) in Net Assets | (141,250,591 | ) | 1,513,163,097 | ||||||||
NET ASSETS | |||||||||||
Beginning of period | 4,542,689,249 | 3,029,526,152 | |||||||||
End of period | $ | 4,401,438,658 | $ | 4,542,689,249 |
* See Note D for details of share class conversions.
The accompanying notes are an integral part of the financial statements.
109
Financial Highlights
Semi-Annual Report June 30, 2021
Baillie Gifford International Growth Fund
Selected data for a Class 2 share outstanding throughout each period:
For the Six Months Ended June 30, 2021 (unaudited) | For the Year Ended December 31, 2020 | For the Year Ended December 31, 2019 | For the Year Ended December 31, 2018 | For the Year Ended December 31, 2017 | For the Year Ended December 31, 2016 | ||||||||||||||||||||||
Net asset value, beginning of period | $ | 21.56 | $ | 14.59 | $ | 10.74 | $ | 14.39 | $ | 10.09 | $ | 10.52 | |||||||||||||||
From Investment Operations | |||||||||||||||||||||||||||
Net investment income(a) | 0.19 | 0.00 | (b) | 0.15 | 0.11 | 0.05 | 0.08 | ||||||||||||||||||||
Net realized and unrealized gain (loss) on investments and foreign currency | 0.53 | 9.17 | 3.87 | (2.61 | ) | 4.60 | 0.06 | ||||||||||||||||||||
Net increase (decrease) in net asset value from investment operations | 0.72 | 9.17 | 4.02 | (2.50 | ) | 4.65 | 0.14 | ||||||||||||||||||||
Dividends and Distributions to Shareholders | |||||||||||||||||||||||||||
From net investment income | — | — | (0.15 | ) | (0.10 | ) | (0.06 | ) | (0.07 | ) | |||||||||||||||||
From net realized gain on investments | — | (2.20 | ) | (0.02 | ) | (1.03 | ) | (0.29 | ) | (0.50 | ) | ||||||||||||||||
Return of capital | — | — | — | (0.02 | ) | — | — | ||||||||||||||||||||
Total Dividends and Distributions | — | (2.20 | ) | (0.17 | ) | (1.15 | ) | (0.35 | ) | (0.57 | ) | ||||||||||||||||
Proceeds from Purchase Fees and Redemption Fees(a) | — | — | — | — | 0.00 | (b) | 0.00 | (b) | |||||||||||||||||||
Net asset value, end of period | $ | 22.28 | $ | 21.56 | $ | 14.59 | $ | 10.74 | $ | 14.39 | $ | 10.09 | |||||||||||||||
Total Return | |||||||||||||||||||||||||||
Total return based on net asset value(c) | 3.33 | %(f) | 62.95 | % | 37.34 | % | (17.33 | )% | 46.09 | % | 1.34 | % | |||||||||||||||
Ratios/Supplemental Data | |||||||||||||||||||||||||||
Net assets, end of period (000's omitted) | $ | 529,841 | $ | 599,275 | $ | 874,230 | $ | 632,645 | $ | 746,817 | $ | 732,160 | |||||||||||||||
Ratio of net expenses to average net assets | 0.56 | %* | 0.58 | % | 0.60 | % | 0.60 | % | 0.61 | % | 0.61 | % | |||||||||||||||
Ratio of net investment income to average net assets | 1.09 | %(d)* | 0.02 | % | 1.16 | %(d) | 0.72 | % | 0.42 | % | 0.81 | % | |||||||||||||||
Portfolio turnover rate(e) | 9 | % | 26 | % | 6 | % | 14 | % | 9 | % | 18 | % |
* Annualized.
(a) Calculated based upon average shares outstanding during the period.
(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) Large increase due to one-off taxable stock dividends that were treated as income.
(e) Portfolio turnover rate calculated at Fund level.
(f) The total return disclosed include adjustments made for financial reporting purposes in conformity with U.S. generally accepted accounting principles.
The accompanying notes are an integral part of the financial statements.
110
Financial Highlights
Semi-Annual Report June 30, 2021
Baillie Gifford International Growth Fund
Selected data for a Class 3 share outstanding throughout each period:
For the Six Months Ended June 30, 2021 (unaudited) | For the Year Ended December 31, 2020 | For the Year Ended December 31, 2019 | For the Year Ended December 31, 2018 | For the Year Ended December 31, 2017 | For the Year Ended December 31, 2016 | ||||||||||||||||||||||
Net asset value, beginning of period | $ | 21.63 | $ | 14.62 | $ | 10.76 | $ | 14.42 | $ | 10.11 | $ | 10.54 | |||||||||||||||
From Investment Operations | |||||||||||||||||||||||||||
Net investment income(a) | 0.17 | 0.01 | 0.16 | 0.11 | 0.05 | 0.11 | |||||||||||||||||||||
Net realized and unrealized gain (loss) on investments and foreign currency | 0.55 | 9.20 | 3.88 | (2.61 | ) | 4.62 | 0.03 | ||||||||||||||||||||
Net increase (decrease) in net asset value from investment operations | 0.72 | 9.21 | 4.04 | (2.50 | ) | 4.67 | 0.14 | ||||||||||||||||||||
Dividends and Distributions to Shareholders | |||||||||||||||||||||||||||
From net investment income | — | — | (0.16 | ) | (0.11 | ) | (0.07 | ) | (0.07 | ) | |||||||||||||||||
From net realized gain on investments | — | (2.20 | ) | (0.02 | ) | (1.03 | ) | (0.29 | ) | (0.50 | ) | ||||||||||||||||
Return of capital | — | — | — | (0.02 | ) | — | — | ||||||||||||||||||||
Total Dividends and Distributions | — | (2.20 | ) | (0.18 | ) | (1.16 | ) | (0.36 | ) | (0.57 | ) | ||||||||||||||||
Proceeds from Purchase Fees and Redemption Fees(a) | — | — | — | — | 0.00 | (b) | 0.00 | (b) | |||||||||||||||||||
Net asset value, end of period | $ | 22.35 | $ | 21.63 | $ | 14.62 | $ | 10.76 | $ | 14.42 | $ | 10.11 | |||||||||||||||
Total Return | |||||||||||||||||||||||||||
Total return based on net asset value(c) | 3.37 | %(f) | 63.07 | % | 37.44 | % | (17.27 | )% | 46.20 | % | 1.41 | % | |||||||||||||||
Ratios/Supplemental Data | |||||||||||||||||||||||||||
Net assets, end of period (000's omitted) | $ | 553,017 | $ | 693,179 | $ | 546,477 | $ | 393,050 | $ | 601,549 | $ | 433,860 | |||||||||||||||
Ratio of net expenses to average net assets | 0.49 | %* | 0.51 | % | 0.53 | % | 0.53 | % | 0.54 | % | 0.54 | % | |||||||||||||||
Ratio of net investment income to average net assets | 0.98 | %(d)* | 0.03 | % | 1.22 | %(d) | 0.74 | % | 0.41 | % | 1.04 | % | |||||||||||||||
Portfolio turnover rate(e) | 9 | % | 26 | % | 6 | % | 14 | % | 9 | % | 18 | % |
* Annualized.
(a) Calculated based upon average shares outstanding during the period.
(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) Large increase due to one-off taxable stock dividends that were treated as income.
(e) Portfolio turnover rate calculated at Fund level.
(f) The total return disclosed include adjustments made for financial reporting purposes in conformity with U.S. generally accepted accounting principles.
The accompanying notes are an integral part of the financial statements.
111
Financial Highlights
Semi-Annual Report June 30, 2021
Baillie Gifford International Growth Fund
Selected data for a Class 4 share outstanding throughout each period:
For the Six Months Ended June 30, 2021 (unaudited) | For the Year Ended December 31, 2020 | For the Year Ended December 31, 2019 | For the Year Ended December 31, 2018 | For the Year Ended December 31, 2017 | For the Period October 10, 2016(a) through December 31, 2016 | ||||||||||||||||||||||
Net asset value, beginning of period | $ | 21.65 | $ | 14.63 | $ | 10.77 | $ | 14.43 | $ | 10.12 | $ | 11.49 | |||||||||||||||
From Investment Operations | |||||||||||||||||||||||||||
Net investment income(b) | 0.19 | 0.01 | 0.16 | 0.12 | 0.06 | 0.00 | (c) | ||||||||||||||||||||
Net realized and unrealized gain (loss) on investments and foreign currency | 0.54 | 9.21 | 3.88 | (2.61 | ) | 4.62 | (0.81 | ) | |||||||||||||||||||
Net increase (decrease) in net asset value from investment operations | 0.73 | 9.22 | 4.04 | (2.49 | ) | 4.68 | (0.81 | ) | |||||||||||||||||||
Dividends and Distributions to Shareholders | |||||||||||||||||||||||||||
From net investment income | — | 0.00 | (c) | (0.16 | ) | (0.12 | ) | (0.08 | ) | (0.08 | ) | ||||||||||||||||
From net realized gain on investments | — | (2.20 | ) | (0.02 | ) | (1.03 | ) | (0.29 | ) | (0.48 | ) | ||||||||||||||||
Return of capital | — | — | — | (0.02 | ) | — | — | ||||||||||||||||||||
Total Dividends and Distributions | — | (2.20 | ) | (0.18 | ) | (1.17 | ) | (0.37 | ) | (0.56 | ) | ||||||||||||||||
Proceeds from Purchase Fees and Redemption Fees(b) | — | — | — | — | 0.00 | (c) | 0.00 | (c) | |||||||||||||||||||
Net asset value, end of period | $ | 22.38 | $ | 21.65 | $ | 14.63 | $ | 10.77 | $ | 14.43 | $ | 10.12 | |||||||||||||||
Total Return | |||||||||||||||||||||||||||
Total return based on net asset value(d) | 3.39 | %(g) | 63.12 | % | 37.48 | % | (17.24 | )% | 46.24 | % | (6.97 | )% | |||||||||||||||
Ratios/Supplemental Data | |||||||||||||||||||||||||||
Net assets, end of period (000's omitted) | $ | 999,897 | $ | 969,427 | $ | 283,094 | $ | 205,923 | $ | 302,474 | $ | 201,923 | |||||||||||||||
Ratio of net expenses to average net assets | 0.46 | %* | 0.48 | % | 0.50 | % | 0.50 | % | 0.51 | % | 0.52 | %* | |||||||||||||||
Ratio of net investment income to average net assets | 1.15 | %(e)* | 0.06 | % | 1.26 | %(e) | 0.83 | % | 0.45 | % | 0.05 | %* | |||||||||||||||
Portfolio turnover rate(f) | 9 | % | 26 | % | 6 | % | 14 | % | 9 | % | 18 | % |
* Annualized.
(a) 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.
(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) Large increase due to one-off taxable stock dividends that were treated as income.
(f) Portfolio turnover rate calculated at Fund level.
(g) The total return disclosed include adjustments made for financial reporting purposes in conformity with U.S. generally accepted accounting principles.
The accompanying notes are an integral part of the financial statements.
112
Financial Highlights
Semi-Annual Report June 30, 2021
Baillie Gifford International Growth Fund
Selected data for a Class 5 share outstanding throughout each period:
For the Six Months Ended June 30, 2021 (unaudited) | For the Year Ended December 31, 2020 | For the Year Ended December 31, 2019 | For the Year Ended December 31, 2018 | For the Year Ended December 31, 2017 | For the Year Ended December 31, 2016 | ||||||||||||||||||||||
Net asset value, beginning of period | $ | 21.70 | $ | 14.66 | $ | 10.79 | $ | 14.46 | $ | 10.14 | $ | 10.56 | |||||||||||||||
From Investment Operations | |||||||||||||||||||||||||||
Net investment income(a) | 0.20 | 0.02 | 0.17 | 0.12 | 0.07 | 0.10 | |||||||||||||||||||||
Net realized and unrealized gain (loss) on investments and foreign currency | 0.54 | 9.23 | 3.89 | (2.61 | ) | 4.62 | 0.06 | ||||||||||||||||||||
Net increase (decrease) in net asset value from investment operations | 0.74 | 9.25 | 4.06 | (2.49 | ) | 4.69 | 0.16 | ||||||||||||||||||||
Dividends and Distributions to Shareholders | |||||||||||||||||||||||||||
From net investment income | — | (0.01 | ) | (0.17 | ) | (0.13 | ) | (0.08 | ) | (0.08 | ) | ||||||||||||||||
From net realized gain on investments | — | (2.20 | ) | (0.02 | ) | (1.03 | ) | (0.29 | ) | (0.50 | ) | ||||||||||||||||
Return of capital | — | — | — | (0.02 | ) | — | — | ||||||||||||||||||||
Total Dividends and Distributions | — | (2.21 | ) | (0.19 | ) | (1.18 | ) | (0.37 | ) | (0.58 | ) | ||||||||||||||||
Proceeds from Purchase Fees and Redemption Fees(a) | — | — | — | — | 0.00 | (b) | 0.00 | (b) | |||||||||||||||||||
Net asset value, end of period | $ | 22.44 | $ | 21.70 | $ | 14.66 | $ | 10.79 | $ | 14.46 | $ | 10.14 | |||||||||||||||
Total Return | |||||||||||||||||||||||||||
Total return based on net asset value(c) | 3.41 | %(f) | 63.20 | % | 37.55 | % | (17.20 | )% | 46.31 | % | 1.49 | % | |||||||||||||||
Ratios/Supplemental Data | |||||||||||||||||||||||||||
Net assets, end of period (000's omitted) | $ | 1,781,105 | $ | 1,842,231 | $ | 1,298,918 | $ | 944,366 | $ | 1,139,553 | $ | 778,857 | |||||||||||||||
Ratio of net expenses to average net assets | 0.41 | %* | 0.43 | % | 0.45 | % | 0.45 | % | 0.46 | % | 0.46 | % | |||||||||||||||
Ratio of net investment income to average net assets | 1.19 | %(d)* | 0.13 | % | 1.31 | %(d) | 0.84 | % | 0.51 | % | 0.98 | % | |||||||||||||||
Portfolio turnover rate(e) | 9 | % | 26 | % | 6 | % | 14 | % | 9 | % | 18 | % |
* Annualized.
(a) Calculated based upon average shares outstanding during the period.
(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) Large increase due to one-off taxable stock dividends that were treated as income.
(e) Portfolio turnover rate calculated at Fund level.
(f) The total return disclosed include adjustments made for financial reporting purposes in conformity with U.S. generally accepted accounting principles.
The accompanying notes are an integral part of the financial statements.
113
Financial Highlights
Semi-Annual Report June 30, 2021
Baillie Gifford International Growth Fund
Selected data for a Class K share outstanding throughout each period:
For the Six Months Ended June 30, 2021 (unaudited) | For the Year Ended December 31, 2020 | For the Year Ended December 31, 2019 | For the Year Ended December 31, 2018 | For the Period April 28, 2017(a) through December 31, 2017 | |||||||||||||||||||
Net asset value, beginning of period | $ | 21.54 | $ | 14.58 | $ | 10.73 | $ | 14.38 | $ | 12.02 | |||||||||||||
From Investment Operations | |||||||||||||||||||||||
Net investment income (loss)(b) | 0.18 | (0.05 | )(c) | 0.15 | 0.10 | 0.01 | |||||||||||||||||
Net realized and unrealized gain (loss) on investments and foreign currency | 0.54 | 9.21 | 3.87 | (2.60 | ) | 2.71 | |||||||||||||||||
Net increase (decrease) in net asset value from investment operations | 0.72 | 9.16 | 4.02 | (2.50 | ) | 2.72 | |||||||||||||||||
Dividends and Distributions to Shareholders | |||||||||||||||||||||||
From net investment income | — | 0.00 | (d) | (0.15 | ) | (0.10 | ) | (0.07 | ) | ||||||||||||||
From net realized gain on investments | — | (2.20 | ) | (0.02 | ) | (1.03 | ) | (0.29 | ) | ||||||||||||||
Return of capital | — | — | — | (0.02 | ) | — | |||||||||||||||||
Total Dividends and Distributions | — | (2.20 | ) | (0.17 | ) | (1.15 | ) | (0.36 | ) | ||||||||||||||
Net asset value, end of period | $ | 22.26 | $ | 21.54 | $ | 14.58 | $ | 10.73 | $ | 14.38 | |||||||||||||
Total Return | |||||||||||||||||||||||
Total return based on net asset value(e) | 3.34 | %(h) | 62.95 | % | 37.40 | % | (17.32 | )% | 22.62 | % | |||||||||||||
Ratios/Supplemental Data | |||||||||||||||||||||||
Net assets, end of period (000's omitted) | $ | 127,897 | $ | 130,401 | $ | 7 | $ | 5 | $ | 6 | |||||||||||||
Ratio of net expenses to average net assets | 0.56 | %* | 0.58 | % | 0.60 | % | 0.60 | % | 0.60 | %* | |||||||||||||
Ratio of net investment income (loss) to average net assets | 1.01 | %(f)* | (0.26 | )% | 1.17 | %(f) | 0.72 | % | 0.14 | %* | |||||||||||||
Portfolio turnover rate(g) | 9 | % | 26 | % | 6 | % | 14 | % | 9 | % |
* Annualized.
(a) Commencement of investment operations.
(b) Calculated based upon average shares outstanding during the period.
(c) Calculation of the net gain or loss per share may not correlate to the aggregate investment income presented in the Statement of Operations due to the allocation of expenses across the share classes.
(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) Large increase due to one-off taxable stock dividends that were treated as income.
(g) Portfolio turnover rate calculated at Fund level.
(h) The total return disclosed include adjustments made for financial reporting purposes in conformity with U.S. generally accepted accounting principles.
The accompanying notes are an integral part of the financial statements.
114
Financial Highlights
Semi-Annual Report June 30, 2021
Baillie Gifford International Growth Fund
Selected data for an Institutional Class share outstanding throughout each period:
For the Six Months Ended June 30, 2021 (unaudited) | For the Year Ended December 31, 2020 | For the Year Ended December 31, 2019 | For the Year Ended December 31, 2018 | For the Period April 28, 2017(a) through December 31, 2017 | |||||||||||||||||||
Net asset value, beginning of period | $ | 21.48 | $ | 14.55 | $ | 10.72 | $ | 14.38 | $ | 12.02 | |||||||||||||
From Investment Operations | |||||||||||||||||||||||
Net investment income (loss)(b) | 0.18 | (0.03 | )(c) | 0.15 | (0.01 | ) | 0.01 | ||||||||||||||||
Net realized and unrealized gain (loss) on investments and foreign currency | 0.53 | 9.16 | 3.85 | (2.49 | )(d) | 2.71 | |||||||||||||||||
Net increase (decrease) in net asset value from investment operations | 0.71 | 9.13 | 4.00 | (2.50 | ) | 2.72 | |||||||||||||||||
Dividends and Distributions to Shareholders | |||||||||||||||||||||||
From net investment income | — | — | (0.15 | ) | (0.11 | ) | (0.07 | ) | |||||||||||||||
From net realized gain on investments | — | (2.20 | ) | (0.02 | ) | (1.03 | ) | (0.29 | ) | ||||||||||||||
Return of capital | — | — | — | (0.02 | ) | — | |||||||||||||||||
Total Dividends and Distributions | — | (2.20 | ) | (0.17 | ) | (1.16 | ) | (0.36 | ) | ||||||||||||||
Net asset value, end of period | $ | 22.19 | $ | 21.48 | $ | 14.55 | $ | 10.72 | $ | 14.38 | |||||||||||||
Total Return | |||||||||||||||||||||||
Total return based on net asset value(e) | 3.31 | %(h) | 62.84 | % | 37.25 | % | (17.34 | )% | 22.62 | % | |||||||||||||
Ratios/Supplemental Data | |||||||||||||||||||||||
Net assets, end of period (000's omitted) | $ | 409,682 | $ | 308,176 | $ | 26,800 | $ | 2,081 | $ | 6 | |||||||||||||
Ratio of net expenses to average net assets | 0.63 | %* | 0.64 | % | 0.65 | % | 0.69 | % | 0.60 | %* | |||||||||||||
Ratio of net investment income (loss) to average net assets | 1.06 | %(f)* | (0.16 | )% | 1.09 | %(f) | (0.23 | )% | 0.14 | %* | |||||||||||||
Portfolio turnover rate(g) | 9 | % | 26 | % | 6 | % | 14 | % | 9 | % |
* Annualized.
(a) Commencement of investment operations.
(b) Calculated based upon average shares outstanding during the period.
(c) Calculation of the net gain or loss per share may not correlate to the aggregate investment income presented in the Statement of Operations due to the allocation of expenses across the share classes.
(d) Calculation of the net gain or loss per share (both realized and unrealized) may 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.
(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) Large increase due to one-off taxable stock dividends that were treated as income.
(g) Portfolio turnover rate calculated at Fund level.
(h) The total return disclosed include adjustments made for financial reporting purposes in conformity with U.S. generally accepted accounting principles.
The accompanying notes are an integral part of the financial statements.
115
Industry Diversification Table
Semi-Annual Report June 30, 2021
June 30, 2021 (unaudited)
Baillie Gifford International Smaller Companies Fund
Value | % of Total Net Assets | ||||||||||
Auto Parts & Equipment | $ | 22,410 | 0.1 | % | |||||||
Banks | 33,150 | 0.1 | |||||||||
Biotechnology | 77,128 | 0.2 | |||||||||
Building Materials | 238,110 | 0.7 | |||||||||
Chemicals | 44,139 | 0.1 | |||||||||
Commercial Services | 670,752 | 1.7 | |||||||||
Computers | 142,130 | 0.4 | |||||||||
Distribution/Wholesale | 276,263 | 0.8 | |||||||||
Diversified Financial Services | 641,729 | 1.7 | |||||||||
Electrical Components & Equipment | 79,878 | 0.2 | |||||||||
Electronics | 319,279 | 0.9 | |||||||||
Food | 32,135 | 0.1 | |||||||||
Hand/Machine Tools | 55,746 | 0.1 | |||||||||
Healthcare — Products | 116,089 | 0.3 | |||||||||
Insurance | 32,066 | 0.1 | |||||||||
Internet | 990,556 | 2.7 | |||||||||
Investment Companies | 58,485 | 0.2 | |||||||||
Leisure Time | 245,329 | 0.6 | |||||||||
Machinery — Diversified | 170,599 | 0.5 | |||||||||
Media | 37,795 | 0.1 | |||||||||
Miscellaneous Manufacturing | 269,640 | 0.7 | |||||||||
Office/Business Equipment | 44,167 | 0.1 | |||||||||
Pharmaceuticals | 206,183 | 0.5 | |||||||||
Private Equity | 68,565 | 0.2 | |||||||||
Retail | 258,464 | 0.7 | |||||||||
Semiconductors | 733,841 | 1.9 | |||||||||
Software | 870,427 | 2.4 | |||||||||
Telecommunications | 138,614 | 0.4 | |||||||||
Toys/Games/Hobbies | 134,836 | 0.4 | |||||||||
Total Value of Investments | 7,008,505 | 18.9 | |||||||||
Other assets less liabilities | 30,064,914 | 81.1 | |||||||||
Net Assets | $ | 37,073,419 | 100.0 | % |
The table above is based on Bloomberg Industry Group classifications. For compliance monitoring purposes, sub-industry classifications are used which results in less concentration across industry sectors.
116
Portfolio of Investments
Semi-Annual Report June 30, 2021
June 30, 2021 (unaudited)
Baillie Gifford International Smaller Companies Fund
Shares | Value | ||||||||||
COMMON STOCKS — 18.9% | |||||||||||
AUSTRALIA — 0.3% | |||||||||||
Cleanspace Holdings Ltd. * | 22,840 | $ | 26,411 | ||||||||
Mesoblast Ltd. * | 5,841 | 8,713 | |||||||||
Netwealth Group Ltd. | 5,628 | 72,403 | |||||||||
107,527 | |||||||||||
BELGIUM — 0.2% | |||||||||||
Biocartis Group NV * | 2,982 | 14,409 | |||||||||
Melexis NV | 532 | 55,309 | |||||||||
69,718 | |||||||||||
CANADA — 0.7% | |||||||||||
Docebo, Inc. * | 1,458 | 86,285 | |||||||||
Kinaxis, Inc. * | 1,287 | 169,305 | |||||||||
255,590 | |||||||||||
CHINA — 0.7% | |||||||||||
Airtac International Group | 7,000 | 269,640 | |||||||||
DENMARK — 0.3% | |||||||||||
ALK-Abello A/S * | 266 | 126,955 | |||||||||
FRANCE — 0.2% | |||||||||||
Cellectis SA ADR * | 2,067 | 31,976 | |||||||||
Cellectis SA * | 506 | 7,940 | |||||||||
ESI Group * | 478 | 33,020 | |||||||||
72,936 | |||||||||||
GERMANY — 0.9% | |||||||||||
Aumann AG * | 581 | 11,824 | |||||||||
Hypoport SE * | 399 | 206,466 | |||||||||
New Work SE | 291 | 91,439 | |||||||||
zooplus AG * | 117 | 37,902 | |||||||||
347,631 |
The accompanying notes are an integral part of the financial statements.
117
Portfolio of Investments
Semi-Annual Report June 30, 2021
June 30, 2021 (unaudited)
Baillie Gifford International Smaller Companies Fund
Shares | Value | ||||||||||
HONG KONG — 0.3% | |||||||||||
Hypebeast Ltd. * | 160,000 | $ | 23,621 | ||||||||
Johnson Electric Holdings Ltd. | 31,000 | 79,878 | |||||||||
103,499 | |||||||||||
IRELAND — 0.2% | |||||||||||
Keywords Studios PLC * | 2,202 | 75,846 | |||||||||
ISRAEL — 0.4% | |||||||||||
Maytronics Ltd. | 7,376 | 153,741 | |||||||||
ITALY — 1.4% | |||||||||||
Brunello Cucinelli SpA * | 3,538 | 207,247 | |||||||||
Reply SpA | 1,295 | 212,693 | |||||||||
Technogym SpA | 7,168 | 91,588 | |||||||||
511,528 | |||||||||||
JAPAN — 5.9% | |||||||||||
Anicom Holdings, Inc. | 4,000 | 32,066 | |||||||||
Bengo4.com, Inc. * | 2,000 | 174,888 | |||||||||
COLOPL, Inc. | 7,100 | 52,830 | |||||||||
Daikyonishikawa Corp. | 3,600 | 22,410 | |||||||||
Demae-Can Co., Ltd. * | 5,000 | 69,734 | |||||||||
DMG Mori Seiki Co., Ltd. | 3,100 | 55,746 | |||||||||
eGuarantee, Inc. | 3,800 | 80,024 | |||||||||
GA Technologies Co. Ltd. * | 2,700 | 53,853 | |||||||||
Healios K.K. * | 2,500 | 40,940 | |||||||||
Ichiyoshi Securities Co., Ltd. | 6,400 | 33,150 | |||||||||
Infomart Corp. | 8,500 | 69,757 | |||||||||
Inter Action Corp. | 1,500 | 33,577 | |||||||||
Iriso Electronics Co., Ltd. | 1,100 | 53,289 | |||||||||
Istyle, Inc. * | 9,700 | 45,485 | |||||||||
JMDC, Inc. * | 1,300 | 64,881 | |||||||||
Kamakura Shinsho Ltd. | 3,100 | 28,079 | |||||||||
Katitas Co., Ltd. | 3,700 | 104,025 | |||||||||
KH Neochem Co., Ltd. | 1,900 | 44,139 | |||||||||
Kitanotatsujin Corp. | 13,600 | 60,360 | |||||||||
Link and Motivation, Inc. | 8,500 | 59,796 | |||||||||
Locondo, Inc. | 2,600 | 44,339 | |||||||||
Megachips Corp. | 4,500 | 128,808 |
The accompanying notes are an integral part of the financial statements.
118
Portfolio of Investments
Semi-Annual Report June 30, 2021
June 30, 2021 (unaudited)
Baillie Gifford International Smaller Companies Fund
Shares | Value | ||||||||||
Optex Group Co., Ltd. | 2,700 | $ | 45,107 | ||||||||
Outsourcing, Inc. | 11,000 | 199,719 | |||||||||
Raksul, Inc. * | 4,200 | 204,771 | |||||||||
Sansan, Inc. * | 600 | 52,746 | |||||||||
Sato Holdings Corp. | 1,800 | 44,167 | |||||||||
Tsugami Corp. | 8,600 | 132,363 | |||||||||
Uzabase, Inc. * | 1,500 | 36,028 | |||||||||
WealthNavi, Inc. * | 3,100 | 112,325 | |||||||||
2,179,402 | |||||||||||
SOUTH KOREA — 1.0% | |||||||||||
Cafe24 Corp. * | 1,587 | 42,378 | |||||||||
Douzone Bizon Co., Ltd. | 2,329 | 171,482 | |||||||||
Genexine, Inc. * | 357 | 28,499 | |||||||||
Koh Young Technology, Inc. | 6,879 | 145,325 | |||||||||
387,684 | |||||||||||
SWEDEN — 2.4% | |||||||||||
AddTech AB, B Shares | 10,825 | 179,695 | |||||||||
Avanza Bank Holding AB | 10,372 | 323,596 | |||||||||
Bactiguard Holding AB * | 1,414 | 29,079 | |||||||||
Cellavision AB | 625 | 26,919 | |||||||||
HMS Networks AB | 3,277 | 138,614 | |||||||||
Paradox Interactive AB | 2,759 | 58,029 | |||||||||
Storytel AB * | 1,457 | 37,795 | |||||||||
VNV Global AB * | 5,249 | 58,485 | |||||||||
Xvivo Perfusion AB * | 1,117 | 45,682 | |||||||||
897,894 | |||||||||||
SWITZERLAND — 0.6% | |||||||||||
Bossard Holding AG | 316 | 96,568 | |||||||||
Sensirion Holding AG * | 1,212 | 97,213 | |||||||||
u-blox Holding AG * | 365 | 26,849 | |||||||||
220,630 | |||||||||||
TAIWAN — 1.4% | |||||||||||
ASPEED Technology, Inc. | 4,000 | 288,498 | |||||||||
Chroma ATE, Inc. | 11,000 | 75,558 |
The accompanying notes are an integral part of the financial statements.
119
Portfolio of Investments
Semi-Annual Report June 30, 2021
June 30, 2021 (unaudited)
Baillie Gifford International Smaller Companies Fund
Shares | Value | ||||||||||
Global Unichip Corp. | 7,000 | $ | 103,588 | ||||||||
TCI Co., Ltd. | 4,148 | 38,288 | |||||||||
505,932 | |||||||||||
UNITED KINGDOM — 2.0% | |||||||||||
Alpha FX Group PLC | 2,514 | 53,382 | |||||||||
dotdigital group PLC | 9,713 | 31,037 | |||||||||
Draper Esprit PLC * | 5,483 | 68,565 | |||||||||
FDM Group Holdings PLC | 4,695 | 66,284 | |||||||||
First Derivatives PLC * | 2,647 | 83,118 | |||||||||
Games Workshop Group PLC | 855 | 134,836 | |||||||||
Hotel Chocolat Group PLC * | 6,471 | 32,135 | |||||||||
Naked Wines PLC * | 4,588 | 51,217 | |||||||||
Team17 Group PLC * | 6,722 | 67,693 | |||||||||
Victoria PLC * | 9,059 | 134,085 | |||||||||
722,352 | |||||||||||
TOTAL INVESTMENTS — 18.9% | |||||||||||
(cost $6,157,521) | $ | 7,008,505 | |||||||||
Other assets less liabilities — 81.1% ** | 30,064,914 | ||||||||||
NET ASSETS — 100.0% | $ | 37,073,419 |
* Non-income producing security.
** The Other assets less liabilities percentage represents unsettled inflows at period end and is not representative of the investment strategy of the Fund.
ADR — American Depositary Receipt
This report classifies issuers geographically by their country of risk. For compliance monitoring purposes, the Manager retains discretion to consider a number of factors in determining where a particular issuer is located, as described in further detail in each Fund's prospectus.
Fair Value Measurement
The following is a summary of the inputs used as of June 30, 2021 in valuing the Fund's investments carried at fair value:
Investments in Securities | Level 1 | Level 2 | Level 3 | Total | |||||||||||||||
Common Stocks ** | $ | 1,364,512 | $ | 5,643,993 | $ | — | $ | 7,008,505 | |||||||||||
Total | $ | 1,364,512 | $ | 5,643,993 | $ | — | $ | 7,008,505 |
** Refer to Portfolio of Investments for further detail.
The accompanying notes are an integral part of the financial statements.
120
Statement of Assets and Liabilities
Semi-Annual Report June 30, 2021
June 30, 2021 (unaudited)
Baillie Gifford International Smaller Companies Fund
ASSETS | |||||||
Investments, at value (cost $6,157,521) | $ | 7,008,505 | |||||
Cash | 1,232,150 | ||||||
Foreign cash, at value (cost $334,168) | 334,167 | ||||||
Capital shares sold receivable | 29,910,750 | ||||||
Due from Investment Advisor | 17,468 | ||||||
Dividends receivable | 3,711 | ||||||
Tax reclaims receivable | 300 | ||||||
Prepaid assets | 20,007 | ||||||
Total Assets | 38,527,058 | ||||||
LIABILITIES | |||||||
Advisory fee payable | 4,011 | ||||||
Payable for investment purchased | 1,386,823 | ||||||
Administration & Supervisory fee payable | 1,176 | ||||||
Trustee fee payable | 10 | ||||||
Commitment fee payable | 3 | ||||||
Accrued expenses | 61,616 | ||||||
Total Liabilities | 1,453,639 | ||||||
NET ASSETS | $ | 37,073,419 | |||||
COMPOSITION OF NET ASSETS | |||||||
Paid-in capital | $ | 36,174,795 | |||||
Total distributable earnings | 898,624 | ||||||
$ | 37,073,419 | ||||||
NET ASSET VALUE, PER SHARE | |||||||
Class K ( $30,895,298 / 1,679,093 shares outstanding), unlimited authorized, no par value | $ | 18.40 | |||||
Institutional Class ( $6,178,121 / 335,759 shares outstanding), unlimited authorized, no par value | $ | 18.40 |
The accompanying notes are an integral part of the financial statements.
121
Statement of Operations
Semi-Annual Report June 30, 2021
For the Six Months Ended June 30, 2021 (unaudited)
Baillie Gifford International Smaller Companies Fund
INVESTMENT INCOME | |||||||
Dividends (net of foreign withholding taxes of $1,482) | $ | 10,476 | |||||
Interest | 2 | ||||||
Total Investment Income | 10,478 | ||||||
EXPENSES | |||||||
Advisory fee (Note B) | 6,743 | ||||||
Administration & Supervisory fee — Class K shares (Note B) | 812 | ||||||
Administration & Supervisory fee — Institutional Class shares (Note B) | 1,164 | ||||||
Transfer agency | 16,239 | ||||||
Fund accounting | 54,708 | ||||||
Registration fees | 23,085 | ||||||
Professional fees | 16,287 | ||||||
Custody | 531 | ||||||
Trustees' fees | 19 | ||||||
Commitment fees | 5 | ||||||
Miscellaneous | 2,615 | ||||||
Total Expenses | 122,208 | ||||||
Fees waived/expenses reimbursed | (111,745 | ) | |||||
Total Expenses after waiver | 10,463 | ||||||
Net Investment Income | 15 | ||||||
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS AND FOREIGN CURRENCY TRANSACTIONS | |||||||
Net realized gain from: | |||||||
Investments | 46,052 | ||||||
Foreign currency transactions | 21 | ||||||
46,073 | |||||||
Net change in unrealized appreciation (depreciation) on: | |||||||
Investments | 91,410 | ||||||
Translation of net assets and liabilities denominated in foreign currencies | (931 | ) | |||||
90,479 | |||||||
Net realized and unrealized gain | 136,552 | ||||||
NET INCREASE IN NET ASSETS FROM OPERATIONS | $ | 136,567 |
The accompanying notes are an integral part of the financial statements.
122
Statements of Changes in Net Assets
Semi-Annual Report June 30, 2021
Baillie Gifford International Smaller Companies Fund
For the Six Months Ended June 30, 2021 (unaudited) | For the Year Ended December 31, 2020 | ||||||||||
INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS | |||||||||||
Net investment income (loss) | $ | 15 | $ | (3,233 | ) | ||||||
Net realized gain | 46,073 | 99,104 | |||||||||
Net change in unrealized appreciation | 90,479 | 516,292 | |||||||||
Net increase in net assets from operations | 136,567 | 612,163 | |||||||||
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS FROM: | |||||||||||
Distributable earnings | |||||||||||
Class K | — | (40,101 | ) | ||||||||
Institutional Class | — | (40,101 | ) | ||||||||
Total Distributions to Shareholders | — | (80,202 | ) | ||||||||
TRANSACTIONS IN SHARES OF BENEFICIAL INTEREST | |||||||||||
Net proceeds from shares subscribed: | |||||||||||
Class K | 29,910,750 | — | |||||||||
Institutional Class | 5,154,475 | — | |||||||||
Dividends reinvested: | |||||||||||
Class K | — | 40,101 | |||||||||
Institutional Class | — | 40,101 | |||||||||
Increase in Net Assets from Transactions in Shares of Beneficial Interest | 35,065,225 | 80,202 | |||||||||
Total Increase in Net Assets | 35,201,792 | 612,163 | |||||||||
NET ASSETS | |||||||||||
Beginning of period | 1,871,627 | 1,259,464 | |||||||||
End of period | $ | 37,073,419 | $ | 1,871,627 |
The accompanying notes are an integral part of the financial statements.
123
Financial Highlights
Semi-Annual Report June 30, 2021
Baillie Gifford International Smaller Companies Fund
Selected data for a Class K share outstanding throughout each period:
For the Six Months Ended June 30, 2021 (unaudited) | For the Year Ended December 31, 2020 | For the Year Ended December 31, 2019 | For the Period December 19, 2018(a) through December 31, 2018 | ||||||||||||||||
Net asset value, beginning of period | $ | 17.49 | $ | 12.30 | $ | 9.95 | $ | 10.00 | |||||||||||
From Investment Operations | |||||||||||||||||||
Net investment income (loss)(b) | (0.01 | ) | (0.03 | ) | 0.01 | 0.01 | |||||||||||||
Net realized and unrealized gain (loss) on investments and foreign currency | 0.92 | 6.00 | 2.64 | (0.06 | ) | ||||||||||||||
Net increase (decrease) in net asset value from investment operations | 0.91 | 5.97 | 2.65 | (0.05 | ) | ||||||||||||||
Dividends and Distributions to Shareholders | |||||||||||||||||||
From net investment income | — | — | (0.11 | ) | — | ||||||||||||||
From net realized gain on investments | — | (0.78 | ) | (0.19 | ) | — | |||||||||||||
Total Dividends and Distributions | — | (0.78 | ) | (0.30 | ) | — | |||||||||||||
Net asset value, end of period | $ | 18.40 | $ | 17.49 | $ | 12.30 | $ | 9.95 | |||||||||||
Total Return | |||||||||||||||||||
Total return based on net asset value(c) | 5.20 | % | 48.61 | % | 26.58 | % | (0.50 | )% | |||||||||||
Ratios/Supplemental Data | |||||||||||||||||||
Net assets, end of period (000's omitted) | $ | 30,895 | $ | 936 | $ | 630 | $ | 497 | |||||||||||
Ratio of net expenses to average net assets, before waiver | 10.51 | %* | 17.20 | % | 15.15 | % | 95.80 | %* | |||||||||||
Ratio of net expenses to average net assets, after waiver | 0.90 | %* | 0.90 | % | 0.90 | % | 0.90 | %* | |||||||||||
Ratio of net investment income (loss) to average net assets | (0.09 | )%* | (0.23 | )% | 0.13 | % | 1.85 | %* | |||||||||||
Portfolio turnover rate(d) | 4 | % | 16 | % | 11 | % | 0 | % |
* Annualized.
(a) Commencement of investment operations.
(b) Calculated based upon average shares outstanding during the period.
(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.
124
Financial Highlights
Semi-Annual Report June 30, 2021
Baillie Gifford International Smaller Companies Fund
Selected data for an Institutional Class share outstanding throughout each period:
For the Six Months Ended June 30, 2021 (unaudited) | For the Year Ended December 31, 2020 | For the Year Ended December 31, 2019 | For the Period December 19, 2018(a) through December 31, 2018 | ||||||||||||||||
Net asset value, beginning of period | $ | 17.49 | $ | 12.30 | $ | 9.95 | $ | 10.00 | |||||||||||
From Investment Operations | |||||||||||||||||||
Net investment income (loss)(b) | 0.01 | (0.03 | ) | 0.01 | 0.01 | ||||||||||||||
Net realized and unrealized gain (loss) on investments and foreign currency | 0.90 | 6.00 | 2.64 | (0.06 | ) | ||||||||||||||
Net increase (decrease) in net asset value from investment operations | 0.91 | 5.97 | 2.65 | (0.05 | ) | ||||||||||||||
Dividends and Distributions to Shareholders | |||||||||||||||||||
From net investment income | — | — | (0.11 | ) | — | ||||||||||||||
From net realized gain on investments | — | (0.78 | ) | (0.19 | ) | — | |||||||||||||
Total Dividends and Distributions | — | (0.78 | ) | (0.30 | ) | — | |||||||||||||
Net asset value, end of period | $ | 18.40 | $ | 17.49 | $ | 12.30 | $ | 9.95 | |||||||||||
Total Return | |||||||||||||||||||
Total return based on net asset value(c) | 5.20 | % | 48.61 | % | 26.58 | % | (0.50 | )% | |||||||||||
Ratios/Supplemental Data | |||||||||||||||||||
Net assets, end of period (000's omitted) | $ | 6,178 | $ | 936 | $ | 630 | $ | 498 | |||||||||||
Ratio of net expenses to average net assets, before waiver | 10.51 | %* | 17.20 | % | 15.15 | % | 95.80 | %* | |||||||||||
Ratio of net expenses to average net assets, after waiver | 0.90 | %* | 0.90 | % | 0.90 | % | 0.90 | %* | |||||||||||
Ratio of net investment income (loss) to average net assets | 0.06 | %* | (0.23 | )% | 0.13 | % | 1.85 | %* | |||||||||||
Portfolio turnover rate(d) | 4 | % | 16 | % | 11 | % | 0 | % |
* Annualized.
(a) Commencement of investment operations.
(b) Calculated based upon average shares outstanding during the period.
(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.
125
Industry Diversification Table
Semi-Annual Report June 30, 2021
June 30, 2021 (unaudited)
Baillie Gifford Long Term Global Growth Fund
Value | % of Total Net Assets | ||||||||||
Advertising | $ | 22,256,472 | 2.0 | % | |||||||
Apparel | 62,628,152 | 5.6 | |||||||||
Auto Manufacturers | 69,045,952 | 6.1 | |||||||||
Biotechnology | 131,803,461 | 11.8 | |||||||||
Commercial Services | 31,980,817 | 2.9 | |||||||||
Diversified Financial Services | 15,769,080 | 1.4 | |||||||||
Food | 17,892,281 | 1.6 | |||||||||
Healthcare — Products | 21,959,164 | 2.0 | |||||||||
Internet | 413,045,985 | 36.8 | |||||||||
Leisure Time | 37,142,254 | 3.3 | |||||||||
Pharmaceuticals | 29,569,323 | 2.6 | |||||||||
Real Estate | 8,344,620 | 0.7 | |||||||||
Retail | 14,154,453 | 1.3 | |||||||||
Semiconductors | 83,863,684 | 7.4 | |||||||||
Software | 141,227,499 | 12.6 | |||||||||
Total Value of Investments | 1,100,683,197 | 98.1 | |||||||||
Other assets less liabilities | 20,843,328 | 1.9 | |||||||||
Net Assets | $ | 1,121,526,525 | 100.0 | % |
The table above is based on Bloomberg Industry Group classifications. For compliance monitoring purposes, sub-industry classifications are used which results in less concentration across industry sectors.
126
Portfolio of Investments
Semi-Annual Report June 30, 2021
June 30, 2021 (unaudited)
Baillie Gifford Long Term Global Growth Fund
Shares | Value | ||||||||||
COMMON STOCKS — 98.1% | |||||||||||
CANADA — 3.2% | |||||||||||
Shopify, Inc., Class A * | 24,768 | $ | 36,185,553 | ||||||||
CHINA — 24.8% | |||||||||||
Alibaba Group Holding Ltd. ADR * | 211,940 | 48,063,753 | |||||||||
BeiGene Ltd. ADR * | 55,116 | 18,915,260 | |||||||||
Bilibili, Inc. ADR * | 92,325 | 11,248,878 | |||||||||
KE Holdings, Inc. ADR * | 175,013 | 8,344,620 | |||||||||
Meituan, Class B * | 1,412,100 | 58,250,770 | |||||||||
NetEase, Inc. ADR | 131,687 | 15,176,927 | |||||||||
NIO, Inc. ADR * | 389,128 | 20,701,610 | |||||||||
Pinduoduo, Inc. ADR * | 329,285 | 41,825,781 | |||||||||
TAL Education Group ADR * | 245,815 | 6,201,912 | |||||||||
Tencent Holdings Ltd. | 659,900 | 49,685,527 | |||||||||
278,415,038 | |||||||||||
FRANCE — 5.6% | |||||||||||
Hermes International | 12,317 | 17,974,342 | |||||||||
Kering | 50,962 | 44,653,810 | |||||||||
62,628,152 | |||||||||||
GERMANY — 2.0% | |||||||||||
BioNTech SE ADR * | 99,553 | 22,287,926 | |||||||||
INDIA — 1.4% | |||||||||||
Housing Development Finance Corp., Ltd. | 472,508 | 15,769,080 | |||||||||
NETHERLANDS — 5.9% | |||||||||||
Adyen NV * | 10,512 | 25,778,905 | |||||||||
ASML Holding NV | 59,045 | 40,759,897 | |||||||||
66,538,802 | |||||||||||
SAUDI ARABIA — 1.7% | |||||||||||
Delivery Hero SE * | 145,402 | 19,211,405 | |||||||||
SOUTH KOREA — 1.8% | |||||||||||
Coupang, Inc. * | 475,604 | 19,889,759 |
The accompanying notes are an integral part of the financial statements.
127
Portfolio of Investments
Semi-Annual Report June 30, 2021
June 30, 2021 (unaudited)
Baillie Gifford Long Term Global Growth Fund
Shares | Value | ||||||||||
UNITED STATES — 51.7% | |||||||||||
Amazon.com, Inc. * | 16,947 | $ | 58,300,392 | ||||||||
Atlassian Corp. PLC, Class A * | 92,875 | 23,855,873 | |||||||||
Beyond Meat, Inc. * | 113,609 | 17,892,281 | |||||||||
Carvana Co. * | 46,897 | 14,154,453 | |||||||||
Cloudflare, Inc., Class A * | 228,893 | 24,226,035 | |||||||||
Dexcom, Inc. * | 69,249 | 29,569,323 | |||||||||
Facebook, Inc., Class A * | 79,774 | 27,738,218 | |||||||||
Illumina, Inc. * | 106,782 | 50,530,310 | |||||||||
Intuitive Surgical, Inc. * | 23,878 | �� | 21,959,164 | ||||||||
Moderna, Inc. * | 170,525 | 40,069,964 | |||||||||
Netflix, Inc. * | 63,485 | 33,533,412 | |||||||||
NVIDIA Corp. | 53,873 | 43,103,787 | |||||||||
Peloton Interactive, Inc., Class A * | 299,486 | 37,142,254 | |||||||||
salesforce.com, Inc. * | 79,930 | 19,524,501 | |||||||||
Spotify Technology SA * | 73,883 | 20,361,416 | |||||||||
Tesla, Inc. * | 71,126 | 48,344,342 | |||||||||
Trade Desk, Inc. (The), Class A * | 287,700 | 22,256,472 | |||||||||
Workday, Inc., Class A * | 102,602 | 24,495,201 | |||||||||
Zoom Video Communications, Inc., Class A * | 58,652 | 22,700,084 | |||||||||
579,757,482 | |||||||||||
TOTAL INVESTMENTS — 98.1% | |||||||||||
(cost $642,690,609) | $ | 1,100,683,197 | |||||||||
Other assets less liabilities — 1.9% | 20,843,328 | ||||||||||
NET ASSETS — 100.0% | $ | 1,121,526,525 |
* Non-income producing security.
ADR — American Depositary Receipt
This report classifies issuers geographically by their country of risk. For compliance monitoring purposes, the Manager retains discretion to consider a number of factors in determining where a particular issuer is located, as described in further detail in each Fund's prospectus.
Fair Value Measurement
The following is a summary of the inputs used as of June 30, 2021 in valuing the Fund's investments carried at fair value:
Investments in Securities | Level 1 | Level 2 | Level 3 | Total | |||||||||||||||
Common Stocks ** | $ | 828,599,461 | $ | 272,083,736 | $ | — | $ | 1,100,683,197 | |||||||||||
Total | $ | 828,599,461 | $ | 272,083,736 | $ | — | $ | 1,100,683,197 |
** Refer to Portfolio of Investments for further detail.
The accompanying notes are an integral part of the financial statements.
128
Statement of Assets and Liabilities
Semi-Annual Report June 30, 2021
June 30, 2021 (unaudited)
Baillie Gifford Long Term Global Growth Fund
ASSETS | |||||||
Investments, at value (cost $642,690,609) | $ | 1,100,683,197 | |||||
Cash | 20,378,452 | ||||||
Capital shares sold receivable | 2,024,912 | ||||||
Tax reclaims receivable | 64,022 | ||||||
Dividends receivable | 7,499 | ||||||
Prepaid assets | 38,127 | ||||||
Total Assets | 1,123,196,209 | ||||||
LIABILITIES | |||||||
Advisory fee payable | 1,144,394 | ||||||
Administration & Supervisory fee payable | 335,491 | ||||||
Shareholder Servicing fee payable | 56,860 | ||||||
Capital shares purchased payable | 31,286 | ||||||
Trustee fee payable | 4,859 | ||||||
Commitment fee payable | 1,049 | ||||||
Accrued expenses | 95,745 | ||||||
Total Liabilities | 1,669,684 | ||||||
NET ASSETS | $ | 1,121,526,525 | |||||
COMPOSITION OF NET ASSETS | |||||||
Paid-in capital | $ | 605,103,400 | |||||
Total distributable earnings | 516,423,125 | ||||||
$ | 1,121,526,525 | ||||||
NET ASSET VALUE, PER SHARE | |||||||
Class 2 ( $131,676,146 / 3,076,585 shares outstanding), unlimited authorized, no par value | $ | 42.80 | |||||
Class 5 ( $111,886,159 / 2,041,112 shares outstanding), unlimited authorized, no par value | $ | 54.82 | |||||
Class K ( $380,808,701 / 8,893,551 shares outstanding), unlimited authorized, no par value | $ | 42.82 | |||||
Institutional Class ( $497,155,519 / 11,640,441 shares outstanding), unlimited authorized, no par value | $ | 42.71 |
The accompanying notes are an integral part of the financial statements.
129
Statement of Operations
Semi-Annual Report June 30, 2021
For the Six Months Ended June 30, 2021 (unaudited)
Baillie Gifford Long Term Global Growth Fund
INVESTMENT INCOME | |||||||
Dividends (net of foreign withholding taxes of $158,430) | $ | 871,186 | |||||
Interest | 1,226 | ||||||
Total Investment Income | 872,412 | ||||||
EXPENSES | |||||||
Advisory fee (Note B) | 2,195,281 | ||||||
Shareholder Servicing fees — Class 2 shares (Note B) | 107,913 | ||||||
Shareholder Servicing fees — Class 5 shares (Note B) | 10,959 | ||||||
Administration & Supervisory fee — Class K shares (Note B) | 266,630 | ||||||
Administration & Supervisory fee — Institutional Class shares (Note B) | 361,635 | ||||||
Transfer agency | 44,404 | ||||||
Sub-transfer agency — Institutional Class shares | 184,955 | ||||||
Fund accounting | 136,712 | ||||||
Legal | 49,919 | ||||||
Registration fees | 35,625 | ||||||
Custody | 32,759 | ||||||
Professional fees | 13,658 | ||||||
Trustees' fees | 10,512 | ||||||
Commitment fees | 2,324 | ||||||
Miscellaneous | 14,137 | ||||||
Total Expenses | 3,467,423 | ||||||
Net Investment Loss | (2,595,011 | ) | |||||
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS AND FOREIGN CURRENCY TRANSACTIONS | |||||||
Net realized gain from: | |||||||
Investments | 52,672,178 | ||||||
Foreign currency transactions | 29,109 | ||||||
52,701,287 | |||||||
Net change in unrealized appreciation (depreciation) on: | |||||||
Investments | 47,870,202 | ||||||
Translation of net assets and liabilities denominated in foreign currencies | (14,080 | ) | |||||
47,856,122 | |||||||
Net realized and unrealized gain | 100,557,409 | ||||||
NET INCREASE IN NET ASSETS FROM OPERATIONS | $ | 97,962,398 |
The accompanying notes are an integral part of the financial statements.
130
Statements of Changes in Net Assets
Semi-Annual Report June 30, 2021
Baillie Gifford Long Term Global Growth Fund
For the Six Months Ended June 30, 2021 (unaudited) | For the Year Ended December 31, 2020 | ||||||||||
INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS | |||||||||||
Net investment loss | $ | (2,595,011 | ) | $ | (2,891,454 | ) | |||||
Net realized gain | 52,701,287 | 72,767,512 | |||||||||
Net change in unrealized appreciation | 47,856,122 | 296,102,012 | |||||||||
Net increase in net assets from operations | 97,962,398 | 365,978,070 | |||||||||
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS FROM: | |||||||||||
Distributable earnings | |||||||||||
Class 2 | — | (10,181,428 | ) | ||||||||
Class 5 | — | (6,648,326 | ) | ||||||||
Class K | — | (17,015,889 | ) | ||||||||
Institutional Class | — | (25,886,267 | ) | ||||||||
Total Distributions to Shareholders | — | (59,731,910 | ) | ||||||||
TRANSACTIONS IN SHARES OF BENEFICIAL INTEREST | |||||||||||
Net proceeds from shares subscribed: | |||||||||||
Class 2 | 29,500 | 164,000 | |||||||||
Class 5 | — | 109,513,867 | * | ||||||||
Class K | 146,651,498 | * | 52,083,127 | ||||||||
Institutional Class | 165,122,544 | 223,565,185 | |||||||||
Dividends reinvested: | |||||||||||
Class 2 | — | 10,181,428 | |||||||||
Class 5 | — | 6,648,326 | |||||||||
Class K | — | 17,015,889 | |||||||||
Institutional Class | — | 25,886,267 | |||||||||
Cost of shares redeemed: | |||||||||||
Class 2 | (14,000,000 | ) | (12,000,000 | ) | |||||||
Class 4 | — | (113,363,867 | )* | ||||||||
Class 5 | (8,000,000 | ) | (32,000,000 | ) | |||||||
Class K | (13,988,697 | ) | (83,087,481 | ) | |||||||
Institutional Class | (64,164,888 | )* | (38,874,654 | ) | |||||||
Increase in Net Assets from Transactions in Shares of Beneficial Interest | 211,649,957 | 165,732,087 | |||||||||
Total Increase in Net Assets | 309,612,355 | 471,978,247 | |||||||||
NET ASSETS | |||||||||||
Beginning of period | 811,914,170 | 339,935,923 | |||||||||
End of period | $ | 1,121,526,525 | $ | 811,914,170 |
* See Note D for details of share class conversions.
The accompanying notes are an integral part of the financial statements.
131
Financial Highlights
Semi-Annual Report June 30, 2021
Baillie Gifford Long Term Global Growth Fund
Selected data for a Class 2 share outstanding throughout each period:
For the Six Months Ended June 30, 2021 (unaudited) | For the Year Ended December 31, 2020 | For the Year Ended December 31, 2019 | For the Year Ended December 31, 2018 | For the Year Ended December 31, 2017 | For the Year Ended December 31, 2016 | ||||||||||||||||||||||
Net asset value, beginning of period | $ | 38.45 | $ | 20.68 | $ | 15.51 | $ | 17.33 | $ | 11.25 | $ | 11.76 | |||||||||||||||
From Investment Operations | |||||||||||||||||||||||||||
Net investment loss(a) | (0.10 | ) | (0.17 | ) | (0.07 | ) | (0.04 | ) | (0.08 | ) | (0.05 | ) | |||||||||||||||
Net realized and unrealized gain (loss) on investments and foreign currency | 4.45 | 21.17 | 5.27 | (0.22 | ) | 6.16 | (0.39 | ) | |||||||||||||||||||
Net increase (decrease) in net asset value from investment operations | 4.35 | 21.00 | 5.20 | (0.26 | ) | 6.08 | (0.44 | ) | |||||||||||||||||||
Dividends and Distributions to Shareholders | |||||||||||||||||||||||||||
From net realized gain on investments | — | (3.23 | ) | (0.03 | ) | (1.56 | ) | — | (0.07 | ) | |||||||||||||||||
Total Dividends and Distributions | — | (3.23 | ) | (0.03 | ) | (1.56 | ) | — | (0.07 | ) | |||||||||||||||||
Proceeds from Purchase Fees and Redemption Fees(a) | — | — | — | — | 0.00 | (b) | 0.00 | (b) | |||||||||||||||||||
Net asset value, end of period | $ | 42.80 | $ | 38.45 | $ | 20.68 | $ | 15.51 | $ | 17.33 | $ | 11.25 | |||||||||||||||
Total Return | |||||||||||||||||||||||||||
Total return based on net asset value(c) | 11.32 | % | 101.77 | % | 33.49 | % | (1.42 | )% | 54.07 | % | (3.80 | )% | |||||||||||||||
Ratios/Supplemental Data | |||||||||||||||||||||||||||
Net assets, end of period (000's omitted) | $ | 131,676 | $ | 131,695 | $ | 72,023 | $ | 54,661 | $ | 59,870 | $ | 32,434 | |||||||||||||||
Ratio of net expenses to average net assets, before waiver | 0.69 | %* | 0.71 | % | 0.76 | % | 0.79 | % | 0.82 | % | 0.87 | % | |||||||||||||||
Ratio of net expenses to average net assets, after waiver | 0.69 | %* | 0.71 | % | 0.76 | % | 0.77 | % | 0.77 | % | 0.77 | % | |||||||||||||||
Ratio of net investment loss to average net assets | (0.52 | )%* | (0.58 | )% | (0.40 | )% | (0.22 | )% | (0.50 | )% | (0.43 | )% | |||||||||||||||
Portfolio turnover rate(d) | 12 | % | 40 | % | 5 | % | 16 | % | 13 | % | 15 | % |
* Annualized.
(a) Calculated based upon average shares outstanding during the period.
(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.
132
Financial Highlights
Semi-Annual Report June 30, 2021
Baillie Gifford Long Term Global Growth Fund
Selected data for a Class 5 share outstanding throughout each period:
For the Six Months Ended June 30, 2021 (unaudited) | For the Period July 14, 2020(a) through December 31, 2020 | For the Period January 1, 2019 through April 10, 2019(a) | For the Period April 9, 2018(b) through December 31, 2018 | ||||||||||||||||
Net asset value, beginning of period | $ | 49.21 | $ | 39.89 | $ | 19.46 | $ | 22.47 | |||||||||||
From Investment Operations | |||||||||||||||||||
Net investment income (loss)(c) | (0.09 | ) | (0.11 | ) | (0.02 | ) | 0.02 | ||||||||||||
Net realized and unrealized gain (loss) on investments and foreign currency | 5.70 | 12.66 | 4.17 | (1.47 | )(d) | ||||||||||||||
Net increase (decrease) in net asset value from investment operations | 5.61 | 12.55 | 4.15 | (1.45 | ) | ||||||||||||||
Dividends and Distributions to Shareholders | |||||||||||||||||||
From net realized gain on investments | — | (3.23 | ) | — | (1.56 | ) | |||||||||||||
Total Dividends and Distributions | — | (3.23 | ) | — | (1.56 | ) | |||||||||||||
Net asset value, end of period | $ | 54.82 | $ | 49.21 | $ | 23.61 | $ | 19.46 | |||||||||||
Total Return | |||||||||||||||||||
Total return based on net asset value(e) | 11.40 | % | 31.57 | %(f) | 21.27 | % | (6.41 | )% | |||||||||||
Ratios/Supplemental Data | |||||||||||||||||||
Net assets, end of period (000's omitted) | $ | 111,886 | $ | 108,171 | $ | 67,815 | $ | 58,008 | |||||||||||
Ratio of net expenses to average net assets, before waiver | 0.54 | %* | 0.55 | %* | 0.61 | %* | 0.64 | %* | |||||||||||
Ratio of net expenses to average net assets, after waiver | 0.54 | %* | 0.55 | %* | 0.61 | %* | 0.62 | %* | |||||||||||
Ratio of net investment income (loss) to average net assets | (0.36 | )%* | (0.54 | )%* | (0.37 | )%* | 0.09 | %* | |||||||||||
Portfolio turnover rate(g) | 12 | % | 40 | % | 5 | % | 16 | % |
* Annualized.
(a) Recommencement of investment operations. Class had no shareholders from April 10, 2019 to July 13, 2020. All shares of this class were redeemed at $23.61 on April 10, 2019. New shares were issued at $39.89 on July 14, 2020.
(b) Commencement of investment operations.
(c) Calculated based upon average shares outstanding during the period.
(d) Calculation of the net gain or loss per share (both realized and unrealized) may 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.
(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) Represents total return for the period July 14, 2020 (recommencement of investment operations) through December 31, 2020.
(g) Portfolio turnover rate calculated at Fund level.
The accompanying notes are an integral part of the financial statements.
133
Financial Highlights
Semi-Annual Report June 30, 2021
Baillie Gifford Long Term Global Growth Fund
Selected data for a Class K share outstanding throughout each period:
For the Six Months Ended June 30, 2021 (unaudited) | For the Year Ended December 31, 2020 | For the Year Ended December 31, 2019 | For the Year Ended December 31, 2018 | For the Period April 28, 2017(a) through December 31, 2017 | |||||||||||||||||||
Net asset value, beginning of period | $ | 38.47 | $ | 20.69 | $ | 15.52 | $ | 17.34 | $ | 13.96 | |||||||||||||
From Investment Operations | |||||||||||||||||||||||
Net investment loss(b) | (0.10 | ) | (0.17 | ) | (0.07 | ) | (0.04 | ) | (0.07 | ) | |||||||||||||
Net realized and unrealized gain (loss) on investments and foreign currency | 4.45 | 21.18 | 5.27 | (0.22 | ) | 3.45 | |||||||||||||||||
Net increase (decrease) in net asset value from investment operations | 4.35 | 21.01 | 5.20 | (0.26 | ) | 3.38 | |||||||||||||||||
Dividends and Distributions to Shareholders | |||||||||||||||||||||||
From net realized gain on investments | — | (3.23 | ) | (0.03 | ) | (1.56 | ) | — | |||||||||||||||
Total Dividends and Distributions | — | (3.23 | ) | (0.03 | ) | (1.56 | ) | — | |||||||||||||||
Net asset value, end of period | $ | 42.82 | $ | 38.47 | $ | 20.69 | $ | 15.52 | $ | 17.34 | |||||||||||||
Total Return | |||||||||||||||||||||||
Total return based on net asset value(c) | 11.31 | % | 101.76 | % | 33.50 | % | (1.41 | )% | 24.21 | % | |||||||||||||
Ratios/Supplemental Data | |||||||||||||||||||||||
Net assets, end of period (000's omitted) | $ | 380,809 | $ | 221,188 | $ | 136,096 | $ | 75,402 | $ | 70,639 | |||||||||||||
Ratio of net expenses to average net assets, before waiver | 0.69 | %* | 0.71 | % | 0.76 | % | 0.79 | % | 0.80 | %* | |||||||||||||
Ratio of net expenses to average net assets, after waiver | 0.69 | %* | 0.71 | % | 0.76 | % | 0.77 | % | 0.77 | %* | |||||||||||||
Ratio of net investment loss to average net assets | (0.51 | )%* | (0.57 | )% | (0.41 | )% | (0.23 | )% | (0.61 | )%* | |||||||||||||
Portfolio turnover rate(d) | 12 | % | 40 | % | 5 | % | 16 | % | 13 | % |
* Annualized.
(a) Commencement of investment operations.
(b) Calculated based upon average shares outstanding during the period.
(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.
134
Financial Highlights
Semi-Annual Report June 30, 2021
Baillie Gifford Long Term Global Growth Fund
Selected data for an Institutional Class share outstanding throughout each period:
For the Six Months Ended June 30, 2021 (unaudited) | For the Year Ended December 31, 2020 | For the Year Ended December 31, 2019 | For the Year Ended December 31, 2018 | For the Period April 28, 2017(a) through December 31, 2017 | |||||||||||||||||||
Net asset value, beginning of period | $ | 38.38 | $ | 20.66 | $ | 15.51 | $ | 17.34 | $ | 13.96 | |||||||||||||
From Investment Operations | |||||||||||||||||||||||
Net investment loss(b) | (0.12 | ) | (0.22 | ) | (0.10 | ) | (0.19 | ) | (0.06 | ) | |||||||||||||
Net realized and unrealized gain (loss) on investments and foreign currency | 4.45 | 21.17 | 5.28 | (0.08 | )(c) | 3.44 | |||||||||||||||||
Net increase (decrease) in net asset value from investment operations | 4.33 | 20.95 | 5.18 | (0.27 | ) | 3.38 | |||||||||||||||||
Dividends and Distributions to Shareholders | |||||||||||||||||||||||
From net realized gain on investments | — | (3.23 | ) | (0.03 | ) | (1.56 | ) | — | |||||||||||||||
Total Dividends and Distributions | — | (3.23 | ) | (0.03 | ) | (1.56 | ) | — | |||||||||||||||
Net asset value, end of period | $ | 42.71 | $ | 38.38 | $ | 20.66 | $ | 15.51 | $ | 17.34 | |||||||||||||
Total Return | |||||||||||||||||||||||
Total return based on net asset value(d) | 11.28 | % | 101.61 | % | 33.40 | % | (1.47 | )% | 24.21 | % | |||||||||||||
Ratios/Supplemental Data | |||||||||||||||||||||||
Net assets, end of period (000's omitted) | $ | 497,156 | $ | 350,860 | $ | 57,009 | $ | 356 | $ | 6 | |||||||||||||
Ratio of net expenses to average net assets, before waiver | 0.78 | %* | 0.79 | % | 0.86 | % | 0.88 | % | 0.80 | %* | |||||||||||||
Ratio of net expenses to average net assets, after waiver | 0.78 | %* | 0.79 | % | 0.86 | % | 0.87 | % | 0.80 | %* | |||||||||||||
Ratio of net investment loss to average net assets | (0.60 | )%* | (0.68 | )% | (0.53 | )% | (0.91 | )% | (0.56 | )%* | |||||||||||||
Portfolio turnover rate(e) | 12 | % | 40 | % | 5 | % | 16 | % | 13 | % |
* Annualized.
(a) Commencement of investment operations.
(b) Calculated based upon average shares outstanding during the period.
(c) Calculation of the net gain or loss per share (both realized and unrealized) may 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.
(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.
135
Industry Diversification Table
Semi-Annual Report June 30, 2021
June 30, 2021 (unaudited)
Baillie Gifford Positive Change Equities Fund
Value | % of Total Net Assets | ||||||||||
Auto Manufacturers | $ | 11,420,999 | 7.4 | % | |||||||
Banks | 2,731,268 | 1.8 | |||||||||
Biotechnology | 26,233,622 | 17.0 | |||||||||
Building Materials | 5,805,917 | 3.8 | |||||||||
Chemicals | 14,704,312 | 9.6 | |||||||||
Commercial Services | 1,561,552 | 1.0 | |||||||||
Computers | 980,588 | 0.6 | |||||||||
Diversified Financial Services | 4,257,613 | 2.8 | |||||||||
Electric | 3,293,719 | 2.1 | |||||||||
Electronics | 2,899,751 | 1.9 | |||||||||
Food | 3,441,471 | 2.2 | |||||||||
Healthcare — Products | 9,434,974 | 6.1 | |||||||||
Healthcare — Services | 3,541,312 | 2.3 | |||||||||
Insurance | 2,569,488 | 1.7 | |||||||||
Internet | 21,934,081 | 14.2 | |||||||||
Leisure Time | 2,549,479 | 1.7 | |||||||||
Machinery — Diversified | 8,100,629 | 5.3 | |||||||||
Pharmaceuticals | 7,024,999 | 4.5 | |||||||||
Semiconductors | 21,078,793 | 13.7 | |||||||||
Telecommunications | 1,075,280 | 0.7 | |||||||||
Total Value of Investments | 154,639,847 | 100.4 | |||||||||
Other assets less liabilities | (560,269 | ) | (0.4 | ) | |||||||
Net Assets | $ | 154,079,578 | 100.0 | % |
The table above is based on Bloomberg Industry Group classifications. For compliance monitoring purposes, sub-industry classifications are used which results in less concentration across industry sectors.
136
Portfolio of Investments
Semi-Annual Report June 30, 2021
June 30, 2021 (unaudited)
Baillie Gifford Positive Change Equities Fund
Shares | Value | ||||||||||
COMMON STOCKS — 98.5% | |||||||||||
ARGENTINA — 5.0% | |||||||||||
MercadoLibre, Inc. * | 4,981 | $ | 7,759,352 | ||||||||
BELGIUM — 3.6% | |||||||||||
Umicore SA | 90,626 | 5,544,328 | |||||||||
CANADA — 3.6% | |||||||||||
AbCellera Biologics, Inc. * | 50,444 | 1,109,768 | |||||||||
Shopify, Inc., Class A * | 3,074 | 4,491,052 | |||||||||
5,600,820 | |||||||||||
CHINA — 2.2% | |||||||||||
Alibaba Group Holding Ltd. * | 120,800 | 3,425,144 | |||||||||
DENMARK — 6.3% | |||||||||||
Chr. Hansen Holding A/S | 36,529 | 3,296,857 | |||||||||
Novozymes A/S, B Shares | 42,043 | 3,172,129 | |||||||||
Orsted AS | 23,466 | 3,293,720 | |||||||||
9,762,706 | |||||||||||
INDIA — 2.8% | |||||||||||
Housing Development Finance Corp., Ltd. | 127,576 | 4,257,613 | |||||||||
INDONESIA — 1.8% | |||||||||||
Bank Rakyat Indonesia Persero Tbk PT | 10,045,300 | 2,731,268 | |||||||||
JAPAN — 4.1% | |||||||||||
M3, Inc. | 85,900 | 6,258,532 | |||||||||
KENYA — 0.7% | |||||||||||
Safaricom PLC | 2,799,100 | 1,075,280 | |||||||||
NETHERLANDS — 7.3% | |||||||||||
ASML Holding NV | 16,214 | 11,192,836 | |||||||||
SOUTH AFRICA — 1.7% | |||||||||||
Discovery Ltd. * | 290,586 | 2,569,488 |
The accompanying notes are an integral part of the financial statements.
137
Portfolio of Investments
Semi-Annual Report June 30, 2021
June 30, 2021 (unaudited)
Baillie Gifford Positive Change Equities Fund
Shares | Value | ||||||||||
SWEDEN — 3.8% | |||||||||||
Nibe Industrier AB, B Shares | 550,982 | $ | 5,805,917 | ||||||||
TAIWAN — 6.4% | |||||||||||
Taiwan Semiconductor Manufacturing Co., Ltd. | 459,000 | 9,885,957 | |||||||||
UNITED KINGDOM — 0.6% | |||||||||||
FDM Group Holdings PLC | 69,457 | 980,588 | |||||||||
UNITED STATES — 48.6% | |||||||||||
10X Genomics, Inc., Class A * | 25,015 | 4,898,437 | |||||||||
ABIOMED, Inc. * | 10,575 | 3,300,563 | |||||||||
Alnylam Pharmaceuticals, Inc. * | 21,251 | 3,602,470 | |||||||||
Berkeley Lights, Inc. * | 28,972 | 1,298,235 | |||||||||
Beyond Meat, Inc. * | 21,852 | 3,441,472 | |||||||||
Coursera, Inc. * | 39,473 | 1,561,552 | |||||||||
Deere & Co. | 11,013 | 3,884,395 | |||||||||
Dexcom, Inc. * | 13,853 | 5,915,231 | |||||||||
Ecolab, Inc. | 13,065 | 2,690,998 | |||||||||
Glaukos Corp. * | 14,570 | 1,235,973 | |||||||||
Illumina, Inc. * | 15,841 | 7,496,120 | |||||||||
Moderna, Inc. * | 58,885 | 13,836,797 | |||||||||
Peloton Interactive, Inc., Class A * | 20,557 | 2,549,479 | |||||||||
Teladoc Health, Inc. * | 21,296 | 3,541,312 | |||||||||
Tesla, Inc. * | 16,803 | 11,420,999 | |||||||||
Xylem, Inc. | 35,147 | 4,216,234 | |||||||||
74,890,267 | |||||||||||
Total Common Stocks | |||||||||||
(cost $109,198,669) | 151,740,096 | ||||||||||
PREFERRED STOCKS — 1.9% | |||||||||||
GERMANY — 1.9% | |||||||||||
Sartorius AG 0.15% (cost $2,016,487) | 5,571 | 2,899,751 | |||||||||
TOTAL INVESTMENTS — 100.4% ** | |||||||||||
(cost $111,215,156) | $ | 154,639,847 | |||||||||
Other liabilities less assets — (0.4)% | (560,269 | ) | |||||||||
NET ASSETS — 100.0% | $ | 154,079,578 |
The accompanying notes are an integral part of the financial statements.
138
Portfolio of Investments
Semi-Annual Report June 30, 2021
June 30, 2021 (unaudited)
Baillie Gifford Positive Change Equities Fund
* Non-income producing security.
** The Total Investments percentage exceeds 100% due to the timing of settling transactions and not as a result of borrowings for investment purposes.
This report classifies issuers geographically by their country of risk. For compliance monitoring purposes, the Manager retains discretion to consider a number of factors in determining where a particular issuer is located, as described in further detail in each Fund's prospectus.
Fair Value Measurement
The following is a summary of the inputs used as of June 30, 2021 in valuing the Fund's investments carried at fair value:
Investments in Securities | Level 1 | Level 2 | Level 3 | Total | |||||||||||||||
Common Stocks *** | $ | 95,192,065 | $ | 56,548,031 | $ | — | $ | 151,740,096 | |||||||||||
Preferred Stocks *** | — | 2,899,751 | — | 2,899,751 | |||||||||||||||
Total | $ | 95,192,065 | $ | 59,447,782 | $ | — | $ | 154,639,847 |
*** Refer to Portfolio of Investments for further detail.
The accompanying notes are an integral part of the financial statements.
139
Statement of Assets and Liabilities
Semi-Annual Report June 30, 2021
June 30, 2021 (unaudited)
Baillie Gifford Positive Change Equities Fund
ASSETS | |||||||
Investments, at value (cost $111,215,156) | $ | 154,639,847 | |||||
Cash | 2,855,785 | ||||||
Capital shares sold receivable | 716,576 | ||||||
Dividends receivable | 49,011 | ||||||
Tax reclaims receivable | 36,365 | ||||||
Due from Investment Advisor | 3,866 | ||||||
Prepaid assets | 22,690 | ||||||
Total Assets | 158,324,140 | ||||||
LIABILITIES | |||||||
Advisory fee payable | 113,542 | ||||||
Capital shares purchased payable | 3,008,295 | ||||||
Payable for investment purchased | 1,003,868 | ||||||
Administration & Supervisory fee payable | 58,640 | ||||||
Trustee fee payable | 569 | ||||||
Commitment fee payable | 132 | ||||||
Accrued expenses | 59,516 | ||||||
Total Liabilities | 4,244,562 | ||||||
NET ASSETS | $ | 154,079,578 | |||||
COMPOSITION OF NET ASSETS | |||||||
Paid-in capital | $ | 104,913,460 | |||||
Total distributable earnings | 49,166,118 | ||||||
$ | 154,079,578 | ||||||
NET ASSET VALUE, PER SHARE | |||||||
Class K ( $87,478,185 / 3,255,558 shares outstanding), unlimited authorized, no par value | $ | 26.87 | |||||
Institutional Class ( $66,601,393 / 2,481,219 shares outstanding), unlimited authorized, no par value | $ | 26.84 |
The accompanying notes are an integral part of the financial statements.
140
Statement of Operations
Semi-Annual Report June 30, 2021
For the Six Months Ended June 30, 2021 (unaudited)
Baillie Gifford Positive Change Equities Fund
INVESTMENT INCOME | |||||||
Dividends (net of foreign withholding taxes of $64,046) | $ | 362,617 | |||||
Interest | 95 | ||||||
Total Investment Income | 362,712 | ||||||
EXPENSES | |||||||
Advisory fee (Note B) | 204,325 | ||||||
Administration & Supervisory fee — Class K shares (Note B) | 60,350 | ||||||
Administration & Supervisory fee — Institutional Class shares (Note B) | 44,908 | ||||||
Transfer agency | 25,653 | ||||||
Sub-transfer agency — Institutional Class shares | 11,422 | ||||||
Fund accounting | 47,175 | ||||||
Registration fees | 21,787 | ||||||
Custody | 17,228 | ||||||
Professional fees | 13,965 | ||||||
Legal | 5,848 | ||||||
Trustees' fees | 1,308 | ||||||
Commitment fees | 278 | ||||||
Miscellaneous | 5,405 | ||||||
Total Expenses | 459,652 | ||||||
Fees waived/expenses reimbursed | (45,772 | ) | |||||
Total Expenses after waiver | 413,880 | ||||||
Net Investment Loss | (51,168 | ) | |||||
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS AND FOREIGN CURRENCY TRANSACTIONS | |||||||
Net realized gain (loss) from: | |||||||
Investments | 2,976,261 | ||||||
Foreign currency transactions | (4,840 | ) | |||||
2,971,421 | |||||||
Net change in unrealized appreciation (depreciation) on: | |||||||
Investments | 11,946,463 | ||||||
Translation of net assets and liabilities denominated in foreign currencies | (862 | ) | |||||
11,945,601 | |||||||
Net realized and unrealized gain | 14,917,022 | ||||||
NET INCREASE IN NET ASSETS FROM OPERATIONS | $ | 14,865,854 |
The accompanying notes are an integral part of the financial statements.
141
Statements of Changes in Net Assets
Semi-Annual Report June 30, 2021
Baillie Gifford Positive Change Equities Fund
For the Six Months Ended June 30, 2021 (unaudited) | For the Year Ended December 31, 2020 | ||||||||||
INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS | |||||||||||
Net investment loss | $ | (51,168 | ) | $ | (99,787 | ) | |||||
Net realized gain | 2,971,421 | 6,603,452 | |||||||||
Net change in unrealized appreciation | 11,945,601 | 27,867,351 | |||||||||
Net increase in net assets from operations | 14,865,854 | 34,371,016 | |||||||||
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS FROM: | |||||||||||
Distributable earnings | |||||||||||
Class K | — | (2,264,794 | ) | ||||||||
Institutional Class | — | (1,368,157 | ) | ||||||||
Total Distributions to Shareholders | — | (3,632,951 | ) | ||||||||
TRANSACTIONS IN SHARES OF BENEFICIAL INTEREST | |||||||||||
Net proceeds from shares subscribed: | |||||||||||
Class K | 21,335,110 | 29,045,519 | |||||||||
Institutional Class | 29,198,555 | 15,232,525 | |||||||||
Dividends reinvested: | |||||||||||
Class K | — | 1,516,124 | |||||||||
Institutional Class | — | 1,350,344 | |||||||||
Cost of shares redeemed: | |||||||||||
Class K | (2,690,470 | ) | (5,528,256 | ) | |||||||
Institutional Class | (4,623,848 | ) | (3,001,141 | ) | |||||||
Increase in Net Assets from Transactions in Shares of Beneficial Interest | 43,219,347 | 38,615,115 | |||||||||
Total Increase in Net Assets | 58,085,201 | 69,353,180 | |||||||||
NET ASSETS | |||||||||||
Beginning of period | 95,994,377 | 26,641,197 | |||||||||
End of period | $ | 154,079,578 | $ | 95,994,377 |
The accompanying notes are an integral part of the financial statements.
142
Financial Highlights
Semi-Annual Report June 30, 2021
Baillie Gifford Positive Change Equities Fund
Selected data for a Class K share outstanding throughout each period:
For the Six Months Ended June 30, 2021 (unaudited) | For the Year Ended December 31, 2020 | For the Year Ended December 31, 2019 | For the Year Ended December 31, 2018 | For the Period December 14, 2017(a) through December 31, 2017 | |||||||||||||||||||
Net asset value, beginning of period | $ | 23.81 | $ | 13.13 | $ | 10.10 | $ | 10.16 | $ | 10.00 | |||||||||||||
From Investment Operations | |||||||||||||||||||||||
Net investment income (loss)(b) | (0.01 | ) | (0.04 | ) | 0.05 | (0.02 | ) | (0.00 | )(c) | ||||||||||||||
Net realized and unrealized gain (loss) on investments and foreign currency | 3.07 | 11.65 | 3.04 | (0.04 | )(d) | 0.16 | |||||||||||||||||
Net increase (decrease) in net asset value from investment operations | 3.06 | 11.61 | 3.09 | (0.06 | ) | 0.16 | |||||||||||||||||
Dividends and Distributions to Shareholders | |||||||||||||||||||||||
From net investment income | — | — | (0.04 | ) | — | — | |||||||||||||||||
From net realized gain on investments | — | (0.93 | ) | (0.02 | ) | — | — | ||||||||||||||||
Total Dividends and Distributions | — | (0.93 | ) | (0.06 | ) | — | — | ||||||||||||||||
Net asset value, end of period | $ | 26.87 | $ | 23.81 | $ | 13.13 | $ | 10.10 | $ | 10.16 | |||||||||||||
Total Return | |||||||||||||||||||||||
Total return based on net asset value(e) | 12.85 | % | 88.43 | % | 30.53 | % | (0.59 | )% | 1.60 | % | |||||||||||||
Ratios/Supplemental Data | |||||||||||||||||||||||
Net assets, end of period (000's omitted) | $ | 87,478 | $ | 59,594 | $ | 15,923 | $ | 5,036 | $ | 508 | |||||||||||||
Ratio of net expenses to average net assets, before waiver | 0.72 | %* | 1.02 | % | 1.63 | % | 3.21 | % | 53.13 | %* | |||||||||||||
Ratio of net expenses to average net assets, after waiver | 0.65 | %* | 0.65 | % | 0.65 | % | 0.65 | % | 0.65 | % | |||||||||||||
Ratio of net investment income (loss) to average net assets | (0.07 | )%* | (0.19 | )% | 0.44 | % | (0.14 | )% | (0.47 | )%* | |||||||||||||
Portfolio turnover rate(f) | 15 | % | 40 | % | 7 | % | 7 | % | 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.
(d) Calculation of the net gain or loss per share (both realized and unrealized) may 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.
(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.
143
Financial Highlights
Semi-Annual Report June 30, 2021
Baillie Gifford Positive Change Equities Fund
Selected data for an Institutional Class share outstanding throughout each period:
For the Six Months Ended June 30, 2021 (unaudited) | For the Year Ended December 31, 2020 | For the Year Ended December 31, 2019 | For the Year Ended December 31, 2018 | For the Period December 14, 2017(a) through December 31, 2017 | |||||||||||||||||||
Net asset value, beginning of period | $ | 23.79 | $ | 13.13 | $ | 10.10 | $ | 10.16 | $ | 10.00 | |||||||||||||
From Investment Operations | |||||||||||||||||||||||
Net investment income (loss)(b) | (0.01 | ) | (0.04 | ) | 0.05 | (0.02 | ) | (0.00 | )(c) | ||||||||||||||
Net realized and unrealized gain (loss) on investments and foreign currency | 3.06 | 11.63 | 3.03 | (0.04 | )(d) | 0.16 | |||||||||||||||||
Net increase (decrease) in net asset value from investment operations | 3.05 | 11.59 | 3.08 | (0.06 | ) | 0.16 | |||||||||||||||||
Dividends and Distributions to Shareholders | |||||||||||||||||||||||
From net investment income | — | — | (0.03 | ) | — | — | |||||||||||||||||
From net realized gain on investments | — | (0.93 | ) | (0.02 | ) | — | — | ||||||||||||||||
Total Dividends and Distributions | — | (0.93 | ) | (0.05 | ) | — | — | ||||||||||||||||
Net asset value, end of period | $ | 26.84 | $ | 23.79 | $ | 13.13 | $ | 10.10 | $ | 10.16 | |||||||||||||
Total Return | |||||||||||||||||||||||
Total return based on net asset value(e) | 12.82 | % | 88.28 | % | 30.49 | % | (0.59 | )% | 1.60 | % | |||||||||||||
Ratios/Supplemental Data | |||||||||||||||||||||||
Net assets, end of period (000's omitted) | $ | 66,601 | $ | 36,400 | $ | 10,718 | $ | 7,492 | $ | 508 | |||||||||||||
Ratio of net expenses to average net assets, before waiver | 0.77 | %* | 1.05 | % | 1.63 | % | 3.21 | % | 53.13 | %* | |||||||||||||
Ratio of net expenses to average net assets, after waiver | 0.69 | %* | 0.68 | % | 0.65 | % | 0.65 | % | 0.80 | %* | |||||||||||||
Ratio of net investment income (loss) to average net assets | (0.09 | )%* | (0.21 | )% | 0.41 | % | (0.14 | )% | (0.47 | )%* | |||||||||||||
Portfolio turnover rate(f) | 15 | % | 40 | % | 7 | % | 7 | % | 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.
(d) Calculation of the net gain or loss per share (both realized and unrealized) may 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.
(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.
144
Industry Diversification Table
Semi-Annual Report June 30, 2021
June 30, 2021 (unaudited)
Baillie Gifford U.S. Discovery Fund
Value | % of Total Net Assets | ||||||||||
Aerospace/Defense | $ | 18,828 | 1.7 | % | |||||||
Biotechnology | 103,988 | 9.5 | |||||||||
Chemicals | 26,059 | 2.4 | |||||||||
Commercial Services | 50,407 | 4.6 | |||||||||
Computers | 50,434 | 4.6 | |||||||||
Diversified Financial Services | 20,764 | 1.9 | |||||||||
Electrical Components & Equipment | 15,632 | 1.4 | |||||||||
Healthcare — Products | 167,258 | 15.3 | |||||||||
Healthcare — Services | 17,675 | 1.6 | |||||||||
Home Furnishings | 18,491 | 1.7 | |||||||||
Insurance | 29,005 | 2.7 | |||||||||
Internet | 137,356 | 12.5 | |||||||||
Miscellaneous Manufacturing | 30,410 | 2.8 | |||||||||
Pharmaceuticals | 20,085 | 1.8 | |||||||||
Real Estate | 18,643 | 1.7 | |||||||||
Retail | 18,252 | 1.7 | |||||||||
Semiconductors | 69,168 | 6.3 | |||||||||
Software | 273,968 | 25.0 | |||||||||
Total Value of Investments | 1,086,423 | 99.2 | |||||||||
Other assets less liabilities | 8,409 | 0.8 | |||||||||
Net Assets | $ | 1,094,832 | 100.0 | % |
The table above is based on Bloomberg Industry Group classifications. For compliance monitoring purposes, sub-industry classifications are used which results in less concentration across industry sectors.
145
Portfolio of Investments
Semi-Annual Report June 30, 2021
June 30, 2021 (unaudited)
Baillie Gifford U.S. Discovery Fund
Shares | Value | ||||||||||
COMMON STOCKS — 99.2% | |||||||||||
ISRAEL — 1.8% | |||||||||||
JFrog Ltd. * | 437 | $ | 19,892 | ||||||||
UNITED STATES — 97.4% | |||||||||||
Adaptimmune Therapeutics PLC ADR * | 1,791 | 7,630 | |||||||||
AeroVironment, Inc. * | 188 | 18,828 | |||||||||
Ambarella, Inc. * | 218 | 23,245 | |||||||||
American Well Corp., Class A * | 1,405 | 17,675 | |||||||||
Axogen, Inc. * | 538 | 11,626 | |||||||||
Axon Enterprise, Inc. * | 172 | 30,410 | |||||||||
Bandwidth, Inc., Class A * | 161 | 22,205 | |||||||||
Benefitfocus, Inc. * | 750 | 10,575 | |||||||||
Berkeley Lights, Inc. * | 418 | 18,731 | |||||||||
Blackline, Inc. * | 229 | 25,481 | |||||||||
Cardlytics, Inc. * | 171 | 21,705 | |||||||||
Cargurus, Inc. * | 429 | 11,253 | |||||||||
CEVA, Inc. * | 191 | 9,034 | |||||||||
Chegg, Inc. * | 310 | 25,764 | |||||||||
Cloudera, Inc. * | 2,087 | 33,100 | |||||||||
Codexis, Inc. * | 1,150 | 26,059 | |||||||||
CyberArk Software Ltd. * | 186 | 24,230 | |||||||||
Denali Therapeutics, Inc. * | 178 | 13,962 | |||||||||
Digimarc Corp. * | 318 | 10,653 | |||||||||
Everbridge, Inc. * | 203 | 27,624 | |||||||||
EverQuote, Inc., Class A * | 747 | 24,412 | |||||||||
Freshpet, Inc. * | 112 | 18,252 | |||||||||
Glaukos Corp. * | 167 | 14,167 | |||||||||
IPG Photonics Corp. * | 97 | 20,445 | |||||||||
iRobot Corp. * | 198 | 18,491 | |||||||||
Kaleido Biosciences, Inc. * | 1,070 | 7,961 | |||||||||
LendingTree, Inc. * | 98 | 20,764 | |||||||||
LiveRamp Holdings, Inc. * | 526 | 24,643 | |||||||||
Medallia, Inc. * | 542 | 18,292 | |||||||||
Novanta, Inc. * | 116 | 15,632 | |||||||||
Novocure Ltd. * | 177 | 39,262 | |||||||||
Pacira BioSciences, Inc. * | 331 | 20,085 | |||||||||
Precision BioSciences, Inc. * | 826 | 10,342 | |||||||||
Q2 Holdings, Inc. * | 249 | 25,542 | |||||||||
Quanterix Corp. * | 359 | 21,059 | |||||||||
Redfin Corp. * | 294 | 18,643 | |||||||||
Rubius Therapeutics, Inc. * | 414 | 10,106 | |||||||||
Shockwave Medical, Inc. * | 163 | 30,926 | |||||||||
Sprout Social, Inc., Class A * | 391 | 34,963 | |||||||||
STAAR Surgical Co. * | 222 | 33,855 | |||||||||
Stitch Fix, Inc., Class A * | 475 | 28,643 | |||||||||
Stratasys Ltd. * | 356 | 9,206 | |||||||||
Sutro Biopharma, Inc. * | 1,019 | 18,943 | |||||||||
Tabula Rasa HealthCare, Inc. * | 431 | 21,550 |
The accompanying notes are an integral part of the financial statements.
146
Portfolio of Investments
Semi-Annual Report June 30, 2021
June 30, 2021 (unaudited)
Baillie Gifford U.S. Discovery Fund
Shares | Value | ||||||||||
Tandem Diabetes Care, Inc. * | 168 | $ | 16,363 | ||||||||
Trupanion, Inc. * | 252 | 29,005 | |||||||||
Upwork, Inc. * | 815 | 47,506 | |||||||||
Varonis Systems, Inc. * | 295 | 16,998 | |||||||||
Veeco Instruments, Inc. * | 684 | 16,443 | |||||||||
Xencor, Inc. * | 473 | 16,314 | |||||||||
Zuora, Inc., Class A * | 1,619 | 27,928 | |||||||||
1,066,531 | |||||||||||
TOTAL INVESTMENTS — 99.2% | |||||||||||
(cost $990,315) | $ | 1,086,423 | |||||||||
Other assets less liabilities — 0.8% | 8,409 | ||||||||||
NET ASSETS — 100.0% | $ | 1,094,832 |
* Non-income producing security.
ADR — American Depositary Receipt
This report classifies issuers geographically by their country of risk. For compliance monitoring purposes, the Manager retains discretion to consider a number of factors in determining where a particular issuer is located, as described in further detail in each Fund's prospectus.
Fair Value Measurement
The following is a summary of the inputs used as of June 30, 2021 in valuing the Fund's investments carried at fair value:
Investments in Securities | Level 1 | Level 2 | Level 3 | Total | |||||||||||||||
Common Stocks ** | $ | 1,086,423 | $ | — | $ | — | $ | 1,086,423 | |||||||||||
Total | $ | 1,086,423 | $ | — | $ | — | $ | 1,086,423 |
** Refer to Portfolio of Investments for further detail.
The accompanying notes are an integral part of the financial statements.
147
Statement of Assets and Liabilities
Semi-Annual Report June 30, 2021
June 30, 2021 (unaudited)
Baillie Gifford U.S. Discovery Fund
ASSETS | |||||||
Investments, at value (cost $990,315) | $ | 1,086,423 | |||||
Cash | 20,447 | ||||||
Due from Investment Advisor | 13,617 | ||||||
Total Assets | 1,120,487 | ||||||
LIABILITIES | |||||||
Advisory fee payable | 778 | ||||||
Administration & Supervisory fee payable | 265 | ||||||
Trustee fee payable | 3 | ||||||
Commitment fee payable | 1 | ||||||
Accrued expenses | 24,608 | ||||||
Total Liabilities | 25,655 | ||||||
NET ASSETS | $ | 1,094,832 | |||||
COMPOSITION OF NET ASSETS | |||||||
Paid-in capital | $ | 1,000,000 | |||||
Total distributable earnings | 94,832 | ||||||
$ | 1,094,832 | ||||||
NET ASSET VALUE, PER SHARE | |||||||
Class K ( $547,416 / 50,000 shares outstanding), unlimited authorized, no par value | $ | 10.95 | |||||
Institutional Class ( $547,416 / 50,000 shares outstanding), unlimited authorized, no par value | $ | 10.95 |
The accompanying notes are an integral part of the financial statements.
148
Statement of Operations
Semi-Annual Report June 30, 2021
For the Period May 6, 2021 through June 30, 2021 (unaudited)
Baillie Gifford U.S. Discovery Fund
EXPENSES | |||||||
Advisory fee (Note B) | $ | 778 | |||||
Administration & Supervisory fee — Class K shares (Note B) | 132 | ||||||
Administration & Supervisory fee — Institutional Class shares (Note B) | 132 | ||||||
Transfer agency | 4,604 | ||||||
Fund accounting | 7,748 | ||||||
Registration fees | 7,671 | ||||||
Professional fees | 4,847 | ||||||
Custody | 92 | ||||||
Legal | 16 | ||||||
Trustees' fees | 3 | ||||||
Commitment fees | 1 | ||||||
Miscellaneous | 680 | ||||||
Total Expenses | 26,704 | ||||||
Fees waived/expenses reimbursed | (25,428 | ) | |||||
Total Expenses after waiver | 1,276 | ||||||
Net Investment Loss | (1,276 | ) | |||||
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS | |||||||
Net realized gain from: | |||||||
Investments | — | ||||||
Net change in unrealized appreciation on: | |||||||
Investments | 96,108 | ||||||
96,108 | |||||||
Net realized and unrealized gain | 96,108 | ||||||
NET INCREASE IN NET ASSETS FROM OPERATIONS | $ | 94,832 |
* Commencement of investment operations.
The accompanying notes are an integral part of the financial statements.
149
Statements of Changes in Net Assets
Semi-Annual Report June 30, 2021
Baillie Gifford U.S. Discovery Fund
For the Period May 6, 2021(a) through June 30, 2021 (unaudited) | |||||||
INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS | |||||||
Net investment loss | $ | (1,276 | ) | ||||
Net realized gain | — | ||||||
Net change in unrealized appreciation | 96,108 | ||||||
Net increase in net assets from operations | 94,832 | ||||||
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 | 1,094,832 | ||||||
NET ASSETS | |||||||
Beginning of period | — | ||||||
End of period | $ | 1,094,832 |
(a) Commencement of investment operations.
The accompanying notes are an integral part of the financial statements.
150
Financial Highlights
Semi-Annual Report June 30, 2021
Baillie Gifford U.S. Discovery Fund
Selected data for a Class K share outstanding throughout the period:
For the Period May 6, 2021(a) through June 30, 2021 (unaudited) | |||||||
Net asset value, beginning of period | $ | 10.00 | |||||
From Investment Operations | |||||||
Net investment loss(b) | (0.01 | ) | |||||
Net realized and unrealized gain on investments and foreign currency | 0.96 | ||||||
Net increase in net asset value from investment operations | 0.95 | ||||||
Net asset value, end of period | $ | 10.95 | |||||
Total Return | |||||||
Total return based on net asset value(c) | 9.50 | % | |||||
Ratios/Supplemental Data | |||||||
Net assets, end of period (000's omitted) | $ | 547 | |||||
Ratio of net expenses to average net assets, before waiver | 17.15 | %* | |||||
Ratio of net expenses to average net assets, after waiver | 0.82 | %* | |||||
Ratio of net investment loss to average net assets | (0.82 | )%* | |||||
Portfolio turnover rate(d) | 0 | % |
* Annualized.
(a) Commencement of investment operations.
(b) Calculated based upon average shares outstanding during the period.
(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.
151
Financial Highlights
Semi-Annual Report June 30, 2021
Baillie Gifford U.S. Discovery Fund
Selected data for an Institutional Class share outstanding throughout the period:
For the Period May 6, 2021(a) through June 30, 2021 (unaudited) | |||||||
Net asset value, beginning of period | $ | 10.00 | |||||
From Investment Operations | |||||||
Net investment loss(b) | (0.01 | ) | |||||
Net realized and unrealized gain on investments and foreign currency | 0.96 | ||||||
Net increase in net asset value from investment operations | 0.95 | ||||||
Net asset value, end of period | $ | 10.95 | |||||
Total Return | |||||||
Total return based on net asset value(c) | 9.50 | % | |||||
Ratios/Supplemental Data | |||||||
Net assets, end of period (000's omitted) | $ | 547 | |||||
Ratio of net expenses to average net assets, before waiver | 17.15 | %* | |||||
Ratio of net expenses to average net assets, after waiver | 0.82 | %* | |||||
Ratio of net investment loss to average net assets | (0.82 | )%* | |||||
Portfolio turnover rate(d) | 0 | % |
* Annualized.
(a) Commencement of investment operations.
(b) Calculated based upon average shares outstanding during the period.
(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.
152
Industry Diversification Table
Semi-Annual Report June 30, 2021
June 30, 2021 (unaudited)
Baillie Gifford U.S. Equity Growth Fund
Value | % of Total Net Assets | ||||||||||
Advertising | $ | 8,019,138 | 4.9 | % | |||||||
Aerospace/Defense | 993,192 | 0.6 | |||||||||
Auto Manufacturers | 6,612,122 | 4.0 | |||||||||
Banks | 3,904,740 | 2.4 | |||||||||
Biotechnology | 18,026,326 | 10.9 | |||||||||
Commercial Services | 12,128,369 | 7.4 | |||||||||
Distribution/Wholesale | 2,234,359 | 1.4 | |||||||||
Healthcare — Products | 12,899,585 | 7.8 | |||||||||
Healthcare — Services | 1,866,439 | 1.1 | |||||||||
Insurance | 2,326,822 | 1.4 | |||||||||
Internet | 57,678,961 | 35.0 | |||||||||
Real Estate | 2,882,619 | 1.7 | |||||||||
Retail | 5,792,002 | 3.5 | |||||||||
Semiconductors | 2,657,132 | 1.6 | |||||||||
Software | 24,134,709 | 14.6 | |||||||||
Total Value of Investments | 162,156,515 | 98.3 | |||||||||
Other assets less liabilities | 2,854,815 | 1.7 | |||||||||
Net Assets | $ | 165,011,330 | 100.0 | % |
The table above is based on Bloomberg Industry Group classifications. For compliance monitoring purposes, sub-industry classifications are used which results in less concentration across industry sectors.
153
Portfolio of Investments
Semi-Annual Report June 30, 2021
June 30, 2021 (unaudited)
Baillie Gifford U.S. Equity Growth Fund
Shares | Value | ||||||||||
COMMON STOCKS — 98.3% | |||||||||||
CANADA — 8.5% | |||||||||||
Shopify, Inc., Class A * | 9,587 | $ | 14,006,415 | ||||||||
UNITED STATES — 89.8% | |||||||||||
10X Genomics, Inc., Class A * | 14,587 | 2,856,426 | |||||||||
ABIOMED, Inc. * | 7,468 | 2,330,837 | |||||||||
Affirm Holdings, Inc. * | 24,915 | 1,678,025 | |||||||||
Alnylam Pharmaceuticals, Inc. * | 10,742 | 1,820,984 | |||||||||
Amazon.com, Inc. * | 2,820 | 9,701,251 | |||||||||
Appian Corp. * | 21,330 | 2,938,207 | |||||||||
Carvana Co. * | 10,917 | 3,294,969 | |||||||||
Chegg, Inc. * | 44,608 | 3,707,371 | |||||||||
Chewy, Inc., Class A * | 37,519 | 2,990,639 | |||||||||
Cloudflare, Inc., Class A * | 31,095 | 3,291,095 | |||||||||
CoStar Group, Inc. * | 35,680 | 2,955,018 | |||||||||
Coursera, Inc. * | 30,573 | 1,209,468 | |||||||||
Datadog, Inc., Class A * | 14,689 | 1,528,831 | |||||||||
Denali Therapeutics, Inc. * | 36,512 | 2,864,001 | |||||||||
DoorDash, Inc., Class A * | 6,385 | 1,138,637 | |||||||||
First Republic Bank | 20,862 | 3,904,741 | |||||||||
Glaukos Corp. * | 20,824 | 1,766,500 | |||||||||
HEICO Corp., Class A | 7,998 | 993,192 | |||||||||
Illumina, Inc. * | 10,445 | 4,942,678 | |||||||||
Lemonade, Inc. * | 21,267 | 2,326,822 | |||||||||
Lyft, Inc., Class A * | 8,775 | 530,712 | |||||||||
MarketAxess Holdings, Inc. | 5,562 | 2,578,488 | |||||||||
Moderna, Inc. * | 30,814 | 7,240,674 | |||||||||
Netflix, Inc. * | 9,428 | 4,979,964 | |||||||||
Novocure Ltd. * | 19,236 | 4,266,930 | |||||||||
NVIDIA Corp. | 3,321 | 2,657,132 | |||||||||
Penumbra, Inc. * | 6,126 | 1,678,892 | |||||||||
Pinterest, Inc., Class A * | 30,962 | 2,444,450 | |||||||||
Recursion Pharmaceuticals, Inc., Class A * | 18,114 | 661,161 | |||||||||
Redfin Corp. * | 45,460 | 2,882,619 | |||||||||
Roku, Inc. * | 17,354 | 7,969,824 | |||||||||
Sana Biotechnology, Inc. * | 25,271 | 496,828 | |||||||||
Snap, Inc., Class A * | 24,625 | 1,677,947 | |||||||||
Snowflake, Inc., Class A * | 7,155 | 1,730,079 |
The accompanying notes are an integral part of the financial statements.
154
Portfolio of Investments
Semi-Annual Report June 30, 2021
June 30, 2021 (unaudited)
Baillie Gifford U.S. Equity Growth Fund
Shares | Value | ||||||||||
Stitch Fix, Inc., Class A * | 27,910 | $ | 1,682,973 | ||||||||
Teladoc Health, Inc. * | 11,224 | 1,866,439 | |||||||||
Tesla, Inc. * | 9,728 | 6,612,122 | |||||||||
Trade Desk, Inc. (The), Class A * | 103,660 | 8,019,138 | |||||||||
Twilio, Inc., Class A * | 16,517 | 6,510,341 | |||||||||
Vroom, Inc. * | 59,652 | 2,497,033 | |||||||||
Watsco, Inc. | 7,795 | 2,234,359 | |||||||||
Wayfair, Inc., Class A * | 28,012 | 8,843,668 | |||||||||
Workday, Inc., Class A * | 10,719 | 2,559,054 | |||||||||
Zillow Group, Inc., Class A * | 13,976 | 1,712,479 | |||||||||
Zoom Video Communications, Inc., Class A * | 14,410 | 5,577,102 | |||||||||
148,150,100 | |||||||||||
TOTAL INVESTMENTS — 98.3% | |||||||||||
(cost $112,616,664) | $ | 162,156,515 | |||||||||
Other assets less liabilities — 1.7% | 2,854,815 | ||||||||||
NET ASSETS — 100.0% | $ | 165,011,330 |
* Non-income producing security.
This report classifies issuers geographically by their country of risk. For compliance monitoring purposes, the Manager retains discretion to consider a number of factors in determining where a particular issuer is located, as described in further detail in each Fund's prospectus.
Fair Value Measurement
The following is a summary of the inputs used as of June 30, 2021 in valuing the Fund's investments carried at fair value:
Investments in Securities | Level 1 | Level 2 | Level 3 | Total | |||||||||||||||
Common Stocks ** | $ | 162,156,515 | $ | — | $ | — | $ | 162,156,515 | |||||||||||
Total | $ | 162,156,515 | $ | — | $ | — | $ | 162,156,515 |
** Refer to Portfolio of Investments for further detail.
The accompanying notes are an integral part of the financial statements.
155
Statement of Assets and Liabilities
Semi-Annual Report June 30, 2021
June 30, 2021 (unaudited)
Baillie Gifford U.S. Equity Growth Fund
ASSETS | |||||||
Investments, at value (cost $112,616,664) | $ | 162,156,515 | |||||
Cash | 2,839,287 | ||||||
Capital shares sold receivable | 414,174 | ||||||
Due from Investment Advisor | 1,893 | ||||||
Dividends receivable | 1,252 | ||||||
Prepaid assets | 29,271 | ||||||
Total Assets | 165,442,392 | ||||||
LIABILITIES | |||||||
Advisory fee payable | 119,791 | ||||||
Capital shares purchased payable | 198,563 | ||||||
Administration & Supervisory fee payable | 61,723 | ||||||
Trustee fee payable | 798 | ||||||
Commitment fee payable | 157 | ||||||
Accrued expenses | 50,030 | ||||||
Total Liabilities | 431,062 | ||||||
NET ASSETS | $ | 165,011,330 | |||||
COMPOSITION OF NET ASSETS | |||||||
Paid-in capital | $ | 110,629,593 | |||||
Total distributable earnings | 54,381,737 | ||||||
$ | 165,011,330 | ||||||
NET ASSET VALUE, PER SHARE | |||||||
Class K ( $88,703,363 / 1,941,777 shares outstanding), unlimited authorized, no par value | $ | 45.68 | |||||
Institutional Class ( $76,307,967 / 1,673,876 shares outstanding), unlimited authorized, no par value | $ | 45.59 |
The accompanying notes are an integral part of the financial statements.
156
Statement of Operations
Semi-Annual Report June 30, 2021
For the Six Months Ended June 30, 2021 (unaudited)
Baillie Gifford U.S. Equity Growth Fund
INVESTMENT INCOME | |||||||
Dividends | $ | 48,682 | |||||
Interest | 114 | ||||||
Total Investment Income | 48,796 | ||||||
EXPENSES | |||||||
Advisory fee (Note B) | 230,528 | ||||||
Administration & Supervisory fee — Class K shares (Note B) | 62,227 | ||||||
Administration & Supervisory fee — Institutional Class shares (Note B) | 56,530 | ||||||
Transfer agency | 21,998 | ||||||
Sub-transfer agency — Institutional Class shares | 29,783 | ||||||
Fund accounting | 40,957 | ||||||
Registration fees | 26,909 | ||||||
Professional fees | 12,139 | ||||||
Custody | 8,469 | ||||||
Legal | 6,706 | ||||||
Trustees' fees | 1,572 | ||||||
Line of Credit | 1,136 | ||||||
Commitment fees | 337 | ||||||
Miscellaneous | 3,671 | ||||||
Total Expenses | 502,962 | ||||||
Fees waived/expenses reimbursed | (19,108 | ) | |||||
Total Expenses after waiver | 483,854 | ||||||
Net Investment Loss | (435,058 | ) | |||||
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS | |||||||
Net realized gain from: | |||||||
Investments | 2,106,948 | ||||||
2,106,948 | |||||||
Net change in unrealized appreciation on: | |||||||
Investments | 13,835,522 | ||||||
13,835,522 | |||||||
Net realized and unrealized gain | 15,942,470 | ||||||
NET INCREASE IN NET ASSETS FROM OPERATIONS | $ | 15,507,412 |
The accompanying notes are an integral part of the financial statements.
157
Statements of Changes in Net Assets
Semi-Annual Report June 30, 2021
Baillie Gifford U.S. Equity Growth Fund
For the Six Months Ended June 30, 2021 (unaudited) | For the Year Ended December 31, 2020 | ||||||||||
INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS | |||||||||||
Net investment loss | $ | (435,058 | ) | $ | (267,455 | ) | |||||
Net realized gain | 2,106,948 | 6,406,378 | |||||||||
Net change in unrealized appreciation | 13,835,522 | 33,266,753 | |||||||||
Net increase in net assets from operations | 15,507,412 | 39,405,676 | |||||||||
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS FROM: | |||||||||||
Distributable earnings | |||||||||||
Class K | — | (1,796,813 | ) | ||||||||
Institutional Class | — | (1,331,225 | ) | ||||||||
Total Distributions to Shareholders | — | (3,128,038 | ) | ||||||||
TRANSACTIONS IN SHARES OF BENEFICIAL INTEREST | |||||||||||
Net proceeds from shares subscribed: | |||||||||||
Class K | 21,355,604 | 26,113,885 | |||||||||
Institutional Class | 58,302,272 | 29,537,484 | |||||||||
Dividends reinvested: | |||||||||||
Class K | — | 1,747,331 | |||||||||
Institutional Class | — | 1,331,225 | |||||||||
Cost of shares redeemed: | |||||||||||
Class K | (1,744,094 | ) | (7,048,968 | ) | |||||||
Institutional Class | (29,218,207 | ) | (4,481,602 | ) | |||||||
Increase in Net Assets from Transactions in Shares of Beneficial Interest | 48,695,575 | 47,199,355 | |||||||||
Total Increase in Net Assets | 64,202,987 | 83,476,993 | |||||||||
NET ASSETS | |||||||||||
Beginning of period | 100,808,343 | 17,331,350 | |||||||||
End of period | $ | 165,011,330 | $ | 100,808,343 |
The accompanying notes are an integral part of the financial statements.
158
Financial Highlights
Semi-Annual Report June 30, 2021
Baillie Gifford U.S. Equity Growth Fund
Selected data for a Class K share outstanding throughout each period:
For the Six Months Ended June 30, 2021 (unaudited) | For the Year Ended December 31, 2020 | For the Year Ended December 31, 2019 | For the Year Ended December 31, 2018 | For the Period April 28, 2017(a) through December 31, 2017 | |||||||||||||||||||
Net asset value, beginning of period | $ | 39.85 | $ | 18.25 | $ | 14.25 | $ | 13.39 | $ | 11.49 | |||||||||||||
From Investment Operations | |||||||||||||||||||||||
Net investment loss(b) | (0.12 | ) | (0.16 | ) | (0.08 | ) | (0.07 | ) | (0.03 | ) | |||||||||||||
Net realized and unrealized gain on investments and foreign currency | 5.95 | 23.07 | 4.33 | 1.22 | (c) | 1.98 | |||||||||||||||||
Net increase in net asset value from investment operations | 5.83 | 22.91 | 4.25 | 1.15 | 1.95 | ||||||||||||||||||
Dividends and Distributions to Shareholders | |||||||||||||||||||||||
From net realized gain on investments | — | (1.31 | ) | (0.25 | ) | (0.29 | ) | (0.05 | ) | ||||||||||||||
Total Dividends and Distributions | — | (1.31 | ) | (0.25 | ) | (0.29 | ) | (0.05 | ) | ||||||||||||||
Net asset value, end of period | $ | 45.68 | $ | 39.85 | $ | 18.25 | $ | 14.25 | $ | 13.39 | |||||||||||||
Total Return | |||||||||||||||||||||||
Total return based on net asset value(d) | 14.60 | % | 125.57 | % | 29.78 | % | 8.60 | % | 17.01 | % | |||||||||||||
Ratios/Supplemental Data | |||||||||||||||||||||||
Net assets, end of period (000's omitted) | $ | 88,703 | $ | 58,076 | $ | 13,867 | $ | 10,594 | $ | 1,344 | |||||||||||||
Ratio of net expenses to average net assets, before waiver | 0.68 | %* | 0.97 | % | 1.72 | % | 7.75 | % | 13.11 | %* | |||||||||||||
Ratio of net expenses to average net assets, after waiver | 0.65 | %* | 0.65 | % | 0.65 | % | 0.63 | % | 0.57 | %* | |||||||||||||
Ratio of net investment loss to average net assets | (0.58 | )%* | (0.55 | )% | (0.45 | )% | (0.46 | )% | (0.31 | )%* | |||||||||||||
Portfolio turnover rate(e) | 30 | % | 33 | % | 18 | % | 107 | % | 15 | % |
* Annualized.
(a) Commencement of investment operations.
(b) Calculated based upon average shares outstanding during the period.
(c) Calculation of the net gain or loss per share (both realized and unrealized) may 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.
(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.
159
Financial Highlights
Semi-Annual Report June 30, 2021
Baillie Gifford U.S. Equity Growth Fund
Selected data for an Institutional Class share outstanding throughout each period:
For the Six Months Ended June 30, 2021 (unaudited) | For the Year Ended December 31, 2020 | For the Year Ended December 31, 2019 | For the Year Ended December 31, 2018 | For the Period April 28, 2017(a) through December 31, 2017 | |||||||||||||||||||
Net asset value, beginning of period | $ | 39.78 | $ | 18.23 | $ | 14.21 | $ | 13.39 | $ | 11.49 | |||||||||||||
From Investment Operations | |||||||||||||||||||||||
Net investment loss(b) | (0.14 | ) | (0.20 | ) | (0.10 | ) | (0.10 | ) | (0.03 | ) | |||||||||||||
Net realized and unrealized gain on investments and foreign currency | 5.95 | 23.06 | 4.37 | 1.21 | (c) | 1.98 | |||||||||||||||||
Net increase in net asset value from investment operations | 5.81 | 22.86 | 4.27 | 1.11 | 1.95 | ||||||||||||||||||
Dividends and Distributions to Shareholders | |||||||||||||||||||||||
From net realized gain on investments | — | (1.31 | ) | (0.25 | ) | (0.29 | ) | (0.05 | ) | ||||||||||||||
Total Dividends and Distributions | — | (1.31 | ) | (0.25 | ) | (0.29 | ) | (0.05 | ) | ||||||||||||||
Net asset value, end of period | $ | 45.59 | $ | 39.78 | $ | 18.23 | $ | 14.21 | $ | 13.39 | |||||||||||||
Total Return | |||||||||||||||||||||||
Total return based on net asset value(d) | 14.58 | % | 125.43 | % | 30.01 | %(e) | 8.30 | % | 17.01 | % | |||||||||||||
Ratios/Supplemental Data | |||||||||||||||||||||||
Net assets, end of period (000's omitted) | $ | 76,308 | $ | 42,732 | $ | 3,464 | $ | 6 | $ | 6 | |||||||||||||
Ratio of net expenses to average net assets, before waiver | 0.77 | %* | 1.06 | % | 1.82 | % | 6.69 | % | 13.11 | %* | |||||||||||||
Ratio of net expenses to average net assets, after waiver | 0.74 | %* | 0.74 | % | 0.75 | % | 0.78 | % | 0.72 | %* | |||||||||||||
Ratio of net investment loss to average net assets | (0.67 | )%* | (0.65 | )% | (0.56 | )% | (0.53 | )% | (0.31 | )%* | |||||||||||||
Portfolio turnover rate(f) | 30 | % | 33 | % | 18 | % | 107 | % | 15 | % |
* Annualized.
(a) Commencement of investment operations.
(b) Calculated based upon average shares outstanding during the period.
(c) Calculation of the net gain or loss per share (both realized and unrealized) may 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.
(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) Excluding reimbursement received from the Manager, total return for the period was 29.72%. See Note D.
(f) Portfolio turnover rate calculated at Fund level.
The accompanying notes are an integral part of the financial statements.
160
Notes to Financial Statements (unaudited)
Semi-Annual Report June 30, 2021
Note A — Organization and Accounting Policies
Each fund identified in the table below (each, a "Fund", and collectively, the "Funds") is a series of Baillie Gifford Funds (the "Trust"). The Trust includes two other series, Baillie Gifford Multi Asset Fund and Baillie Gifford International All Cap Fund, that are not included in this report, and three other series, Baillie Gifford Asia Ex Japan Fund, Baillie Gifford China Equities Fund, and Baillie Gifford Japan Growth Fund, which have not yet commenced operations as of June 30, 2021. The
investment objective of each Fund includes achieving capital appreciation. For more detail on specific objectives of each Fund and a description of each share class, please refer to the relevant prospectus. The Trust is an open-end management investment company registered under the Investment Company Act of 1940, as amended (the "1940 Act"). The Trust was organized as a Massachusetts business trust on June 21, 2000, under the laws of Massachusetts. The Trust operates pursuant to the Second Amended and Restated Agreement and Declaration of Trust dated February 27, 2017, as amended from time to time.
The following table is a summary of classes of the Funds with shares outstanding as of June 30, 2021:
Baillie Gifford China A Shares Growth Fund* | Baillie Gifford Developed EAFE All Cap Fund | Baillie Gifford EAFE Plus All Cap Fund | Baillie Gifford Emerging Markets Equities Fund | Baillie Gifford Global Alpha Equities Fund | Baillie Gifford Global Stewardship Equities Fund | Baillie Gifford International Alpha Fund | Baillie Gifford International Concentrated Growth Equities Fund | Baillie Gifford International Growth Fund | Baillie Gifford International Smaller Companies Fund | Baillie Gifford Long Term Global Growth Fund | Baillie Gifford Positive Change Equities Fund | Baillie Gifford U.S. Discovery Fund | Baillie Gifford U.S. Equity Growth Fund | ||||||||||||||||||||||||||||||||||||||||||||||
Class 2 | N/A | X | X | X | X | N/A | X | N/A | X | N/A | X | N/A | N/A | N/A | |||||||||||||||||||||||||||||||||||||||||||||
Class 3 | N/A | X | X | X | X | N/A | X | N/A | X | N/A | N/A | N/A | N/A | N/A | |||||||||||||||||||||||||||||||||||||||||||||
Class 4 | N/A | X | N/A | X | X | N/A | X | N/A | X | N/A | N/A | N/A | N/A | N/A | |||||||||||||||||||||||||||||||||||||||||||||
Class 5 | N/A | N/A | N/A | X | N/A | N/A | X | N/A | X | N/A | X | N/A | N/A | N/A | |||||||||||||||||||||||||||||||||||||||||||||
Class K | X | X | X | X | X | X | X | X | X | X | X | X | X | X | |||||||||||||||||||||||||||||||||||||||||||||
Institutional Class | X | X | X | X | X | X | X | X | X | X | X | X | X | X |
* Prior to April 30, 2021, the Fund was known as Baillie Gifford China A Shares Fund.
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 and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of increases and decreases in net assets from operations 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
Investments are recorded at fair value. Equity securities listed on a securities exchange, market or automated
quotation system (including equity securities traded over the counter) for which quotations are readily available, are valued at the last quoted trade price on the primary exchange or market (foreign or domestic) on which they are most actively traded on the date of valuation (or at approximately 4:00 p.m. Eastern Time if a security's primary exchange is normally open at that time), or, if there is no such reported sale on the date of valuation, at the most recent quoted bid price.
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 for any other reason), and all other assets, are valued at their fair value as determined in good faith by Baillie Gifford Overseas Limited (the "Manager"), pursuant to procedures approved by the Board of Trustees of the Trust (the "Board"). The actual calculations may be made by persons acting pursuant to the direction of the Board or by pricing services.
161
Notes to Financial Statements (unaudited)
Semi-Annual Report June 30, 2021
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, and such events may not be reflected in the computation of a Fund's net asset value.
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 Canadian, Latin American or U.S. exchanges, 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, the securities will be classified as Level 2 securities in the fair value measurement framework described below.
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 Funds 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. This includes when a fair value adjustment is applied which seeks to reflect changes in foreign securities' market prices since the close of the market on which they are traded. 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 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.
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 June 30, 2021 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. 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.
162
Notes to Financial Statements (unaudited)
Semi-Annual Report June 30, 2021
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. Non-cash income, if any, is included in investment income, with any non-cash income exceeding 5% of a Fund's total income stated separately on the Statement of Operations, and is recorded at the fair market value of securities received.
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 and Other 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. Investment income is recorded net of any foreign withholding taxes, less any amounts reclaimable. The Funds may file withholding tax reclaims in certain jurisdictions to recover a portion of amounts previously withheld. 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.
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 the sale of securities, payable upon repatriation of sales proceeds. Any realized losses in excess of gains in India 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 based on existing tax rates and holding periods of the securities. As of June 30, 2021, Baillie Gifford Emerging Markets Equities Fund and Baillie Gifford Global Alpha Equities Fund recorded a receivable for India capital gains tax refunds of $1,347,063 and $76,898 respectively. As of June 30, 2021, Baillie Gifford Emerging Markets Equities Fund, Baillie Gifford Global Alpha Equities Fund, Baillie Gifford International Alpha Fund and Baillie Gifford International Growth Fund recorded a deferred liability for potential future India capital gains taxes of $24,179,526, $402,037, $2,536,199 and $393,804, respectively.
With respect to Baillie Gifford China A Shares Growth Fund, while overseas investors currently are exempt from paying capital gains or value added taxes on income and gains from investments in China A shares purchased through the Stock Connect programs, these Chinese tax rules could be changed, which could result in unexpected tax liabilities for the Fund.
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. The previous three tax year ends and the interim tax period since then, as applicable, remain subject to examination.
163
Notes to Financial Statements (unaudited)
Semi-Annual Report June 30, 2021
At December 31, 2020 for federal income tax purposes, the following Funds had capital loss carryforwards available to offset future capital gains. To the extent that these loss carryforwards are utilized, capital gains so offset will not be distributed to shareholders.
Fund | Short Term Capital Losses No Expiration | Long Term Capital Losses No Expiration | Capital Loss Available Total | ||||||||||||
Baillie Gifford Emerging Markets Equities Fund | $ | (52,717,239 | ) | $ | (67,489,660 | ) | $ | (120,206,899 | ) |
Realized capital losses, currency losses and passive foreign investment company ("PFIC") losses incurred after October 31 ("post-October capital/late year ordinary losses") 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, 2020, the Funds shown below incurred and will elect to defer net post-October or late year losses as indicated.
At December 31, 2020, the components of accumulated earnings on a tax basis were as follows:
Fund | Capital Loss Carryforwards | Post October Capital/Late Year Ordinary Losses | |||||||||
Baillie Gifford Developed EAFE All Cap Fund | $ | — | $ | 110,984 | |||||||
Baillie Gifford Emerging Markets Equities Fund | (120,206,899 | ) | — | ||||||||
Baillie Gifford International Alpha Fund | — | 1,572,738 |
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.
The Funds' cost of investments and gross unrealized appreciation (depreciation) at June 30, 2021 for U.S. federal income tax purposes were as follows:
Fund | Cost of Investments | Gross Appreciation | Gross Depreciation | Net Appreciation (Depreciation) | |||||||||||||||
Baillie Gifford China A Shares Growth Fund | $ | 1,177,334 | $ | 986,023 | $ | (41,697 | ) | $ | 944,326 | ||||||||||
Baillie Gifford Developed EAFE All Cap Fund | 406,671,972 | 256,138,751 | (8,420,023 | ) | 247,718,728 | ||||||||||||||
Baillie Gifford EAFE Plus All Cap Fund | 398,161,509 | 266,195,910 | (7,206,015 | ) | 258,989,895 | ||||||||||||||
Baillie Gifford Emerging Markets Equities Fund | 4,483,703,241 | 2,699,593,695 | (156,865,552 | ) | 2,542,728,143 | ||||||||||||||
Baillie Gifford Global Alpha Equities Fund | 742,576,204 | 666,321,718 | (14,791,215 | ) | 651,530,503 | ||||||||||||||
Baillie Gifford Global Stewardship Equities Fund | 3,574,731 | 3,264,664 | (69,313 | ) | 3,195,351 | ||||||||||||||
Baillie Gifford International Alpha Fund | 2,473,057,232 | 1,741,228,981 | (52,731,045 | ) | 1,688,497,936 | ||||||||||||||
Baillie Gifford International Concentrated Growth Equities Fund | 101,524,567 | 34,193,669 | (679,353 | ) | 33,514,316 | ||||||||||||||
Baillie Gifford International Growth Fund | 1,757,028,578 | 2,582,641,435 | (10,737,381 | ) | 2,571,904,054 | ||||||||||||||
Baillie Gifford International Smaller Companies Fund | 6,157,521 | 919,127 | (68,143 | ) | 850,984 | ||||||||||||||
Baillie Gifford Long Term Global Growth Fund | 643,882,479 | 467,278,354 | (10,477,636 | ) | 456,800,718 | ||||||||||||||
Baillie Gifford Positive Change Equities Fund | 111,618,868 | 44,397,521 | (1,376,542 | ) | 43,020,979 | ||||||||||||||
Baillie Gifford U.S. Discovery Fund | 990,315 | 115,766 | (19,658 | ) | 96,108 | ||||||||||||||
Baillie Gifford U.S. Equity Growth Fund | 112,903,839 | 49,831,626 | (578,950 | ) | 49,252,676 |
164
Notes to Financial Statements (unaudited)
Semi-Annual Report June 30, 2021
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 Agreement"), each Fund pays the Manager an investment advisory fee, in arrears.
The advisory fee paid by each Fund under the Advisory Agreement is calculated and accrued daily on the basis of the annual rate noted below and expressed as a percentage of that Fund's average daily net assets.
Fund | Average Daily Net Assets of the Fund (billions) | Annual Rate at Each Asset Level | |||||||||
Baillie Gifford China A Shares Growth Fund | $0 - $2 > $2 - $5 Above $5 | 0.55 0.51% 0.49%% | |||||||||
Baillie Gifford Developed EAFE All Cap Fund | $0 - $2 > $2 - $5 Above $5 | 0.35 0.31% 0.29%% | |||||||||
Baillie Gifford EAFE Plus All Cap Fund | $0 - $2 > $2 - $5 Above $5 | 0.35 0.31% 0.29%% | |||||||||
Baillie Gifford Emerging Markets Equities Fund | $0 - $2 > $2 - $5 Above $5 | 0.55 0.51% 0.49%% | |||||||||
Baillie Gifford Global Alpha Equities Fund | $0 - $2 > $2 - $5 Above $5 | 0.40 0.36% 0.34%% | |||||||||
Baillie Gifford Global Stewardship Equities Fund | $0 - $2 > $2 - $5 Above $5 | 0.33 0.29% 0.27%% | |||||||||
Baillie Gifford International Alpha Fund | $0 - $2 > $2 - $5 Above $5 | 0.35 0.31% 0.29%% | |||||||||
Baillie Gifford International Concentrated Growth Equities Fund | $0 - $2 > $2 - $5 Above $5 | 0.40 0.36% 0.34%% | |||||||||
Baillie Gifford International Growth Fund | $0 - $2 > $2 - $5 Above $5 | 0.35 0.31% 0.29%% | |||||||||
Baillie Gifford International Smaller Companies Fund | All assets | 0.58% | |||||||||
Baillie Gifford Long Term Global Growth Fund | $0 - $2 > $2 - $5 Above $5 | 0.45 0.41% 0.39%% |
165
Notes to Financial Statements (unaudited)
Semi-Annual Report June 30, 2021
Fund | Average Daily Net Assets of the Fund (billions) | Annual Rate at Each Asset Level | |||||||||
Baillie Gifford Positive Change Equities Fund | $0 - $2 > $2 - $5 Above $5 | 0.33 0.29% 0.27%% | |||||||||
Baillie Gifford U.S. Discovery Fund | All assets | 0.50% | |||||||||
Baillie Gifford U.S. Equity Growth Fund | $0 - $2 > $2 - $5 Above $5 | 0.33 0.29% 0.27%% |
The Manager has contractually agreed to waive its fees and/or bear expenses of the following Funds to the extent that such Fund's total annual operating expenses (excluding taxes, sub-accounting expenses and extraordinary expenses) exceed the following amounts:
Fund | Class | Expense Limitation | Expiration Date | ||||||||||||
Baillie Gifford China A Shares Growth Fund | Class K | 0.87 | % | April 30, 2022 | |||||||||||
| Institutional Class | 0.87 | % | April 30, 2022 | |||||||||||
Baillie Gifford Global Stewardship Equities Fund | Class K | 0.65 | % | April 30, 2022 | |||||||||||
| Institutional Class | 0.65 | % | April 30, 2022 | |||||||||||
Baillie Gifford International Concentrated Growth Equities Fund | Class K | 0.72 | % | April 30, 2022 | |||||||||||
| Institutional Class | 0.72 | % | April 30, 2022 | |||||||||||
Baillie Gifford International Smaller Companies Fund | Class K | 0.90 | % | April 30, 2022 | |||||||||||
| Institutional Class | 0.90 | % | April 30, 2022 | |||||||||||
Baillie Gifford Positive Change Equities Fund | Class K | 0.65 | % | April 30, 2022 | |||||||||||
| Institutional Class | 0.65 | % | April 30, 2022 | |||||||||||
Baillie Gifford U.S. Discovery Fund | Class K | 0.82 | % | April 30, 2022 | |||||||||||
| Institutional Class | 0.82 | % | April 30, 2022 | |||||||||||
Baillie Gifford U.S. Equity Growth Fund | Class K | 0.65 | % | April 30, 2022 | |||||||||||
| Institutional Class | 0.65 | % | April 30, 2022 |
Waived fees for all Funds are not subject to recoupment. These contractual agreements may only be terminated by the Board.
Baillie Gifford Funds Services LLC, a wholly-owned subsidiary of the Manager, serves as the sole distributor and principal underwriter of the shares of the Funds.
The Funds mentioned in the following table have 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 shares. The fee paid by Class 2 shares is 0.17%, Class 3 shares is 0.10%, Class 4 shares is 0.07%, and Class 5 shares is 0.02%. Class K and Institutional Class shares do not pay this fee.
166
Notes to Financial Statements (unaudited)
Semi-Annual Report June 30, 2021
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 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.
Institutional Class shares bear expenses in connection with compensating financial intermediaries for sub-transfer
agency and other services. Class K shares do not bear such expenses.
The Funds may enter into certain agreements with Financial Intermediaries that require payments for sub-transfer agency services in excess of the Board approved cap on payments and/or reimbursements to Financial Intermediaries. In such instances the Manager will pay, out of its own profits, the difference between the amount due under the agreement with the Financial Intermediary and the cap on such payments and/or reimbursements approved by the Board.
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.
Note C — Investment Transactions
Purchases and proceeds from sales of securities (excluding short-term securities) for the six months ended June 30, 2021 were as follows:
Fund | Purchases | Sales | |||||||||
Baillie Gifford China A Shares Growth Fund | $ | 244,098 | $ | 237,811 | |||||||
Baillie Gifford Developed EAFE All Cap Fund | 82,637,714 | 44,642,794 | |||||||||
Baillie Gifford EAFE Plus All Cap Fund | 35,223,996 | 131,509,118 | |||||||||
Baillie Gifford Emerging Markets Equities Fund | 1,270,671,402 | 711,606,874 | |||||||||
Baillie Gifford Global Alpha Equities Fund | 208,759,001 | 465,360,102 | |||||||||
Baillie Gifford Global Stewardship Equities Fund | 577,046 | 593,488 | |||||||||
Baillie Gifford International Alpha Fund | 271,920,948 | 445,660,490 | |||||||||
Baillie Gifford International Concentrated Growth Equities Fund | 104,421,291 | 36,368,321 | |||||||||
Baillie Gifford International Growth Fund | 370,612,036 | 567,669,891 | |||||||||
Baillie Gifford International Smaller Companies Fund | 5,118,399 | 91,876 | |||||||||
Baillie Gifford Long Term Global Growth Fund | 323,115,446 | 115,307,735 | |||||||||
Baillie Gifford Positive Change Equities Fund | 62,819,555 | 17,923,924 | |||||||||
Baillie Gifford U.S. Discovery Fund | 990,315 | — | |||||||||
Baillie Gifford U.S. Equity Growth Fund | 88,789,919 | 41,783,369 |
167
Notes to Financial Statements (unaudited)
Semi-Annual Report June 30, 2021
Note D — Transactions in Shares of Beneficial Interest
Baillie Gifford China A Shares Growth Fund | |||||||||||||||||||
Class K Shares For the Period Ended June 30, 2021 | Institutional Class Shares For the Period Ended June 30, 2021 | ||||||||||||||||||
Shares | Amount | Shares | Amount | ||||||||||||||||
Shares sold | — | $ | — | — | $ | — | |||||||||||||
Shares issued in reinvestment of dividends and distributions | — | — | — | — | |||||||||||||||
Shares redeemed | — | — | — | — | |||||||||||||||
Net increase (decrease) | — | $ | — | — | $ | — | |||||||||||||
Baillie Gifford China A Shares Growth Fund | |||||||||||||||||||
Class K Shares For the Year Ended December 31, 2020 | Institutional Class Shares For the Year Ended December 31, 2020 | ||||||||||||||||||
Shares | Amount | Shares | Amount | ||||||||||||||||
Shares sold | 373 | $ | 7,058 | 373 | $ | 7,057 | |||||||||||||
Shares issued in reinvestment of dividends and distributions | — | — | — | — | |||||||||||||||
Shares redeemed | — | — | — | — | |||||||||||||||
Net increase (decrease) | 373 | $ | 7,058 | 373 | $ | 7,057 | |||||||||||||
Baillie Gifford Developed EAFE All Cap Fund | |||||||||||||||||||
Class 2 Shares For the Period Ended June 30, 2021 | Class 3 Shares For the Period Ended June 30, 2021 | ||||||||||||||||||
Shares | Amount | Shares | Amount | ||||||||||||||||
Shares sold | 174 | $ | 3,000 | 6,023,514 | (a) | $ | 103,921,278 | (a) | |||||||||||
Shares issued in reinvestment of dividends and distributions | — | — | |||||||||||||||||
Shares redeemed | (6,317,318 | )(b) | (107,921,279 | )(b) | (6,470,874 | )(c) | (111,639,409 | )(c) | |||||||||||
Net increase (decrease) | (6,317,144 | ) | $ | (107,918,279 | ) | (447,360 | ) | $ | (7,718,131 | ) |
(a) 6,023,514 shares and $103,921,278 converted into Class 3 from Class 2.
(b) 6,083,173 shares and $103,921,278 converted from Class 2 into Class 3.
(c) 6,470,874 shares and $111,639,409 converted from Class 3 into Class 4.
168
Notes to Financial Statements (unaudited)
Semi-Annual Report June 30, 2021
Baillie Gifford Developed EAFE All Cap Fund | |||||||||||||||||||
Class 4 Shares For the Period Ended June 30, 2021 | Class K Shares For the Period Ended June 30, 2021 | ||||||||||||||||||
Shares | Amount | Shares | Amount | ||||||||||||||||
Shares sold | 6,448,597 | (d) | $ | 111,639,409 | (d) | 4,540,665 | $ | 79,877,575 | |||||||||||
Shares issued in reinvestment of dividends and distributions | — | — | |||||||||||||||||
Shares redeemed | — | — | (1,246,501 | ) | (21,356,826 | ) | |||||||||||||
Net increase (decrease) | 6,448,597 | $ | 111,639,409 | 3,294,164 | $ | 58,520,749 |
(d) 6,448,597 shares and $111,639,409 converted into Class 4 from Class 3.
Baillie Gifford Developed EAFE All Cap Fund | |||||||||||
Institutional Class Shares For the Period Ended June 30, 2021 | |||||||||||
Shares | Amount | ||||||||||
Shares sold | 672,898 | $ | 11,517,882 | ||||||||
Shares issued in reinvestment of dividends and distributions | |||||||||||
Shares redeemed | (267,355 | ) | (4,605,087 | ) | |||||||
Net increase (decrease) | 405,543 | $ | 6,912,795 |
Baillie Gifford Developed EAFE All Cap Fund | |||||||||||||||||||
Class 2 Shares For the Year Ended December 31, 2020 | Class 3 Shares For the Year Ended December 31, 2020 | ||||||||||||||||||
Shares | Amount | Shares | Amount | ||||||||||||||||
Shares sold | 459 | $ | 6,000 | — | $ | — | |||||||||||||
Shares issued in reinvestment of dividends and distributions | 130,567 | 2,184,122 | 68,588 | 1,158,667 | |||||||||||||||
Shares redeemed | (4,340,986 | ) | (65,191,959 | ) | — | — | |||||||||||||
Net increase (decrease) | (4,209,960 | ) | $ | (63,001,837 | ) | 68,588 | $ | 1,158,667 | |||||||||||
Baillie Gifford Developed EAFE All Cap Fund | |||||||||||||||||||
Class K Shares For the Year Ended December 31, 2020 | Institutional Class Shares For the Year Ended December 31, 2020 | ||||||||||||||||||
Shares | Amount | Shares | Amount | ||||||||||||||||
Shares sold | 781,546 | $ | 9,101,965 | 1,343,178 | $ | 17,007,484 | |||||||||||||
Shares issued in reinvestment of dividends and distributions | 141,302 | 2,359,735 | 6,555 | 109,348 | |||||||||||||||
Shares redeemed | (4,944,572 | ) | (62,538,353 | ) | (1,318,718 | ) | (17,016,373 | ) | |||||||||||
Net increase (decrease) | (4,021,724 | ) | $ | (51,076,653 | ) | 31,015 | $ | 100,459 |
169
Notes to Financial Statements (unaudited)
Semi-Annual Report June 30, 2021
Baillie Gifford EAFE Plus All Cap Fund | |||||||||||||||||||
Class 2 Shares For the Period Ended June 30, 2021 | Class 3 Shares For the Period Ended June 30, 2021 | ||||||||||||||||||
Shares | Amount | Shares | Amount | ||||||||||||||||
Shares sold | 137 | $ | 3,000 | — | $ | — | |||||||||||||
Shares issued in reinvestment of dividends and distributions | — | — | |||||||||||||||||
Shares redeemed | (2,708,223 | ) | (58,635,039 | ) | (1,237,019 | ) | (27,500,000 | ) | |||||||||||
Net increase (decrease) | (2,708,086 | ) | $ | (58,632,039 | ) | (1,237,019 | ) | $ | (27,500,000 | ) | |||||||||
Baillie Gifford EAFE Plus All Cap Fund | |||||||||||||||||||
Class K Shares For the Period Ended June 30, 2021 | Institutional Class Shares For the Period Ended June 30, 2021 | ||||||||||||||||||
Shares | Amount | Shares | Amount | ||||||||||||||||
Shares sold | 147,180 | $ | 3,127,000 | 180,141 | $ | 3,919,173 | |||||||||||||
Shares issued in reinvestment of dividends and distributions | — | — | — | — | |||||||||||||||
Shares redeemed | (1,112,646 | ) | (23,825,000 | ) | (94,931 | ) | (2,051,833 | ) | |||||||||||
Net increase (decrease) | (965,466 | ) | $ | (20,698,000 | ) | 85,210 | $ | 1,867,340 | |||||||||||
Baillie Gifford EAFE Plus All Cap Fund | |||||||||||||||||||
Class 2 Shares For the Year Ended December 31, 2020 | Class 3 Shares For the Year Ended December 31, 2020 | ||||||||||||||||||
Shares | Amount | Shares | Amount | ||||||||||||||||
Shares sold | 51,681 | $ | 786,000 | 6,811,061 | $ | 118,434,820 | |||||||||||||
Shares issued in reinvestment of dividends and distributions | 270,825 | 5,732,100 | 123,158 | 2,604,536 | |||||||||||||||
Shares redeemed | (2,582,085 | ) | (45,075,399 | ) | — | — | |||||||||||||
Net increase (decrease) | (2,259,579 | ) | $ | (38,557,299 | ) | 6,934,219 | $ | 121,039,356 | |||||||||||
Baillie Gifford EAFE Plus All Cap Fund | |||||||||||||||||||
Class K Shares For the Year Ended December 31, 2020 | Institutional Class Shares For the Year Ended December 31, 2020 | ||||||||||||||||||
Shares | Amount | Shares | Amount | ||||||||||||||||
Shares sold | 4,055,108 | $ | 70,360,885 | 631,289 | $ | 11,245,159 | |||||||||||||
Shares issued in reinvestment of dividends and distributions | 163,628 | 3,452,561 | 30,886 | 650,466 | |||||||||||||||
Shares redeemed | (1,513,484 | ) | (28,250,000 | ) | (172,195 | ) | (3,196,880 | ) | |||||||||||
Net increase (decrease) | 2,705,252 | $ | 45,563,446 | 489,980 | $ | 8,698,745 |
170
Notes to Financial Statements (unaudited)
Semi-Annual Report June 30, 2021
Baillie Gifford Emerging Markets Equities Fund | |||||||||||||||||||
Class 2 Shares For the Period Ended June 30, 2021 | Class 3 Shares For the Period Ended June 30, 2021 | ||||||||||||||||||
Shares | Amount | Shares | Amount | ||||||||||||||||
Shares sold | 3,043,809 | $ | 90,003,000 | 5,602,725 | (a) | $ | 160,385,840 | (a) | |||||||||||
Shares issued in reinvestment of dividends and distributions | — | — | — | ||||||||||||||||
Shares redeemed | (5,655,693 | )(b) | (160,385,840 | )(b) | — | ||||||||||||||
Net increase (decrease) | (2,611,884 | ) | $ | (70,382,840 | ) | 5,602,725 | $ | 160,385,840 |
(a) 5,602,725 shares and $160,385,840 converted into Class 3 from Class 2.
(b) 5,655,693 shares and $160,385,840 converted from Class 2 into Class 3.
Baillie Gifford Emerging Markets Equities Fund | |||||||||||||||||||
Class 4 Shares For the Period Ended June 30, 2021 | Class 5 Shares For the Period Ended June 30, 2021 | ||||||||||||||||||
Shares | Amount | Shares | Amount | ||||||||||||||||
Shares sold | — | $ | — | 1,689,520 | $ | 50,000,000 | |||||||||||||
Shares issued in reinvestment of dividends and distributions | — | ||||||||||||||||||
Shares redeemed | — | — | (5,145,177 | ) | (160,060,000 | ) | |||||||||||||
Net increase (decrease) | — | $ | — | (3,455,657 | ) | $ | (110,060,000 | ) | |||||||||||
Baillie Gifford Emerging Markets Equities Fund | |||||||||||||||||||
Class K Shares For the Period Ended June 30, 2021 | Institutional Class Shares For the Period Ended June 30, 2021 | ||||||||||||||||||
Shares | Amount | Shares | Amount | ||||||||||||||||
Shares sold | 23,820,166 | $ | 686,438,305 | 10,861,667 | $ | 317,196,605 | |||||||||||||
Shares issued in reinvestment of dividends and distributions | — | — | |||||||||||||||||
Shares redeemed | (8,985,293 | ) | (258,555,878 | ) | (7,500,559 | ) | (214,381,515 | ) | |||||||||||
Net increase (decrease) | 14,834,873 | $ | 427,882,427 | 3,361,108 | $ | 102,815,090 | |||||||||||||
Baillie Gifford Emerging Markets Equities Fund | |||||||||||||||||||
Class 2 Shares For the Year Ended December 31, 2020 | Class 3 Shares For the Year Ended December 31, 2020 | ||||||||||||||||||
Shares | Amount | Shares | Amount | ||||||||||||||||
Shares sold | 433,207 | $ | 10,006,000 | — | $ | — | |||||||||||||
Shares issued in reinvestment of dividends and distributions | 67,036 | 1,826,111 | 79,451 | 2,184,364 | |||||||||||||||
Shares redeemed | (736,002 | ) | (13,000,000 | ) | (9,780,806 | )(c) | (218,894,438 | )(c) | |||||||||||
Net increase (decrease) | (235,759 | ) | $ | (1,167,889 | ) | (9,701,355 | ) | $ | (216,710,074 | ) |
(c) 9,780,806 shares and $218,894,438 converted from class 3 into class 4.
171
Notes to Financial Statements (unaudited)
Semi-Annual Report June 30, 2021
Baillie Gifford Emerging Markets Equities Fund | |||||||||||||||||||
Class 4 Shares For the Year Ended December 31, 2020 | Class 5 Shares For the Year Ended December 31, 2020 | ||||||||||||||||||
Shares | Amount | Shares | Amount | ||||||||||||||||
Shares sold | 9,649,345 | (d) | $ | 218,894,438 | (d) | 12,179,541 | $ | 232,200,000 | |||||||||||
Shares issued in reinvestment of dividends and distributions | 129,657 | 3,613,950 | 915,065 | 25,856,285 | |||||||||||||||
Shares redeemed | — | — | (4,209,013 | ) | (112,120,000 | ) | |||||||||||||
Net increase (decrease) | 9,779,002 | $ | 222,508,388 | 8,885,593 | $ | 145,936,285 |
(d) 9,649,345 shares and $218,894,438 converted into Class 4 from Class 3.
Baillie Gifford Emerging Markets Equities Fund | |||||||||||||||||||
Class K Shares For the Year Ended December 31, 2020 | Institutional Class Shares For the Year Ended December 31, 2020 | ||||||||||||||||||
Shares | Amount | Shares | Amount | ||||||||||||||||
Shares sold | 40,913,876 | $ | 851,114,264 | 23,699,958 | $ | 497,607,207 | |||||||||||||
Shares issued in reinvestment of dividends and distributions | 888,988 | 24,127,144 | 541,663 | 14,702,902 | |||||||||||||||
Shares redeemed | (14,622,141 | ) | (280,870,445 | ) | (10,401,670 | ) | (214,228,570 | ) | |||||||||||
Net increase (decrease) | 27,180,723 | $ | 594,370,963 | 13,839,951 | $ | 298,081,539 | |||||||||||||
Baillie Gifford Global Alpha Equities Fund | |||||||||||||||||||
Class 2 Shares For the Period Ended June 30, 2021 | Class 3 Shares For the Period Ended June 30, 2021 | ||||||||||||||||||
Shares | Amount | Shares | Amount | ||||||||||||||||
Shares sold | 7,480,117 | (a) | $ | 170,718,384 | (a) | — | $ | — | |||||||||||
Shares issued in reinvestment of dividends and distributions | — | — | — | — | |||||||||||||||
Shares redeemed | (8,096,296 | ) | (186,409,999 | ) | (7,772,925 | )(b) | (180,167,937 | )(b) | |||||||||||
Net increase (decrease) | (616,179 | ) | $ | (15,691,615 | ) | (7,772,925 | ) | $ | (180,167,937 | ) |
(a) 4,429,348 shares and $100,167,937 converted into Class 2 from Class 3.
(b) 4,302,451 shares and $100,167,937 converted from Class 3 into Class 2.
172
Notes to Financial Statements (unaudited)
Semi-Annual Report June 30, 2021
Baillie Gifford Global Alpha Equities Fund | |||||||||||||||||||
Class 4 Shares For the Period Ended June 30, 2021 | Class K Shares For the Period Ended June 30, 2021 | ||||||||||||||||||
Shares | Amount | Shares | Amount | ||||||||||||||||
Shares sold | — | $ | — | 2,331,600 | $ | 52,602,004 | |||||||||||||
Shares issued in reinvestment of dividends and distributions | — | — | — | — | |||||||||||||||
Shares redeemed | (4,090,097 | ) | (100,000,000 | ) | (1,171,096 | ) | (26,385,561 | ) | |||||||||||
Net increase (decrease) | (4,090,097 | ) | $ | (100,000,000 | ) | 1,160,504 | $ | 26,216,443 |
Baillie Gifford Global Alpha Equities Fund | |||||||||||
Institutional Class Shares For the Period Ended June 30, 2021 | |||||||||||
Shares | Amount | ||||||||||
Shares sold | 584,069 | $ | 13,384,727 | ||||||||
Shares issued in reinvestment of dividends and distributions | — | — | |||||||||
Shares redeemed | (33,389 | ) | (749,303 | ) | |||||||
Net increase (decrease) | 550,680 | $ | 12,635,424 |
Baillie Gifford Global Alpha Equities Fund | |||||||||||||||||||
Class 2 Shares For the Year Ended December 31, 2020 | Class 3 Shares For the Year Ended December 31, 2020 | ||||||||||||||||||
Shares | Amount | Shares | Amount | ||||||||||||||||
Shares sold | 1,395,617 | $ | 21,406,000 | — | $ | — | |||||||||||||
Shares issued in reinvestment of dividends and distributions | 663,645 | 13,975,368 | 701,609 | 15,207,661 | |||||||||||||||
Shares redeemed | (767,153 | ) | (12,867,763 | ) | (21,376,629 | )(c) | (440,824,236 | )(c) | |||||||||||
Net increase (decrease) | 1,292,109 | $ | 22,513,605 | (20,675,020 | ) | $ | (425,616,575 | ) |
(c) 21,047,679 shares and $433,824,236 converted from Class 3 into Class 4.
Baillie Gifford Global Alpha Equities Fund | |||||||||||||||||||
Class 4 Shares For the Year Ended December 31, 2020 | Class K Shares For the Year Ended December 31, 2020 | ||||||||||||||||||
Shares | Amount | Shares | Amount | ||||||||||||||||
Shares sold | 21,747,419 | (d) | $ | 453,824,236 | (d) | 8,761,839 | $ | 162,657,595 | |||||||||||
Shares issued in reinvestment of dividends and distributions | 1,651,924 | 36,754,305 | 757,044 | 15,897,930 | |||||||||||||||
Shares redeemed | (1,398,930 | ) | (25,000,000 | ) | (1,779,493 | ) | (36,392,473 | ) | |||||||||||
Net increase (decrease) | 22,000,413 | $ | 465,578,541 | 7,739,390 | $ | 142,163,052 |
(d) 20,503,932 shares and $433,824,236 converted into Class 4 from Class 3.
173
Notes to Financial Statements (unaudited)
Semi-Annual Report June 30, 2021
Baillie Gifford Global Alpha Equities Fund | |||||||||||
Institutional Class Shares For the Year Ended December 31, 2020 | |||||||||||
Shares | Amount | ||||||||||
Shares sold | 1,312,156 | $ | 22,514,998 | ||||||||
Shares issued in reinvestment of dividends and distributions | 75,658 | 1,590,334 | |||||||||
Shares redeemed | (79,590 | ) | (1,613,033 | ) | |||||||
Net increase (decrease) | 1,308,224 | $ | 22,492,299 |
Baillie Gifford Global Stewardship Equities Fund | |||||||||||||||||||
Class K Shares For the Period Ended June 30, 2021 | Institutional Class Shares For the Period Ended June 30, 2021 | ||||||||||||||||||
Shares | Amount | Shares | Amount | ||||||||||||||||
Shares sold | — | $ | — | — | $ | — | |||||||||||||
Shares issued in reinvestment of dividends and distributions | — | — | — | — | |||||||||||||||
Shares redeemed | — | — | — | — | |||||||||||||||
Net increase (decrease) | — | $ | — | — | $ | — | |||||||||||||
Baillie Gifford Global Stewardship Equities Fund | |||||||||||||||||||
Class K Shares For the Year Ended December 31, 2020 | Institutional Class Shares For the Year Ended December 31, 2020 | ||||||||||||||||||
Shares | Amount | Shares | Amount | ||||||||||||||||
Shares sold | — | $ | — | — | $ | — | |||||||||||||
Shares issued in reinvestment of dividends and distributions | 5,710 | 111,795 | 5,709 | 111,795 | |||||||||||||||
Shares redeemed | — | — | — | — | |||||||||||||||
Net increase (decrease) | 5,710 | $ | 111,795 | 5,709 | $ | 111,795 | |||||||||||||
Baillie Gifford International Alpha Fund | |||||||||||||||||||
Class 2 Shares For the Period Ended June 30, 2021 | Class 3 Shares For the Period Ended June 30, 2021 | ||||||||||||||||||
Shares | Amount | Shares | Amount | ||||||||||||||||
Shares sold | 1,286,450 | $ | 21,777,010 | 8,024,445 | (a) | $ | 143,460,858 | (a) | |||||||||||
Shares issued in reinvestment of dividends and distributions | — | — | — | — | |||||||||||||||
Shares redeemed | (415,361 | ) | (7,000,000 | ) | (18,697,479 | )(b) | (331,948,889 | )(b) | |||||||||||
Net increase (decrease) | 871,089 | $ | 14,777,010 | (10,673,034 | ) | $ | (188,488,031 | ) |
(a) 7,679,274 shares and $137,460,543 converted into Class 3 from Class 4.
(b) 11,554,210 shares and $206,822,669 converted from Class 3 into Class 4.
174
Notes to Financial Statements (unaudited)
Semi-Annual Report June 30, 2021
Baillie Gifford International Alpha Fund | |||||||||||||||||||
Class 4 Shares For the Period Ended June 30, 2021 | Class 5 Shares For the Period Ended June 30, 2021 | ||||||||||||||||||
Shares | Amount | Shares | Amount | ||||||||||||||||
Shares sold | 11,357,954 | (c) | $ | 206,823,199 | (c) | — | $ | — | |||||||||||
Shares issued in reinvestment of dividends and distributions | — | — | — | 74 | * | ||||||||||||||
Shares redeemed | (14,940,237 | )(d) | (272,060,543 | )(d) | (912,014 | ) | (16,778,434 | ) | |||||||||||
Net increase (decrease) | (3,582,283 | ) | $ | (65,237,344 | ) | (912,014 | ) | $ | (16,778,360 | ) |
* Amount represents an adjustment to value of prior year reinvestment of dividends and distributions.
(c) 11,357,954 shares and $206,822,669 converted into Class 4 from Class 3.
(d) 7,548,837 shares and $137,460,543 converted from Class 4 into Class 3.
Baillie Gifford International Alpha Fund | |||||||||||||||||||
Class K Shares For the Period Ended June 30, 2021 | Institutional Class Shares For the Period Ended June 30, 2021 | ||||||||||||||||||
Shares | Amount | Shares | Amount | ||||||||||||||||
Shares sold | 6,178,795 | $ | 106,512,804 | 9,026,452 | $ | 157,643,292 | |||||||||||||
Shares issued in reinvestment of dividends and distributions | — | — | — | — | |||||||||||||||
Shares redeemed | (2,799,032 | ) | (49,317,725 | ) | (8,960,806 | ) | (154,354,705 | ) | |||||||||||
Net increase (decrease) | 3,379,763 | $ | 57,195,079 | 65,646 | $ | 3,288,587 | |||||||||||||
Baillie Gifford International Alpha Fund | |||||||||||||||||||
Class 2 Shares For the Year Ended December 31, 2020 | Class 3 Shares For the Year Ended December 31, 2020 | ||||||||||||||||||
Shares | Amount | Shares | Amount | ||||||||||||||||
Shares sold | 7,362,309 | $ | 72,006,000 | 23,777,552 | (e) | $ | 295,090,505 | (e) | |||||||||||
Shares issued in reinvestment of dividends and distributions | 490,406 | 8,221,408 | 1,000,902 | 17,027,749 | |||||||||||||||
Shares redeemed | (23,786,305 | )(f) | (294,390,504 | )(f) | (28,848,451 | )(g) | (453,876,207 | )(g) | |||||||||||
Net increase (decrease) | (15,933,590 | ) | $ | (214,163,096 | ) | (4,069,997 | ) | $ | (141,757,953 | ) |
(e) 21,327,203 shares and $262,890,504 converted into Class 3 from Class 2.
(f) 21,633,450 shares and $262,890,504 converted from Class 2 into Class 3.
(g) 25,129,907 shares and $394,280,702 converted from Class 3 into Class 4.
175
Notes to Financial Statements (unaudited)
Semi-Annual Report June 30, 2021
Baillie Gifford International Alpha Fund | |||||||||||||||||||
Class 4 Shares For the Year Ended December 31, 2020 | Class 5 Shares For the Year Ended December 31, 2020 | ||||||||||||||||||
Shares | Amount | Shares | Amount | ||||||||||||||||
Shares sold | 24,894,421 | (h) | $ | 397,280,701 | (h) | 933,778 | $ | 11,000,000 | |||||||||||
Shares issued in reinvestment of dividends and distributions | 1,424,466 | 24,650,239 | 192,144 | 3,388,104 | |||||||||||||||
Shares redeemed | (5,267,481 | ) | (84,000,000 | ) | — | — | |||||||||||||
Net increase (decrease) | 21,051,406 | $ | 337,930,940 | 1,125,922 | $ | 14,388,104 |
(h) 24,699,662 shares and $394,280,702 converted into Class 4 from Class 3.
Baillie Gifford International Alpha Fund | |||||||||||||||||||
Class K Shares For the Year Ended December 31, 2020 | Institutional Class Shares For the Year Ended December 31, 2020 | ||||||||||||||||||
Shares | Amount | Shares | Amount | ||||||||||||||||
Shares sold | 33,933,960 | (i) | $ | 488,403,549 | (i) | 41,667,953 | (j) | $ | 572,999,510 | (j) | |||||||||
Shares issued in reinvestment of dividends and distributions | 1,317,169 | 21,998,469 | 987,601 | 16,542,889 | |||||||||||||||
Shares redeemed | (12,293,910 | )(k) | (180,996,529 | )(k) | (8,421,705 | )(l) | (120,707,617 | )(l) | |||||||||||
Net increase (decrease) | 22,957,219 | $ | 329,405,489 | 34,233,849 | $ | 468,834,782 |
(i) 3,152,072 shares and $43,253,757 converted into Class K from Institutional Class.
(j) 29,783 shares and $442,302 converted into Institutional Class from Class K.
(k) 29,884 shares and $442,302 converted from Class K into Institutional Class.
(l) 3,142,905 shares and $43,253,757 converted from Institutional Class into Class K.
Baillie Gifford International Concentrated Growth Equities Fund | |||||||||||||||||||
Class K Shares For the Period Ended June 30, 2021 | Institutional Class Shares For the Period Ended June 30, 2021 | ||||||||||||||||||
Shares | Amount | Shares | Amount | ||||||||||||||||
Shares sold | 2,095,760 | $ | 27,127,020 | 6,084,339 | $ | 80,047,706 | |||||||||||||
Shares issued in reinvestment of dividends and distributions | — | — | — | — | |||||||||||||||
Shares redeemed | (548,874 | ) | (6,804,979 | ) | (2,183,615 | ) | (26,193,438 | ) | |||||||||||
Net increase (decrease) | 1,546,886 | $ | 20,322,041 | 3,900,724 | $ | 53,854,268 |
176
Notes to Financial Statements (unaudited)
Semi-Annual Report June 30, 2021
Baillie Gifford International Concentrated Growth Equities Fund | |||||||||||||||||||
Class K Shares For the Year Ended December 31, 2020 | Institutional Class Shares For the Year Ended December 31, 2020 | ||||||||||||||||||
Shares | Amount | Shares | Amount | ||||||||||||||||
Shares sold | 2,646,999 | $ | 33,989,078 | 1,288,248 | $ | 21,921,486 | |||||||||||||
Shares issued in reinvestment of dividends and distributions | 3,145,048 | 38,023,629 | 1,136,294 | 13,601,434 | |||||||||||||||
Shares redeemed | (10,365,471 | ) | (178,597,888 | ) | (1,016,427 | ) | (13,118,779 | ) | |||||||||||
Net increase (decrease) | (4,573,424 | ) | $ | (106,585,181 | ) | 1,408,115 | $ | 22,404,141 | |||||||||||
Baillie Gifford International Growth Fund | |||||||||||||||||||
Class 2 Shares For the Period Ended June 30, 2021 | Class 3 Shares For the Period Ended June 30, 2021 | ||||||||||||||||||
Shares | Amount | Shares | Amount | ||||||||||||||||
Shares sold | 4,324,542 | (a) | $ | 94,859,331 | (a) | 5,929,340 | (b) | $ | 131,196,174 | (b) | |||||||||
Shares issued in reinvestment of dividends and distributions | — | — | — | — | |||||||||||||||
Shares redeemed | 8,338,126 | (c) | (185,281,174 | )(c) | 13,244,042 | (d) | (296,974,945 | )(d) | |||||||||||
Net increase (decrease) | 12,662,668 | $ | (90,421,843 | ) | 19,173,382 | $ | (165,778,771 | ) |
(a) 4,195,924 shares and $91,856,330 converted into Class 2 from Class 3.
(b) 5,155,544 shares and $114,721,174 converted into Class 3 from Class 2.
(c) 5,171,930 shares and $114,721,174 converted from Class 2 into Class 3.
(d) 4,181,922 shares and $91,856,330 converted from Class 3 into Class 2.
Baillie Gifford International Growth Fund | |||||||||||||||||||
Class 4 Shares For the Period Ended June 30, 2021 | Class 5 Shares For the Period Ended June 30, 2021 | ||||||||||||||||||
Shares | Amount | Shares | Amount | ||||||||||||||||
Shares sold | — | $ | — | 94,102 | $ | 2,000,000 | |||||||||||||
Shares issued in reinvestment of dividends and distributions | — | — | — | — | |||||||||||||||
Shares redeemed | 104,237 | (2,362,580 | ) | 5,616,791 | (125,000,000 | ) | |||||||||||||
Net increase (decrease) | 104,237 | $ | (2,362,580 | ) | 5,710,893 | $ | (123,000,000 | ) |
177
Notes to Financial Statements (unaudited)
Semi-Annual Report June 30, 2021
Baillie Gifford International Growth Fund | |||||||||||||||||||
Class K Shares For the Period Ended June 30, 2021 | Institutional Class Shares For the Period Ended June 30, 2021 | ||||||||||||||||||
Shares | Amount | Shares | Amount | ||||||||||||||||
Shares sold | 195,327 | $ | 4,276,122 | 6,079,705 | $ | 134,479,065 | |||||||||||||
Shares issued in reinvestment of dividends and distributions | — | — | — | — | |||||||||||||||
Shares redeemed | 503,074 | (10,916,230 | ) | 1,963,258 | (42,361,093 | ) | |||||||||||||
Net increase (decrease) | 698,401 | $ | (6,640,108 | ) | 8,042,963 | $ | 92,117,972 | ||||||||||||
Baillie Gifford International Growth Fund | |||||||||||||||||||
Class 2 Shares For the Year Ended December 31, 2020 | Class 3 Shares For the Year Ended December 31, 2020 | ||||||||||||||||||
Shares | Amount | Shares | Amount | ||||||||||||||||
Shares sold | 5,590,575 | $ | 81,506,000 | 34,452,980 | (e) | $ | 592,448,173 | (e) | |||||||||||
Shares issued in reinvestment of dividends and distributions | 2,589,071 | 55,541,011 | 2,976,844 | 64,060,790 | |||||||||||||||
Shares redeemed | (40,310,173 | )(f) | (695,348,173 | )(f) | (42,757,002 | )(g) | (764,520,237 | )(g) | |||||||||||
Net increase (decrease) | (32,130,527 | ) | $ | (558,301,162 | ) | (5,327,178 | ) | $ | (108,011,274 | ) |
(e) 34,079,090 shares and $585,048,173 converted from Class 2 into Class 3.
(f) 34,160,773 shares and $585,048,173 converted from Class 2 into Class 3.
(g) 25,065,507 shares and $434,310,417 converted from Class 3 into Class 4.
Baillie Gifford International Growth Fund | |||||||||||||||||||
Class 4 Shares For the Year Ended December 31, 2020 | Class 5 Shares For the Year Ended December 31, 2020 | ||||||||||||||||||
Shares | Amount | Shares | Amount | ||||||||||||||||
Shares sold | 25,043,754 | (h) | $ | 434,310,417 | (h) | — | $ | — | |||||||||||
Shares issued in reinvestment of dividends and distributions | 4,238,692 | 91,315,840 | 7,885,948 | 170,297,829 | |||||||||||||||
Shares redeemed | (3,853,216 | ) | (78,000,000 | ) | (11,604,279 | ) | (225,000,000 | ) | |||||||||||
Net increase (decrease) | 25,429,230 | $ | 447,626,257 | (3,718,331 | ) | $ | (54,702,171 | ) |
(h) 25,043,754 shares and $434,310,417 converted from Class 3 into Class 4.
178
Notes to Financial Statements (unaudited)
Semi-Annual Report June 30, 2021
Baillie Gifford International Growth Fund | |||||||||||||||||||
Class K Shares For the Year Ended December 31, 2020 | Institutional Class Shares For the Year Ended December 31, 2020 | ||||||||||||||||||
Shares | Amount | Shares | Amount | ||||||||||||||||
Shares sold | 5,745,433 | $ | 115,840,279 | 12,952,871 | $ | 230,631,609 | |||||||||||||
Shares issued in reinvestment of dividends and distributions | 320,740 | 6,873,455 | 1,347,216 | 28,803,483 | |||||||||||||||
Shares redeemed | (12,214 | ) | (229,035 | ) | (1,797,254 | ) | (32,662,300 | ) | |||||||||||
Net increase (decrease) | 6,053,959 | $ | 122,484,699 | 12,502,833 | $ | 226,772,792 | |||||||||||||
Baillie Gifford International Smaller Companies Fund | |||||||||||||||||||
Class K Shares For the Period Ended June 30, 2021 | Institutional Class Shares For the Period Ended June 30, 2021 | ||||||||||||||||||
Shares | Amount | Shares | Amount | ||||||||||||||||
Shares sold | 1,625,585 | $ | 29,910,750 | 282,250 | $ | 5,154,475 | |||||||||||||
Shares issued in reinvestment of dividends and distributions | — | — | — | — | |||||||||||||||
Shares redeemed | — | — | — | — | |||||||||||||||
Net increase (decrease) | 1,625,585 | $ | 29,910,750 | 282,250 | $ | 5,154,475 | |||||||||||||
Baillie Gifford International Smaller Companies Fund | |||||||||||||||||||
Class K Shares For the Year Ended December 31, 2020 | Institutional Class Shares For the Year Ended December 31, 2020 | ||||||||||||||||||
Shares | Amount | Shares | Amount | ||||||||||||||||
Shares sold | — | $ | — | — | $ | — | |||||||||||||
Shares issued in reinvestment of dividends and distributions | 2,310 | 40,101 | 2,311 | 40,101 | |||||||||||||||
Shares redeemed | — | — | — | — | |||||||||||||||
Net increase (decrease) | 2,310 | $ | 40,101 | 2,311 | $ | 40,101 | |||||||||||||
Baillie Gifford Long Term Global Growth Fund | |||||||||||||||||||
Class 2 Shares For the Period Ended June 30, 2021 | Class 4 Shares For the Period Ended June 30, 2021 | ||||||||||||||||||
Shares | Amount | Shares | Amount | ||||||||||||||||
Shares sold | 745 | $ | 29,500 | — | $ | — | |||||||||||||
Shares issued in reinvestment of dividends and distributions | — | — | — | — | |||||||||||||||
Shares redeemed | (349,440 | ) | (14,000,000 | ) | — | — | |||||||||||||
Net increase (decrease) | (348,695 | ) | $ | (13,970,500 | ) | — | $ | — |
179
Notes to Financial Statements (unaudited)
Semi-Annual Report June 30, 2021
Baillie Gifford Long Term Global Growth Fund | |||||||||||||||||||
Class 5 Shares For the Period Ended June 30, 2021 | Class K Shares For the Period Ended June 30, 2021 | ||||||||||||||||||
Shares | Amount | Shares | Amount | ||||||||||||||||
Shares sold | — | $ | — | 3,471,575 | (a) | $ | 146,651,498 | (a) | |||||||||||
Shares issued in reinvestment of dividends and distributions | — | — | — | — | |||||||||||||||
Shares redeemed | (157,192 | ) | (8,000,000 | ) | (328,394 | ) | (13,988,697 | ) | |||||||||||
Net increase (decrease) | (157,192 | ) | $ | (8,000,000 | ) | 3,143,181 | $ | 132,662,801 |
(a) 11,840 shares and $448,599 converted into Class K from Institutional Class.
Baillie Gifford Long Term Global Growth Fund | |||||||||||
Institutional Class Shares For the Period Ended June 30, 2021 | |||||||||||
Shares | Amount | ||||||||||
Shares sold | 4,112,192 | $ | 165,122,544 | ||||||||
Shares issued in reinvestment of dividends and distributions | — | — | |||||||||
Shares redeemed | (1,612,617 | )(b) | (64,164,888 | )(b) | |||||||
Net increase (decrease) | 2,499,575 | $ | 100,957,656 |
(b) 11,871 shares and $448,599 converted into from Institutional Class into Class K.
Baillie Gifford Long Term Global Growth Fund | |||||||||||||||||||
Class 2 Shares For the Year Ended December 31, 2020 | Class 4 Shares For the Year Ended December 31, 2020 | ||||||||||||||||||
Shares | Amount | Shares | Amount | ||||||||||||||||
Shares sold | 6,508 | $ | 164,000 | — | $ | — | |||||||||||||
Shares issued in reinvestment of dividends and distributions | 268,661 | 10,181,428 | — | — | |||||||||||||||
Shares redeemed | (333,008 | ) | (12,000,000 | ) | (13,085,974 | )(c) | (113,363,867 | )(c) | |||||||||||
Net increase (decrease) | (57,839 | ) | $ | (1,654,572 | ) | (13,085,974 | ) | $ | (113,363,867 | ) |
(c) 2,948,106 shares and $109,513,867 converted from Class 4 into Class 5.
180
Notes to Financial Statements (unaudited)
Semi-Annual Report June 30, 2021
Baillie Gifford Long Term Global Growth Fund | |||||||||||||||||||
Class 5 Shares For the Year Ended December 31, 2020 | Class K Shares For the Year Ended December 31, 2020 | ||||||||||||||||||
Shares | Amount | Shares | Amount | ||||||||||||||||
Shares sold | 2,745,672 | (d) | $ | 109,513,867 | (d) | 1,689,135 | $ | 52,083,127 | |||||||||||
Shares issued in reinvestment of dividends and distributions | 137,077 | 6,648,326 | 448,850 | 17,015,889 | |||||||||||||||
Shares redeemed | (684,445 | ) | (32,000,000 | ) | (2,966,787 | ) | (83,087,481 | ) | |||||||||||
Net increase (decrease) | 2,198,304 | $ | 84,162,193 | (828,802 | ) | $ | (13,988,465 | ) |
(d) 2,745,672 shares and $109,513,867 converted into Class 5 from Class 4.
Baillie Gifford Long Term Global Growth Fund | |||||||||||
Institutional Class Shares For the Year Ended December 31, 2020 | |||||||||||
Shares | Amount | ||||||||||
Shares sold | 6,896,944 | $ | 223,565,185 | ||||||||
Shares issued in reinvestment of dividends and distributions | 684,278 | 25,886,267 | |||||||||
Shares redeemed | (1,199,421 | ) | (38,874,654 | ) | |||||||
Net increase (decrease) | 6,381,801 | $ | 210,576,798 |
Baillie Gifford Positive Change Equities Fund | |||||||||||||||||||
Class K Shares For the Period Ended June 30, 2021 | Institutional Class Shares For the Period Ended June 30, 2021 | ||||||||||||||||||
Shares | Amount | Shares | Amount | ||||||||||||||||
Shares sold | 860,671 | $ | 21,335,110 | 1,129,320 | $ | 29,198,555 | |||||||||||||
Shares issued in reinvestment of dividends and distributions | — | — | — | — | |||||||||||||||
Shares redeemed | (108,035 | ) | (2,690,470 | ) | (178,131 | ) | (4,623,848 | ) | |||||||||||
Net increase (decrease) | 752,636 | $ | 18,644,640 | 951,189 | $ | 24,574,707 | |||||||||||||
Baillie Gifford Positive Change Equities Fund | |||||||||||||||||||
Class K Shares For the Year Ended December 31, 2020 | Institutional Class Shares For the Year Ended December 31, 2020 | ||||||||||||||||||
Shares | Amount | Shares | Amount | ||||||||||||||||
Shares sold | 1,527,722 | $ | 29,045,519 | 807,287 | $ | 15,232,525 | |||||||||||||
Shares issued in reinvestment of dividends and distributions | 63,836 | 1,516,124 | 56,904 | 1,350,344 | |||||||||||||||
Shares redeemed | (301,001 | ) | (5,528,256 | ) | (150,680 | ) | (3,001,141 | ) | |||||||||||
Net increase (decrease) | 1,290,557 | $ | 25,033,387 | 713,511 | $ | 13,581,728 |
181
Notes to Financial Statements (unaudited)
Semi-Annual Report June 30, 2021
Baillie Gifford U.S. Discovery Fund | |||||||||||||||||||
Class K Shares For the Period Ended June 30, 2021 | Institutional Class Shares For the Period Ended June 30, 2021 | ||||||||||||||||||
Shares | Amount | Shares | Amount | ||||||||||||||||
Shares sold | 50,000 | $ | 500,000 | 50,000 | $ | 500,000 | |||||||||||||
Shares issued in reinvestment of dividends and distributions | — | — | — | — | |||||||||||||||
Shares redeemed | — | — | — | — | |||||||||||||||
Net increase (decrease) | 50,000 | $ | 500,000 | 50,000 | $ | 500,000 | |||||||||||||
Baillie Gifford U.S. Equity Growth Fund | |||||||||||||||||||
Class K Shares For the Period Ended June 30, 2021 | Institutional Class Shares For the Period Ended June 30, 2021 | ||||||||||||||||||
Shares | Amount | Shares | Amount | ||||||||||||||||
Shares sold | 526,229 | $ | 21,355,604 | 1,341,677 | $ | 58,302,272 | |||||||||||||
Shares issued in reinvestment of dividends and distributions | — | — | — | — | |||||||||||||||
Shares redeemed | (41,970 | ) | (1,744,094 | ) | (741,971 | ) | (29,218,207 | ) | |||||||||||
Net increase (decrease) | 484,259 | $ | 19,611,510 | 599,706 | $ | 29,084,065 | |||||||||||||
Baillie Gifford U.S. Equity Growth Fund | |||||||||||||||||||
Class K Shares For the Year Ended December 31, 2020 | Institutional Class Shares For the Year Ended December 31, 2020 | ||||||||||||||||||
Shares | Amount | Shares | Amount | ||||||||||||||||
Shares sold | 862,472 | $ | 26,113,885 | 991,300 | $ | 29,537,484 | |||||||||||||
Shares issued in reinvestment of dividends and distributions | 43,694 | 1,747,331 | 33,339 | 1,331,225 | |||||||||||||||
Shares redeemed | (208,574 | ) | (7,048,968 | ) | (140,455 | ) | (4,481,602 | ) | |||||||||||
Net increase (decrease) | 697,592 | $ | 20,812,248 | 884,184 | $ | 26,387,107 |
Note E — Beneficial Ownership
Beneficial ownership, either direct or indirect, 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 June 30, 2021, the following shareholders beneficially owned 25% or more of a Fund's voting securities:
Fund | Investor | Percentage | |||||||||
Baillie Gifford China A Shares Growth Fund | Baillie Gifford International LLC | 100.00 | % | ||||||||
Baillie Gifford Global Stewardship Equities Fund | Baillie Gifford International LLC | 100.00 | % | ||||||||
Baillie Gifford International Growth Fund | Teachers' Retirement System of The State of Kentucky | 40.47 | % | ||||||||
Baillie Gifford International Smaller Companies Fund | Landmark Management New York | 80.68 | % | ||||||||
Baillie Gifford U.S. Discovery Fund | Baillie Gifford International LLC | 100.00 | % |
Purchase and redemption activity of these accounts may have a significant effect on the operation of each Fund.
182
Notes to Financial Statements (unaudited)
Semi-Annual Report June 30, 2021
At June 30, 2021, Baillie Gifford International LLC, a wholly owned subsidiary of the Manager, owned 100% of Baillie Gifford China A Shares Growth Fund, Baillie Gifford Global Stewardship Equities Fund and Baillie Gifford U.S. Discovery Fund and as a result may be deemed to control such Funds.
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 — Line of Credit
The Trust entered into a committed facility with Bank of New York Mellon on May 1, 2017, renewed April 20, 2021, and expiring April 19, 2022, which allows certain series of the Trust to borrow up to $75 million in total subject to minimum asset coverage requirements set out in the Credit Agreement. Each such series may borrow money under this credit facility for the temporary funding of shareholder redemptions or for other temporary or emergency purposes.
In normal market conditions, borrowings are charged an interest rate of 1.25% per annum plus the greater of the Federal Funds Effective Rate or the one-month U.S. LIBOR Rate.
Effective April 20, 2021, language was added to the credit agreement to set out alternative rates chargeable on borrowings if certain conditions are met including if LIBOR ceases to be published. In these circumstances the rate chargeable would be calculated based on an alternative such as the Secured Overnight Financing Rate (SOFR).
The Funds pay a share of a commitment fee on the portion of the facility which is undrawn. Effective April 20, 2021, the commitment fee increased from 0.20% to 0.25% on undrawn amounts.
The rate payable at June 30, 2021 was 1.35% on any amounts drawn down.
The following borrowings were made against the credit facility during the period:
Fund | Date of | Full | Maximum | Average | Average | ||||||||||||||||||
Baillie Gifford Global Alpha Equities Fund | 1/4/2021 | 1/6/2021 | $3,050,000 | $3,050,000 | 1.39% | ||||||||||||||||||
Baillie Gifford International Concentrated | 1/4/2021 | 1/5/2021 | $4,450,000 | $4,108,333 | 1.39% | ||||||||||||||||||
Baillie Gifford U.S. Equity Growth Fund | 3/5/2021 | 3/8/2021 | $8,550,000 | $7,550,000 | 1.35% |
* Average amount borrowed is calculated using days with outstanding borrowings.
183
Notes to Financial Statements (unaudited)
Semi-Annual Report June 30, 2021
Note H — Principal Risks (unaudited)
The below is a selection of the Funds' principal risks. Additional risks of investing in a Fund are included in the Fund's prospectus.
Cash
Cash held by the Fund may be in excess of Federal Deposit Insurance Corporation (FDIC) limitations. The Manager does not expect any losses as a result of cash being in excess of FDIC limits.
Investment Style Risk
The Manager actively makes investment decisions for the Funds through bottom-up stock selection. Accordingly, the Funds will have risk characteristics that differ from their benchmark indices. The Manager's judgments about the attractiveness, relative value, or potential appreciation of a particular stock may prove to be incorrect and cause a Fund to lose money or underperform compared to its benchmark index. There can be no assurance that the Manager's investment decisions will produce the desired results.
Growth Stock Risk
The prices of growth stocks may be based largely on expectations of future earnings, and their prices can decline rapidly and significantly in reaction to negative news. Growth stocks may underperform stocks in other broad style categories (and the stock market as a whole) over any period of time and may shift in and out of favor with investors generally, sometimes rapidly, depending on changes in market, economic, and other factors.
Long-Term Investment Strategy Risk
The Funds pursue a long-term investment approach, typically seeking returns over a period of several years. This investment style may cause a Fund to lose money or underperform compared to its benchmark index or other mutual funds over extended periods of time, and a Fund
may not perform as expected in the long term. An investment in a Fund may be more suitable for long-term investors who can bear the risk of short- or medium-term fluctuations in the value of the Fund's portfolio.
Emerging Markets Risk
To the extent the Funds invest in emerging market securities, the Funds may be exposed to greater market, credit, currency, liquidity, legal, political, technical and other risks different from, or greater than, the risks of investing in developed markets.
Geographic Focus Risk
Certain Funds expect to focus investments in a limited number of countries or geographic regions, and as a result may not offer the same level of diversification of risks as a more broadly global fund because these Funds will be exposed to a smaller geographic area. The performance of a fund that is less diversified across countries or geographic regions will be closely tied to market, currency, economic, political, environmental, or regulatory conditions and developments in the countries or regions in which the fund invests, and may be more volatile than the performance of a more geographically-diversified portfolio.
Non-Diversification Risk
A non-diversified fund may hold a smaller number of portfolio securities, with larger positions in each security it holds, than many other mutual funds. To the extent a Fund invests in a relatively small number of issuers, a decline in the market value of a particular security held by the Fund may affect its value more than if it invested in a larger number of issuers. The value of the Fund's shares may be more volatile than the values of shares of more diversified funds. Baillie Gifford China A Shares Growth Fund, Baillie Gifford International Concentrated Growth Equities Fund, Baillie Gifford Long Term Global Growth Fund, Baillie Gifford Positive Change Equities Fund, Baillie Gifford U.S. Discovery Fund and Baillie Gifford U.S. Equity Growth Fund are all non-diversified Funds.
184
Notes to Financial Statements (unaudited)
Semi-Annual Report June 30, 2021
Market Disruption and Geopolitical Risk
Communicable diseases, including those that result in pandemics or epidemics, may pose significant threats to human health, and such diseases, along with any efforts to contain their spread, may be highly disruptive to both global and local economies and markets, with significant negative impact on individual issuers, sectors, industries, and asset classes. Significant public health crises, including those triggered by the transmission of a communicable disease and efforts to contain it may result in, among other things, border closings and other significant travel restrictions and disruptions, significant disruptions to business operations, supply chains and customer activity, lower consumer demand for goods and services, event cancellations and restrictions, service cancellations, reductions and other changes, significant challenges in healthcare service preparation and delivery, and prolonged quarantines, as well as general concern and uncertainty. All of these disruptive effects were present, for example, in the global pandemic linked to the outbreak of respiratory disease caused by a novel coronavirus designated as COVID-19 that was first reported in China in December 2019.
For further information on the risks of investing in each Fund, please refer to each Fund's prospectus.
Note I — Legal Notice (unaudited)
MSCI
The MSCI information may only be used for your internal use, may not be reproduced or re-disseminated 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)
FTSE Russell (U.S. Equity Growth)
FTSE Russell is a trading name of certain of the LSE Group companies. Russell® is a trade mark of the relevant LSE Group companies and is used by any other LSE Group company under license. "TMX®" is a trade mark of TSX, Inc. and used by the LSE Group under license. All rights in the FTSE Russell indexes or data vest in the relevant LSE Group company which owns the index or the data. Neither LSE Group nor its licensors accept any liability for any errors or omissions in the indexes or data and no party may rely on any indexes or data contained in this communication. No further distribution of data from the LSE Group is permitted without the relevant LSE Group company's express written consent. The LSE Group does not promote, sponsor or endorse the content of this communication.
S&P (U.S. 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.
185
Notes to Financial Statements (unaudited)
Semi-Annual Report June 30, 2021
Note J — 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 June 30, 2021 and the issuance of the Financial Statements.
186
Supplemental Information (unaudited)
Semi-Annual Report June 30, 2021
Management of the Trust
Indepedent Trustees
Howard W. Chin, Chair of the Nominating and Governance Committee
Pamela M. J. Cox
Robert E. Rigsby, Chair of the Audit Oversight Committee
Donald P. Sullivan Jr.
Interested Trustee
David Salter, Chair of the Board and President
Officers (other than officers who are also Trustees)
Andrew Telfer, Vice President
Michael Stirling-Aird, Vice President
Julie Paul, Vice President
Tim Campbell, Vice President
Lindsay Cockburn, Treasurer
Gareth Griffiths, Secretary and Chief Legal Officer
Graham Laybourn, Vice President
Suzanne Quinn, Chief Compliance Officer and AML Compliance Officer
Evan Delaney, Chief Risk Officer*
Lesley-Anne Archibald, Vice President
Kelly Cameron, Vice President
* The Board has accepted the resignation of Evan Delaney as Chief Risk Officer of the Trust and approved the appointment of Neil Riddell to that position effective July 1, 2021. Neil Riddell (year of birth 1988) is Head of Group Risk at Baillie Gifford & Co.
Additional information regarding the Trustees is in each Fund's Statement of Additional Information and is available upon request, without charge, by calling the Manager at 011-44-131-275-2000. Shareholders may submit to the Trust claims for reimbursement of telephone charges incurred in placing such calls.
A description of each Fund's proxy voting policies and procedures related to portfolio securities is available without charge, upon request, by calling the Manager 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 the Manager at 011-44-131-275-2000 or by accessing each 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 as an exhibit to its Form N-PORT. The Funds' Form N-PORT is available on the SEC's website at http://www.sec.gov. The Funds' holdings can also be found at Baillie Gifford Funds' website: http://USmutualfund.bailliegifford.com.
187
BOARD CONSIDERATIONS REGARDING
2021 CONTRACT RENEWAL (unaudited)
Semi-Annual Report June 30, 2021
BAILLIE GIFFORD FUNDS
On June 18, 2021, the Board of Trustees (the "Board") of 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 renewal of the investment advisory agreement (the "Advisory Agreement") between the Trust, on behalf of 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 renewal 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. After reviewing the information received, the Independent Trustees requested supplemental information, and the Manager provided materials in response. 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 Board concluded that it was in the best interests of each Fund to renew 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 provided by the Manager to each Fund. The Board noted that: (1) pursuant to the Funds' Advisory Agreement, the Manager provides portfolio management services to the Funds and receives an advisory fee; (2) pursuant to a separate Administration, Supervisory and Sub-Accounting Services Plan and Administration and Supervisory Agreement for Class K and Institutional Class shares for each Fund that offers those classes, the Manager receives an "administration and supervisory fee"; and (3) pursuant to a separate Shareholder Service Plan and Shareholder Servicing Agreement for Class 2, Class 3, Class 4 and Class 5 shares for each Fund that offers those classes, the Manager receives a "shareholder service fee," the amount of which varies among the share classes (the administration and supervisory fee and the shareholder service fee are each referred to as a "Class specific fee" and together are referred to as "Class specific fees"). The Board considered the background and qualifications of the investment, compliance and administrative personnel involved in the management and oversight of the Funds, reviewed information regarding each Fund's performance, advisory fee and applicable Class specific fee, and expense ratios for certain share classes compared to similar funds, and considered the experience of the Manager in providing services to each Fund. In assessing each Fund's performance, the Board considered that performance is closely evaluated at the quarterly meetings of the Board's Performance Committee, that the Manager employs a long-term investment approach and that the Funds' returns over longer-term periods were generally good. In evaluating the advisory fee paid by each Fund, and in particular when assessing comparative data, the Board considered not only the advisory fee, but also the combination of the advisory fee and the applicable Class specific fee. The Board also considered that the advisory fee schedule for each Fund other than Baillie Gifford International Smaller Companies Fund includes breakpoints. The Board considered other benefits derived by the Manager and its affiliates from the relationship to the Funds, including the Manager's receipt of the Class specific 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 satisfactory.
The Board reviewed the Manager's revenues received with respect to the Funds and the nature of the Manager's resources expended in providing solely advisory services as well as additional services to the Funds. The Board considered the Manager's estimated profitability with respect to the Funds and concluded that it was not unreasonable.
The Board noted the following items specific to the referenced Funds.
Baillie Gifford China A Shares Growth Fund
The Board reviewed total return information for the one-year and since inception (December 19, 2019) periods ended March 31, 2021 for the Fund compared to a benchmark index (MSCI China A Onshore Index) and the average total
188
BOARD CONSIDERATIONS REGARDING
2021 CONTRACT RENEWAL (unaudited)
Semi-Annual Report June 30, 2021
returns of a performance universe of funds provided by Broadridge, and calendar year returns for 2020 for the Fund compared to the benchmark index and a peer group of funds provided by Broadridge. The Board noted that the Fund's total return was above the benchmark index and the average of the performance universe for the one-year and since inception periods. The Board concluded that the Fund's performance was satisfactory.
The Board reviewed the advisory fee (plus the applicable Class specific fee) and net expense ratio for the Fund's Class K and Institutional Class, 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 contractual advisory fee (plus the applicable Class specific fee) was below the average contractual 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 whether there were economies of scale with respect to management of the Fund and whether the Fund benefits from economies of scale. The Board considered the Fund's assets, that the Fund's contractual advisory fee (plus the applicable Class specific fee) was on the low end of the spectrum of the expense peer group and also considered the expense limitation in place until April 30, 2022. On the basis of the information provided, the Board concluded that the advisory fee was reasonable.
Baillie Gifford Developed EAFE All Cap Fund
The Board reviewed total return information for the one-year, three-year, five-year and since inception (April 15, 2014) periods ended March 31, 2021 for the Fund compared to a benchmark index (MSCI EAFE Index) and the average total returns of a performance universe of funds provided by Broadridge, and calendar year returns for 2014 through 2020 for the Fund compared to the benchmark index and a peer group of funds provided by Broadridge. The Board noted that the Fund's total return was above the benchmark index and the average of the performance universe for the one-year, three-year, five-year and since inception periods. The Board concluded that the Fund's performance was satisfactory.
The Board reviewed the advisory fee (plus the applicable Class specific fee) and net expense ratio for the Fund's Class 2 and Institutional Class, 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 contractual advisory fee (plus the applicable Class specific fee) was below the average contractual 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 whether there were economies of scale with respect to management of the Fund and whether the Fund benefits from economies of scale. The Board considered that the Fund's contractual advisory fee (plus the applicable Class specific 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 advisory fee was reasonable.
Baillie Gifford EAFE Plus All Cap Fund
The Board reviewed total return information for the one-year, three-year, five-year, ten-year and since inception (December 17, 2009) periods ended March 31, 2021 for the Fund compared to a benchmark index (MSCI EAFE Index) and the average total returns of a performance universe of funds provided by Broadridge, and calendar year returns for 2011 through 2020 for the Fund compared to the benchmark index and a peer group of funds provided by Broadridge. The Board noted that the Fund's total return was above the benchmark index and the average of the performance universe for the one-year, three-year, five-year, ten-year and since inception periods. The Board concluded that the Fund's performance was satisfactory.
The Board reviewed the advisory fee (plus the applicable Class specific fee) and net expense ratio for the Fund's Class 2 and Institutional Class, 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
189
BOARD CONSIDERATIONS REGARDING
2021 CONTRACT RENEWAL (unaudited)
Semi-Annual Report June 30, 2021
showed that the Fund's contractual advisory fee (plus the applicable Class specific fee) was below the average contractual 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 whether there were economies of scale with respect to management of the Fund and whether the Fund benefits from economies of scale. The Board considered that the Fund's contractual advisory fee (plus the applicable Class specific 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 advisory fee was reasonable.
Baillie Gifford Emerging Markets Equities Fund
The Board reviewed total return information for the one-year, three-year, five-year, ten-year and since inception (April 4, 2003) periods ended March 31, 2021 for the Fund compared to a benchmark index (MSCI Emerging Markets Index) and the average total returns of a performance universe of funds provided by Broadridge, and calendar year returns for 2011 through 2020 for the Fund compared to the benchmark index and a peer group of funds provided by Broadridge. The Board noted that the Fund's total return was above the benchmark index and the average of the performance universe for the one-year, three-year, five-year, ten-year and since inception periods. The Board concluded that the Fund's performance was satisfactory.
The Board reviewed the advisory fee (plus the applicable Class specific fee) and net expense ratio for the Fund's Class 2 and Institutional Class, 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 contractual advisory fee (plus the applicable Class specific fee) was below the average contractual 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 whether there were economies of scale with respect to management of the Fund and whether the Fund benefits from economies of scale. The Board considered that the advisory fee schedule includes breakpoints and that the Fund's contractual advisory fee (plus the applicable Class specific 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 advisory fee was reasonable.
Baillie Gifford Global Alpha Equities Fund
The Board reviewed total return information for the one-year, three-year, five-year and since inception (November 15, 2011) periods ended March 31, 2021 for the Fund compared to a benchmark index (MSCI AC World Index) and the average total returns of a performance universe of funds provided by Broadridge, and calendar year returns for 2011 through 2020 for the Fund compared to the benchmark index and a peer group of funds provided by Broadridge. The Board noted that the Fund's total return was above the benchmark index and the average of the performance universe for the one-year, three-year, five-year and since inception periods. The Board concluded that the Fund's performance was satisfactory.
The Board reviewed the advisory fee (plus the applicable Class specific fee) and net expense ratio for the Fund's Class 2 and Institutional Class, 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 contractual advisory fee (plus the applicable Class specific fee) was below the average contractual 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 whether there were economies of scale with respect to management of the Fund and whether the Fund benefits from economies of scale. The Board considered that the Fund's contractual advisory fee (plus the applicable Class specific 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 advisory fee was reasonable.
190
BOARD CONSIDERATIONS REGARDING
2021 CONTRACT RENEWAL (unaudited)
Semi-Annual Report June 30, 2021
Baillie Gifford Global Stewardship Equities Fund
The Board reviewed total return information for the one-year, three-year and since inception (December 14, 2017) periods ended March 31, 2021 for the Fund compared to a benchmark index (MSCI AC World Index) and the average total returns of a performance universe of funds provided by Broadridge, and calendar year returns for 2018 through 2020 for the Fund compared to the benchmark index and a peer group of funds provided by Broadridge. The Board noted that the Fund's total return was above the benchmark index and the average of the performance universe for the one-year, three-year and since inception periods. The Board concluded that the Fund's performance was satisfactory.
The Board reviewed the advisory fee (plus the applicable Class specific fee) and net expense ratio for the Fund's Class K and Institutional Class, 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 contractual advisory fee (plus the applicable Class specific fee) was below the average contractual 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 whether there were economies of scale with respect to management of the Fund and whether the Fund benefits from economies of scale. The Board considered the Fund's assets, that the Fund's contractual advisory fee (plus the applicable Class specific fee) was on the low end of the spectrum of the expense peer group and also considered the expense limitation in place until April 30, 2022. On the basis of the information provided, the Board concluded that the advisory fee was reasonable.
Baillie Gifford International Alpha Fund
The Board reviewed total return information for the one-year, three-year, five-year, ten-year and since inception (February 7, 2008) periods ended March 31, 2021 for the Fund compared to a benchmark index (MSCI AC World (ex U.S.) Index) and the average total returns of a performance universe of funds provided by Broadridge, and calendar year returns for 2011 through 2020 for the Fund compared to the benchmark index and a peer group of funds provided by Broadridge. The Board noted that the Fund's total return was above the benchmark index and the average of the performance universe for the one-year, three-year, five-year, ten-year and since inception periods. The Board concluded that the Fund's performance was satisfactory.
The Board reviewed the advisory fee (plus the applicable Class specific fee) and net expense ratio for the Fund's Class 2 and Institutional Class, 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 contractual advisory fee (plus the applicable Class specific fee) was below the average contractual 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 whether there were economies of scale with respect to management of the Fund and whether the Fund benefits from economies of scale. The Board considered that the advisory fee schedule includes breakpoints and that the Fund's contractual advisory fee (plus the applicable Class specific 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 advisory fee was reasonable.
Baillie Gifford International Concentrated Growth Equities Fund
The Board reviewed total return information for the one-year, three-year and since inception (December 14, 2017) periods ended March 31, 2021 for the Fund compared to a benchmark index (MSCI AC World (ex U.S.) Index) and the average total returns of a performance universe of funds provided by Broadridge, and calendar year returns for 2018 through 2020 for the Fund compared to the benchmark index and a peer group of funds provided by Broadridge. The Board noted that
191
BOARD CONSIDERATIONS REGARDING
2021 CONTRACT RENEWAL (unaudited)
Semi-Annual Report June 30, 2021
the Fund's total return was above the benchmark index and the average of the performance universe for the one-year, three-year and since inception periods. The Board concluded that the Fund's performance was satisfactory.
The Board reviewed the advisory fee (plus the applicable Class specific fee) and net expense ratio for the Fund's Class K and Institutional Class, 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 contractual advisory fee (plus the applicable Class specific fee) was below the average contractual 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 whether there were economies of scale with respect to management of the Fund and whether the Fund benefits from economies of scale. The Board considered that the Fund's contractual advisory fee (plus the applicable Class specific fee) was on the low end of the spectrum of the expense peer group and also considered the expense limitation in place until April 30, 2022. On the basis of the information provided, the Board concluded that the advisory fee was reasonable.
Baillie Gifford International Growth Fund
The Board reviewed total return information for the one-year, three-year, five-year, ten-year and since inception (March 6, 2008) periods ended March 31, 2021 for the Fund compared to a benchmark index (MSCI AC World (ex U.S.) Index) and the average total returns of a performance universe of funds provided by Broadridge, and calendar year returns for 2011 through 2020 for the Fund compared to the benchmark index and a peer group of funds provided by Broadridge. The Board noted that the Fund's total return was above the benchmark index and the average of the performance universe for the one-year, three-year, five-year, ten-year and since inception periods. The Board concluded that the Fund's performance was satisfactory.
The Board reviewed the advisory fee (plus the applicable Class specific fee) and net expense ratio for the Fund's Class 2 and Institutional Class, 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 contractual advisory fee (plus the applicable Class specific fee) was below the average contractual 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 whether there were economies of scale with respect to management of the Fund and whether the Fund benefits from economies of scale. The Board considered that the advisory fee schedule includes breakpoints and that the Fund's contractual advisory fee (plus the applicable Class specific 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 advisory fee was reasonable.
Baillie Gifford International Smaller Companies Fund
The Board reviewed total return information for the one-year and since inception (December 19, 2018) periods ended March 31, 2021 for the Fund compared to a benchmark index (MSCI AC World (ex U.S.) Small Cap Index) and the average total returns of a performance universe of funds provided by Broadridge, and calendar year returns for 2019 and 2020 for the Fund compared to the benchmark index and a peer group of funds provided by Broadridge. The Board noted that the Fund's total return was above the benchmark index and the average of the performance universe for the one-year and since inception periods. The Board concluded that the Fund's performance was satisfactory.
The Board reviewed the advisory fee (plus the applicable Class specific fee) and net expense ratio for the Fund's Class K and Institutional Class, 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 contractual advisory fee (plus the applicable Class specific fee) was below the average contractual 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 whether
192
BOARD CONSIDERATIONS REGARDING
2021 CONTRACT RENEWAL (unaudited)
Semi-Annual Report June 30, 2021
there were economies of scale with respect to management of the Fund and whether the Fund benefits from economies of scale. The Board considered the Fund's assets, that the Fund's contractual advisory fee (plus the applicable Class specific fee) was on the low end of the spectrum of the expense peer group and also considered the expense limitation in place until April 30, 2022. On the basis of the information provided, the Board concluded that the advisory fee was reasonable.
Baillie Gifford Long Term Global Growth Fund
The Board reviewed total return information for the one-year, three-year, five-year and since inception (June 10, 2014) periods ended March 31, 2021 for the Fund compared to a benchmark index (MSCI AC World Index) and the average total returns of a performance universe of funds provided by Broadridge, and calendar year returns for 2014 through 2020 for the Fund compared to the benchmark index and a peer group of funds provided by Broadridge. The Board noted that the Fund's total return was above the benchmark index and the average of the performance universe for the one-year, three-year, five-year and since inception periods. The Board concluded that the Fund's performance was satisfactory.
The Board reviewed the advisory fee (plus the applicable Class specific fee) and net expense ratio for the Fund's Class 2 and Institutional Class, 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 contractual advisory fee (plus the applicable Class specific fee) was below the average contractual 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 whether there were economies of scale with respect to management of the Fund and whether the Fund benefits from economies of scale. The Board considered that the Fund's contractual advisory fee (plus the applicable Class specific 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 advisory fee was reasonable.
Baillie Gifford Positive Change Equities Fund
The Board reviewed total return information for the one-year, three-year and since inception (December 14, 2017) periods ended March 31, 2021 for the Fund compared to a benchmark index (MSCI AC World Index) and the average total returns of a performance universe of funds provided by Broadridge, and calendar year returns for 2018 through 2020 for the Fund compared to the benchmark index and a peer group of funds provided by Broadridge. The Board noted that the Fund's total return was above the benchmark index and the average of the performance universe for the one-year, three-year and since inception periods. The Board concluded that the Fund's performance was satisfactory.
The Board reviewed the advisory fee (plus the applicable Class specific fee) and net expense ratio for the Fund's Class K and Institutional Class, 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 contractual advisory fee (plus the applicable Class specific fee) was below the average contractual 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 whether there were economies of scale with respect to management of the Fund and whether the Fund benefits from economies of scale. The Board considered that the Fund's contractual advisory fee (plus the applicable Class specific fee) was on the low end of the spectrum of the expense peer group and also considered the expense limitation in place until April 30, 2022. On the basis of the information provided, the Board concluded that the advisory fee was reasonable.
193
BOARD CONSIDERATIONS REGARDING
2021 CONTRACT RENEWAL (unaudited)
Semi-Annual Report June 30, 2021
Baillie Gifford U.S. Equity Growth Fund
The Board reviewed total return information for the one-year, three-year and since inception (December 5, 2016) periods ended March 31, 2021 for the Fund compared to a benchmark index (Russell 1000 Growth Index) and the average total returns of a performance universe of funds provided by Broadridge, and calendar year returns for 2017 through 2020 for the Fund compared to the benchmark index and a peer group of funds provided by Broadridge. The Board noted that the Fund's total return was above the benchmark index and the average of the performance universe for the one-year, three-year and since inception periods. The Board concluded that the Fund's performance was satisfactory.
The Board reviewed the advisory fee (plus the applicable Class specific fee) and net expense ratio for the Fund's Class K and Institutional Class, 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 contractual advisory fee (plus the applicable Class specific fee) was below the average contractual 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 whether there were economies of scale with respect to management of the Fund and whether the Fund benefits from economies of scale. The Board considered that the Fund's contractual advisory fee (plus the applicable Class specific fee) was on the low end of the spectrum of the expense peer group and also considered the expense limitation in place until April 30, 2022. On the basis of the information provided, the Board concluded that the advisory 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 renewal of the Advisory Agreement was in the best interests of each Fund.
194
BOARD CONSIDERATIONS REGARDING NEW FUND ADVISORY AGREEMENT APPROVAL (unaudited)
Semi-Annual Report June 30, 2021
BAILLIE GIFFORD U.S. DISCOVERY FUND
On March 12, 2021, the Board of Trustees (the "Board") of 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 Baillie Gifford U.S. Discovery Fund (the "Fund"), 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 and advised by their independent legal counsel of their fiduciary duties pertaining to approval of investment advisory agreements and the factors that they should consider in evaluating such agreements. The Independent Trustees reviewed materials received from the Manager and Broadridge, an independent provider of mutual fund data ("Broadridge"). After reviewing the information received, the Independent Trustees requested supplemental information, and the Manager provided materials in response. 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 Board concluded that it was in the best interests of the Fund to approve the Advisory Agreement. In reaching this conclusion for the Fund, 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 Fund. The Board noted that, pursuant to the Fund's Advisory Agreement, the Manager will provide portfolio management services to the Fund and will receive an advisory 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, compliance and administrative personnel who would be involved in the management and oversight of the Fund and reviewed information regarding the Fund's advisory fee and administration and supervisory fee, and the estimated expense ratio for each share class of the Fund, compared to similar funds. The Board considered the proposed investment objective and investment philosophy and process for the Fund, and noted that, although the Manager does not currently manage a U.S. discovery strategy, it has managed a similar global discovery strategy since May 3, 2011. The Board noted that the Manager provides advisory services to other funds in the Trust and that the Board had also reviewed extensive information during the 2020 annual contract renewal process regarding the Manager and the nature, extent and quality of services provided to other funds in the Trust. In evaluating the advisory fee to be paid by the Fund, and in particular when assessing comparative data, the Board considered not only the advisory fee, but also the combination of the Fund's advisory fee and administration and supervisory fee. The Board concluded that the nature, extent and quality of the services provided by the Manager to the Fund, pursuant to the Advisory Agreement, were expected to be satisfactory.
With respect to profitability, the Board considered that, because the Fund was not operational, the Manager did not provide estimated profitability. The Board considered other benefits to be derived by the Manager from its relationship to the Fund, including receipt of the administration and supervisory fee. The Board considered whether there were economies of scale with respect to management of the Fund and whether the Fund would benefit from any economies of scale. The Board considered that the Fund was not yet operational and had no assets and that given its investment strategy, had capacity constraints.
The Board reviewed the Fund's advisory fee (plus the administration and supervisory fee) and estimated total expense ratio for the Fund's Class K and Institutional Class, 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 advisory fee (plus the administration and supervisory fee) for each share class was below the average management fee of both the expense peer group and the expense universe. The Board also reviewed the fee schedules for other clients of the Manager investing in the global discovery investment mandate similar to the Fund's U.S. discovery investment mandate. The Board considered that the Manager has contractually agreed to waive its fees and/or bear other expenses of Class K and Institutional Class shares of the Fund through April 30, 2022 and that the contractual agreement may only be terminated by the Board. The Board considered that the advisory fee (plus the
195
BOARD CONSIDERATIONS REGARDING NEW FUND ADVISORY AGREEMENT APPROVAL (unaudited)
Semi-Annual Report June 30, 2021
administration and supervisory fee) for each share class 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 advisory fee was reasonable.
Based upon all the information considered and the conclusions reached, the Board determined that the terms of the Advisory Agreement for the Fund were reasonable and fair and that the approval of the Advisory Agreement was in the best interests of the Fund.
196
Copyright © Baillie Gifford & Co 2015.
BAILLIE GIFFORD FUNDS
Baillie Gifford International All Cap Fund
Semi-Annual Report
June 30, 2021
(unaudited)
Index
Page Number |
01 | Fund Expenses | ||||||
03 | Industry Diversification Table | ||||||
04 | Portfolio of Investments | ||||||
09 | Statement of Assets and Liabilities | ||||||
10 | Statement of Operations | ||||||
11 | Statements of Changes in Net Assets | ||||||
Financial Highlights | |||||||
12 | Selected Data for Class 2 | ||||||
13 | Selected Data for Class 3 | ||||||
14 | Selected Data for Class 5 | ||||||
15 | Notes to Financial Statements | ||||||
Supplemental Information | |||||||
23 | Management of the Trust | ||||||
24 | Board Considerations Regarding 2021 Contract Renewal |
Scenic view of Bostadh Beach and Luskentyre Beach in Summer, Isle of Harris, Scotland Source: © Markus Keller/Shutterstock
This report is intended for shareholders of Baillie Gifford International All Cap Fund (the "Fund") and may not be used as sales literature unless preceded or accompanied by a current prospectus for the Fund.
The statements and views expressed in this report are as of this report's period end and are subject to change at any time. All investments entail risk, including the possible loss of principal.
Fund Expenses (unaudited)
Semi-Annual Report June 30, 2021
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs and (2) ongoing costs, including advisory 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 Fund and to compare these costs with the ongoing costs of investing in 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 January 1, 2021 to June 30, 2021.
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 labeled "Hypothetical (5% return before expenses)" 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.
01
Fund Expenses (unaudited)
Semi-Annual Report June 30, 2021
Beginning Account Value January 1, 2021 | Ending Account Value June 30, 2021 | Annualized Expense Ratios Based on the Period January 1, 2021 to June 30, 2021 | Expenses Paid During Period* | ||||||||||||||||
Baillie Gifford International All Cap Fund — Class 2 | |||||||||||||||||||
Actual | $ | 1,000 | $ | 1,067.50 | 0.60 | % | $ | 3.08 | |||||||||||
Hypothetical (5% return before expenses) | $ | 1,000 | $ | 1,021.82 | 0.60 | % | $ | 3.01 | |||||||||||
Baillie Gifford International All Cap Fund — Class 3 | |||||||||||||||||||
Actual | $ | 1,000 | $ | 1,067.90 | 0.53 | % | $ | 2.72 | |||||||||||
Hypothetical (5% return before expenses) | $ | 1,000 | $ | 1,022.17 | 0.53 | % | $ | 2.66 | |||||||||||
Baillie Gifford International All Cap Fund — Class 5 | |||||||||||||||||||
Actual | $ | 1,000 | $ | 1,068.30 | 0.45 | % | $ | 2.31 | |||||||||||
Hypothetical (5% return before expenses) | $ | 1,000 | $ | 1,022.56 | 0.45 | % | $ | 2.26 |
* Unless otherwise indicated, expenses are calculated using the Fund's annualized expense ratio, multiplied by the average account value for the period, multiplied by 181/365 (to reflect the six-month period).
Expenses are calculated using the annualized expense ratio for the Fund, which represents the ongoing expenses as a percentage of net assets for the period ended June 30, 2021. 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 most recent fiscal half-year; and then dividing that result by the number of days in the calendar year.
02
Industry Diversification Table
Semi-Annual Report June 30, 2021
June 30, 2021 (unaudited)
Baillie Gifford International All Cap Fund
Value | % of Total Net Assets | ||||||||||
Apparel | $ | 23,455,995 | 4.4 | % | |||||||
Auto Manufacturers | 4,182,866 | 0.8 | |||||||||
Auto Parts & Equipment | 3,927,831 | 0.7 | |||||||||
Banks | 5,940,888 | 1.1 | |||||||||
Beverages | 19,756,333 | 3.6 | |||||||||
Biotechnology | 7,225,001 | 1.4 | |||||||||
Building Materials | 10,230,676 | 1.9 | |||||||||
Chemicals | 19,908,903 | 3.7 | |||||||||
Commercial Services | 9,830,197 | 1.9 | |||||||||
Computers | 8,915,525 | 1.7 | |||||||||
Cosmetics/Personal Care | 12,398,075 | 2.3 | |||||||||
Diversified Financial Services | 14,033,295 | 2.6 | |||||||||
Electrical Components & Equipment | 5,234,900 | 1.0 | |||||||||
Electronics | 37,383,181 | 7.0 | |||||||||
Engineering & Construction | 2,784,201 | 0.5 | |||||||||
Food | 4,637,591 | 0.9 | |||||||||
Hand/Machine Tools | 8,556,643 | 1.6 | |||||||||
Healthcare — Products | 25,550,860 | 4.8 | |||||||||
Home Furnishings | 4,788,994 | 0.9 | |||||||||
Insurance | 17,670,226 | 3.3 | |||||||||
Internet | 115,869,151 | 21.8 | |||||||||
Investment Companies | 6,110,572 | 1.2 | |||||||||
Leisure Time | 6,257,399 | 1.2 | |||||||||
Machinery — Construction & Mining | 8,651,198 | 1.6 | |||||||||
Machinery — Diversified | 29,680,510 | 5.6 | |||||||||
Oil & Gas Services | 1,218,738 | 0.2 | |||||||||
Retail | 52,036,544 | 9.8 | |||||||||
Semiconductors | 35,448,277 | 6.7 | |||||||||
Software | 14,706,536 | 2.8 | |||||||||
Telecommunications | 4,965,618 | 0.9 | |||||||||
Toys/Games/Hobbies | 5,903,454 | 1.1 | |||||||||
Total Value of Investments | 527,260,178 | 99.0 | |||||||||
Other assets less liabilities | 5,281,056 | 1.0 | |||||||||
Net Assets | $ | 532,541,234 | 100.0 | % |
The table above is based on Bloomberg Industry Group classifications. For compliance monitoring purposes, sub-industry classifications are used which results in less concentration across industry sectors.
03
Portfolio of Investments
Semi-Annual Report June 30, 2021
June 30, 2021 (unaudited)
Baillie Gifford International All Cap Fund
Shares | Value | ||||||||||
COMMON STOCKS — 97.0% | |||||||||||
ARGENTINA — 1.5% | |||||||||||
MercadoLibre, Inc. * | 5,064 | $ | 7,888,649 | ||||||||
AUSTRALIA — 2.7% | |||||||||||
Cochlear Ltd. | 44,910 | 8,473,039 | |||||||||
SEEK Ltd. | 242,435 | 6,026,689 | |||||||||
14,499,728 | |||||||||||
BRAZIL — 1.0% | |||||||||||
Raia Drogasil SA | 1,037,200 | 5,171,611 | |||||||||
CANADA — 2.9% | |||||||||||
Fairfax Financial Holdings Ltd. | 6,595 | 2,892,096 | |||||||||
Shopify, Inc., Class A * | 8,760 | 12,798,185 | |||||||||
15,690,281 | |||||||||||
CHINA — 13.0% | |||||||||||
Alibaba Group Holding Ltd. ADR * | 49,102 | 11,135,352 | |||||||||
Baidu, Inc. ADR * | 21,579 | 4,399,958 | |||||||||
BeiGene Ltd. ADR * | 12,218 | 4,193,096 | |||||||||
Burning Rock Biotech Ltd. ADR * | 102,916 | 3,031,905 | |||||||||
Contemporary Amperex Technology Co., Ltd., Class A * | 63,455 | 5,234,900 | |||||||||
Li Ning Co., Ltd. | 924,500 | 11,277,339 | |||||||||
Meituan, Class B * | 233,700 | 9,640,397 | |||||||||
Ping An Insurance Group Co. of China Ltd., Class H | 368,500 | 3,602,234 | |||||||||
Prosus NV * | 35,376 | 3,465,702 | |||||||||
Trip.com Group Ltd. ADR * | 81,026 | 2,873,182 | |||||||||
Tsingtao Brewery Co., Ltd., Class H * | 762,057 | 8,195,294 | |||||||||
Yatsen Holding Ltd. ADR * | 255,509 | 2,394,119 | |||||||||
69,443,478 | |||||||||||
FINLAND — 1.1% | |||||||||||
Kone Oyj, B Shares | 72,617 | 5,926,580 | |||||||||
FRANCE — 4.5% | |||||||||||
Kering | 6,829 | 5,983,691 | |||||||||
LVMH Moet Hennessy Louis Vuitton SE | 8,401 | 6,608,706 | |||||||||
Remy Cointreau SA | 36,759 | 7,591,562 | |||||||||
Ubisoft Entertainment SA * | 53,172 | 3,715,006 | |||||||||
23,898,965 |
The accompanying notes are an integral part of the financial statements.
04
Portfolio of Investments
Semi-Annual Report June 30, 2021
June 30, 2021 (unaudited)
Baillie Gifford International All Cap Fund
Shares | Value | ||||||||||
GERMANY — 7.9% | |||||||||||
adidas AG | 18,450 | $ | 6,884,763 | ||||||||
Auto1 Group SE * | 60,348 | 2,651,210 | |||||||||
Bechtle AG | 47,969 | 8,915,525 | |||||||||
Nemetschek SE | 45,496 | 3,482,561 | |||||||||
Rational AG | 5,286 | 4,788,994 | |||||||||
Zalando SE * | 125,830 | 15,217,870 | |||||||||
41,940,923 | |||||||||||
HONG KONG — 3.2% | |||||||||||
AIA Group Ltd. | 682,200 | 8,463,086 | |||||||||
Techtronic Industries Co., Ltd. | 491,000 | 8,556,643 | |||||||||
17,019,729 | |||||||||||
INDIA — 4.5% | |||||||||||
Asian Paints Ltd. | 252,528 | 10,180,668 | |||||||||
Housing Development Finance Corp., Ltd. | 211,779 | 7,067,732 | |||||||||
ICICI Lombard General Insurance Co., Ltd. | 128,564 | 2,712,811 | |||||||||
MakeMyTrip Ltd. * | 61,495 | 1,847,925 | |||||||||
United Spirits Ltd. * | 263,376 | 2,347,502 | |||||||||
24,156,638 | |||||||||||
JAPAN — 17.0% | |||||||||||
Denso Corp. | 57,600 | 3,927,831 | |||||||||
Kakaku.com, Inc. | 143,900 | 4,329,104 | |||||||||
Kao Corp. | 46,500 | 2,867,194 | |||||||||
Keyence Corp. | 11,400 | 5,741,307 | |||||||||
Murata Manufacturing Co., Ltd. | 95,800 | 7,297,553 | |||||||||
Nidec Corp. | 75,100 | 8,635,767 | |||||||||
Olympus Corp. | 386,800 | 7,693,813 | |||||||||
Pigeon Corp. | 78,500 | 2,214,011 | |||||||||
Recruit Holdings Co., Ltd. | 105,900 | 5,193,209 | |||||||||
Shimano, Inc. | 26,300 | 6,257,399 | |||||||||
Shiseido Co., Ltd. | 99,200 | 7,316,870 | |||||||||
SMC Corp. | 13,400 | 7,927,370 | |||||||||
SoftBank Group Corp. | 71,200 | 4,965,618 | |||||||||
Sugi Holdings Co., Ltd. | 35,400 | 2,582,755 | |||||||||
Suzuki Motor Corp. | 98,700 | 4,182,866 | |||||||||
Sysmex Corp. | 79,100 | 9,384,008 | |||||||||
90,516,675 |
The accompanying notes are an integral part of the financial statements.
05
Portfolio of Investments
Semi-Annual Report June 30, 2021
June 30, 2021 (unaudited)
Baillie Gifford International All Cap Fund
Shares | Value | ||||||||||
MEXICO — 0.4% | |||||||||||
Wal-Mart de Mexico SAB de CV | 710,508 | $ | 2,320,717 | ||||||||
NETHERLANDS — 4.1% | |||||||||||
ASML Holding NV | 23,608 | 16,297,055 | |||||||||
IMCD NV | 34,683 | 5,526,217 | |||||||||
21,823,272 | |||||||||||
NEW ZEALAND — 1.4% | |||||||||||
Xero Ltd. * | 73,002 | 7,508,969 | |||||||||
PORTUGAL — 0.9% | |||||||||||
Jeronimo Martins SGPS SA | 254,298 | 4,637,591 | |||||||||
SINGAPORE — 1.1% | |||||||||||
United Overseas Bank Ltd. | 308,499 | 5,940,888 | |||||||||
SOUTH AFRICA — 1.5% | |||||||||||
Naspers Ltd., N Shares | 37,424 | 7,890,738 | |||||||||
SOUTH KOREA — 1.6% | |||||||||||
Coupang, Inc. * | 64,232 | 2,686,182 | |||||||||
NAVER Corp. | 15,436 | 5,727,817 | |||||||||
8,413,999 | |||||||||||
SPAIN — 1.3% | |||||||||||
Industria de Diseno Textil SA | 195,148 | 6,890,055 | |||||||||
SWEDEN — 6.0% | |||||||||||
Atlas Copco AB, A Shares | 861 | 52,873 | |||||||||
Atlas Copco AB, B Shares | 190,489 | 10,032,380 | |||||||||
Epiroc AB, B Shares | 281,426 | 5,525,132 | |||||||||
Investor AB, B Shares | 265,096 | 6,110,572 | |||||||||
Nibe Industrier AB, B Shares | 970,892 | 10,230,676 | |||||||||
31,951,633 | |||||||||||
SWITZERLAND — 1.6% | |||||||||||
Compagnie Financiere Richemont SA | 70,744 | 8,576,197 |
The accompanying notes are an integral part of the financial statements.
06
Portfolio of Investments
Semi-Annual Report June 30, 2021
June 30, 2021 (unaudited)
Baillie Gifford International All Cap Fund
Shares | Value | ||||||||||
TAIWAN — 3.6% | |||||||||||
Taiwan Semiconductor Manufacturing Co., Ltd. ADR | 159,381 | $ | 19,151,221 | ||||||||
THAILAND — 0.3% | |||||||||||
Thai Beverage PCL | 3,225,300 | 1,621,975 | |||||||||
UNITED KINGDOM — 10.5% | |||||||||||
ASOS PLC * | 51,069 | 3,509,636 | |||||||||
Auto Trader Group PLC * | 852,426 | 7,465,552 | |||||||||
Burberry Group PLC * | 139,124 | 3,978,835 | |||||||||
Games Workshop Group PLC | 37,434 | 5,903,454 | |||||||||
Hargreaves Lansdown PLC | 316,553 | 6,965,563 | |||||||||
HomeServe PLC | 210,518 | 2,784,201 | |||||||||
Intertek Group PLC | 60,587 | 4,636,988 | |||||||||
John Wood Group PLC * | 400,040 | 1,218,738 | |||||||||
Johnson Matthey PLC | 98,694 | 4,202,018 | |||||||||
Rightmove PLC | 960,654 | 8,634,556 | |||||||||
Trainline PLC * | 793,534 | 3,222,834 | |||||||||
Weir Group PLC (The) * | 121,776 | 3,126,066 | |||||||||
55,648,441 | |||||||||||
UNITED STATES — 3.4% | |||||||||||
Mettler-Toledo International, Inc. * | 7,674 | 10,631,099 | |||||||||
Spotify Technology SA * | 26,421 | 7,281,364 | |||||||||
17,912,463 | |||||||||||
Total Common Stocks | |||||||||||
(cost $278,815,137) | 516,441,416 | ||||||||||
PREFERRED STOCKS — 2.0% | |||||||||||
GERMANY — 2.0% | |||||||||||
Sartorius AG 0.15% (cost $2,472,932) | 20,785 | 10,818,762 | |||||||||
TOTAL INVESTMENTS — 99.0% | |||||||||||
(cost $281,288,069) | $ | 527,260,178 | |||||||||
Other assets less liabilities — 1.0% | 5,281,056 | ||||||||||
NET ASSETS — 100.0% | $ | 532,541,234 |
* Non-income producing security.
ADR — American Depositary Receipt
This report classifies issuers geographically by their country of risk. For compliance monitoring purposes, Baillie Gifford Overseas Limited retains discretion to consider a number of factors in determining where a particular issuer is located, as described in further detail in the Fund's prospectus for private placement.
The accompanying notes are an integral part of the financial statements.
07
Portfolio of Investments
Semi-Annual Report June 30, 2021
June 30, 2021 (unaudited)
Baillie Gifford International All Cap Fund
Fair Value Measurement
The following is a summary of the inputs used as of June 30, 2021 in valuing the Fund's investments carried at fair value:
Investments in Securities | Level 1 | Level 2 | Level 3 | Total | |||||||||||||||
Common Stocks ** | $ | 111,208,296 | $ | 405,233,120 | $ | — | $ | 516,441,416 | |||||||||||
Preferred Stocks ** | — | 10,818,762 | — | 10,818,762 | |||||||||||||||
Total | $ | 111,208,296 | $ | 416,051,882 | $ | — | $ | 527,260,178 |
** Refer to Portfolio of Investments for further detail.
The accompanying notes are an integral part of the financial statements.
08
Statement of Assets and Liabilities
Semi-Annual Report June 30, 2021
June 30, 2021 (unaudited)
Baillie Gifford International All Cap Fund
ASSETS | |||||||
Investments, at value (cost $281,288,069) | $ | 527,260,178 | |||||
Cash | 6,254,909 | ||||||
Foreign cash, at value (cost $84,294) | 88,182 | ||||||
Tax reclaims receivable | 353,887 | ||||||
Dividends receivable | 332,462 | ||||||
Prepaid assets | 2,808 | ||||||
Total Assets | 534,292,426 | ||||||
LIABILITIES | |||||||
Advisory fee payable | 474,147 | ||||||
Deferred India capital gains tax liability (Note A) | 1,015,314 | ||||||
Shareholder servicing fee payable | 149,721 | ||||||
Trustee fee payable | 3,404 | ||||||
Commitment fee payable | 895 | ||||||
Accrued expenses | 107,711 | ||||||
Total Liabilities | 1,751,192 | ||||||
NET ASSETS | $ | 532,541,234 | |||||
COMPOSITION OF NET ASSETS | |||||||
Paid-in capital | $ | 232,527,250 | |||||
Total distributable earnings | 300,013,984 | ||||||
$ | 532,541,234 | ||||||
NET ASSET VALUE, PER SHARE | |||||||
Class 2 ($125,940,837 / 5,819,887 shares outstanding), unlimited authorized, no par value | $ | 21.64 | |||||
Class 3 ($356,648,230 / 16,289,575 shares outstanding), unlimited authorized, no par value | $ | 21.89 | |||||
Class 5 ($49,952,167 / 2,231,189 shares outstanding), unlimited authorized, no par value | $ | 22.39 |
The accompanying notes are an integral part of the financial statements.
09
Statement of Operations
Semi-Annual Report June 30, 2021
For the Six Months Ended June 30, 2021 (unaudited)
Baillie Gifford International All Cap Fund
INVESTMENT INCOME | |||||||
Dividends (net of foreign withholding taxes of $367,611) | $ | 2,770,925 | |||||
Total Investment Income | 2,770,925 | ||||||
EXPENSES | |||||||
Advisory fee (Note B) | 984,737 | ||||||
Shareholder Servicing fees — Class 2 shares (Note B) | 139,944 | ||||||
Shareholder Servicing fees — Class 3 shares (Note B) | 170,486 | ||||||
Shareholder Servicing fees — Class 5 shares (Note B) | 5,709 | ||||||
Transfer agency | 26,150 | ||||||
Fund accounting | 94,208 | ||||||
Custody | 44,492 | ||||||
Legal | 31,576 | ||||||
Professional fees | 18,146 | ||||||
Trustees' fees | 6,377 | ||||||
Commitment fees | 1,612 | ||||||
Miscellaneous | 10,521 | ||||||
Total Expenses | 1,533,958 | ||||||
Net Investment Income | 1,236,967 | ||||||
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS AND FOREIGN CURRENCY TRANSACTIONS | |||||||
Net realized gain (loss) from: | |||||||
Investments (net of India capital gains tax expense of $142,028) | 55,864,845 | ||||||
Foreign currency transactions | (73,422 | ) | |||||
55,791,423 | |||||||
Net change in unrealized depreciation on: | |||||||
Investments (net of deferred India capital gains tax expense of $40,971) (Note A) | (19,222,666 | ) | |||||
Translation of net assets and liabilities denominated in foreign currencies | (16,696 | ) | |||||
(19,239,362 | ) | ||||||
Net realized and unrealized gain | 36,552,061 | ||||||
NET INCREASE IN NET ASSETS FROM OPERATIONS | $ | 37,789,028 |
The accompanying notes are an integral part of the financial statements.
10
Statements of Changes in Net Assets
Semi-Annual Report June 30, 2021
Baillie Gifford International All Cap Fund
For the Six Months Ended June 30, 2021 (unaudited) | For the Year Ended December 31, 2020 | ||||||||||
INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS | |||||||||||
Net investment income | $ | 1,236,967 | $ | 1,983,118 | |||||||
Net realized gain | 55,791,423 | 25,971,756 | |||||||||
Net change in unrealized appreciation (depreciation) | (19,239,362 | ) | 123,300,902 | ||||||||
Net increase in net assets from operations | 37,789,028 | 151,255,776 | |||||||||
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS FROM: | |||||||||||
Distributable earnings | |||||||||||
Class 2 | — | (7,087,594 | ) | ||||||||
Class 3 | — | (12,911,540 | ) | ||||||||
Class 5 | — | (2,339,465 | ) | ||||||||
Total Distributions to Shareholders | — | (22,338,599 | ) | ||||||||
TRANSACTIONS IN SHARES OF BENEFICIAL INTEREST | |||||||||||
Net proceeds from shares subscribed: | |||||||||||
Class 2 | 10,000,967 | 7,000,000 | |||||||||
Class 3 | 3,001,749 | 103,690,220 | * | ||||||||
Class 5 | 318 | — | |||||||||
Dividends reinvested: | |||||||||||
Class 2 | — | 7,087,595 | |||||||||
Class 3 | — | 12,911,540 | |||||||||
Class 5 | — | 2,339,464 | |||||||||
Cost of shares redeemed: | |||||||||||
Class 2 | (79,047,447 | ) | (134,690,220 | )* | |||||||
Class 3 | — | (15,000,000 | ) | ||||||||
Class 5 | (13,700,000 | ) | — | ||||||||
Decrease in Net Assets from Transactions in Shares of Beneficial Interest | (79,744,413 | ) | (16,661,401 | ) | |||||||
Total Increase (Decrease) in Net Assets | (41,955,385 | ) | 112,255,776 | ||||||||
NET ASSETS | |||||||||||
Beginning of period | 574,496,619 | 462,240,843 | |||||||||
End of period | $ | 532,541,234 | $ | 574,496,619 |
* See Note D for details of share class conversions.
The accompanying notes are an integral part of the financial statements.
11
Financial Highlights
Semi-Annual Report June 30, 2021
Baillie Gifford International All Cap Fund
Selected data for a Class 2 share outstanding throughout each period
For the Six Months Ended June 30, 2021 (unaudited) | For the Year Ended December 31, 2020 | For the Year Ended December 31, 2019 | For the Year Ended December 31, 2018 | For the Year Ended December 31, 2017 | For the Year Ended December 31, 2016 | ||||||||||||||||||||||
Net asset value, beginning of period | $ | 20.27 | $ | 15.82 | $ | 12.26 | $ | 14.85 | $ | 11.44 | $ | 11.53 | |||||||||||||||
From Investment Operations | |||||||||||||||||||||||||||
Net investment income(a) | 0.03 | 0.06 | 0.27 | 0.15 | 0.14 | 0.17 | |||||||||||||||||||||
Net realized and unrealized gain (loss) on investments and foreign currency | 1.34 | 5.20 | 3.73 | (2.61 | ) | 3.46 | (0.11 | ) | |||||||||||||||||||
Net increase (decrease) in net asset value from investment operations | 1.37 | 5.26 | 4.00 | (2.46 | ) | 3.60 | 0.06 | ||||||||||||||||||||
Dividends and Distributions to Shareholders | |||||||||||||||||||||||||||
From net investment income | — | (0.18 | ) | (0.44 | ) | (0.13 | ) | (0.19 | ) | (0.15 | ) | ||||||||||||||||
From net realized gain on investments | — | (0.63 | ) | — | — | — | — | ||||||||||||||||||||
Total Dividends and Distributions | — | (0.81 | ) | (0.44 | ) | (0.13 | ) | (0.19 | ) | (0.15 | ) | ||||||||||||||||
Proceeds from Purchase Fees and Redemption Fees(a) | — | — | — | — | 0.00 | (b) | 0.00 | (b) | |||||||||||||||||||
Net asset value, end of period | $ | 21.64 | $ | 20.27 | $ | 15.82 | $ | 12.26 | $ | 14.85 | $ | 11.44 | |||||||||||||||
Total Return | |||||||||||||||||||||||||||
Total return based on net asset value(c) | 6.75 | %(d) | 33.31 | % | 32.65 | % | (16.63 | )% | 31.45 | % | 0.54 | % | |||||||||||||||
Ratios/Supplemental Data | |||||||||||||||||||||||||||
Net assets, end of period (000's omitted) | $ | 125,941 | $ | 183,037 | $ | 258,860 | $ | 242,317 | $ | 324,764 | $ | 219,300 | |||||||||||||||
Ratio of net expenses to average net assets | 0.60 | %* | 0.62 | % | 0.65 | % | 0.64 | % | 0.65 | % | 0.65 | % | |||||||||||||||
Ratio of net investment income to average net assets | 0.33 | %* | 0.34 | % | 1.92 | %(e) | 1.02 | % | 1.03 | % | 1.48 | % | |||||||||||||||
Portfolio turnover rate(f) | 8 | % | 12 | % | 13 | % | 15 | % | 12 | % | 14 | % |
* Annualized.
(a) Calculated based upon average shares outstanding during the period.
(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) The total return disclosed include adjustments made for financial reporting purposes in conformity with U.S. generally accepted accounting principles.
(e) Large increase due to one-off taxable stock dividends that were treated as income.
(f) Portfolio turnover rate calculated at Fund level.
The accompanying notes are an integral part of the financial statements.
12
Financial Highlights
Semi-Annual Report June 30, 2021
Baillie Gifford International All Cap Fund
Selected data for a Class 3 share outstanding throughout each period
For the Six Months Ended June 30, 2021 (unaudited) | For the Year Ended December 31, 2020 | For the Year Ended December 31, 2019 | For the Year Ended December 31, 2018 | For the Year Ended December 31, 2017 | For the Year Ended December 31, 2016 | ||||||||||||||||||||||
Net asset value, beginning of period | $ | 20.50 | $ | 15.99 | $ | 12.39 | $ | 15.01 | $ | 11.56 | $ | 11.65 | |||||||||||||||
From Investment Operations | |||||||||||||||||||||||||||
Net investment income(a) | 0.05 | 0.07 | 0.30 | 0.16 | 0.15 | 0.18 | |||||||||||||||||||||
Net realized and unrealized gain (loss) on investments and foreign currency | 1.34 | 5.27 | 3.75 | (2.64 | ) | 3.50 | (0.12 | ) | |||||||||||||||||||
Net increase (decrease) in net asset value from investment operations | 1.39 | 5.34 | 4.05 | (2.48 | ) | 3.65 | 0.06 | ||||||||||||||||||||
Dividends and Distributions to Shareholders | |||||||||||||||||||||||||||
From net investment income | — | (0.20 | ) | (0.45 | ) | (0.14 | ) | (0.20 | ) | (0.15 | ) | ||||||||||||||||
From net realized gain on investments | — | (0.63 | ) | — | — | — | — | ||||||||||||||||||||
Total Dividends and Distributions | — | (0.83 | ) | (0.45 | ) | (0.14 | ) | (0.20 | ) | (0.15 | ) | ||||||||||||||||
Proceeds from Purchase Fees and Redemption Fees(a) | — | — | — | — | 0.00 | (b) | 0.00 | (b) | |||||||||||||||||||
Net asset value, end of period | $ | 21.89 | $ | 20.50 | $ | 15.99 | $ | 12.39 | $ | 15.01 | $ | 11.56 | |||||||||||||||
Total Return | |||||||||||||||||||||||||||
Total return based on net asset value(c) | 6.79 | %(d) | 33.40 | % | 32.74 | % | (16.57 | )% | 31.54 | % | 0.61 | % | |||||||||||||||
Ratios/Supplemental Data | |||||||||||||||||||||||||||
Net assets, end of period (000's omitted) | $ | 356,648 | $ | 331,138 | $ | 158,198 | $ | 119,176 | $ | 142,844 | $ | 108,594 | |||||||||||||||
Ratio of net expenses to average net assets | 0.53 | %* | 0.55 | % | 0.58 | % | 0.57 | % | 0.58 | % | 0.58 | % | |||||||||||||||
Ratio of net investment income to average net assets | 0.48 | %* | 0.44 | % | 2.04 | %(e) | 1.09 | % | 1.13 | % | 1.55 | % | |||||||||||||||
Portfolio turnover rate(f) | 8 | % | 12 | % | 13 | % | 15 | % | 12 | % | 14 | % |
* Annualized.
(a) Calculated based upon average shares outstanding during the period.
(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) The total return disclosed include adjustments made for financial reporting purposes in conformity with U.S. generally accepted accounting principles.
(e) Large increase due to one-off taxable stock dividends that were treated as income.
(f) Portfolio turnover rate calculated at Fund level.
The accompanying notes are an integral part of the financial statements.
13
Financial Highlights
Semi-Annual Report June 30, 2021
Baillie Gifford International All Cap Fund
Selected data for a Class 5 share outstanding throughout each period
For the Six Months Ended June 30, 2021 (unaudited) | For the Year Ended December 31, 2020 | For the Period July 10, 2019(b) through December 31, 2019 | For the Period January 1, 2019 through April 10, 2019(b) | For the Period January 10, 2018(a) through December 31, 2018 | |||||||||||||||||||
Net asset value, beginning of period | $ | 20.96 | $ | 16.33 | $ | 15.14 | $ | 12.64 | $ | 15.72 | |||||||||||||
From Investment Operations | |||||||||||||||||||||||
Net investment income(c) | 0.06 | 0.09 | 0.20 | 0.06 | 0.18 | ||||||||||||||||||
Net realized and unrealized gain (loss) on investments and foreign currency | 1.37 | 5.38 | 1.46 | 1.97 | (3.11 | ) | |||||||||||||||||
Net increase (decrease) in net asset value from investment operations | 1.43 | 5.47 | 1.66 | 2.03 | (2.93 | ) | |||||||||||||||||
Dividends and Distributions to Shareholders | |||||||||||||||||||||||
From net investment income | — | (0.21 | ) | (0.47 | ) | — | (0.15 | ) | |||||||||||||||
From net realized gain on investments | — | (0.63 | ) | — | — | — | |||||||||||||||||
Total Dividends and Distributions | — | (0.84 | ) | (0.47 | ) | — | (0.15 | ) | |||||||||||||||
Net asset value, end of period | $ | 22.39 | $ | 20.96 | $ | 16.33 | $ | 14.67 | $ | 12.64 | |||||||||||||
Total Return | |||||||||||||||||||||||
Total return based on net asset value(d) | 6.83 | %(e) | 33.51 | % | 10.95 | % | 16.02 | % | (18.61 | )% | |||||||||||||
Ratios/Supplemental Data | |||||||||||||||||||||||
Net assets, end of period (000's omitted) | $ | 49,952 | $ | 60,321 | $ | 45,183 | $ | 39,464 | $ | 34,016 | |||||||||||||
Ratio of net expenses to average net assets | 0.45 | %* | 0.47 | % | 0.50 | %* | 0.49 | %* | 0.49 | %* | |||||||||||||
Ratio of net investment income to average net assets | 0.53 | %* | 0.51 | % | 2.66 | %(f) | 1.59 | %* | 1.21 | %* | |||||||||||||
Portfolio turnover rate(g) | 8 | % | 12 | % | 13 | % | 13 | % | 15 | % |
* Annualized.
(a) Commencement of investment operations.
(b) Recommencement of investment operations. Class had no shareholders from April 11, 2019 to July 10, 2019. All shares of this class were redeemed on April 10, 2019 at $14.67. New shares were issued at $15.14 on July 10, 2019.
(c) Calculated based upon average shares outstanding during the period.
(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) The total return disclosed include adjustments made for financial reporting purposes in conformity with U.S. generally accepted accounting principles.
(f) Large increase due to one-off taxable stock dividends that were treated as income.
(g) Portfolio turnover rate calculated at Fund level.
The accompanying notes are an integral part of the financial statements.
14
Notes to Financial Statements (unaudited)
Semi-Annual Report June 30, 2021
Note A — Organization and Accounting Policies
The Fund is a series of Baillie Gifford Funds (the "Trust"). The investment objective of the Fund is to achieve capital appreciation. For information on the specific investment strategies of the Fund and a description of each share class, please refer to the Fund's Prospectus for Private Placement ("Prospectus"). The Trust is an open-end management investment company registered under the Investment Company Act of 1940, as amended (the "1940 Act"). The Trust was organized as a Massachusetts business trust on June 21, 2000, under the laws of Massachusetts. The Trust operates pursuant to the Second Amended and Restated Agreement and Declaration of Trust dated February 27, 2017, as amended from time to time.
The Fund's Class 2, Class 3 and Class 5 share classes had shares outstanding as of June 30, 2021.
The Fund is an investment company that applies the accounting and reporting guidance issued in Topic 946 by the U.S. Financial Accounting Standards Board. The financial statements of the Fund 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 and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of increases and decreases in net assets from operations during the reporting period. Actual results could differ from those estimates.
The following is a summary of significant accounting policies followed by the Fund:
Valuation of Investments
Investments are recorded at fair value. Equity securities listed on a securities exchange, market or automated quotation system (including equity securities traded over the counter) for which quotations are readily available, are valued at the last quoted trade price on the primary exchange or market (foreign or domestic) on which they are most actively traded on the date of valuation (or at approximately 4:00 p.m. Eastern Time if a security's primary exchange is normally open at that time), or, if there is no such reported sale on the date of valuation, at the most recent quoted bid price.
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 for any other reason), and all other assets, are valued at their fair value as determined in good faith by Baillie Gifford Overseas Limited (the "Manager"), pursuant to procedures approved by the Board of Trustees of the Trust (the "Board"). The actual calculations may be made by persons acting pursuant to the direction of the Board 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, and such events may not be reflected in the computation of the Fund's net asset value. If events materially affecting the value of the Fund's 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 Fund utilizes a third party pricing service for all equity securities, except those traded on Canadian, Latin American, or U.S. exchanges, subject to certain minimum confidence levels, which applies a fair value adjustment that seeks to reflect changes in such securities' market prices since the close of the market on which the securities 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.
Fair Value Measurement
GAAP provides guidance on fair value measurements and defines fair value as the price that the 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:
15
Notes to Financial Statements (unaudited)
Semi-Annual Report June 30, 2021
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 uses 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 Fund's 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. This includes when a fair value adjustment is applied which seeks to reflect changes in foreign securities' market prices since the close of the market on which they are traded. 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 Fund uses 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 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.
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 the Fund's investments at June 30, 2021 is disclosed at the end of the Fund's Portfolio of Investments.
For the period ended June 30, 2021, there were no Level 3 investments for which significant unobservable inputs were used to determine the fair value.
Foreign Currency Translation
The accounting records of the Fund 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. 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 Fund does 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 Fund's 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 Fund's 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. Non-cash income, if any, is included in investment income, with any non-cash income exceeding 5% of the Fund's total income stated separately on the Statement of Operations, and is recorded at the fair market value of securities received.
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 and Other Taxes
The Fund intends to continue to qualify to be taxed as a "regulated investment company" under the provisions of
16
Notes to Financial Statements (unaudited)
Semi-Annual Report June 30, 2021
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 Fund's 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. Investment income is recorded net of any foreign withholding taxes, less any amounts reclaimable. The Fund may file withholding tax reclaims in certain jurisdictions to recover a portion of amounts previously withheld. Whenever possible, the Fund 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 Fund invests.
In addition to the requirements of the Code, the Fund may also be subject to capital gains tax in India and potentially other foreign jurisdictions, on gains realized upon the sale of securities, payable upon repatriation of sales proceeds. Any realized losses in excess of gains in India 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 based on existing tax rates and holding periods of the securities. As of June 30, 2021, the Fund recorded a deferred liability for potential future India capital gains taxes of $1,015,314.
The Fund is 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 Fund's 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 Fund. The previous three tax year ends remain subject to examination.
At December 31, 2020 for federal income tax purposes, the Fund had no capital loss carryforwards.
Realized capital losses, currency losses and passive foreign investment company ("PFIC") losses incurred after October 31 ("post-October capital/late year ordinary losses") within the taxable year are deemed to arise on the first business day of the Fund's next taxable year.
At December 31, 2020, the Fund had no post October capital/late year ordinary losses.
Dividends and Distributions to Shareholders
The Fund intends 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 Fund at net asset value on the ex-dividend date unless the shareholder elects to receive dividends and distributions in cash. Currently, the Fund's policy is 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.
The Fund's cost of investments and gross unrealized appreciation (depreciation) at June 30, 2021 for U.S. federal income tax purposes were as follows:
Fund | Cost of Investments | Gross Appreciation | Gross Depreciation | Net Appreciation | |||||||||||||||
Baillie Gifford International All Cap Fund | $ | 281,575,002 | $ | 251,870,708 | $ | (6,185,532 | ) | $ | 245,685,176 |
17
Notes to Financial Statements (unaudited)
Semi-Annual Report June 30, 2021
Note B — Investment Management and Other Services
The Fund is 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 Fund (the "Advisory Agreement"), the Fund pays the Manager an investment advisory fee in arrears.
The advisory fee paid by the Fund under the Advisory Agreement is calculated and accrued daily on the basis of the annual rate noted below and expressed as a percentage of the Fund's average daily net assets.
Fund | Average Daily Net Assets of the Fund (billions) | Annual Rate at Each Asset Level | |||||||||
Baillie Gifford International All Cap Fund | $0 - $2 >$2 - $5 Above $5 | 0.35% 0.31% 0.29% |
Baillie Gifford Funds Services LLC, a wholly-owned subsidiary of the Manager, serves as the sole distributor and principal underwriter of the shares of the Fund.
The 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 Fund pays the Manager a fee at the annualized rate of the Fund's average daily net assets attributed to each class of shares as follows:
Baillie Gifford International All Cap Fund | |||||||
Class 2 | 0.17 | % | |||||
Class 3 | 0.10 | % | |||||
Class 5 | 0.02 | % |
The Bank of New York Mellon serves as the Fund's administrator and custodian. BNY Mellon Investment Servicing (U.S.) Inc. serves as the Trust's transfer agent, registrar and dividend disbursing agent.
Note C — Investment Transactions
Purchases and proceeds from sales of securities (excluding short-term securities) for the period ended June 30, 2021 were as follows:
Fund | Purchases | Sales | |||||||||
Baillie Gifford International All Cap Fund | $ | 41,688,843 | $ | 121,275,609 |
18
Notes to Financial Statements (unaudited)
Semi-Annual Report June 30, 2021
Note D — Transactions in Shares of Beneficial Interest
Baillie Gifford International All Cap Fund | |||||||||||||||||||
Class 2 Shares For the Period Ended June 30, 2021 | Class 3 Shares For the Period Ended June 30, 2021 | ||||||||||||||||||
Shares | Amount | Shares | Amount | ||||||||||||||||
Shares sold | 496,825 | $ | 10,000,967 | 138,233 | $ | 3,001,749 | |||||||||||||
Shares issued in reinvestment of dividends and distributions | — | — | — | — | |||||||||||||||
Shares redeemed | (3,706,446 | ) | (79,047,447 | ) | — | — | |||||||||||||
Net increase (decrease) | (3,209,621 | ) | $ | (69,046,480 | ) | 138,233 | $ | 3,001,749 | |||||||||||
Class 5 Shares For the Period Ended June 30, 2021 | |||||||||||||||||||
Shares | Amount | ||||||||||||||||||
Shares sold | — | $ | — | ||||||||||||||||
Shares issued in reinvestment of dividends and distributions | — | 318 | * | ||||||||||||||||
Shares redeemed | (647,233 | ) | (13,700,000 | ) | |||||||||||||||
Net increase | (647,233 | ) | $ | (13,699,682 | ) |
* Amount represents an adjustment to value of prior year reinvestment of dividends and distributions.
Class 2 Shares For the Year Ended December 31, 2020 | Class 3 Shares For the Year Ended December 31, 2020 | ||||||||||||||||||
Shares | Amount | Shares | Amount | ||||||||||||||||
Shares sold | 440,817 | $ | 7,000,000 | 6,425,102 | $ | 103,690,220 | (a) | ||||||||||||
Shares issued in reinvestment of dividends and distributions | 350,101 | 7,087,594 | 630,594 | 12,911,540 | |||||||||||||||
Shares redeemed | (8,124,339 | ) | (134,690,220 | )(b) | (795,798 | ) | (15,000,000 | ) | |||||||||||
Net increase (decrease) | (7,333,421 | ) | $ | (120,602,626 | ) | 6,259,898 | $ | 101,601,760 |
(a) 6,425,102 shares and $103,690,220 converted into Class 3 from Class 2.
(b) 6,495,741 shares and $103,690,220 converted from Class 2 into Class 3.
Class 5 Shares For the Year Ended December 31, 2020 | |||||||||||||||||||
Shares | Amount | ||||||||||||||||||
Shares sold | — | $ | — | ||||||||||||||||
Shares issued in reinvestment of dividends and distributions | 111,783 | 2,339,465 | |||||||||||||||||
Shares redeemed | — | — | |||||||||||||||||
Net increase | 111,783 | $ | 2,339,465 |
19
Notes to Financial Statements (unaudited)
Semi-Annual Report June 30, 2021
Note E — Beneficial Ownership
Beneficial ownership, either direct or indirect, of more than 25% of the voting securities of the Fund creates a presumption of control under Section 2(a)(9) of the 1940 Act. As of June 30, 2021, the following shareholders beneficially owned 25% or more of the Fund's voting securities:
Fund | Investor | Percentage | |||||||||
Baillie Gifford International All Cap Fund | The Municipal Fire & Police Retirement System of Iowa | 38.91 | % | ||||||||
Baillie Gifford International All Cap Fund | Methodist Le Bonheur Healthcare | 28.06 | % |
Purchase and redemption activity of these accounts may have a significant effect on the operation of the Fund.
Note F — Commitments and Contingencies
The Fund 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, the Fund enters into contracts that contain a variety of representations and warranties and which provide general indemnifications.
The Fund's maximum exposure under these arrangements is unknown, as this would involve future claims that may be made against the Fund that have not yet occurred. However, based on experience, the Fund expects the risk of loss to be remote.
Note G — Line of Credit
The Trust entered into a committed facility with Bank of New York Mellon on May 1, 2017, renewed April 20, 2021 and expiring April 19, 2022, which allows certain series of the Trust to borrow up to $75 million in total subject to minimum asset coverage requirements set out in the Credit Agreement. Each such series may borrow money under this credit facility for the temporary funding of shareholder redemptions or for other temporary or emergency purposes.
In normal market conditions, borrowings are charged an interest rate of 1.25% per annum plus the greater of the Federal Funds Effective Rate or the one-month U.S. LIBOR Rate.
Effective April 20, 2021, language was added to the credit agreement to set out alternative rates chargeable on borrowings if certain conditions are met including if
LIBOR ceases to be published. In these circumstances the rate chargeable would be calculated based on an alternative such as the Secured Overnight Financing Rate (SOFR).
The Fund pays a share of a commitment fee on the portion of the facility which is undrawn. Effective April 20, 2021, the commitment fee increased from 0.20% to 0.25% on undrawn amounts.
The rate payable at June 30, 2021 was 1.35% on any amounts drawn down. The were no borrowings made against the credit facility during the period.
Note H — Principal Risks (unaudited)
The below is a selection of the Fund's principal risks. Additional risks of investing in the Fund are included in the Fund's Prospectus.
Cash
Cash held by the Fund may be in excess of Federal Deposit Insurance Corporation (FDIC) limitations. The Manager does not expect any losses as a result of cash being in excess of FDIC limits.
Investment Style Risk
The Manager actively makes investment decisions for the Fund through bottom-up stock selection. Accordingly, the Fund will have risk characteristics that differ from its benchmark indices. The Manager's judgments about the attractiveness, relative value, or potential appreciation of a
20
Notes to Financial Statements (unaudited)
Semi-Annual Report June 30, 2021
particular stock may prove to be incorrect and cause the Fund to lose money or underperform compared to its benchmark index. There can be no assurance that the Manager's investment decisions will produce the desired results.
Growth Stock Risk
The prices of growth stocks may be based largely on expectations of future earnings, and their prices can decline rapidly and significantly in reaction to negative news. Growth stocks may underperform stocks in other broad style categories (and the stock market as a whole) over any period of time and may shift in and out of favor with investors generally, sometimes rapidly, depending on changes in market, economic, and other factors.
Long-Term Investment Strategy Risk
The Fund pursues a long-term investment approach, typically seeking returns over a period of several years. This investment style may cause the Fund to lose money or underperform compared to its benchmark index or other mutual funds over extended periods of time, and the Fund may not perform as expected in the long term. An investment in the Fund may be more suitable for long-term investors who can bear the risk of short- or medium-term fluctuations in the value of the Fund's portfolio.
Emerging Markets Risk
To the extent the Fund invests in emerging market securities, the Fund may be exposed to greater market, credit, currency, liquidity, legal, political, technical and other risks different from, or greater than, the risks of investing in developed markets.
Geographic Focus Risk
The Fund expects to focus investments in a limited number of countries or geographic regions, and as a result may not offer the same level of diversification of risks as a more broadly global fund because the Fund will be exposed to a smaller geographic area. The performance of a fund that is less diversified across countries or geographic regions will
be closely tied to market, currency, economic, political, environmental, or regulatory conditions and developments in the countries or regions in which the fund invests, and may be more volatile than the performance of a more geographically-diversified portfolio.
Market Disruption and Geopolitical Risk
Communicable diseases, including those that result in pandemics or epidemics, may pose significant threats to human health, and such diseases, along with any efforts to contain their spread, may be highly disruptive to both global and local economies and markets, with significant negative impact on individual issuers, sectors, industries, and asset classes. Significant public health crises, including those triggered by the transmission of a communicable disease and efforts to contain it may result in, among other things, border closings and other significant travel restrictions and disruptions, significant disruptions to business operations, supply chains and customer activity, lower consumer demand for goods and services, event cancellations and restrictions, service cancellations, reductions and other changes, significant challenges in healthcare service preparation and delivery, and prolonged quarantines, as well as general concern and uncertainty. All of these disruptive effects were present, for example, in the global pandemic linked to the outbreak of respiratory disease caused by a novel coronavirus designated as COVID-19 that was first reported in China in December 2019.
For further information on the risks of investing in the Fund, please refer to the Prospectus.
Note I — Legal Notice (unaudited)
MSCI
The MSCI information may only be used for your internal use, may not be reproduced or re-disseminated 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
21
Notes to Financial Statements (unaudited)
Semi-Annual Report June 30, 2021
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)
Note J — 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 June 30, 2021 and the issuance of the Financial Statements.
22
Supplemental Information (unaudited)
Semi-Annual Report June 30, 2021
Management of the Trust
Indepedent Trustees |
Howard W. Chin, Chair of the Nominating and Governance Committee
Pamela M. J. Cox
Robert E. Rigsby, Chair of the Audit Oversight Committee
Donald P. Sullivan Jr.
Interested Trustee |
David Salter, Chair of the Board and President
Officers (other than officers who are also Trustees) |
Andrew Telfer, Vice President
Michael Stirling-Aird, Vice President
Julie Paul, Vice President
Tim Campbell, Vice President
Lindsay Cockburn, Treasurer
Gareth Griffiths, Secretary and Chief Legal Officer
Graham Laybourn, Vice President
Suzanne Quinn, Chief Compliance Officer and AML Compliance Officer
Evan Delaney, Chief Risk Officer*
Lesley-Anne Archibald, Vice President
Kelly Cameron, Vice President
* The Board has accepted the resignation of Evan Delaney as Chief Risk Officer of the Trust and approved the appointment of Neil Riddell to that position effective July 1, 2021. Neil Riddell (year of birth 1988) is Head of Group Risk at Baillie Gifford & Co.
Additional information regarding the Trustees is in the Fund's Statement of Additional Information and is available upon request, without charge, by calling the Manager at 011-44-131-275-2000. Shareholders may submit to the Trust claims for reimbursement of telephone charges incurred in placing such calls.
A description of the Fund's proxy voting policies and procedures related to portfolio securities is available without charge, upon request, by calling the Manager 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 Fund 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 the Manager 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.
The Fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year as an exhibit to its Form N-PORT. The Fund's Form N-PORT is available on the SEC's website at http://www.sec.gov. The Fund's holdings can also be found at Baillie Gifford Funds' website: http://USmutualfund.bailliegifford.com.
23
BOARD CONSIDERATIONS REGARDING
2021 CONTRACT RENEWAL (unaudited)
Semi-Annual Report June 30, 2021
On June 18, 2021, the Board of Trustees (the "Board") of 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 renewal of the investment advisory agreement (the "Advisory Agreement") between the Trust, on behalf of Baillie Gifford International All Cap Fund (the "Fund"), 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 renewal 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. After reviewing the information received, the Independent Trustees requested supplemental information, and the Manager provided materials in response. 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 Board concluded that it was in the best interests of the Fund to renew the Advisory Agreement. In reaching this conclusion for the Fund, 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 provided by the Manager to the Fund. The Board noted that: (1) pursuant to the Fund's Advisory Agreement, the Manager provides portfolio management services to the Fund and receives an advisory fee; and (2) pursuant to a separate Shareholder Service Plan and Shareholder Servicing Agreement for Class 2, Class 3, Class 4 and Class 5 shares of the Fund, the Manager receives a "shareholder service fee," the amount of which varies among the share classes. The Board considered the background and qualifications of the investment, compliance and administrative personnel involved in the management and oversight of the Fund, reviewed information regarding the Fund's performance, advisory fee and shareholder service fee, and expense ratio for Class 2 shares of the Fund compared to similar funds, and considered the experience of the Manager in providing services to the Fund. In assessing the Fund's performance, the Board considered that performance is closely evaluated at the quarterly meetings of the Board's Performance Committee, that the Manager employs a long-term investment approach and that the Fund's returns over longer-term periods were generally good. In evaluating the advisory fee paid by the Fund, and in particular when assessing comparative data, the Board considered not only the advisory fee, but also the combination of the advisory fee and the shareholder service fee. The Board also considered that the advisory fee schedule for the Fund includes breakpoints. The Board considered other benefits derived by the Manager and its affiliates from the relationship to the Fund, including the Manager's receipt of the shareholder service fee. The Board concluded that the nature, extent and quality of the services provided by the Manager to the Fund, pursuant to the Advisory Agreement, were satisfactory.
The Board reviewed the Manager's revenues received with respect to the Fund and the nature of the Manager's resources expended in providing solely advisory services as well as additional services to the Fund. The Board considered the Manager's estimated profitability with respect to the Fund and concluded that it was not unreasonable.
The Board reviewed total return information for the one-year, three-year, five-year and since inception (September 24, 2012) periods ended March 31, 2021 for the Fund compared to a benchmark index (MSCI AC World (ex U.S.) Index) and the average total returns of a performance universe of funds provided by Broadridge, and calendar year returns for 2012 through 2020 for the Fund compared to the benchmark index and a peer group of funds provided by Broadridge. The Board noted that the Fund's total return was above the benchmark index and the average of the performance universe for the one-year, three-year, five-year and since inception periods. The Board concluded that the Fund's performance was satisfactory.
The Board reviewed the advisory fee (plus the shareholder service fee) and net expense ratio for the Fund's Class 2 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 contractual advisory fee (plus the shareholder service fee) was below the average contractual 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 whether there were economies of scale with respect to management of the Fund and whether the Fund benefits from economies of scale. The Board considered that
24
BOARD CONSIDERATIONS REGARDING
2021 CONTRACT RENEWAL (unaudited)
Semi-Annual Report June 30, 2021
the Fund's contractual advisory fee (plus the shareholder service 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 advisory 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 Fund were reasonable and fair and that the renewal of the Advisory Agreement was in the best interests of the Fund.
25
Copyright © Baillie Gifford & Co 2015.
(b) | Not applicable |
Item 2. Code of Ethics.
Not applicable.
Item 3. Audit Committee Financial Expert.
Not applicable.
Item 4. Principal Accountant Fees and Services.
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 or Form N-CSR. |
Baillie Gifford Developed EAFE All Cap 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 AB – A Shares | ATCO A | SE0011166610 | 10,706 6,809 | 01/07/2021 02/26/2021 | 294,415 287,606 | Sudan Accountability and Divestment Act of 2007 |
Baillie Gifford EAFE Plus All Cap 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 AB – A Shares | ATCO A | SE0011166610 | 14,275 9,312 3,605 | 01/25/2021 02/01/2021 02/23/2021 | 168,894 159,582 155,977 | Sudan Accountability and Divestment Act of 2007 | ||||||
Atlas Copco AB – B Shares | ATCO B | SE0011166628 | 12,445 8,078 9,276 | 03/04/2021 05/10/2021 06/01/2021 | 147,622 139,544 130,268 |
Baillie Gifford Global Alpha Equities 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 AB – B Shares | ATCO B | SE0011166628 | 17,345 3,613 24,790 17,831 | 02/04/2021 04/26/2021 06/21/2021 06/24/2021 | 284,692 281,079 266,493 248,662 | Sudan Accountability and Divestment Act of 2007 |
Baillie Gifford International All Cap 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 AB – A Shares | ATCO A | SE0011166610 | 3,232 | 02/23/2021 | 861 | Sudan Accountability and Divestment Act of 2007 | ||||||
Atlas Copco AB – B Shares | ATCO B | SE0011166628 | 6,794 14,721 9,408 | 04/27/2021 04/29/2021 04/30/2021 | 214,618 199,897 190,489 |
Baillie Gifford International Alpha 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 AB – B Shares | ATCO B | SE0011166628 | 43,832 35,967 | 03/29/2021 04/16/2021 | 1,495,765 1,459,798 | Sudan Accountability and Divestment Act of 2007 |
Baillie Gifford International Concentrated Growth Equities 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 AB – B Shares | ATCO B | SE0011166628 | 586 1,096 1,838 756 943 | 01/04/2021 05/10/2021 05/11/2021 05/14/2021 05/28/2021 | 11,009 27,482 25,644 24,888 24,726 | Sudan Accountability and Divestment Act of 2007 |
Baillie Gifford International Growth 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 AB – A Shares | ATCO A | SE0011166610 | 62,876 39,740 | 01/11/2021 01/29/2021 | 1,554,165 1,514,425 | Sudan Accountability and Divestment Act of 2007 |
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 period covered by this report 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) | Not applicable. |
(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 August 27, 2021
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 August 27, 2021
By (Signature and Title)* | /s/Lindsay Cockburn | |
Lindsay Cockburn, Treasurer | ||
(principal financial officer) |
Date August 27, 2021
* Print the name and title of each signing officer under his or her signature.
**By: |
Michael Stirling-Aird***
Date: August , 2021
*** | Attorney-in-Fact pursuant to a Power of Attorney executed on March 12, 2020 and filed as an exhibit to Post-Effective Amendment No. 49 to the registration statement of the Trust on Form N-1A filed on April 27, 2020. |