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, 2023
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 China Equities Fund
Baillie Gifford Developed EAFE All Cap Fund
Baillie Gifford EAFE Plus All Cap Fund
Baillie Gifford Emerging Markets Equities Fund
Baillie Gifford Emerging Markets ex China Fund
Baillie Gifford Global Alpha Equities Fund
Baillie Gifford Health Innovation 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 U.S. Discovery Fund
Baillie Gifford U.S. Equity Growth Fund
Semi-Annual Report
June 30, 2023
(Unaudited)
Index
Page Number | |||||||
01 | Fund Expenses | ||||||
Baillie Gifford China A Shares Growth Fund | |||||||
08 | Industry Diversification Table | ||||||
09 | Portfolio of Investments | ||||||
11 | Financial Statements | ||||||
14 | Financial Highlights | ||||||
Baillie Gifford China Equities Fund | |||||||
16 | Industry Diversification Table | ||||||
17 | Portfolio of Investments | ||||||
19 | Financial Statements | ||||||
22 | Financial Highlights | ||||||
Baillie Gifford Developed EAFE All Cap Fund | |||||||
24 | Industry Diversification Table | ||||||
25 | Portfolio of Investments | ||||||
29 | Financial Statements | ||||||
32 | Financial Highlights | ||||||
Baillie Gifford EAFE Plus All Cap Fund | |||||||
36 | Industry Diversification Table | ||||||
37 | Portfolio of Investments | ||||||
41 | Financial Statements | ||||||
44 | Financial Highlights | ||||||
Baillie Gifford Emerging Markets Equities Fund | |||||||
48 | Industry Diversification Table | ||||||
49 | Portfolio of Investments | ||||||
54 | Financial Statements | ||||||
57 | Financial Highlights | ||||||
Baillie Gifford Emerging Markets ex China Fund | |||||||
62 | Industry Diversification Table | ||||||
63 | Portfolio of Investments | ||||||
67 | Financial Statements | ||||||
70 | Financial Highlights | ||||||
Baillie Gifford Global Alpha Equities Fund | |||||||
72 | Industry Diversification Table | ||||||
73 | Portfolio of Investments | ||||||
78 | Financial Statements | ||||||
81 | Financial Highlights | ||||||
Baillie Gifford Health Innovation Equities Fund | |||||||
86 | Industry Diversification Table | ||||||
87 | Portfolio of Investments | ||||||
89 | Financial Statements | ||||||
92 | Financial Highlights | ||||||
Baillie Gifford International Alpha Fund | |||||||
94 | Industry Diversification Table | ||||||
95 | Portfolio of Investments | ||||||
100 | Financial Statements | ||||||
103 | Financial Highlights | ||||||
Baillie Gifford International Concentrated Growth Equities Fund | |||||||
109 | Industry Diversification Table | ||||||
110 | Portfolio of Investments | ||||||
112 | Financial Statements | ||||||
115 | Financial Highlights |
Page Number | |||||||
Baillie Gifford International Growth Fund | |||||||
117 | Industry Diversification Table | ||||||
118 | Portfolio of Investments | ||||||
122 | Financial Statements | ||||||
125 | Financial Highlights | ||||||
Baillie Gifford International Smaller Companies Fund | |||||||
131 | Industry Diversification Table | ||||||
132 | Portfolio of Investments | ||||||
137 | Financial Statements | ||||||
140 | Financial Highlights | ||||||
Baillie Gifford Long Term Global Growth Fund | |||||||
142 | Industry Diversification Table | ||||||
143 | Portfolio of Investments | ||||||
145 | Financial Statements | ||||||
148 | Financial Highlights | ||||||
Baillie Gifford U.S. Discovery Fund | |||||||
152 | Industry Diversification Table | ||||||
153 | Portfolio of Investments | ||||||
155 | Financial Statements | ||||||
158 | Financial Highlights | ||||||
Baillie Gifford U.S. Equity Growth Fund | |||||||
160 | Industry Diversification Table | ||||||
161 | Portfolio of Investments | ||||||
163 | Financial Statements | ||||||
166 | Financial Highlights | ||||||
168 | Notes to Financial Statements | ||||||
Supplemental Information | |||||||
192 | Management of the Trust | ||||||
193 | Board Considerations Regarding 2023 Contract Renewal |
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 based on a variety of factors. The respective parties disclaim any responsibility to update such views. Actual outcomes may differ significantly from the views expressed.
These views may not be relied on as investment advice or as an indication of trading intent on behalf of any of the Funds.
All investments entail risk, including the possible loss of principal.
Fund Expenses (unaudited)
Semi-Annual Report June 30, 2023
As a shareholder of Baillie Gifford China A Shares Growth Fund, Baillie Gifford China Equities Fund, Baillie Gifford Developed EAFE All Cap Fund, Baillie Gifford EAFE Plus All Cap Fund, Baillie Gifford Emerging Markets Equities Fund, Baillie Gifford Emerging Markets ex China Fund, Baillie Gifford Global Alpha Equities Fund, Baillie Gifford Health Innovation 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 U.S. Discovery Fund and/or Baillie Gifford U.S. Equity Growth Fund, you incur two types of costs: (1) transactional 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, 2023 to June 30, 2023.
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, 2023
Beginning Account Value January 1, 2023 | Ending Account Value June 30, 2023 | Annualized Expense Ratios Based on the Period January 1, 2023 to June 30, 2023 | Expenses Paid During Period* | ||||||||||||||||
Baillie Gifford China A Shares Growth Fund — Class K | |||||||||||||||||||
Actual | $ | 1,000 | $ | 881.80 | 0.87 | % | $ | 4.06 | |||||||||||
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 | $ | 881.80 | 0.87 | % | $ | 4.06 | |||||||||||
Hypothetical (5% return before expenses) | $ | 1,000 | $ | 1,020.48 | 0.87 | % | $ | 4.36 | |||||||||||
Baillie Gifford China Equities Fund — Class K | |||||||||||||||||||
Actual | $ | 1,000 | $ | 896.40 | 0.87 | % | $ | 4.09 | |||||||||||
Hypothetical (5% return before expenses) | $ | 1,000 | $ | 1,020.48 | 0.87 | % | $ | 4.36 | |||||||||||
Baillie Gifford China Equities Fund — Institutional Class | |||||||||||||||||||
Actual | $ | 1,000 | $ | 894.60 | 0.95 | % | $ | 4.46 | |||||||||||
Hypothetical (5% return before expenses) | $ | 1,000 | $ | 1,020.08 | 0.95 | % | $ | 4.76 | |||||||||||
Baillie Gifford Developed EAFE All Cap Fund — Class 2 | |||||||||||||||||||
Actual | $ | 1,000 | $ | 1,112.50 | 0.62 | % | $ | 3.25 | |||||||||||
Hypothetical (5% return before expenses) | $ | 1,000 | $ | 1,021.72 | 0.62 | % | $ | 3.11 | |||||||||||
Baillie Gifford Developed EAFE All Cap Fund — Class 3 | |||||||||||||||||||
Actual | $ | 1,000 | $ | 1,112.90 | 0.55 | % | $ | 2.88 | |||||||||||
Hypothetical (5% return before expenses) | $ | 1,000 | $ | 1,022.07 | 0.55 | % | $ | 2.76 | |||||||||||
Baillie Gifford Developed EAFE All Cap Fund — Class K | |||||||||||||||||||
Actual | $ | 1,000 | $ | 1,112.10 | 0.62 | % | $ | 3.25 | |||||||||||
Hypothetical (5% return before expenses) | $ | 1,000 | $ | 1,021.72 | 0.62 | % | $ | 3.11 | |||||||||||
Baillie Gifford Developed EAFE All Cap Fund — Institutional Class | |||||||||||||||||||
Actual | $ | 1,000 | $ | 1,112.40 | 0.71 | % | $ | 3.72 | |||||||||||
Hypothetical (5% return before expenses) | $ | 1,000 | $ | 1,021.27 | 0.71 | % | $ | 3.56 | |||||||||||
Baillie Gifford EAFE Plus All Cap Fund — Class 2 | |||||||||||||||||||
Actual | $ | 1,000 | $ | 1,112.80 | 0.63 | % | $ | 3.30 | |||||||||||
Hypothetical (5% return before expenses) | $ | 1,000 | $ | 1,021.67 | 0.63 | % | $ | 3.16 |
02
Fund Expenses (unaudited)
Semi-Annual Report June 30, 2023
Beginning Account Value January 1, 2023 | Ending Account Value June 30, 2023 | Annualized Expense Ratios Based on the Period January 1, 2023 to June 30, 2023 | Expenses Paid During Period* | ||||||||||||||||
Baillie Gifford EAFE Plus All Cap Fund — Class 3 | |||||||||||||||||||
Actual | $ | 1,000 | $ | 1,113.20 | 0.56 | % | $ | 2.93 | |||||||||||
Hypothetical (5% return before expenses) | $ | 1,000 | $ | 1,022.02 | 0.56 | % | $ | 2.81 | |||||||||||
Baillie Gifford EAFE Plus All Cap Fund — Class K | |||||||||||||||||||
Actual | $ | 1,000 | $ | 1,112.60 | 0.63 | % | $ | 3.30 | |||||||||||
Hypothetical (5% return before expenses) | $ | 1,000 | $ | 1,021.67 | 0.63 | % | $ | 3.16 | |||||||||||
Baillie Gifford EAFE Plus All Cap Fund — Institutional Class | |||||||||||||||||||
Actual | $ | 1,000 | $ | 1,112.20 | 0.71 | % | $ | 3.72 | |||||||||||
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 | $ | 1,110.80 | 0.81 | % | $ | 4.24 | |||||||||||
Hypothetical (5% return before expenses) | $ | 1,000 | $ | 1,020.78 | 0.81 | % | $ | 4.06 | |||||||||||
Baillie Gifford Emerging Markets Equities Fund — Class 3 | |||||||||||||||||||
Actual | $ | 1,000 | $ | 1,111.20 | 0.74 | % | $ | 3.87 | |||||||||||
Hypothetical (5% return before expenses) | $ | 1,000 | $ | 1,021.12 | 0.74 | % | $ | 3.71 | |||||||||||
Baillie Gifford Emerging Markets Equities Fund — Class 5 | |||||||||||||||||||
Actual | $ | 1,000 | $ | 1,111.70 | 0.66 | % | $ | 3.46 | |||||||||||
Hypothetical (5% return before expenses) | $ | 1,000 | $ | 1,021.52 | 0.66 | % | $ | 3.31 | |||||||||||
Baillie Gifford Emerging Markets Equities Fund — Class K | |||||||||||||||||||
Actual | $ | 1,000 | $ | 1,110.90 | 0.81 | % | $ | 4.24 | |||||||||||
Hypothetical (5% return before expenses) | $ | 1,000 | $ | 1,020.78 | 0.81 | % | $ | 4.06 | |||||||||||
Baillie Gifford Emerging Markets Equities Fund — Institutional Class | |||||||||||||||||||
Actual | $ | 1,000 | $ | 1,110.30 | 0.89 | % | $ | 4.66 | |||||||||||
Hypothetical (5% return before expenses) | $ | 1,000 | $ | 1,020.38 | 0.89 | % | $ | 4.46 | |||||||||||
Baillie Gifford Emerging Markets ex China Fund — Class K | |||||||||||||||||||
Actual | $ | 1,000 | $ | 1,176.20 | 0.87 | % | $ | 4.69 | |||||||||||
Hypothetical (5% return before expenses) | $ | 1,000 | $ | 1,020.48 | 0.87 | % | $ | 4.36 |
03
Fund Expenses (unaudited)
Semi-Annual Report June 30, 2023
Beginning Account Value January 1, 2023 | Ending Account Value June 30, 2023 | Annualized Expense Ratios Based on the Period January 1, 2023 to June 30, 2023 | Expenses Paid During Period* | ||||||||||||||||
Baillie Gifford Emerging Markets ex China Fund — Institutional Class | |||||||||||||||||||
Actual | $ | 1,000 | $ | 1,176.20 | 0.87 | % | $ | 4.69 | |||||||||||
Hypothetical (5% return before expenses) | $ | 1,000 | $ | 1,020.48 | 0.87 | % | $ | 4.36 | |||||||||||
Baillie Gifford Global Alpha Equities Fund — Class 2 | |||||||||||||||||||
Actual | $ | 1,000 | $ | 1,145.50 | 0.65 | % | $ | 3.46 | |||||||||||
Hypothetical (5% return before expenses) | $ | 1,000 | $ | 1,021.57 | 0.65 | % | $ | 3.26 | |||||||||||
Baillie Gifford Global Alpha Equities Fund — Class 3 | |||||||||||||||||||
Actual | $ | 1,000 | $ | 1,145.90 | 0.58 | % | $ | 3.09 | |||||||||||
Hypothetical (5% return before expenses) | $ | 1,000 | $ | 1,021.92 | 0.58 | % | $ | 2.91 | |||||||||||
Baillie Gifford Global Alpha Equities Fund — Class 4 | |||||||||||||||||||
Actual | $ | 1,000 | $ | 1,146.10 | 0.55 | % | $ | 2.93 | |||||||||||
Hypothetical (5% return before expenses) | $ | 1,000 | $ | 1,022.07 | 0.55 | % | $ | 2.76 | |||||||||||
Baillie Gifford Global Alpha Equities Fund — Class K | |||||||||||||||||||
Actual | $ | 1,000 | $ | 1,145.90 | 0.65 | % | $ | 3.46 | |||||||||||
Hypothetical (5% return before expenses) | $ | 1,000 | $ | 1,021.57 | 0.65 | % | $ | 3.26 | |||||||||||
Baillie Gifford Global Alpha Equities Fund — Institutional Class | |||||||||||||||||||
Actual | $ | 1,000 | $ | 1,145.10 | 0.74 | % | $ | 3.94 | |||||||||||
Hypothetical (5% return before expenses) | $ | 1,000 | $ | 1,021.12 | 0.74 | % | $ | 3.71 | |||||||||||
Baillie Gifford Health Innovation Equities Fund — Class K | |||||||||||||||||||
Actual | $ | 1,000 | $ | 992.60 | 0.65 | % | $ | 3.21 | |||||||||||
Hypothetical (5% return before expenses) | $ | 1,000 | $ | 1,021.57 | 0.65 | % | $ | 3.26 | |||||||||||
Baillie Gifford Health Innovation Equities Fund — Institutional Class | |||||||||||||||||||
Actual | $ | 1,000 | $ | 992.60 | 0.67 | % | $ | 3.31 | |||||||||||
Hypothetical (5% return before expenses) | $ | 1,000 | $ | 1,021.47 | 0.67 | % | $ | 3.36 | |||||||||||
Baillie Gifford International Alpha Fund — Class 2 | |||||||||||||||||||
Actual | $ | 1,000 | $ | 1,150.50 | 0.61 | % | $ | 3.25 | |||||||||||
Hypothetical (5% return before expenses) | $ | 1,000 | $ | 1,021.77 | 0.61 | % | $ | 3.06 |
04
Fund Expenses (unaudited)
Semi-Annual Report June 30, 2023
Beginning Account Value January 1, 2023 | Ending Account Value June 30, 2023 | Annualized Expense Ratios Based on the Period January 1, 2023 to June 30, 2023 | Expenses Paid During Period* | ||||||||||||||||
Baillie Gifford International Alpha Fund — Class 3 | |||||||||||||||||||
Actual | $ | 1,000 | $ | 1,150.90 | 0.54 | % | $ | 2.88 | |||||||||||
Hypothetical (5% return before expenses) | $ | 1,000 | $ | 1,022.12 | 0.54 | % | $ | 2.71 | |||||||||||
Baillie Gifford International Alpha Fund — Class 4 | |||||||||||||||||||
Actual | $ | 1,000 | $ | 1,151.00 | 0.51 | % | $ | 2.72 | |||||||||||
Hypothetical (5% return before expenses) | $ | 1,000 | $ | 1,022.27 | 0.51 | % | $ | 2.56 | |||||||||||
Baillie Gifford International Alpha Fund — Class 5 | |||||||||||||||||||
Actual | $ | 1,000 | $ | 1,151.30 | 0.46 | % | $ | 2.45 | |||||||||||
Hypothetical (5% return before expenses) | $ | 1,000 | $ | 1,022.51 | 0.46 | % | $ | 2.31 | |||||||||||
Baillie Gifford International Alpha Fund — Class K | |||||||||||||||||||
Actual | $ | 1,000 | $ | 1,150.40 | 0.61 | % | $ | 3.25 | |||||||||||
Hypothetical (5% return before expenses) | $ | 1,000 | $ | 1,021.77 | 0.61 | % | $ | 3.06 | |||||||||||
Baillie Gifford International Alpha Fund — Institutional Class | |||||||||||||||||||
Actual | $ | 1,000 | $ | 1,149.00 | 0.75 | % | $ | 4.00 | |||||||||||
Hypothetical (5% return before expenses) | $ | 1,000 | $ | 1,021.08 | 0.75 | % | $ | 3.76 | |||||||||||
Baillie Gifford International Concentrated Growth Equities Fund — Class K | |||||||||||||||||||
Actual | $ | 1,000 | $ | 1,175.80 | 0.72 | % | $ | 3.88 | |||||||||||
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 | $ | 1,174.50 | 0.80 | % | $ | 4.31 | |||||||||||
Hypothetical (5% return before expenses) | $ | 1,000 | $ | 1,020.83 | 0.80 | % | $ | 4.01 | |||||||||||
Baillie Gifford International Growth Fund — Class 2 | |||||||||||||||||||
Actual | $ | 1,000 | $ | 1,133.10 | 0.58 | % | $ | 3.07 | |||||||||||
Hypothetical (5% return before expenses) | $ | 1,000 | $ | 1,021.92 | 0.58 | % | $ | 2.91 | |||||||||||
Baillie Gifford International Growth Fund — Class 3 | |||||||||||||||||||
Actual | $ | 1,000 | $ | 1,133.50 | 0.51 | % | $ | 2.70 | |||||||||||
Hypothetical (5% return before expenses) | $ | 1,000 | $ | 1,022.27 | 0.51 | % | $ | 2.56 |
05
Fund Expenses (unaudited)
Semi-Annual Report June 30, 2023
Beginning Account Value January 1, 2023 | Ending Account Value June 30, 2023 | Annualized Expense Ratios Based on the Period January 1, 2023 to June 30, 2023 | Expenses Paid During Period* | ||||||||||||||||
Baillie Gifford International Growth Fund — Class 4 | |||||||||||||||||||
Actual | $ | 1,000 | $ | 1,133.70 | 0.48 | % | $ | 2.54 | |||||||||||
Hypothetical (5% return before expenses) | $ | 1,000 | $ | 1,022.41 | 0.48 | % | $ | 2.41 | |||||||||||
Baillie Gifford International Growth Fund — Class 5 | |||||||||||||||||||
Actual | $ | 1,000 | $ | 1,134.00 | 0.43 | % | $ | 2.28 | |||||||||||
Hypothetical (5% return before expenses) | $ | 1,000 | $ | 1,022.66 | 0.43 | % | $ | 2.16 | |||||||||||
Baillie Gifford International Growth Fund — Class K | |||||||||||||||||||
Actual | $ | 1,000 | $ | 1,133.60 | 0.58 | % | $ | 3.07 | |||||||||||
Hypothetical (5% return before expenses) | $ | 1,000 | $ | 1,021.92 | 0.58 | % | $ | 2.91 | |||||||||||
Baillie Gifford International Growth Fund — Institutional Class | |||||||||||||||||||
Actual | $ | 1,000 | $ | 1,133.00 | 0.66 | % | $ | 3.49 | |||||||||||
Hypothetical (5% return before expenses) | $ | 1,000 | $ | 1,021.52 | 0.66 | % | $ | 3.31 | |||||||||||
Baillie Gifford International Smaller Companies Fund — Class K | |||||||||||||||||||
Actual | $ | 1,000 | $ | 1,124.30 | 0.90 | % | $ | 4.74 | |||||||||||
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 | $ | 1,123.60 | 0.98 | % | $ | 5.16 | |||||||||||
Hypothetical (5% return before expenses) | $ | 1,000 | $ | 1,019.93 | 0.98 | % | $ | 4.91 | |||||||||||
Baillie Gifford Long Term Global Growth Fund — Class 2 | |||||||||||||||||||
Actual | $ | 1,000 | $ | 1,281.30 | 0.72 | % | $ | 4.07 | |||||||||||
Hypothetical (5% return before expenses) | $ | 1,000 | $ | 1,021.22 | 0.72 | % | $ | 3.61 | |||||||||||
Baillie Gifford Long Term Global Growth Fund — Class 4 | |||||||||||||||||||
Actual | $ | 1,000 | $ | 1,281.90 | 0.62 | % | $ | 3.51 | |||||||||||
Hypothetical (5% return before expenses) | $ | 1,000 | $ | 1,021.72 | 0.62 | % | $ | 3.11 | |||||||||||
Baillie Gifford Long Term Global Growth Fund — Class K | |||||||||||||||||||
Actual | $ | 1,000 | $ | 1,281.60 | 0.72 | % | $ | 4.07 | |||||||||||
Hypothetical (5% return before expenses) | $ | 1,000 | $ | 1,021.22 | 0.72 | % | $ | 3.61 |
06
Fund Expenses (unaudited)
Semi-Annual Report June 30, 2023
Beginning Account Value January 1, 2023 | Ending Account Value June 30, 2023 | Annualized Expense Ratios Based on the Period January 1, 2023 to June 30, 2023 | Expenses Paid During Period* | ||||||||||||||||
Baillie Gifford Long Term Global Growth Fund — Institutional Class | |||||||||||||||||||
Actual | $ | 1,000 | $ | 1,280.20 | 0.81 | % | $ | 4.58 | |||||||||||
Hypothetical (5% return before expenses) | $ | 1,000 | $ | 1,020.78 | 0.81 | % | $ | 4.06 | |||||||||||
Baillie Gifford U.S. Discovery Fund — Class K | |||||||||||||||||||
Actual | $ | 1,000 | $ | 1,089.60 | 0.82 | % | $ | 4.25 | |||||||||||
Hypothetical (5% return before expenses) | $ | 1,000 | $ | 1,020.73 | 0.82 | % | $ | 4.11 | |||||||||||
Baillie Gifford U.S. Discovery Fund — Institutional Class | |||||||||||||||||||
Actual | $ | 1,000 | $ | 1,089.60 | 0.82 | % | $ | 4.25 | |||||||||||
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 | $ | 1,339.80 | 0.65 | % | $ | 3.77 | |||||||||||
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 | $ | 1,339.80 | 0.74 | % | $ | 4.29 | |||||||||||
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).
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, 2023. 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, 2023
June 30, 2023 (unaudited)
Baillie Gifford China A Shares Growth Fund
Value | % of Total Net Assets | ||||||||||
Auto Parts & Equipment | $ | 85,310 | 7.1 | % | |||||||
Beverages | 69,931 | 5.8 | |||||||||
Chemicals | 22,299 | 1.9 | |||||||||
Commercial Services | 48,387 | 4.1 | |||||||||
Cosmetics/Personal Care | 37,311 | 3.1 | |||||||||
Electrical Components & Equipment | 16,286 | 1.4 | |||||||||
Electronics | 130,637 | 10.9 | |||||||||
Energy — Alternate Sources | 24,396 | 2.0 | |||||||||
Food | 16,107 | 1.4 | |||||||||
Healthcare — Products | 43,854 | 3.7 | |||||||||
Healthcare — Services | 112,889 | 9.4 | |||||||||
Home Furnishings | 117,378 | 9.8 | |||||||||
Insurance | 49,872 | 4.2 | |||||||||
Internet | 40,601 | 3.4 | |||||||||
Machinery — Diversified | 43,169 | 3.6 | |||||||||
Metal Fabricate/Hardware | 113,894 | 9.5 | |||||||||
Semiconductors | 25,052 | 2.1 | |||||||||
Software | 123,617 | 10.3 | |||||||||
Telecommunications | 16,008 | 1.3 | |||||||||
Transportation | 31,077 | 2.6 | |||||||||
Total Value of Investments | 1,168,075 | 97.6 | |||||||||
Other assets less liabilities | 29,294 | 2.4 | |||||||||
Net Assets | $ | 1,197,369 | 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, 2023
June 30, 2023 (unaudited)
Baillie Gifford China A Shares Growth Fund
Shares | Value | ||||||||||
COMMON STOCKS — 97.6% | |||||||||||
CHINA — 97.6% | |||||||||||
3peak, Inc., Class A | 546 | $ | 16,405 | ||||||||
Anker Innovations Technology Co., Ltd., Class A | 2,300 | 27,755 | |||||||||
Asymchem Laboratories Tianjin Co., Ltd., Class A | 2,840 | 46,183 | |||||||||
Beijing United Information Technology Co., Ltd., Class A | 7,975 | 40,601 | |||||||||
Centre Testing International Group Co., Ltd., Class A | 9,400 | 25,247 | |||||||||
Contemporary Amperex Technology Co., Ltd., Class A | 2,700 | 85,310 | |||||||||
Dongguan Yiheda Automation Co., Ltd., Class A | 4,080 | 25,155 | |||||||||
Foshan Haitian Flavouring & Food Co., Ltd., Class A | 2,493 | 16,107 | |||||||||
Glodon Co., Ltd., Class A | 11,060 | 49,543 | |||||||||
Guangdong Kinlong Hardware Products Co., Ltd., Class A | 2,700 | 24,083 | |||||||||
Guangzhou Kingmed Diagnostics Group Co., Ltd., Class A | 3,900 | 40,596 | |||||||||
Hangzhou Tigermed Consulting Co., Ltd., Class A * | 2,600 | 23,140 | |||||||||
Hefei Meiya Optoelectronic Technology, Inc., Class A | 5,070 | 18,014 | |||||||||
Iflytek Co., Ltd., Class A * | 2,100 | 19,673 | |||||||||
Jafron Biomedical Co., Ltd., Class A | 4,500 | 14,387 | |||||||||
Jiangsu Azure Corp., Class A * | 9,063 | 13,717 | |||||||||
Kweichow Moutai Co., Ltd., Class A | 300 | 69,931 | |||||||||
LONGi Green Energy Technology Co., Ltd., Class A | 6,166 | 24,396 | |||||||||
Longshine Technology Group Co., Ltd., Class A | 8,500 | 27,335 | |||||||||
Midea Group Co., Ltd., Class A | 8,100 | 65,842 | |||||||||
Oppein Home Group, Inc., Class A | 1,800 | 23,780 | |||||||||
Ping An Insurance Group Co. of China Ltd., Class A | 7,800 | 49,872 | |||||||||
Proya Cosmetics Co., Ltd., Class A | 2,408 | 37,311 | |||||||||
Quectel Wireless Solutions Co., Ltd., Class A | 2,010 | 16,008 | |||||||||
SF Holding Co., Ltd., Class A | 5,000 | 31,077 | |||||||||
SG Micro Corp., Class A | 2,210 | 25,052 | |||||||||
Shandong Sinocera Functional Material Co., Ltd., Class A | 5,900 | 22,299 | |||||||||
Shenzhen Inovance Technology Co., Ltd., Class A | 8,350 | 74,011 | |||||||||
Shenzhen Megmeet Electrical Co., Ltd., Class A | 8,000 | 40,221 | |||||||||
Sinocare, Inc., Class A | 7,900 | 29,468 | |||||||||
WuXi AppTec Co., Ltd., Class A | 3,036 | 26,109 | |||||||||
Wuxi Lead Intelligent Equipment Co., Ltd., Class A | 3,258 | 16,286 | |||||||||
Yonyou Network Technology Co., Ltd., Class A | 9,580 | 27,066 | |||||||||
Zhejiang Sanhua Intelligent Controls Co., Ltd., Class A | 18,220 | 76,095 | |||||||||
1,168,075 |
The accompanying notes are an integral part of the financial statements.
09
Portfolio of Investments
Semi-Annual Report June 30, 2023
June 30, 2023 (unaudited)
Baillie Gifford China A Shares Growth Fund
Value | |||||||
TOTAL INVESTMENTS — 97.6% | |||||||
(cost $1,231,243) | $ | 1,168,075 | |||||
Other assets less liabilities — 2.4% | 29,294 | ||||||
NET ASSETS — 100.0% | $ | 1,197,369 |
* 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.
Fair Value Measurement
The following is a summary of the inputs used as of June 30, 2023 in valuing the Fund's investments carried at fair value:
Investments in Securities | Level 1 | Level 2 | Level 3 | Total | |||||||||||||||
Common Stocks ** | $ | — | $ | 1,168,075 | $ | — | $ | 1,168,075 | |||||||||||
Total | $ | — | $ | 1,168,075 | $ | — | $ | 1,168,075 |
** 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, 2023
June 30, 2023 (unaudited)
Baillie Gifford China A Shares Growth Fund
ASSETS | |||||||
Investments, at value (cost $1,231,243) | $ | 1,168,075 | |||||
Cash | 73,719 | ||||||
Due from Manager | 13,581 | ||||||
Dividends receivable | 960 | ||||||
Prepaid assets | 8 | ||||||
Total Assets | 1,256,343 | ||||||
LIABILITIES | |||||||
Advisory fee payable | 1,753 | ||||||
Administrative & Supervisory fee payable | 542 | ||||||
Trustee fee payable | 16 | ||||||
Commitment fee payable | 5 | ||||||
Accrued expenses | 56,658 | ||||||
Total Liabilities | 58,974 | ||||||
NET ASSETS | $ | 1,197,369 | |||||
COMPOSITION OF NET ASSETS | |||||||
Paid-in capital | $ | 1,243,507 | |||||
Total accumulated (loss) | (46,138 | ) | |||||
$ | 1,197,369 | ||||||
NET ASSET VALUE, PER SHARE | |||||||
Institutional Class ($598,684 / 57,733 shares outstanding), unlimited authorized, no par value | $ | 10.37 | |||||
Class K ($598,685 / 57,733 shares outstanding), unlimited authorized, no par value | $ | 10.37 |
The accompanying notes are an integral part of the financial statements.
11
Statement of Operations
Semi-Annual Report June 30, 2023
For the Six Months Ended June 30, 2023 (unaudited)
Baillie Gifford China A Shares Growth Fund
INVESTMENT INCOME | |||||||
Dividends (net of foreign withholding taxes of $1,337) | $ | 11,977 | |||||
Interest | 432 | ||||||
Total Investment Income | 12,409 | ||||||
EXPENSES | |||||||
Advisory fee (Note B) | 3,718 | ||||||
Administration & Supervisory fee — Class K shares (Note B) | 575 | ||||||
Administration & Supervisory fee — Institutional Class shares (Note B) | 574 | ||||||
Transfer agency | 17,157 | ||||||
Fund accounting | 48,935 | ||||||
Professional fees | 14,752 | ||||||
Custody | 1,345 | ||||||
Legal | 144 | ||||||
Trustees' fees | 33 | ||||||
Commitment fees | 10 | ||||||
Miscellaneous | 2,227 | ||||||
Total Expenses | 89,470 | ||||||
Fees waived/expenses reimbursed | (83,590 | ) | |||||
Total Expenses after Waiver | 5,880 | ||||||
Net Investment Income | 6,529 | ||||||
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS AND FOREIGN CURRENCY TRANSACTIONS | |||||||
Net realized gain (loss) from: | |||||||
Investments | 12,829 | ||||||
Foreign currency transactions | (26 | ) | |||||
12,803 | |||||||
Net change in unrealized (depreciation) on: | |||||||
Investments | (179,855 | ) | |||||
Translation of net assets and liabilities denominated in foreign currencies | (6 | ) | |||||
(179,861 | ) | ||||||
Net realized and unrealized (loss) | (167,058 | ) | |||||
NET (DECREASE) IN NET ASSETS FROM OPERATIONS | $ | (160,529 | ) |
The accompanying notes are an integral part of the financial statements.
12
Statements of Changes in Net Assets
Semi-Annual Report June 30, 2023
Baillie Gifford China A Shares Growth Fund
For the Six Months Ended June 30, 2023 (unaudited) | For the Year Ended December 31, 2022 | ||||||||||
INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS | |||||||||||
Net investment income | $ | 6,529 | $ | 377 | |||||||
Net realized gain (loss) | 12,803 | (2,672 | ) | ||||||||
Net change in unrealized (depreciation) | (179,861 | ) | (562,712 | ) | |||||||
Net (Decrease) in Net Assets from Operations | (160,529 | ) | (565,007 | ) | |||||||
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS FROM: | |||||||||||
Distributable earnings | |||||||||||
Class K | — | (18,603 | ) | ||||||||
Institutional Class | — | (18,603 | ) | ||||||||
Total Distributions to Shareholders | — | (37,206 | ) | ||||||||
TRANSACTIONS IN SHARES OF BENEFICIAL INTEREST | |||||||||||
Net proceeds from shares subscribed: | |||||||||||
Dividends reinvested: | |||||||||||
Class K | — | 18,603 | |||||||||
Institutional Class | — | 18,603 | |||||||||
Increase in Net Assets from Transactions in Shares of Beneficial Interest | — | 37,206 | |||||||||
Total (Decrease) in Net Assets | (160,529 | ) | (565,007 | ) | |||||||
NET ASSETS | |||||||||||
Beginning of Period | 1,357,898 | 1,922,905 | |||||||||
End of Period | $ | 1,197,369 | $ | 1,357,898 |
The accompanying notes are an integral part of the financial statements.
13
Financial Highlights
Semi-Annual Report June 30, 2023
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, 2023 (unaudited) | For the Year Ended December 31, 2022 | For the Year Ended December 31, 2021 | For the Year Ended December 31, 2020 | For the Period December 19, 2019(a) through December 31, 2019 | |||||||||||||||||||
Net asset value, beginning of period | $ | 11.76 | $ | 17.13 | $ | 19.64 | $ | 10.29 | $ | 10.00 | |||||||||||||
From Investment Operations | |||||||||||||||||||||||
Net investment income (loss)(b) | 0.06 | 0.00 | (c) | (0.05 | ) | (0.02 | ) | 0.00 | (c) | ||||||||||||||
Net realized and unrealized gain (loss) on investments and foreign currency | (1.45 | ) | (5.04 | ) | (0.52 | ) | 9.51 | 0.29 | |||||||||||||||
Net increase (decrease) in net asset value from investment operations | (1.39 | ) | (5.04 | ) | (0.57 | ) | 9.49 | 0.29 | |||||||||||||||
Dividends and Distributions to Shareholders | |||||||||||||||||||||||
From net realized gain on investments | — | (0.33 | ) | (1.94 | ) | (0.14 | ) | — | |||||||||||||||
Total dividends and distributions | — | (0.33 | ) | (1.94 | ) | (0.14 | ) | — | |||||||||||||||
Net asset value, end of period | $ | 10.37 | $ | 11.76 | $ | 17.13 | $ | 19.64 | $ | 10.29 | |||||||||||||
Total Return | |||||||||||||||||||||||
Total return based on net asset value(d) | (11.82 | )% | (29.39 | )% | (2.82 | )% | 92.29 | % | 2.90 | % | |||||||||||||
Ratios/Supplemental Data | |||||||||||||||||||||||
Net assets, end of period (000's omitted) | $ | 599 | $ | 679 | $ | 961 | $ | 989 | $ | 514 | |||||||||||||
Ratio of net expenses to average net assets, before waiver | 13.24 | %* | 12.20 | % | 9.34 | % | 10.52 | % | 90.51 | %* | |||||||||||||
Ratio of net expenses to average net assets, after waiver | 0.87 | %* | 0.87 | % | 0.87 | % | 0.87 | % | 0.87 | %* | |||||||||||||
Ratio of net investment income (loss) to average net assets | 0.97 | %* | 0.03 | % | (0.25 | )% | (0.15 | )% | (0.80 | )%* | |||||||||||||
Portfolio turnover rate(e) | 1 | % | 13 | % | 17 | % | 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. Portfolio turnover is not annualized for periods less than one year.
The accompanying notes are an integral part of the financial statements.
14
Financial Highlights
Semi-Annual Report June 30, 2023
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, 2023 (unaudited) | For the Year Ended December 31, 2022 | For the Year Ended December 31, 2021 | For the Year Ended December 31, 2020 | For the Period December 19, 2019(a) through December 31, 2019 | |||||||||||||||||||
Net asset value, beginning of period | $ | 11.76 | $ | 17.13 | $ | 19.64 | $ | 10.29 | $ | 10.00 | |||||||||||||
From Investment Operations | |||||||||||||||||||||||
Net investment income (loss)(b) | 0.06 | 0.00 | (c) | (0.05 | ) | (0.02 | ) | 0.00 | (c) | ||||||||||||||
Net realized and unrealized gain (loss) on investments and foreign currency | (1.45 | ) | (5.04 | ) | (0.52 | ) | 9.51 | 0.29 | |||||||||||||||
Net increase (decrease) in net asset value from investment operations | (1.39 | ) | (5.04 | ) | (0.57 | ) | 9.49 | 0.29 | |||||||||||||||
Dividends and Distributions to Shareholders | |||||||||||||||||||||||
From net realized gain on investments | — | (0.33 | ) | (1.94 | ) | (0.14 | ) | — | |||||||||||||||
Total dividends and distributions | — | (0.33 | ) | (1.94 | ) | (0.14 | ) | — | |||||||||||||||
Net asset value, end of period | $ | 10.37 | $ | 11.76 | $ | 17.13 | $ | 19.64 | $ | 10.29 | |||||||||||||
Total Return | |||||||||||||||||||||||
Total return based on net asset value(d) | (11.82 | )% | (29.39 | )% | (2.82 | )% | 92.29 | % | 2.90 | % | |||||||||||||
Ratios/Supplemental Data | |||||||||||||||||||||||
Net assets, end of period (000's omitted) | $ | 598 | $ | 679 | $ | 961 | $ | 989 | $ | 514 | |||||||||||||
Ratio of net expenses to average net assets, before waiver | 13.24 | %* | 12.20 | % | 9.34 | % | 10.52 | % | 90.51 | %* | |||||||||||||
Ratio of net expenses to average net assets, after waiver | 0.87 | %* | 0.87 | % | 0.87 | % | 0.87 | % | 0.87 | %* | |||||||||||||
Ratio of net investment income (loss) to average net assets | 0.97 | %* | 0.03 | % | (0.25 | )% | (0.15 | )% | (0.80 | )%* | |||||||||||||
Portfolio turnover rate(e) | 1 | % | 13 | % | 17 | % | 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. Portfolio turnover is not annualized for periods less than one year.
The accompanying notes are an integral part of the financial statements.
15
Industry Diversification Table
Semi-Annual Report June 30, 2023
June 30, 2023 (unaudited)
Baillie Gifford China Equities Fund
Value | % of Total Net Assets | ||||||||||
Apparel | $ | 36,497 | 1.8 | % | |||||||
Auto Manufacturers | 54,431 | 2.7 | |||||||||
Auto Parts & Equipment | 147,819 | 7.2 | |||||||||
Banks | 99,350 | 4.8 | |||||||||
Beverages | 93,242 | 4.5 | |||||||||
Biotechnology | 42,382 | 2.1 | |||||||||
Chemicals | 56,778 | 2.8 | |||||||||
Commercial Services | 34,416 | 1.7 | |||||||||
Cosmetics/Personal Care | 35,575 | 1.7 | |||||||||
Distribution/Wholesale | 10,702 | 0.5 | |||||||||
Electronics | 98,321 | 4.8 | |||||||||
Energy — Alternate Sources | 34,761 | 1.7 | |||||||||
Gas | 27,518 | 1.3 | |||||||||
Healthcare — Products | 16,039 | 0.8 | |||||||||
Healthcare — Services | 89,727 | 4.4 | |||||||||
Home Furnishings | 86,667 | 4.2 | |||||||||
Insurance | 92,610 | 4.5 | |||||||||
Internet | 510,455 | 24.9 | |||||||||
Machinery — Diversified | 48,510 | 2.4 | |||||||||
Metal Fabricate/Hardware | 82,551 | 4.0 | |||||||||
Mining | 47,388 | 2.3 | |||||||||
Miscellaneous Manufacturing | 18,048 | 0.9 | |||||||||
Real Estate | 18,000 | 0.9 | |||||||||
Retail | 57,490 | 2.8 | |||||||||
Semiconductors | 19,010 | 0.9 | |||||||||
Software | 130,699 | 6.4 | |||||||||
Total Value of Investments | 1,988,986 | 97.0 | |||||||||
Other assets less liabilities | 61,647 | 3.0 | |||||||||
Net Assets | $ | 2,050,633 | 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, 2023
June 30, 2023 (unaudited)
Baillie Gifford China Equities Fund
Shares | Value | ||||||||||
COMMON STOCKS — 97.0% | |||||||||||
CHINA — 97.0% | |||||||||||
Alibaba Group Holding Ltd. * | 11,800 | $ | 122,836 | ||||||||
Asymchem Laboratories Tianjin Co., Ltd., Class A | 1,260 | 20,490 | |||||||||
BeiGene Ltd. * | 3,091 | 42,383 | |||||||||
Beijing United Information Technology Co., Ltd., Class A | 3,088 | 15,721 | |||||||||
Brilliance China Automotive Holdings Ltd. | 34,000 | 13,841 | |||||||||
BYD Co., Ltd., Class H | 500 | 16,032 | |||||||||
Centre Testing International Group Co., Ltd., Class A | 9,500 | 25,516 | |||||||||
China Merchants Bank Co., Ltd., Class H | 14,000 | 63,855 | |||||||||
Contemporary Amperex Technology Co., Ltd., Class A | 1,800 | 56,873 | |||||||||
Dongguan Yiheda Automation Co., Ltd., Class A | 2,160 | 13,317 | |||||||||
ENN Energy Holdings Ltd. | 2,200 | 27,518 | |||||||||
Estun Automation Co., Ltd., Class A * | 9,100 | 35,193 | |||||||||
Fuyao Glass Industry Group Co., Ltd., Class H | 6,000 | 24,888 | |||||||||
Geely Automobile Holdings Ltd. | 20,000 | 24,557 | |||||||||
Glodon Co., Ltd., Class A | 4,340 | 19,441 | |||||||||
Guangdong Kinlong Hardware Products Co., Ltd., Class A | 1,100 | 9,811 | |||||||||
Guangzhou Kingmed Diagnostics Group Co., Ltd., Class A | 3,700 | 38,514 | |||||||||
Haier Smart Home Co., Ltd., Class H | 9,800 | 30,905 | |||||||||
Hangzhou Robam Appliances Co., Ltd., Class A | 4,800 | 16,745 | |||||||||
Hangzhou Tigermed Consulting Co., Ltd., Class A * | 1,000 | 8,900 | |||||||||
Huayu Automotive Systems Co., Ltd., Class A | 10,800 | 27,491 | |||||||||
JD.com, Inc., Class A | 3,669 | 62,573 | |||||||||
Jiangsu Azure Corp., Class A * | 8,600 | 13,016 | |||||||||
KE Holdings, Inc. ADR * | 325 | 4,826 | |||||||||
KE Holdings, Inc., Class A * | 2,667 | 13,174 | |||||||||
Kingdee International Software Group Co., Ltd. * | 15,000 | 20,143 | |||||||||
Kingsoft Corp., Ltd. | 6,400 | 25,296 | |||||||||
Kuaishou Technology * | 2,200 | 15,121 | |||||||||
Kweichow Moutai Co., Ltd., Class A | 400 | 93,242 | |||||||||
Li Ning Co., Ltd. | 8,000 | 43,201 | |||||||||
LONGi Green Energy Technology Co., Ltd., Class A | 3,900 | 15,431 | |||||||||
Medlive Technology Co., Ltd. | 9,500 | 8,509 | |||||||||
Meituan, Class B * | 5,090 | 79,816 | |||||||||
Midea Group Co., Ltd., Class A | 4,800 | 39,018 | |||||||||
Minth Group Ltd. | 6,000 | 16,497 | |||||||||
NetEase, Inc. | 2,100 | 40,675 | |||||||||
PDD Holdings, Inc. ADR * | 402 | 27,795 |
The accompanying notes are an integral part of the financial statements.
17
Portfolio of Investments
Semi-Annual Report June 30, 2023
June 30, 2023 (unaudited)
Baillie Gifford China Equities Fund
Shares | Value | ||||||||||
Ping An Bank Co., Ltd., Class A | 22,900 | $ | 35,495 | ||||||||
Ping An Insurance Group Co. of China Ltd., Class H | 14,500 | 92,610 | |||||||||
Pop Mart International Group Ltd. | 4,800 | 10,702 | |||||||||
Proya Cosmetics Co., Ltd., Class A | 2,296 | 35,575 | |||||||||
SG Micro Corp., Class A | 1,677 | 19,010 | |||||||||
Shandong Sinocera Functional Material Co., Ltd., Class A | 11,500 | 43,463 | |||||||||
Shenzhen Inovance Technology Co., Ltd., Class A | 3,900 | 34,568 | |||||||||
Shenzhen Megmeet Electrical Co., Ltd., Class A | 7,725 | 38,838 | |||||||||
Shenzhou International Group Holdings Ltd. | 3,800 | 36,497 | |||||||||
Silergy Corp. | 2,000 | 24,914 | |||||||||
Sinocare, Inc., Class A | 4,300 | 16,039 | |||||||||
Sungrow Power Supply Co., Ltd., Class A | 1,200 | 19,330 | |||||||||
Sunny Optical Technology Group Co., Ltd. | 1,800 | 18,048 | |||||||||
Tencent Holdings Ltd. | 4,200 | 178,085 | |||||||||
Topchoice Medical Corp., Class A * | 1,100 | 14,694 | |||||||||
Weichai Power Co., Ltd., Class H | 15,000 | 22,069 | |||||||||
WuXi AppTec Co., Ltd., Class H | 2,000 | 16,029 | |||||||||
Yifeng Pharmacy Chain Co., Ltd., Class A | 2,800 | 14,289 | |||||||||
Yonyou Network Technology Co., Ltd., Class A | 8,900 | 25,145 | |||||||||
Yunnan Energy New Material Co., Ltd., Class A * | 1,000 | 13,315 | |||||||||
Zhejiang Sanhua Intelligent Controls Co., Ltd., Class A | 14,300 | 59,723 | |||||||||
Zijin Mining Group Co., Ltd., Class H | 32,000 | 47,388 | |||||||||
1,988,986 | |||||||||||
TOTAL INVESTMENTS — 97.0% | |||||||||||
(cost $2,940,503) | $ | 1,988,986 | |||||||||
Other assets less liabilities — 3.0% | 61,647 | ||||||||||
NET ASSETS — 100.0% | $ | 2,050,633 |
* 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, 2023 in valuing the Fund's investments carried at fair value:
Investments in Securities | Level 1 | Level 2 | Level 3 | Total | |||||||||||||||
Common Stocks ** | $ | 46,462 | $ | 1,942,524 | $ | — | $ | 1,988,986 | |||||||||||
Total | $ | 46,462 | $ | 1,942,524 | $ | — | $ | 1,988,986 |
** Refer to Portfolio of Investments for further detail.
The accompanying notes are an integral part of the financial statements.
18
Statement of Assets and Liabilities
Semi-Annual Report June 30, 2023
June 30, 2023 (unaudited)
Baillie Gifford China Equities Fund
ASSETS | |||||||
Investments, at value (cost $2,940,503) | $ | 1,988,986 | |||||
Cash | 72,941 | ||||||
Foreign cash, at value (cost $4,982) | 4,937 | ||||||
Due from Manager | 18,194 | ||||||
Dividends receivable | 5,375 | ||||||
Prepaid assets | 24,594 | ||||||
Total Assets | 2,115,027 | ||||||
LIABILITIES | |||||||
Advisory fee payable | 2,907 | ||||||
Administration & Supervisory fee payable | 899 | ||||||
Trustee fee payable | 26 | ||||||
Commitment fee payable | 8 | ||||||
Accrued expenses | 60,554 | ||||||
Total Liabilities | 64,394 | ||||||
NET ASSETS | $ | 2,050,633 | |||||
COMPOSITION OF NET ASSETS | |||||||
Paid-in capital | $ | 3,451,197 | |||||
Total accumulated (loss) | (1,400,564 | ) | |||||
$ | 2,050,633 | ||||||
NET ASSET VALUE, PER SHARE | |||||||
Class K ($265,304 / 50,268 shares outstanding), unlimited authorized, no par value | $ | 5.28 | |||||
Institutional Class ($1,785,329 / 339,254 shares outstanding), unlimited authorized, no par value | $ | 5.26 |
The accompanying notes are an integral part of the financial statements.
19
Statement of Operations
Semi-Annual Report June 30, 2023
For the Six Months Ended June 30, 2023 (unaudited)
Baillie Gifford China Equities Fund
INVESTMENT INCOME | |||||||
Dividends (net of foreign withholding taxes of $1,348) | $ | 21,215 | |||||
Non-cash income | 9,430 | ||||||
Interest | 638 | ||||||
Total Investment Income | 31,283 | ||||||
EXPENSES | |||||||
Advisory fee (Note B) | 5,949 | ||||||
Administration & Supervisory fee — Class K shares (Note B) | 250 | ||||||
Administration & Supervisory fee — Institutional Class shares (Note B) | 1,589 | ||||||
Transfer agency | 17,301 | ||||||
Sub-transfer agency — Institutional Class shares | 707 | ||||||
Fund accounting | 50,044 | ||||||
Registration fees | 17,569 | ||||||
Professional fees | 14,752 | ||||||
Custody | 6,545 | ||||||
Legal | 223 | ||||||
Trustees' fees | 52 | ||||||
Commitment fees | 16 | ||||||
Miscellaneous | 2,267 | ||||||
Total Expenses | 117,264 | ||||||
Fees waived/expenses reimbursed | (107,147 | ) | |||||
Total Expenses after Waiver | 10,117 | ||||||
Net Investment Income | 21,166 | ||||||
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS AND FOREIGN CURRENCY TRANSACTIONS | |||||||
Net realized (loss) from: | |||||||
Investments | (15,590 | ) | |||||
Foreign currency transactions | (137 | ) | |||||
(15,727 | ) | ||||||
Net change in unrealized (depreciation) on: | |||||||
Investments | (239,008 | ) | |||||
Translation of net assets and liabilities denominated in foreign currencies | (61 | ) | |||||
(239,069 | ) | ||||||
Net realized and unrealized (loss) | (254,796 | ) | |||||
NET (DECREASE) IN NET ASSETS FROM OPERATIONS | $ | (233,630 | ) |
The accompanying notes are an integral part of the financial statements.
20
Statements of Changes in Net Assets
Semi-Annual Report June 30, 2023
Baillie Gifford China Equities Fund
For the Six Months Ended June 30, 2023 (unaudited) | For the Year Ended December 31, 2022 | ||||||||||
INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS | |||||||||||
Net investment income | $ | 21,166 | $ | 13,703 | |||||||
Net realized (loss) | (15,727 | ) | (436,170 | ) | |||||||
Net change in unrealized (depreciation) | (239,069 | ) | (426,813 | ) | |||||||
Net (Decrease) in Net Assets from Operations | (233,630 | ) | (849,280 | ) | |||||||
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS FROM: | |||||||||||
Distributable earnings | |||||||||||
Class K | — | (1,566 | ) | ||||||||
Institutional Class | — | (11,711 | ) | ||||||||
Total Distributions to Shareholders | — | (13,277 | ) | ||||||||
TRANSACTIONS IN SHARES OF BENEFICIAL INTEREST | |||||||||||
Net proceeds from shares subscribed: | |||||||||||
Institutional Class | 203,600 | 593,485 | |||||||||
Dividends reinvested: | |||||||||||
Class K | — | 1,566 | |||||||||
Institutional Class | — | 11,711 | |||||||||
Cost of shares redeemed: | |||||||||||
Class K | — | (308,872 | ) | ||||||||
Institutional Class | — | (27,175 | ) | ||||||||
Increase in Net Assets from Transactions in Shares of Beneficial Interest | 203,600 | 270,715 | |||||||||
Total (Decrease) in Net Assets | (30,030 | ) | (591,842 | ) | |||||||
NET ASSETS | |||||||||||
Beginning of Period | 2,080,663 | 2,672,505 | |||||||||
End of Period | $ | 2,050,633 | $ | 2,080,663 |
The accompanying notes are an integral part of the financial statements.
21
Financial Highlights
Semi-Annual Report June 30, 2023
Baillie Gifford China Equities Fund
Selected data for a Class K share outstanding throughout each period:
For the Six Months Ended June 30, 2023 (unaudited) | For the Year Ended December 31, 2022 | For the Period July 7, 2021(a) through December 31, 2021 | |||||||||||||
Net asset value, beginning of period | $ | 5.89 | $ | 8.27 | $ | 10.00 | |||||||||
From Investment Operations | |||||||||||||||
Net investment income (loss)(b) | 0.06 | 0.05 | (0.02 | ) | |||||||||||
Net realized and unrealized (loss) on investments and foreign currency | (0.67 | ) | (2.40 | ) | (1.71 | ) | |||||||||
Net (decrease) in net asset value from investment operations | (0.61 | ) | (2.35 | ) | (1.73 | ) | |||||||||
Dividends and Distributions to Shareholders | |||||||||||||||
From net investment income | — | (0.03 | ) | — | |||||||||||
Total dividends and distributions | — | (0.03 | ) | — | |||||||||||
Net asset value, end of period | $ | 5.28 | $ | 5.89 | $ | 8.27 | |||||||||
Total Return | |||||||||||||||
Total return based on net asset value(c) | (10.36 | )% | (28.40 | )% | (17.30 | )% | |||||||||
Ratios/Supplemental Data | |||||||||||||||
Net assets, end of period (000's omitted) | $ | 265 | $ | 296 | $ | 872 | |||||||||
Ratio of net expenses to average net assets, before waiver | 10.78 | %* | 9.21 | % | 11.32 | %* | |||||||||
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 | 2.01 | %*(d) | 0.73 | % | (0.56 | )%* | |||||||||
Portfolio turnover rate(e) | 3 | % | 31 | % | 6 | % |
* 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) Ratio includes taxable stock dividends that were treated as income.
(e) Portfolio turnover rate calculated at Fund level. Portfolio turnover is not annualized for periods less than one year.
The accompanying notes are an integral part of the financial statements.
22
Financial Highlights
Semi-Annual Report June 30, 2023
Baillie Gifford China Equities Fund
Selected data for an Institutional Class share outstanding throughout each period:
For the Six Months Ended June 30, 2023 (unaudited) | For the Year Ended December 31, 2022 | For the Period July 7, 2021(a) through December 31, 2021 | |||||||||||||
Net asset value, beginning of period | $ | 5.88 | $ | 8.27 | $ | 10.00 | |||||||||
From Investment Operations | |||||||||||||||
Net investment income (loss)(b) | 0.06 | 0.03 | (0.03 | ) | |||||||||||
Net realized and unrealized (loss) on investments and foreign currency | (0.68 | ) | (2.38 | ) | (1.70 | ) | |||||||||
Net (decrease) in net asset value from investment operations | (0.62 | ) | (2.35 | ) | (1.73 | ) | |||||||||
Dividends and Distributions to Shareholders | |||||||||||||||
From net investment income | — | (0.04 | ) | — | |||||||||||
Total dividends and distributions | — | (0.04 | ) | — | |||||||||||
Net asset value, end of period | $ | 5.26 | $ | 5.88 | $ | 8.27 | |||||||||
Total Return | |||||||||||||||
Total return based on net asset value(c) | (10.54 | )% | (28.43 | )% | (17.30 | )% | |||||||||
Ratios/Supplemental Data | |||||||||||||||
Net assets, end of period (000's omitted) | $ | 1,785 | $ | 1,785 | $ | 1,801 | |||||||||
Ratio of net expenses to average net assets, before waiver | 10.85 | %* | 9.30 | % | 11.32 | %* | |||||||||
Ratio of net expenses to average net assets, after waiver | 0.95 | %* | 0.96 | % | 0.87 | %* | |||||||||
Ratio of net investment income (loss) to average net assets | 1.95 | %*(d) | 0.55 | % | (0.60 | )%* | |||||||||
Portfolio turnover rate(e) | 3 | % | 31 | % | 6 | % |
* 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) Ratio includes taxable stock dividends that were treated as income.
(e) Portfolio turnover rate calculated at Fund level. Portfolio turnover is not annualized for periods less than one year.
The accompanying notes are an integral part of the financial statements.
23
Industry Diversification Table
Semi-Annual Report June 30, 2023
June 30, 2023 (unaudited)
Baillie Gifford Developed EAFE All Cap Fund
Value | % of Total Net Assets | ||||||||||
Apparel | $ | 41,983,939 | 6.8 | % | |||||||
Auto Parts & Equipment | 9,949,190 | 1.6 | |||||||||
Banks | 20,097,366 | 3.2 | |||||||||
Beverages | 21,546,120 | 3.5 | |||||||||
Building Materials | 2,789,276 | 0.4 | |||||||||
Chemicals | 7,704,962 | 1.2 | |||||||||
Commercial Services | 51,712,438 | 8.4 | |||||||||
Cosmetics/Personal Care | 33,837,462 | 5.5 | |||||||||
Distribution/Wholesale | 10,813,556 | 1.7 | |||||||||
Diversified Financial Services | 19,784,546 | 3.2 | |||||||||
Electronics | 41,946,664 | 6.8 | |||||||||
Food | 17,128,828 | 2.8 | |||||||||
Hand/Machine Tools | 10,930,144 | 1.8 | |||||||||
Healthcare — Products | 32,056,738 | 5.2 | |||||||||
Healthcare — Services | 11,550,912 | 1.9 | |||||||||
Home Furnishings | 4,229,333 | 0.7 | |||||||||
Insurance | 15,815,701 | 2.5 | |||||||||
Internet | 56,125,677 | 9.1 | |||||||||
Investment Companies | 19,831,989 | 3.2 | |||||||||
Leisure Time | 11,534,366 | 1.9 | |||||||||
Machinery — Construction & Mining | 15,482,944 | 2.5 | |||||||||
Machinery — Diversified | 48,731,815 | 7.9 | |||||||||
Retail | 37,713,427 | 6.1 | |||||||||
Semiconductors | 21,964,398 | 3.5 | |||||||||
Software | 19,642,158 | 3.2 | |||||||||
Toys/Games/Hobbies | 10,079,912 | 1.6 | |||||||||
Transportation | 9,341,390 | 1.5 | |||||||||
Total Value of Investments | 604,325,251 | 97.7 | |||||||||
Other assets less liabilities | 14,408,058 | 2.3 | |||||||||
Net Assets | $ | 618,733,309 | 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.
24
Portfolio of Investments
Semi-Annual Report June 30, 2023
June 30, 2023 (unaudited)
Baillie Gifford Developed EAFE All Cap Fund
Shares | Value | ||||||||||
COMMON STOCKS — 95.6% | |||||||||||
AUSTRALIA — 1.6% | |||||||||||
Cochlear Ltd. | 65,668 | $ | 10,060,871 | ||||||||
BELGIUM — 1.6% | |||||||||||
Anheuser-Busch InBev SA/NV | 178,893 | 10,139,198 | |||||||||
CHINA — 1.3% | |||||||||||
Prosus NV * | 109,953 | 8,052,315 | |||||||||
DENMARK — 1.5% | |||||||||||
DSV A/S | 44,474 | 9,341,390 | |||||||||
FRANCE — 7.0% | |||||||||||
Kering | 15,340 | 8,470,733 | |||||||||
LVMH Moet Hennessy Louis Vuitton SE | 20,603 | 19,426,822 | |||||||||
Remy Cointreau SA | 71,062 | 11,406,922 | |||||||||
Ubisoft Entertainment SA * | 130,126 | 3,678,067 | |||||||||
42,982,544 | |||||||||||
GERMANY — 3.8% | |||||||||||
adidas AG | 31,190 | 6,054,854 | |||||||||
Auto1 Group SE * | 313,692 | 2,913,994 | |||||||||
Nemetschek SE | 80,214 | 5,988,518 | |||||||||
Zalando SE * | 302,635 | 8,727,748 | |||||||||
23,685,114 | |||||||||||
HONG KONG — 4.3% | |||||||||||
AIA Group Ltd. | 1,557,200 | 15,815,701 | |||||||||
Techtronic Industries Co., Ltd. | 999,500 | 10,930,144 | |||||||||
26,745,845 | |||||||||||
JAPAN — 24.6% | |||||||||||
Cosmos Pharmaceutical Corp. | 67,900 | 6,884,800 | |||||||||
Denso Corp. | 147,500 | 9,949,190 | |||||||||
Hoshizaki Corp. | 117,800 | 4,229,333 | |||||||||
Kao Corp. | 132,800 | 4,819,300 | |||||||||
Keyence Corp. | 19,900 | 9,455,618 | |||||||||
Murata Manufacturing Co., Ltd. | 149,400 | 8,581,675 |
The accompanying notes are an integral part of the financial statements.
25
Portfolio of Investments
Semi-Annual Report June 30, 2023
June 30, 2023 (unaudited)
Baillie Gifford Developed EAFE All Cap Fund
Shares | Value | ||||||||||
Nidec Corp. | 125,600 | $ | 6,921,243 | ||||||||
Nippon Paint Holdings Co., Ltd. | 931,000 | 7,704,962 | |||||||||
Olympus Corp. | 855,800 | 13,543,339 | |||||||||
Pigeon Corp. | 186,800 | 2,578,792 | |||||||||
Recruit Holdings Co., Ltd. | 199,100 | 6,354,345 | |||||||||
Shimano, Inc. | 68,900 | 11,534,366 | |||||||||
Shiseido Co., Ltd. | 358,500 | 16,250,708 | |||||||||
SMC Corp. | 31,700 | 17,617,653 | |||||||||
Sugi Holdings Co., Ltd. | 63,100 | 2,819,331 | |||||||||
Sysmex Corp. | 123,400 | 8,452,529 | |||||||||
Unicharm Corp. | 274,000 | 10,188,661 | |||||||||
Z Holdings Corp. | 1,877,200 | 4,524,221 | |||||||||
152,410,066 | |||||||||||
NETHERLANDS — 8.3% | |||||||||||
Adyen NV * | 7,190 | 12,450,691 | |||||||||
ASML Holding NV | 30,282 | 21,964,398 | |||||||||
EXOR NV | 99,369 | 8,871,122 | |||||||||
IMCD NV | 54,892 | 7,899,563 | |||||||||
51,185,774 | |||||||||||
NEW ZEALAND — 2.1% | |||||||||||
Ryman Healthcare Ltd. | 652,628 | 2,642,003 | |||||||||
Xero Ltd. * | 124,508 | 9,975,573 | |||||||||
12,617,576 | |||||||||||
PORTUGAL — 2.8% | |||||||||||
Jeronimo Martins SGPS SA | 621,768 | 17,128,828 | |||||||||
SINGAPORE — 3.3% | |||||||||||
United Overseas Bank Ltd. | 968,489 | 20,097,365 | |||||||||
SWEDEN — 8.7% | |||||||||||
Atlas Copco AB, A Shares | 1,500,223 | 21,658,544 | |||||||||
Avanza Bank Holding AB | 598,651 | 12,199,363 | |||||||||
Epiroc AB, B Shares | 394,796 | 6,389,953 | |||||||||
Investor AB, B Shares | 547,904 | 10,960,867 | |||||||||
Nibe Industrier AB, B Shares | 293,350 | 2,789,276 | |||||||||
53,998,003 |
The accompanying notes are an integral part of the financial statements.
26
Portfolio of Investments
Semi-Annual Report June 30, 2023
June 30, 2023 (unaudited)
Baillie Gifford Developed EAFE All Cap Fund
Shares | Value | ||||||||||
SWITZERLAND — 4.6% | |||||||||||
Cie Financiere Richemont SA | 113,509 | $ | 19,281,548 | ||||||||
Lonza Group AG | 14,905 | 8,908,909 | |||||||||
28,190,457 | |||||||||||
UNITED KINGDOM — 14.6% | |||||||||||
Ashtead Group PLC | 139,903 | 9,699,601 | |||||||||
Auto Trader Group PLC | 1,980,219 | 15,375,459 | |||||||||
Burberry Group PLC | 297,646 | 8,031,530 | |||||||||
Farfetch Ltd., Class A * | 440,059 | 2,657,956 | |||||||||
Games Workshop Group PLC | 72,639 | 10,079,912 | |||||||||
Hargreaves Lansdown PLC | 731,719 | 7,585,183 | |||||||||
Intertek Group PLC | 111,586 | 6,048,847 | |||||||||
Rightmove PLC | 1,705,228 | 11,328,264 | |||||||||
Trainline PLC * | 1,319,723 | 4,374,486 | |||||||||
Weir Group PLC (The) | 407,289 | 9,092,991 | |||||||||
Wise PLC, Class A * | 779,766 | 6,517,743 | |||||||||
90,791,972 | |||||||||||
UNITED STATES — 5.5% | |||||||||||
Experian PLC | 277,252 | 10,641,210 | |||||||||
Mettler-Toledo International, Inc. * | 10,414 | 13,659,419 | |||||||||
Spotify Technology SA * | 61,121 | 9,812,977 | |||||||||
34,113,606 | |||||||||||
Total Common Stocks | |||||||||||
(cost $507,306,783) | 591,540,924 | ||||||||||
PREFERRED STOCKS — 2.1% | |||||||||||
GERMANY — 2.1% | |||||||||||
Sartorius AG 0.45% (cost $7,435,304) | 36,900 | 12,784,327 | |||||||||
TOTAL INVESTMENTS — 97.7% | |||||||||||
(cost $514,742,087) | $ | 604,325,251 | |||||||||
Other assets less liabilities — 2.3% | 14,408,058 | ||||||||||
NET ASSETS — 100.0% | $ | 618,733,309 |
* 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.
27
Portfolio of Investments
Semi-Annual Report June 30, 2023
June 30, 2023 (unaudited)
Baillie Gifford Developed EAFE All Cap Fund
Fair Value Measurement
The following is a summary of the inputs used as of June 30, 2023 in valuing the Fund's investments carried at fair value:
Investments in Securities | Level 1 | Level 2 | Level 3 | Total | |||||||||||||||
Common Stocks ** | $ | 30,504,838 | $ | 561,036,086 | $ | — | $ | 591,540,924 | |||||||||||
Preferred Stocks ** | — | 12,784,327 | — | 12,784,327 | |||||||||||||||
Total | $ | 30,504,838 | $ | 573,820,413 | $ | — | $ | 604,325,251 |
** Refer to Portfolio of Investments for further detail.
The accompanying notes are an integral part of the financial statements.
28
Statement of Assets and Liabilities
Semi-Annual Report June 30, 2023
June 30, 2023 (unaudited)
Baillie Gifford Developed EAFE All Cap Fund
ASSETS | |||||||
Investments, at value (cost $514,742,087) | $ | 604,325,251 | |||||
Cash | 5,187,072 | ||||||
Foreign cash, at value (cost $150,897) | 150,625 | ||||||
Capital shares sold receivable | 8,410,000 | ||||||
Tax reclaims receivable | 924,532 | ||||||
Dividends receivable | 660,578 | ||||||
Prepaid assets | 26,584 | ||||||
Total Assets | 619,684,642 | ||||||
LIABILITIES | |||||||
Advisory fee payable | 531,809 | ||||||
Shareholder Servicing fee payable | 157,375 | ||||||
Administration & Supervisory fee payable | 85,660 | ||||||
Capital shares purchased payable | 67,059 | ||||||
Trustee fee payable | 7,268 | ||||||
Commitment fee payable | 2,224 | ||||||
Accrued expenses | 99,938 | ||||||
Total Liabilities | 951,333 | ||||||
NET ASSETS | $ | 618,733,309 | |||||
COMPOSITION OF NET ASSETS | |||||||
Paid-in capital | $ | 548,122,214 | |||||
Total distributable earnings | 70,611,095 | ||||||
$ | 618,733,309 | ||||||
NET ASSET VALUE, PER SHARE | |||||||
Class 2 ($151,712,668 / 11,730,289 shares outstanding), unlimited authorized, no par value | $ | 12.93 | |||||
Class 3 ($88,144,678 / 6,740,876 shares outstanding), unlimited authorized, no par value | $ | 13.08 | |||||
Class K ($242,542,488 / 18,149,509 shares outstanding), unlimited authorized, no par value | $ | 13.36 | |||||
Institutional Class ($136,333,475 / 10,596,266 shares outstanding), unlimited authorized, no par value | $ | 12.87 |
The accompanying notes are an integral part of the financial statements.
29
Statement of Operations
Semi-Annual Report June 30, 2023
For the Six Months Ended June 30, 2023 (unaudited)
Baillie Gifford Developed EAFE All Cap Fund
INVESTMENT INCOME | |||||||
Dividends (net of foreign withholding taxes of $531,272) | $ | 5,123,748 | |||||
Interest | 60,576 | ||||||
Total Investment Income | 5,184,324 | ||||||
EXPENSES | |||||||
Advisory fee (Note B) | 1,052,753 | ||||||
Shareholder Servicing fees — Class 2 shares (Note B) | 125,230 | ||||||
Shareholder Servicing fees — Class 3 shares (Note B) | 42,792 | ||||||
Administration & Supervisory fee — Class K shares (Note B) | 195,143 | ||||||
Administration & Supervisory fee — Institutional Class shares (Note B) | 118,218 | ||||||
Transfer agency | 43,296 | ||||||
Sub-transfer agency — Institutional Class shares | 62,249 | ||||||
Legal | 61,688 | ||||||
Fund accounting | 57,659 | ||||||
Registration fees | 38,907 | ||||||
Custody | 33,758 | ||||||
Professional fees | 27,589 | ||||||
Trustees' fees | 14,210 | ||||||
Commitment fees | 4,333 | ||||||
Miscellaneous | 24,577 | ||||||
Total Expenses | 1,902,402 | ||||||
Net Investment Income | 3,281,922 | ||||||
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS AND FOREIGN CURRENCY TRANSACTIONS | |||||||
Net realized gain (loss) from: | |||||||
Investments | 672,411 | ||||||
Foreign currency transactions | (105,714 | ) | |||||
566,697 | |||||||
Net change in unrealized appreciation (depreciation) on: | |||||||
Investments | 59,030,585 | ||||||
Translation of net assets and liabilities denominated in foreign currencies | (6,180 | ) | |||||
59,024,405 | |||||||
Net realized and unrealized gain | 59,591,102 | ||||||
NET INCREASE IN NET ASSETS FROM OPERATIONS | $ | 62,873,024 |
The accompanying notes are an integral part of the financial statements.
30
Statements of Changes in Net Assets
Semi-Annual Report June 30, 2023
Baillie Gifford Developed EAFE All Cap Fund
For the Six Months Ended June 30, 2023 (unaudited) | For the Year Ended December 31, 2022 | ||||||||||
INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS | |||||||||||
Net investment income | $ | 3,281,922 | $ | 5,222,551 | |||||||
Net realized gain (loss) | 566,697 | (20,409,075 | ) | ||||||||
Net change in unrealized appreciation (depreciation) | 59,024,405 | (217,876,779 | ) | ||||||||
Net Increase (Decrease) in Net Assets from Operations | 62,873,024 | (233,063,303 | ) | ||||||||
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS FROM: | |||||||||||
Distributable earnings | |||||||||||
Class 2 | — | (1,315,372 | ) | ||||||||
Class 3 | — | (755,979 | ) | ||||||||
Class K | — | (2,073,615 | ) | ||||||||
Institutional Class | — | (1,321,019 | ) | ||||||||
Total Distributions to Shareholders | — | (5,465,985 | ) | ||||||||
TRANSACTIONS IN SHARES OF BENEFICIAL INTEREST | |||||||||||
Net proceeds from shares subscribed: | |||||||||||
Class 2 | 3,000 | 82,492,963 | * | ||||||||
Class 3 | — | 88,645,931 | * | ||||||||
Class K | 16,257,506 | 45,155,999 | |||||||||
Institutional Class | 4,018,679 | 232,591,735 | |||||||||
Dividends reinvested: | |||||||||||
Class 2 | — | 1,315,372 | |||||||||
Class 3 | — | 755,979 | |||||||||
Class K | — | 2,063,614 | |||||||||
Institutional Class | — | 1,320,743 | |||||||||
Cost of shares redeemed: | |||||||||||
Class 2 | — | (7,500,000 | ) | ||||||||
Class 3 | — | (82,486,963 | )* | ||||||||
Class 4 | — | (88,645,931 | )* | ||||||||
Class K | (11,440,700 | ) | (62,875,742 | ) | |||||||
Institutional Class | (17,693,705 | ) | (127,032,078 | ) | |||||||
Increase (Decrease) in Net Assets from Transactions in Shares of Beneficial Interest | (8,855,220 | ) | 85,801,622 | ||||||||
Total Increase (Decrease) in Net Assets | 54,017,804 | (152,727,666 | ) | ||||||||
NET ASSETS | |||||||||||
Beginning of Period | 564,715,505 | 717,443,171 | |||||||||
End of Period | $ | 618,733,309 | $ | 564,715,505 |
* See Note D for details of share class conversions.
The accompanying notes are an integral part of the financial statements.
31
Financial Highlights
Semi-Annual Report June 30, 2023
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, 2023 (unaudited) | For the Year Ended December 31, 2022 | For the Year Ended December 31, 2021 | For the Year Ended December 31, 2020 | For the Year Ended December 31, 2019 | For the Year Ended December 31, 2018 | ||||||||||||||||||||||
Net asset value, beginning of period | $ | 11.63 | $ | 17.34 | $ | 16.64 | $ | 13.13 | $ | 10.04 | $ | 12.06 | |||||||||||||||
From Investment Operations | |||||||||||||||||||||||||||
Net investment income(a) | 0.07 | 0.12 | 0.07 | 0.07 | 0.13 | 0.15 | |||||||||||||||||||||
Net realized and unrealized gain (loss) on investments and foreign currency | 1.23 | (5.72 | ) | 1.16 | 3.61 | 3.11 | (2.08 | ) | |||||||||||||||||||
Net increase (decrease) in net asset value from investment operations | 1.30 | (5.60 | ) | 1.23 | 3.68 | 3.24 | (1.93 | ) | |||||||||||||||||||
Dividends and Distributions to Shareholders | |||||||||||||||||||||||||||
From net investment income | — | — | (0.20 | ) | (0.17 | ) | (0.15 | ) | (0.03 | ) | |||||||||||||||||
From net realized gain on investments | — | (0.11 | ) | (0.33 | ) | — | — | (0.06 | ) | ||||||||||||||||||
Total dividends and distributions | — | (0.11 | ) | (0.53 | ) | (0.17 | ) | (0.15 | ) | (0.09 | ) | ||||||||||||||||
Net asset value, end of period | $ | 12.93 | $ | 11.63 | $ | 17.34 | $ | 16.64 | $ | 13.13 | $ | 10.04 | |||||||||||||||
Total Return | |||||||||||||||||||||||||||
Total return based on net asset value(b) | 11.25 | % | (32.32 | )% | 7.44 | % | 27.95 | % | 32.33 | % | (16.05 | )% | |||||||||||||||
Ratios/Supplemental Data | |||||||||||||||||||||||||||
Net assets, end of period (000's omitted) | $ | 151,713 | $ | 136,363 | $ | 103,630 | $ | 221,181 | $ | 229,861 | $ | 181,679 | |||||||||||||||
Ratio of net expenses to average net assets | 0.62 | %* | 0.64 | % | 0.61 | % | 0.64 | % | 0.66 | % | 0.67 | % | |||||||||||||||
Ratio of net investment income to average net assets | 1.11 | %* | 1.03 | % | 0.37 | % | 0.50 | % | 1.08 | % | 1.23 | % | |||||||||||||||
Portfolio turnover rate(c) | 5 | % | 25 | % | 14 | % | 12 | % | 19 | % | 14 | % |
* Annualized.
(a) Calculated based upon average shares outstanding during the period.
(b) Total investment return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all dividends and distributions, if any, at net asset value during the period, and redemption on the last day of the period. Total return is not annualized for periods less than one year.
(c) Portfolio turnover rate calculated at Fund level. Portfolio turnover is not annualized for periods less than one year.
The accompanying notes are an integral part of the financial statements.
32
Financial Highlights
Semi-Annual Report June 30, 2023
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, 2023 (unaudited) | For the Year Ended December 31, 2022 | For the Year Ended December 31, 2021 | For the Year Ended December 31, 2020 | For the Year Ended December 31, 2019 | For the Year Ended December 31, 2018 | ||||||||||||||||||||||
Net asset value, beginning of period | $ | 11.75 | $ | 17.52 | $ | 16.80 | $ | 13.26 | $ | 10.13 | $ | 12.17 | |||||||||||||||
From Investment Operations | |||||||||||||||||||||||||||
Net investment income(a) | 0.07 | 0.12 | 0.08 | 0.07 | 0.14 | 0.16 | |||||||||||||||||||||
Net realized and unrealized gain (loss) on investments and foreign currency | 1.26 | (5.78 | ) | 1.19 | 3.65 | 3.15 | (2.11 | ) | |||||||||||||||||||
Net increase (decrease) in net asset value from investment operations | 1.33 | (5.66 | ) | 1.27 | 3.72 | 3.29 | (1.95 | ) | |||||||||||||||||||
Dividends and Distributions to Shareholders | |||||||||||||||||||||||||||
From net investment income | — | — | (0.22 | ) | (0.18 | ) | (0.16 | ) | (0.03 | ) | |||||||||||||||||
From net realized gain on investments | — | (0.11 | ) | (0.33 | ) | — | — | (0.06 | ) | ||||||||||||||||||
Total dividends and distributions | — | (0.11 | ) | (0.55 | ) | (0.18 | ) | (0.16 | ) | (0.09 | ) | ||||||||||||||||
Net asset value, end of period | $ | 13.08 | $ | 11.75 | $ | 17.52 | $ | 16.80 | $ | 13.26 | $ | 10.13 | |||||||||||||||
Total Return | |||||||||||||||||||||||||||
Total return based on net asset value(b) | 11.29 | % | (32.27 | )% | 7.51 | % | 28.04 | % | 32.42 | % | (15.99 | )% | |||||||||||||||
Ratios/Supplemental Data | |||||||||||||||||||||||||||
Net assets, end of period (000's omitted) | $ | 88,145 | $ | 79,201 | $ | 108,808 | $ | 108,722 | $ | 84,911 | $ | 64,123 | |||||||||||||||
Ratio of net expenses to average net assets | 0.55 | %* | 0.57 | % | 0.54 | % | 0.57 | % | 0.59 | % | 0.60 | % | |||||||||||||||
Ratio of net investment income to average net assets | 1.18 | %* | 0.97 | % | 0.46 | % | 0.55 | % | 1.16 | % | 1.31 | % | |||||||||||||||
Portfolio turnover rate(c) | 5 | % | 25 | % | 14 | % | 12 | % | 19 | % | 14 | % |
* Annualized.
(a) Calculated based upon average shares outstanding during the period.
(b) Total investment return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all dividends and distributions, if any, at net asset value during the period, and redemption on the last day of the period. Total return is not annualized for periods less than one year.
(c) Portfolio turnover rate calculated at Fund level. Portfolio turnover is not annualized for periods less than one year.
The accompanying notes are an integral part of the financial statements.
33
Financial Highlights
Semi-Annual Report June 30, 2023
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, 2023 (unaudited) | For the Year Ended December 31, 2022 | For the Year Ended December 31, 2021 | For the Year Ended December 31, 2020 | For the Year Ended December 31, 2019 | For the Year Ended December 31, 2018 | ||||||||||||||||||||||
Net asset value, beginning of period | $ | 11.60 | $ | 17.31 | $ | 16.61 | $ | 13.11 | $ | 10.03 | $ | 12.06 | |||||||||||||||
From Investment Operations | |||||||||||||||||||||||||||
Net investment income(a) | 0.07 | 0.11 | 0.07 | 0.06 | 0.12 | 0.11 | |||||||||||||||||||||
Net realized and unrealized gain (loss) on investments and foreign currency | 1.69 | (5.71 | ) | 1.17 | 3.61 | 3.11 | (2.04 | ) | |||||||||||||||||||
Net increase (decrease) in net asset value from investment operations | 1.76 | (5.60 | ) | 1.24 | 3.67 | 3.23 | (1.93 | ) | |||||||||||||||||||
Dividends and Distributions to Shareholders | |||||||||||||||||||||||||||
From net investment income | — | — | (0.21 | ) | (0.17 | ) | (0.15 | ) | (0.04 | ) | |||||||||||||||||
From net realized gain on investments | — | (0.11 | ) | (0.33 | ) | — | — | (0.06 | ) | ||||||||||||||||||
Total dividends and distributions | — | (0.11 | ) | (0.54 | ) | (0.17 | ) | (0.15 | ) | (0.10 | ) | ||||||||||||||||
Net asset value, end of period | $ | 13.36 | $ | 11.60 | $ | 17.31 | $ | 16.61 | $ | 13.11 | $ | 10.03 | |||||||||||||||
Total Return | |||||||||||||||||||||||||||
Total return based on net asset value(b) | 11.21 | % | (32.33 | )% | 7.47 | % | 27.98 | % | 32.24 | % | (16.05 | )% | |||||||||||||||
Ratios/Supplemental Data | |||||||||||||||||||||||||||
Net assets, end of period (000's omitted) | $ | 242,542 | $ | 214,016 | $ | 345,052 | $ | 246,283 | $ | 247,155 | $ | 152,397 | |||||||||||||||
Ratio of net expenses to average net assets | 0.62 | %* | 0.64 | % | 0.61 | % | 0.64 | % | 0.66 | % | 0.67 | % | |||||||||||||||
Ratio of net investment income to average net assets | 1.11 | %* | 0.91 | % | 0.38 | % | 0.49 | % | 1.04 | % | 0.99 | % | |||||||||||||||
Portfolio turnover rate(c) | 5 | % | 25 | % | 14 | % | 12 | % | 19 | % | 14 | % |
* Annualized.
(a) Calculated based upon average shares outstanding during the period.
(b) Total investment return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all dividends and distributions, if any, at net asset value during the period, and redemption on the last day of the period. Total return is not annualized for periods less than one year.
(C) Portfolio turnover rate calculated at Fund level. Portfolio turnover is not annualized for periods less than one year.
The accompanying notes are an integral part of the financial statements.
34
Financial Highlights
Semi-Annual Report June 30, 2023
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, 2023 (unaudited) | For the Year Ended December 31, 2022 | For the Year Ended December 31, 2021 | For the Year Ended December 31, 2020 | For the Year Ended December 31, 2019 | For the Year Ended December 31, 2018 | ||||||||||||||||||||||
Net asset value, beginning of period | $ | 11.57 | $ | 17.27 | $ | 16.59 | $ | 13.10 | $ | 10.02 | $ | 12.06 | |||||||||||||||
From Investment Operations | |||||||||||||||||||||||||||
Net investment income(a) | 0.06 | 0.09 | 0.05 | 0.06 | 0.11 | 0.06 | |||||||||||||||||||||
Net realized and unrealized gain (loss) on investments and foreign currency | 1.24 | (5.68 | ) | 1.17 | 3.58 | 3.13 | (2.00 | ) | |||||||||||||||||||
Net increase (decrease) in net asset value from investment operations | 1.30 | (5.59 | ) | 1.22 | 3.64 | 3.24 | (1.94 | ) | |||||||||||||||||||
Dividends and Distributions to Shareholders | |||||||||||||||||||||||||||
From net investment income | — | — | (0.21 | ) | (0.15 | ) | (0.16 | ) | (0.04 | ) | |||||||||||||||||
From net realized gain on investments | — | (0.11 | ) | (0.33 | ) | — | — | (0.06 | ) | ||||||||||||||||||
Total dividends and distributions | — | (0.11 | ) | (0.54 | ) | (0.15 | ) | (0.16 | ) | (0.10 | ) | ||||||||||||||||
Net asset value, end of period | $ | 12.87 | $ | 11.57 | $ | 17.27 | $ | 16.59 | $ | 13.10 | $ | 10.02 | |||||||||||||||
Total Return | |||||||||||||||||||||||||||
Total return based on net asset value(b) | 11.24 | % | (32.34 | )% | 7.36 | % | 27.77 | % | 32.28 | % | (16.13 | )% | |||||||||||||||
Ratios/Supplemental Data | |||||||||||||||||||||||||||
Net assets, end of period (000's omitted) | $ | 136,333 | $ | 135,136 | $ | 43,030 | $ | 12,143 | $ | 9,179 | $ | 1,862 | |||||||||||||||
Ratio of net expenses to average net assets | 0.71 | %* | 0.71 | % | 0.67 | % | 0.76 | % | 0.73 | % | 0.77 | % | |||||||||||||||
Ratio of net investment income to average net assets | 0.99 | %* | 0.80 | % | 0.29 | % | 0.43 | % | 0.89 | % | 0.59 | % | |||||||||||||||
Portfolio turnover rate(c) | 5 | % | 25 | % | 14 | % | 12 | % | 19 | % | 14 | % |
* Annualized.
(a) Calculated based upon average shares outstanding during the period.
(b) Total investment return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all dividends and distributions, if any, at net asset value during the period, and redemption on the last day of the period. Total return is not annualized for periods less than one year.
(c) Portfolio turnover rate calculated at Fund level. Portfolio turnover is not annualized for periods less than one year.
The accompanying notes are an integral part of the financial statements.
35
Industry Diversification Table
Semi-Annual Report June 30, 2023
June 30, 2023 (unaudited)
Baillie Gifford EAFE Plus All Cap Fund
Value | % of Total Net Assets | ||||||||||
Apparel | $ | 25,362,458 | 5.2 | % | |||||||
Auto Parts & Equipment | 10,338,755 | 2.1 | |||||||||
Banks | 13,415,128 | 2.7 | |||||||||
Beverages | 15,265,559 | 3.1 | |||||||||
Building Materials | 2,249,820 | 0.5 | |||||||||
Chemicals | 5,055,812 | 1.0 | |||||||||
Commercial Services | 37,683,608 | 7.7 | |||||||||
Cosmetics/Personal Care | 24,956,687 | 5.1 | |||||||||
Distribution/Wholesale | 8,466,032 | 1.7 | |||||||||
Diversified Financial Services | 7,529,008 | 1.5 | |||||||||
Electronics | 34,479,260 | 7.1 | |||||||||
Energy — Alternate Sources | 1,939,528 | 0.4 | |||||||||
Food | 12,615,571 | 2.6 | |||||||||
Hand/Machine Tools | 7,463,555 | 1.5 | |||||||||
Healthcare — Products | 22,237,682 | 4.6 | |||||||||
Healthcare — Services | 7,253,842 | 1.5 | |||||||||
Insurance | 19,055,778 | 3.9 | |||||||||
Internet | 63,802,951 | 13.0 | |||||||||
Investment Companies | 17,086,513 | 3.5 | |||||||||
Leisure Time | 6,579,109 | 1.4 | |||||||||
Machinery — Construction & Mining | 12,512,469 | 2.6 | |||||||||
Machinery — Diversified | 35,838,049 | 7.3 | |||||||||
Oil & Gas | 2,127,177 | 0.4 | |||||||||
Retail | 33,041,321 | 6.8 | |||||||||
Semiconductors | 28,731,774 | 5.9 | |||||||||
Software | 14,865,866 | 3.0 | |||||||||
Toys/Games/Hobbies | 6,751,858 | 1.4 | |||||||||
Transportation | 6,085,745 | 1.2 | |||||||||
Total Value of Investments | 482,790,915 | 98.7 | |||||||||
Other assets less liabilities | 6,567,952 | 1.3 | |||||||||
Net Assets | $ | 489,358,867 | 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.
36
Portfolio of Investments
Semi-Annual Report June 30, 2023
June 30, 2023 (unaudited)
Baillie Gifford EAFE Plus All Cap Fund
Shares | Value | ||||||||||
COMMON STOCKS — 96.3% | |||||||||||
AUSTRALIA — 1.5% | |||||||||||
Cochlear Ltd. | 47,250 | $ | 7,239,084 | ||||||||
BELGIUM — 1.5% | |||||||||||
Anheuser-Busch InBev SA/NV | 127,783 | 7,242,414 | |||||||||
BRAZIL — 2.9% | |||||||||||
MercadoLibre, Inc. * | 7,783 | 9,219,742 | |||||||||
Raia Drogasil SA | 799,136 | 4,928,467 | |||||||||
14,148,209 | |||||||||||
CHINA — 5.9% | |||||||||||
Alibaba Group Holding Ltd. * | 422,088 | 4,393,864 | |||||||||
Contemporary Amperex Technology Co., Ltd., Class A | 110,104 | 3,478,873 | |||||||||
LONGi Green Energy Technology Co., Ltd., Class A | 490,200 | 1,939,527 | |||||||||
Meituan, Class B * | 301,700 | 4,730,933 | |||||||||
Ping An Insurance Group Co. of China Ltd., Class H | 874,000 | 5,582,166 | |||||||||
Prosus NV * | 119,520 | 8,752,946 | |||||||||
28,878,309 | |||||||||||
DENMARK — 1.2% | |||||||||||
DSV A/S | 28,974 | 6,085,745 | |||||||||
FRANCE — 5.1% | |||||||||||
Kering | 8,699 | 4,803,579 | |||||||||
LVMH Moet Hennessy Louis Vuitton SE | 10,334 | 9,744,056 | |||||||||
Remy Cointreau SA | 49,982 | 8,023,145 | |||||||||
Ubisoft Entertainment SA * | 82,506 | 2,332,068 | |||||||||
24,902,848 | |||||||||||
GERMANY — 4.0% | |||||||||||
adidas AG | 30,315 | 5,884,992 | |||||||||
Auto1 Group SE * | 264,546 | 2,457,460 | |||||||||
Nemetschek SE | 65,086 | 4,859,110 | |||||||||
Zalando SE * | 224,119 | 6,463,410 | |||||||||
19,664,972 |
The accompanying notes are an integral part of the financial statements.
37
Portfolio of Investments
Semi-Annual Report June 30, 2023
June 30, 2023 (unaudited)
Baillie Gifford EAFE Plus All Cap Fund
Shares | Value | ||||||||||
HONG KONG — 4.3% | |||||||||||
AIA Group Ltd. | 1,326,600 | $ | 13,473,612 | ||||||||
Techtronic Industries Co., Ltd. | 682,500 | 7,463,555 | |||||||||
20,937,167 | |||||||||||
INDIA — 1.1% | |||||||||||
Housing Development Finance Corp., Ltd. | 90,923 | 3,136,869 | |||||||||
Reliance Industries Ltd. | 68,242 | 2,127,178 | |||||||||
5,264,047 | |||||||||||
JAPAN — 21.8% | |||||||||||
Cosmos Pharmaceutical Corp. | 51,500 | 5,221,903 | |||||||||
Denso Corp. | 101,700 | 6,859,882 | |||||||||
Kao Corp. | 87,700 | 3,182,625 | |||||||||
Keyence Corp. | 15,900 | 7,554,992 | |||||||||
Murata Manufacturing Co., Ltd. | 121,500 | 6,979,073 | |||||||||
Nidec Corp. | 96,900 | 5,339,717 | |||||||||
Nippon Paint Holdings Co., Ltd. | 610,900 | 5,055,812 | |||||||||
Olympus Corp. | 509,300 | 8,059,853 | |||||||||
Pigeon Corp. | 147,400 | 2,034,871 | |||||||||
Recruit Holdings Co., Ltd. | 145,500 | 4,643,683 | |||||||||
Shimano, Inc. | 39,300 | 6,579,109 | |||||||||
Shiseido Co., Ltd. | 256,300 | 11,618,010 | |||||||||
SMC Corp. | 24,200 | 13,449,439 | |||||||||
Sugi Holdings Co., Ltd. | 52,700 | 2,354,655 | |||||||||
Sysmex Corp. | 101,300 | 6,938,745 | |||||||||
Unicharm Corp. | 218,400 | 8,121,181 | |||||||||
Z Holdings Corp. | 1,040,200 | 2,506,975 | |||||||||
106,500,525 | |||||||||||
NETHERLANDS — 7.5% | |||||||||||
Adyen NV * | 5,630 | 9,749,290 | |||||||||
ASML Holding NV | 20,386 | 14,786,547 | |||||||||
EXOR NV | 71,083 | 6,345,902 | |||||||||
IMCD NV | 41,752 | 6,008,572 | |||||||||
36,890,311 | |||||||||||
NEW ZEALAND — 1.6% | |||||||||||
Xero Ltd. * | 95,790 | 7,674,688 |
The accompanying notes are an integral part of the financial statements.
38
Portfolio of Investments
Semi-Annual Report June 30, 2023
June 30, 2023 (unaudited)
Baillie Gifford EAFE Plus All Cap Fund
Shares | Value | ||||||||||
PORTUGAL — 2.6% | |||||||||||
Jeronimo Martins SGPS SA | 457,939 | $ | 12,615,571 | ||||||||
SINGAPORE — 2.7% | |||||||||||
United Overseas Bank Ltd. | 646,473 | 13,415,128 | |||||||||
SOUTH KOREA — 0.6% | |||||||||||
Coupang, Inc. * | 172,695 | 3,004,893 | |||||||||
SWEDEN — 6.8% | |||||||||||
Atlas Copco AB, A Shares | 778,603 | 11,240,600 | |||||||||
Atlas Copco AB, B Shares | 288,168 | 3,593,018 | |||||||||
Epiroc AB, B Shares | 349,263 | 5,652,980 | |||||||||
Investor AB, B Shares | 536,894 | 10,740,611 | |||||||||
Nibe Industrier AB, B Shares | 236,615 | 2,249,820 | |||||||||
33,477,029 | |||||||||||
SWITZERLAND — 4.3% | |||||||||||
Cie Financiere Richemont SA | 82,846 | 14,072,885 | |||||||||
Lonza Group AG | 12,136 | 7,253,842 | |||||||||
21,326,727 | |||||||||||
TAIWAN — 2.8% | |||||||||||
Taiwan Semiconductor Manufacturing Co., Ltd. ADR | 138,181 | 13,945,226 | |||||||||
UNITED KINGDOM — 13.2% | |||||||||||
Ashtead Group PLC | 106,628 | 7,392,615 | |||||||||
Auto Trader Group PLC | 1,437,326 | 11,160,153 | |||||||||
Burberry Group PLC | 182,698 | 4,929,831 | |||||||||
Farfetch Ltd., Class A * | 326,203 | 1,970,266 | |||||||||
Games Workshop Group PLC | 48,656 | 6,751,858 | |||||||||
Hargreaves Lansdown PLC | 423,696 | 4,392,139 | |||||||||
Intertek Group PLC | 97,979 | 5,311,240 | |||||||||
Rightmove PLC | 1,200,747 | 7,976,868 | |||||||||
Trainline PLC * | 1,121,941 | 3,718,898 | |||||||||
Weir Group PLC (The) | 307,247 | 6,859,489 | |||||||||
Wise PLC, Class A * | 461,113 | 3,854,254 | |||||||||
64,317,611 |
The accompanying notes are an integral part of the financial statements.
39
Portfolio of Investments
Semi-Annual Report June 30, 2023
June 30, 2023 (unaudited)
Baillie Gifford EAFE Plus All Cap Fund
Shares | Value | ||||||||||
UNITED STATES — 4.9% | |||||||||||
Experian PLC | 175,413 | $ | 6,732,527 | ||||||||
Mettler-Toledo International, Inc. * | 8,140 | 10,676,750 | |||||||||
Spotify Technology SA * | 39,660 | 6,367,413 | |||||||||
23,776,690 | |||||||||||
Total Common Stocks | |||||||||||
(cost $398,776,430) | 471,307,194 | ||||||||||
PREFERRED STOCKS — 2.4% | |||||||||||
GERMANY — 2.4% | |||||||||||
Sartorius AG 0.45% (cost $6,610,985) | 33,146 | 11,483,721 | |||||||||
TOTAL INVESTMENTS — 98.7% | |||||||||||
(cost $405,387,415) | $ | 482,790,915 | |||||||||
Other assets less liabilities — 1.3% | 6,567,952 | ||||||||||
NET ASSETS — 100.0% | $ | 489,358,867 |
* 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, 2023 in valuing the Fund's investments carried at fair value:
Investments in Securities | Level 1 | Level 2 | Level 3 | Total | |||||||||||||||
Common Stocks ** | $ | 53,831,655 | $ | 417,475,539 | $ | — | $ | 471,307,194 | |||||||||||
Preferred Stocks ** | — | 11,483,721 | — | 11,483,721 | |||||||||||||||
Total | $ | 53,831,655 | $ | 428,959,260 | $ | — | $ | 482,790,915 |
** Refer to Portfolio of Investments for further detail.
The accompanying notes are an integral part of the financial statements.
40
Statement of Assets and Liabilities
Semi-Annual Report June 30, 2023
June 30, 2023 (unaudited)
Baillie Gifford EAFE Plus All Cap Fund
ASSETS | |||||||
Investments, at value (cost $405,387,415) | $ | 482,790,915 | |||||
Cash | 6,510,072 | ||||||
Foreign cash, at value (cost $117,676) | 117,464 | ||||||
Dividends receivable | 662,142 | ||||||
Tax reclaims receivable | 494,635 | ||||||
Capital shares sold receivable | 7,984 | ||||||
Prepaid assets | 14,127 | ||||||
Total Assets | 490,597,339 | ||||||
LIABILITIES | |||||||
Advisory fee payable | 427,342 | ||||||
Capital shares purchased payable | 475,559 | ||||||
Shareholder Servicing fee payable | 118,105 | ||||||
Administration & Supervisory fee payable | 66,112 | ||||||
Deferred India capital gains tax liability (Note A) | 58,773 | ||||||
Trustee fee payable | 5,467 | ||||||
Commitment fee payable | 1,668 | ||||||
Accrued expenses | 85,446 | ||||||
Total Liabilities | 1,238,472 | ||||||
NET ASSETS | $ | 489,358,867 | |||||
COMPOSITION OF NET ASSETS | |||||||
Paid-in capital | $ | 417,198,327 | |||||
Total distributable earnings | 72,160,540 | ||||||
$ | 489,358,867 | ||||||
NET ASSET VALUE, PER SHARE | |||||||
Class 2 ($201,329,164 / 13,528,989 shares outstanding), unlimited authorized, no par value | $ | 14.88 | |||||
Class 3 ($133,127,767 / 8,953,293 shares outstanding), unlimited authorized, no par value | $ | 14.87 | |||||
Class K ($134,547,475 / 9,076,843 shares outstanding), unlimited authorized, no par value | $ | 14.82 | |||||
Institutional Class ($20,354,461 / 1,378,455 shares outstanding), unlimited authorized, no par value | $ | 14.77 |
The accompanying notes are an integral part of the financial statements.
41
Statement of Operations
Semi-Annual Report June 30, 2023
For the Six Months Ended June 30, 2023 (unaudited)
Baillie Gifford EAFE Plus All Cap Fund
INVESTMENT INCOME | |||||||
Dividends (net of foreign withholding taxes of $344,962) | $ | 3,623,563 | |||||
Interest | 69,310 | ||||||
Litigation income | 12 | ||||||
Total Investment Income | 3,692,885 | ||||||
EXPENSES | |||||||
Advisory fee (Note B) | 838,606 | ||||||
Administration & Supervisory fee — Institutional Class shares (Note B) | 16,459 | ||||||
Shareholder Servicing fees — Class 2 shares (Note B) | 164,859 | ||||||
Shareholder Servicing fees — Class 3 shares (Note B) | 65,923 | ||||||
Shareholder Servicing fees — Class K shares (Note B) | 113,935 | ||||||
Transfer agency | 45,582 | ||||||
Sub-transfer agency — Institutional Class shares | 8,025 | ||||||
Fund accounting | 50,590 | ||||||
Legal | 48,303 | ||||||
Professional fees | 41,784 | ||||||
Custody | 25,617 | ||||||
Registration fees | 18,046 | ||||||
Trustees' fees | 11,192 | ||||||
Commitment fees | 3,413 | ||||||
Miscellaneous | 14,183 | ||||||
Total Expenses | 1,466,517 | ||||||
Net Investment Income | 2,226,368 | ||||||
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS AND FOREIGN CURRENCY TRANSACTIONS | |||||||
Net realized gain (loss) from: | |||||||
Investments | 2,284,562 | ||||||
Foreign currency transactions | (29,898 | ) | |||||
2,254,664 | |||||||
Net change in unrealized appreciation (depreciation) on: | |||||||
Investments (net of change in deferred India capital gains tax liability of $47,094) (Note A) | 45,532,929 | ||||||
Translation of net assets and liabilities denominated in foreign currencies | (4,294 | ) | |||||
45,528,635 | |||||||
Net realized and unrealized gain | 47,783,299 | ||||||
NET INCREASE IN NET ASSETS FROM OPERATIONS | $ | 50,009,667 |
The accompanying notes are an integral part of the financial statements.
42
Statements of Changes in Net Assets
Semi-Annual Report June 30, 2023
Baillie Gifford EAFE Plus All Cap Fund
For the Six Months Ended June 30, 2023 (unaudited) | For the Year Ended December 31, 2022 | ||||||||||
INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS | |||||||||||
Net investment income | $ | 2,226,368 | $ | 3,432,684 | |||||||
Net realized gain (loss) | 2,254,664 | (3,228,308 | ) | ||||||||
Net change in unrealized appreciation (depreciation) | 45,528,635 | (201,820,026 | ) | ||||||||
Net Increase (Decrease) in Net Assets from Operations | 50,009,667 | (201,615,650 | ) | ||||||||
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS FROM: | |||||||||||
Distributable earnings | |||||||||||
Class 2 | — | (4,407,369 | ) | ||||||||
Class 3 | — | (3,067,698 | ) | ||||||||
Class K | — | (3,131,099 | ) | ||||||||
Institutional Class | — | (443,381 | ) | ||||||||
Total Distributions to Shareholders | — | (11,049,547 | ) | ||||||||
TRANSACTIONS IN SHARES OF BENEFICIAL INTEREST | |||||||||||
Net proceeds from shares subscribed: | |||||||||||
Class 2 | 4,503,000 | 66,979,275 | * | ||||||||
Class 3 | — | 48,661,226 | * | ||||||||
Class K | 303,348 | 14,784,641 | |||||||||
Institutional Class | 1,214,797 | 2,016,768 | |||||||||
Dividends reinvested: | |||||||||||
Class 2 | — | 4,407,368 | |||||||||
Class 3 | — | 3,067,698 | |||||||||
Class K | — | 3,130,898 | |||||||||
Institutional Class | — | 441,482 | |||||||||
Cost of shares redeemed: | |||||||||||
Class 2 | — | (7,100,000 | ) | ||||||||
Class 3 | (3,500,000 | ) | (67,348,275 | )* | |||||||
Class 4 | — | (3,764,253 | )* | ||||||||
Class K | (4,639,133 | ) | (3,894,300 | ) | |||||||
Institutional Class | (434,640 | ) | (12,855,574 | ) | |||||||
Increase (Decrease) in Net Assets from Transactions in Shares of Beneficial Interest | (2,552,628 | ) | 48,526,954 | ||||||||
Total Increase (Decrease) in Net Assets | 47,457,039 | (164,138,243 | ) | ||||||||
NET ASSETS | |||||||||||
Beginning of Period | 441,901,828 | 606,040,071 | |||||||||
End of Period | $ | 489,358,867 | $ | 441,901,828 |
* See Note D for details of share class conversions.
The accompanying notes are an integral part of the financial statements.
43
Financial Highlights
Semi-Annual Report June 30, 2023
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, 2023 (unaudited) | For the Year Ended December 31, 2022 | For the Year Ended December 31, 2021 | For the Year Ended December 31, 2020 | For the Year Ended December 31, 2019 | For the Year Ended December 31, 2018 | ||||||||||||||||||||||
Net asset value, beginning of period | $ | 13.37 | $ | 19.93 | $ | 21.15 | $ | 16.71 | $ | 13.15 | $ | 16.11 | |||||||||||||||
From Investment Operations | |||||||||||||||||||||||||||
Net investment income(a) | 0.07 | 0.11 | 0.07 | 0.07 | 0.27 | 0.17 | |||||||||||||||||||||
Net realized and unrealized gain (loss) on investments and foreign currency | 1.44 | (6.32 | ) | 0.63 | 4.73 | 3.91 | (2.81 | ) | |||||||||||||||||||
Net increase (decrease) in net asset value from investment operations | 1.51 | (6.21 | ) | 0.70 | 4.80 | 4.18 | (2.64 | ) | |||||||||||||||||||
Dividends and Distributions to Shareholders | |||||||||||||||||||||||||||
From net investment income | — | (0.01 | ) | (0.28 | ) | (0.14 | ) | (0.33 | ) | (0.09 | ) | ||||||||||||||||
From net realized gain on investments | — | (0.34 | ) | (1.64 | ) | (0.22 | ) | (0.29 | ) | (0.23 | ) | ||||||||||||||||
Total dividends and distributions | — | (0.35 | ) | (1.92 | ) | (0.36 | ) | (0.62 | ) | (0.32 | ) | ||||||||||||||||
Net asset value, end of period | $ | 14.88 | $ | 13.37 | $ | 19.93 | $ | 21.15 | $ | 16.71 | $ | 13.15 | |||||||||||||||
Total Return | |||||||||||||||||||||||||||
Total return based on net asset value(b) | 11.28 | % | (31.17 | )% | 3.31 | % | 28.77 | % | 31.73 | % | (16.39 | )% | |||||||||||||||
Ratios/Supplemental Data | |||||||||||||||||||||||||||
Net assets, end of period (000's omitted) | $ | 201,329 | $ | 176,604 | $ | 179,913 | $ | 343,888 | $ | 309,335 | $ | 232,937 | |||||||||||||||
Ratio of net expenses to average net assets | 0.63 | %* | 0.64 | % | 0.61 | % | 0.62 | % | 0.65 | % | 0.68 | % | |||||||||||||||
Ratio of net investment income to average net assets | 0.92 | %* | 0.80 | % | 0.32 | % | 0.42 | % | 1.76 | % | 1.06 | % | |||||||||||||||
Portfolio turnover rate(c) | 6 | % | 17 | % | 10 | % | 20 | % | 11 | % | 26 | % |
* Annualized.
(a) Calculated based upon average shares outstanding during the period.
(b) Total investment return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all dividends and distributions, if any, at net asset value during the period, and redemption on the last day of the period. Total return is not annualized for periods less than one year.
(c) Portfolio turnover rate calculated at Fund level. Portfolio turnover is not annualized for periods less than one year.
The accompanying notes are an integral part of the financial statements.
44
Financial Highlights
Semi-Annual Report June 30, 2023
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, 2023 (unaudited) | For the Year Ended December 31, 2022 | For the Year Ended December 31, 2021 | 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 | $ | 13.36 | $ | 19.90 | $ | 21.14 | $ | 17.57 | $ | 12.58 | $ | 12.67 | |||||||||||||||
From Investment Operations | |||||||||||||||||||||||||||
Net investment income(b) | 0.07 | 0.10 | 0.08 | 0.03 | 0.16 | 0.20 | |||||||||||||||||||||
Net realized and unrealized gain (loss) on investments and foreign currency | 1.44 | (6.29 | ) | 0.63 | 3.93 | 3.79 | (0.13 | ) | |||||||||||||||||||
Net increase (decrease) in net asset value from investment operations | 1.51 | (6.19 | ) | 0.71 | 3.96 | 3.95 | 0.07 | ||||||||||||||||||||
Dividends and Distributions to Shareholders | |||||||||||||||||||||||||||
From net investment income | — | (0.01 | ) | (0.31 | ) | (0.17 | ) | (0.27 | ) | (0.17 | ) | ||||||||||||||||
From net realized gain on investments | — | (0.34 | ) | (1.64 | ) | (0.22 | ) | — | — | ||||||||||||||||||
Total dividends and distributions | — | (0.35 | ) | (1.95 | ) | (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 | $ | 14.87 | $ | 13.36 | $ | 19.90 | $ | 21.14 | $ | 16.26 | $ | 12.58 | |||||||||||||||
Total Return | |||||||||||||||||||||||||||
Total return based on net asset value(d) | 11.32 | % | (31.12 | )% | 3.38 | % | 22.49 | % | 31.37 | % | 0.66 | % | |||||||||||||||
Ratios/Supplemental Data | |||||||||||||||||||||||||||
Net assets, end of period (000's omitted) | $ | 133,128 | $ | 122,784 | $ | 211,865 | $ | 146,565 | $ | 26,932 | $ | 19,890 | |||||||||||||||
Ratio of net expenses to average net assets | 0.56 | %* | 0.57 | % | 0.54 | % | 0.54 | %* | 0.60 | % | 0.58 | % | |||||||||||||||
Ratio of net investment income to average net assets | 0.98 | %* | 0.69 | % | 0.36 | % | 0.35 | %* | 1.06 | % | 1.59 | % | |||||||||||||||
Portfolio turnover rate(e) | 6 | % | 17 | % | 10 | % | 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. Portfolio turnover is not annualized for periods less than one year.
The accompanying notes are an integral part of the financial statements.
45
Financial Highlights
Semi-Annual Report June 30, 2023
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, 2023 (unaudited) | For the Year Ended December 31, 2022 | For the Year Ended December 31, 2021 | For the Year Ended December 31, 2020 | For the Year Ended December 31, 2019 | For the Year Ended December 31, 2018 | ||||||||||||||||||||||
Net asset value, beginning of period | $ | 13.32 | $ | 19.86 | $ | 21.09 | $ | 16.66 | $ | 13.12 | $ | 16.10 | |||||||||||||||
From Investment Operations | |||||||||||||||||||||||||||
Net investment income(a) | 0.07 | 0.10 | 0.07 | 0.07 | 0.26 | 0.04 | |||||||||||||||||||||
Net realized and unrealized gain (loss) on investments and foreign currency | 1.43 | (6.29 | ) | 0.63 | 4.73 | 3.91 | (2.68 | ) | |||||||||||||||||||
Net increase (decrease) in net asset value from investment operations | 1.50 | (6.19 | ) | 0.70 | 4.80 | 4.17 | (2.64 | ) | |||||||||||||||||||
Dividends and Distributions to Shareholders | |||||||||||||||||||||||||||
From net investment income | — | (0.01 | ) | (0.29 | ) | (0.15 | ) | (0.34 | ) | (0.11 | ) | ||||||||||||||||
From net realized gain on investments | — | (0.34 | ) | (1.64 | ) | (0.22 | ) | (0.29 | ) | (0.23 | ) | ||||||||||||||||
Total dividends and distributions | — | (0.35 | ) | (1.93 | ) | (0.37 | ) | (0.63 | ) | (0.34 | ) | ||||||||||||||||
Net asset value, end of period | $ | 14.82 | $ | 13.32 | $ | 19.86 | $ | 21.09 | $ | 16.66 | $ | 13.12 | |||||||||||||||
Total Return | |||||||||||||||||||||||||||
Total return based on net asset value(b) | 11.26 | % | (31.19 | )% | 3.33 | % | 28.78 | % | 31.72 | % | (16.36 | )% | |||||||||||||||
Ratios/Supplemental Data | |||||||||||||||||||||||||||
Net assets, end of period (000's omitted) | $ | 134,547 | $ | 124,889 | $ | 166,910 | $ | 202,514 | $ | 114,922 | $ | 64,827 | |||||||||||||||
Ratio of net expenses to average net assets | 0.63 | %* | 0.64 | % | 0.61 | % | 0.62 | % | 0.65 | % | 0.68 | % | |||||||||||||||
Ratio of net investment income to average net assets | 0.91 | %* | 0.70 | % | 0.31 | % | 0.40 | % | 1.73 | % | 0.42 | % | |||||||||||||||
Portfolio turnover rate(c) | 6 | % | 17 | % | 10 | % | 20 | % | 11 | % | 26 | % |
* Annualized.
(a) Calculated based upon average shares outstanding during the period.
(b) Total investment return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all dividends and distributions, if any, at net asset value during the period, and redemption on the last day of the period. Total return is not annualized for periods less than one year.
(c) Portfolio turnover rate calculated at Fund level. Portfolio turnover is not annualized for periods less than one year.
The accompanying notes are an integral part of the financial statements.
46
Financial Highlights
Semi-Annual Report June 30, 2023
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, 2023 (unaudited) | For the Year Ended December 31, 2022 | For the Year Ended December 31, 2021 | For the Year Ended December 31, 2020 | For the Year Ended December 31, 2019 | For the Year Ended December 31, 2018 | ||||||||||||||||||||||
Net asset value, beginning of period | $ | 13.28 | $ | 19.81 | $ | 21.05 | $ | 16.63 | $ | 13.10 | $ | 16.09 | |||||||||||||||
From Investment Operations | |||||||||||||||||||||||||||
Net investment income(a) | 0.06 | 0.10 | 0.05 | 0.05 | 0.26 | 0.07 | |||||||||||||||||||||
Net realized and unrealized gain (loss) on investments and foreign currency | 1.43 | (6.28 | ) | 0.62 | 4.72 | 3.88 | (2.73 | ) | |||||||||||||||||||
Net increase (decrease) in net asset value from investment operations | 1.49 | (6.18 | ) | 0.67 | 4.77 | 4.14 | (2.66 | ) | |||||||||||||||||||
Dividends and Distributions to Shareholders | |||||||||||||||||||||||||||
From net investment income | — | (0.01 | ) | (0.27 | ) | (0.13 | ) | (0.32 | ) | (0.10 | ) | ||||||||||||||||
From net realized gain on investments | — | (0.34 | ) | (1.64 | ) | (0.22 | ) | (0.29 | ) | (0.23 | ) | ||||||||||||||||
Total dividends and distributions | — | (0.35 | ) | (1.91 | ) | (0.35 | ) | (0.61 | ) | (0.33 | ) | ||||||||||||||||
Net asset value, end of period | $ | 14.77 | $ | 13.28 | $ | 19.81 | $ | 21.05 | $ | 16.63 | $ | 13.10 | |||||||||||||||
Total Return | |||||||||||||||||||||||||||
Total return based on net asset value(b) | 11.22 | % | (31.22 | )% | 3.20 | % | 28.68 | % | 31.60 | % | (16.50 | )% | |||||||||||||||
Ratios/Supplemental Data | |||||||||||||||||||||||||||
Net assets, end of period (000's omitted) | $ | 20,354 | $ | 17,625 | $ | 42,442 | $ | 39,894 | $ | 23,378 | $ | 10,768 | |||||||||||||||
Ratio of net expenses to average net assets | 0.71 | %* | 0.73 | % | 0.72 | % | 0.72 | % | 0.75 | % | 0.78 | % | |||||||||||||||
Ratio of net investment income to average net assets | 0.84 | %* | 0.65 | % | 0.21 | % | 0.30 | % | 1.72 | % | 0.47 | % | |||||||||||||||
Portfolio turnover rate(c) | 6 | % | 17 | % | 10 | % | 20 | % | 11 | % | 26 | % |
* Annualized.
(a) Calculated based upon average shares outstanding during the period.
(b) Total investment return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all dividends and distributions, if any, at net asset value during the period, and redemption on the last day of the period. Total return is not annualized for periods less than one year.
(c) Portfolio turnover rate calculated at Fund level. Portfolio turnover is not annualized for periods less than one year.
The accompanying notes are an integral part of the financial statements.
47
Industry Diversification Table
Semi-Annual Report June 30, 2023
June 30, 2023 (unaudited)
Baillie Gifford Emerging Markets Equities Fund
Value | % of Total Net Assets | ||||||||||
Airlines | $ | 52,390,703 | 1.1 | % | |||||||
Apparel | 40,011,280 | 0.8 | |||||||||
Auto Manufacturers | 137,426,608 | 2.9 | |||||||||
Auto Parts & Equipment | 77,354,817 | 1.6 | |||||||||
Banks | 457,743,186 | 9.6 | |||||||||
Beverages | 24,477,352 | 0.5 | |||||||||
Biotechnology | 35,802,539 | 0.7 | |||||||||
Building Materials | 98,048,098 | 2.0 | |||||||||
Chemicals | 72,215,012 | 1.5 | |||||||||
Computers | 104,903,978 | 2.2 | |||||||||
Diversified Financial Services | 256,312,969 | 5.4 | |||||||||
Electronics | 45,717,903 | 1.0 | |||||||||
Food * | 0 | 0.0 | |||||||||
Gas | 46,325,915 | 1.0 | |||||||||
Home Furnishings | 124,962,848 | 2.6 | |||||||||
Insurance | 155,455,984 | 3.2 | |||||||||
Internet | 944,699,463 | 19.7 | |||||||||
Machinery — Construction & Mining | 34,750,975 | 0.7 | |||||||||
Mining | 198,836,130 | 4.2 | |||||||||
Oil & Gas | 525,371,379 | 11.0 | |||||||||
Real Estate | 25,816,928 | 0.5 | |||||||||
Retail | 77,028,249 | 1.6 | |||||||||
Semiconductors | 1,002,006,371 | 20.9 | |||||||||
Software | 62,234,112 | 1.3 | |||||||||
Telecommunications | 110,513,457 | 2.3 | |||||||||
Transportation | 27,483,214 | 0.6 | |||||||||
Total Value of Investments | 4,737,889,470 | 98.9 | |||||||||
Other assets less liabilities | 51,172,162 | 1.1 | |||||||||
Net Assets | $ | 4,789,061,632 | 100.0 | % |
* The Fund's holdings in the Food industry are Russian securities valued at $0 as of the date of this report.
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.
48
Portfolio of Investments
Semi-Annual Report June 30, 2023
June 30, 2023 (unaudited)
Baillie Gifford Emerging Markets Equities Fund
Shares | Value | ||||||||||
COMMON STOCKS — 95.1% | |||||||||||
BRAZIL — 10.8% | |||||||||||
B3 SA — Brasil Bolsa Balcao | 27,730,700 | $ | 84,613,326 | ||||||||
Banco Bradesco SA ADR | 19,500,925 | 67,473,201 | |||||||||
MercadoLibre, Inc. * | 143,217 | 169,654,858 | |||||||||
Petroleo Brasileiro SA ADR | 14,267,075 | 197,313,647 | |||||||||
519,055,032 | |||||||||||
CANADA — 0.1% | |||||||||||
Valeura Energy, Inc. * | 3,982,783 | 5,471,723 | |||||||||
CHILE — 0.7% | |||||||||||
Lundin Mining Corp. | 4,465,067 | 34,985,767 | |||||||||
CHINA — 24.6% | |||||||||||
Alibaba Group Holding Ltd. * | 14,555,020 | 151,515,293 | |||||||||
Anker Innovations Technology Co., Ltd., Class A | 3,232,200 | 39,004,664 | |||||||||
Baidu, Inc., Class A * | 3,242,750 | 55,307,633 | |||||||||
BeiGene Ltd. * | 1,718,795 | 23,567,387 | |||||||||
Brilliance China Automotive Holdings Ltd. | 50,358,000 | 20,500,513 | |||||||||
China Merchants Bank Co., Ltd., Class H | 14,883,000 | 67,882,725 | |||||||||
Contemporary Amperex Technology Co., Ltd., Class A | 1,358,901 | 42,936,165 | |||||||||
Geely Automobile Holdings Ltd. | 18,697,000 | 22,957,041 | |||||||||
Haier Smart Home Co., Ltd., Class H | 15,752,880 | 49,677,586 | |||||||||
JD.com, Inc., Class A | 2,965,285 | 50,571,655 | |||||||||
KE Holdings, Inc. ADR * | 359,307 | 5,335,709 | |||||||||
KE Holdings, Inc., Class A * | 4,146,424 | 20,481,219 | |||||||||
Kuaishou Technology * | 2,462,900 | 16,927,893 | |||||||||
Li Ning Co., Ltd. | 4,444,500 | 24,001,109 | |||||||||
Lufax Holding Ltd. ADR | 6,343,355 | 9,070,998 | |||||||||
Meituan, Class B * | 3,380,190 | 53,004,479 | |||||||||
Midea Group Co., Ltd., Class A | 4,463,270 | 36,280,598 | |||||||||
Minth Group Ltd. | 12,518,000 | 34,418,652 | |||||||||
Ping An Bank Co., Ltd., Class A | 19,575,809 | 30,342,538 | |||||||||
Ping An Insurance Group Co. of China Ltd., Class H | 14,043,000 | 89,691,481 | |||||||||
Shenzhou International Group Holdings Ltd. | 4,165,900 | 40,011,280 | |||||||||
Silergy Corp. | 3,670,000 | 45,717,903 | |||||||||
Tencent Holdings Ltd. | 4,245,000 | 179,993,006 | |||||||||
Tencent Music Entertainment Group ADR * | 3,258,592 | 24,048,409 |
The accompanying notes are an integral part of the financial statements.
49
Portfolio of Investments
Semi-Annual Report June 30, 2023
June 30, 2023 (unaudited)
Baillie Gifford Emerging Markets Equities Fund
Shares | Value | ||||||||||
Zai Lab Ltd. * | 4,446,930 | $ | 12,235,151 | ||||||||
Zijin Mining Group Co., Ltd., Class H | 23,218,000 | 34,383,091 | |||||||||
1,179,864,178 | |||||||||||
INDIA — 14.1% | |||||||||||
Delhivery Ltd. * | 5,907,980 | 27,483,214 | |||||||||
HDFC Life Insurance Co., Ltd. | 8,278,362 | 65,764,502 | |||||||||
Housing Development Finance Corp., Ltd. | 4,713,835 | 162,628,645 | |||||||||
Reliance Industries Ltd. | 6,612,635 | 206,123,025 | |||||||||
Tata Consultancy Services Ltd. | 2,177,170 | 87,973,664 | |||||||||
Tech Mahindra Ltd. | 4,494,977 | 62,234,112 | |||||||||
UltraTech Cement Ltd. | 420,763 | 42,603,394 | |||||||||
WNS Holdings Ltd. ADR * | 229,657 | 16,930,314 | |||||||||
671,740,870 | |||||||||||
INDONESIA — 2.4% | |||||||||||
Bank Rakyat Indonesia Persero Tbk PT | 314,391,663 | 114,781,775 | |||||||||
MEXICO — 4.5% | |||||||||||
Cemex SAB de CV, Participating Certificate, ADR * | 7,831,173 | 55,444,705 | |||||||||
Fomento Economico Mexicano SAB de CV ADR | 220,835 | 24,477,351 | |||||||||
Grupo Financiero Banorte SAB de CV, Class O | 9,777,055 | 80,434,941 | |||||||||
Wal-Mart de Mexico SAB de CV | 13,369,650 | 53,027,139 | |||||||||
213,384,136 | |||||||||||
PANAMA — 1.1% | |||||||||||
Copa Holdings SA, Class A | 473,781 | 52,390,703 | |||||||||
PERU — 0.9% | |||||||||||
Credicorp Ltd. | 287,175 | 42,398,517 | |||||||||
POLAND — 1.1% | |||||||||||
Allegro.eu SA * | 3,717,023 | 29,288,971 | |||||||||
KGHM Polska Miedz SA | 897,734 | 24,857,510 | |||||||||
54,146,481 | |||||||||||
RUSSIA — 0.0% (a) | |||||||||||
Magnit PJSC *(b) | 362,537 | 0 | |||||||||
Magnit PJSC GDR Reg S *(b) | 2 | 0 | |||||||||
MMC Norilsk Nickel PJSC *(b) | 548,127 | 0 |
The accompanying notes are an integral part of the financial statements.
50
Portfolio of Investments
Semi-Annual Report June 30, 2023
June 30, 2023 (unaudited)
Baillie Gifford Emerging Markets Equities Fund
Shares | Value | ||||||||||
MMC Norilsk Nickel PJSC ADR *(b) | 2 | $ | 0 | ||||||||
Moscow Exchange MICEX-RTS PJSC (b) | 14,557,370 | 0 | |||||||||
Ozon Holdings PLC ADR *(b) | 1,051,835 | 0 | |||||||||
Sberbank of Russia PJSC (b) | 31,444,360 | 0 | |||||||||
0 | |||||||||||
SINGAPORE — 1.0% | |||||||||||
Sea Ltd. ADR * | 838,919 | 48,690,859 | |||||||||
SOUTH AFRICA — 2.5% | |||||||||||
FirstRand Ltd. | 8,227,356 | 29,978,696 | |||||||||
Naspers Ltd., N Shares | 515,594 | 93,147,856 | |||||||||
123,126,552 | |||||||||||
SOUTH KOREA — 15.2% | |||||||||||
Coupang, Inc. * | 3,234,012 | 56,271,809 | |||||||||
Doosan Bobcat, Inc. | 777,426 | 34,750,975 | |||||||||
Hyundai Motor Co. | 597,409 | 93,969,054 | |||||||||
LG Chem Ltd. | 141,859 | 72,215,012 | |||||||||
NAVER Corp. | 116,275 | 16,276,743 | |||||||||
Samsung Electronics Co., Ltd. | 4,900,919 | 269,860,686 | |||||||||
Samsung SDI Co., Ltd. | 134,480 | 68,670,131 | |||||||||
SK Hynix, Inc. | 1,295,836 | 113,857,863 | |||||||||
725,872,273 | |||||||||||
TAIWAN — 12.1% | |||||||||||
Accton Technology Corp. | 3,720,000 | 41,843,326 | |||||||||
MediaTek, Inc. | 2,359,000 | 52,218,481 | |||||||||
Taiwan Semiconductor Manufacturing Co., Ltd. | 26,264,310 | 485,189,350 | |||||||||
579,251,157 | |||||||||||
THAILAND — 1.8% | |||||||||||
PTT Exploration & Production PCL | 14,683,500 | 62,216,477 | |||||||||
SCB X PCL | 8,120,800 | 24,450,794 | |||||||||
86,667,271 | |||||||||||
ZAMBIA — 2.2% | |||||||||||
First Quantum Minerals Ltd. | 4,421,882 | 104,609,762 | |||||||||
Total Common Stocks | |||||||||||
(cost $4,230,589,037) | 4,556,437,056 |
The accompanying notes are an integral part of the financial statements.
51
Portfolio of Investments
Semi-Annual Report June 30, 2023
June 30, 2023 (unaudited)
Baillie Gifford Emerging Markets Equities Fund
Shares | Value | ||||||||||
PREFERRED STOCKS — 3.8% | |||||||||||
BRAZIL — 2.1% | |||||||||||
Petroleo Brasileiro SA ADR 13.73% | 4,385,328 | $ | 54,246,508 | ||||||||
Raizen SA 4.76% | 50,759,210 | 46,325,915 | |||||||||
100,572,423 | |||||||||||
SOUTH KOREA — 1.7% | |||||||||||
Samsung Electronics Co., Ltd. 1.81% | 1,782,310 | 80,879,991 | |||||||||
Total Preferred Stocks | |||||||||||
(cost $152,791,312) | 181,452,414 | ||||||||||
TOTAL INVESTMENTS — 98.9% | |||||||||||
(cost $4,383,380,349) | $ | 4,737,889,470 | |||||||||
Other assets less liabilities — 1.1% | 51,172,162 | ||||||||||
NET ASSETS — 100.0% | $ | 4,789,061,632 |
(a) Amount rounds to less than 0.1%.
(b) 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, 2023, the net value of these securities was $0 representing 0.0% 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, 2023 in valuing the Fund's investments carried at fair value:
Investments in Securities | Level 1 | Level 2 | Level 3 | Total | |||||||||||||||
Common Stocks ** | $ | 1,153,144,251 | $ | 3,403,292,805 | $ | 0 | $ | 4,556,437,056 | |||||||||||
Preferred Stocks ** | 100,572,423 | 80,879,991 | — | 181,452,414 | |||||||||||||||
Total | $ | 1,253,716,674 | $ | 3,484,172,796 | $ | 0 | $ | 4,737,889,470 |
** Refer to Portfolio of Investments for further detail.
The accompanying notes are an integral part of the financial statements.
52
Portfolio of Investments
Semi-Annual Report June 30, 2023
June 30, 2023 (unaudited)
Baillie Gifford Emerging Markets Equities Fund
Summary of Unobservable Inputs for Level 3 Investments
The ongoing conflict in Russia and Ukraine has led to significant disruption and volatility in the global stock market. This impacted the Fund in terms of suspensions of trading activities on the Russian Stock Exchange as well as suspensions of depositary receipts traded on exchanges outside of Russia. As a result, during the year ended December 31, 2022, management made the decision to value all the Russian securities listed in the Portfolio of Investments to $0 and include them within Level 3.
There were no transfers into or out of Level 3 during the period ended June 30, 2023.
The accompanying notes are an integral part of the financial statements.
53
Statement of Assets and Liabilities
Semi-Annual Report June 30, 2023
June 30, 2023 (unaudited)
Baillie Gifford Emerging Markets Equities Fund
ASSETS | |||||||
Investments, at value (cost $4,383,380,349) | $ | 4,737,889,470 | |||||
Cash | 62,695,596 | ||||||
Foreign cash, at value (cost $881,047) | 881,216 | ||||||
Dividends receivable | 33,394,586 | ||||||
Receivable for investments sold | 5,674,090 | ||||||
Capital shares sold receivable | 3,361,160 | ||||||
Tax reclaims receivable | 165,400 | ||||||
Receivable for India capital gains tax refunds (Note A) | 2,231,086 | ||||||
Prepaid assets | 68,578 | ||||||
Total Assets | 4,846,361,182 | ||||||
LIABILITIES | |||||||
Advisory fee payable | 6,137,057 | ||||||
Capital shares purchased payable | 15,260,843 | ||||||
Payable for investment purchased | 16,393,064 | ||||||
Deferred India capital gains tax liability (Note A) | 16,918,612 | ||||||
Administration & Supervisory fee payable | 1,251,025 | ||||||
Shareholder Servicing fee payable | 190,902 | ||||||
Trustee fee payable | 53,741 | ||||||
Commitment fee payable | 16,331 | ||||||
Accrued expenses | 1,077,975 | ||||||
Total Liabilities | 57,299,550 | ||||||
NET ASSETS | $ | 4,789,061,632 | |||||
COMPOSITION OF NET ASSETS | |||||||
Paid-in capital | $ | 4,826,448,686 | |||||
Total accumulated (loss) | (37,387,054 | ) | |||||
$ | 4,789,061,632 | ||||||
NET ASSET VALUE, PER SHARE | |||||||
Class 2 ($57,533,493 / 3,024,443 shares outstanding), unlimited authorized, no par value | $ | 19.02 | |||||
Class 3 ($445,463,046 / 23,200,411 shares outstanding), unlimited authorized, no par value | $ | 19.20 | |||||
Class 5 ($1,263,358,282 / 63,843,824 shares outstanding), unlimited authorized, no par value | $ | 19.79 | |||||
Class K ($2,083,466,028 / 110,048,187 shares outstanding), unlimited authorized, no par value | $ | 18.93 | |||||
Institutional Class ($939,240,783 / 49,634,003 shares outstanding), unlimited authorized, no par value | $ | 18.92 |
The accompanying notes are an integral part of the financial statements.
54
Statement of Operations
Semi-Annual Report June 30, 2023
For the Six Months Ended June 30, 2023 (unaudited)
Baillie Gifford Emerging Markets Equities Fund
INVESTMENT INCOME | |||||||
Dividends (net of foreign withholding taxes of $10,473,998) | $ | 91,733,912 | |||||
Non-cash income | 10,880,000 | ||||||
Interest | 579,463 | ||||||
Litigation income | 1,839 | ||||||
Total Investment Income | 103,195,214 | ||||||
EXPENSES | |||||||
Advisory fee (Note B) | 12,195,471 | ||||||
Shareholder Servicing fees — Class 2 shares (Note B) | 47,009 | ||||||
Shareholder Servicing fees — Class 3 shares (Note B) | 157,683 | ||||||
Shareholder Servicing fees — Class 4 shares (Note B) | 39,398 | ||||||
Shareholder Servicing fees — Class 5 shares (Note B) | 121,599 | ||||||
Administration & Supervisory fee — Class K shares (Note B) | 1,729,543 | ||||||
Administration & Supervisory fee — Institutional Class shares (Note B) | 759,036 | ||||||
Transfer agency | 130,561 | ||||||
Sub-transfer agency — Institutional Class shares | 364,564 | ||||||
Custody | 1,294,750 | ||||||
Legal | 469,005 | ||||||
Fund accounting | 390,205 | ||||||
Trustees' fees | 108,294 | ||||||
Registration fees | 45,240 | ||||||
Commitment fees | 32,988 | ||||||
Professional fees | 28,684 | ||||||
Line of credit interest | 8,326 | ||||||
Miscellaneous | 137,824 | ||||||
Total Expenses | 18,060,180 | ||||||
Net Investment Income | 85,135,034 | ||||||
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 $313,601) | (124,299,678 | ) | |||||
Foreign currency transactions | 124,322 | ||||||
(124,175,356 | ) | ||||||
Net change in unrealized appreciation (depreciation) on: | |||||||
Investments (net of change in deferred India capital gains tax liability of $2,969,021) (Note A) | 530,366,993 | ||||||
Translation of net assets and liabilities denominated in foreign currencies | (201,871 | ) | |||||
530,165,122 | |||||||
Net realized and unrealized gain | 405,989,766 | ||||||
NET INCREASE IN NET ASSETS FROM OPERATIONS | $ | 491,124,800 |
The accompanying notes are an integral part of the financial statements.
55
Statements of Changes in Net Assets
Semi-Annual Report June 30, 2023
Baillie Gifford Emerging Markets Equities Fund
For the Six Months Ended June 30, 2023 (unaudited) | For the Year Ended December 31, 2022 | ||||||||||
INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS | |||||||||||
Net investment income | $ | 85,135,034 | $ | 194,099,878 | |||||||
Net realized (loss) | (124,175,356 | ) | (177,106,556 | ) | |||||||
Net change in unrealized appreciation (depreciation) | 530,165,122 | (1,677,360,758 | ) | ||||||||
Net Increase (Decrease) in Net Assets from Operations | 491,124,800 | (1,660,367,436 | ) | ||||||||
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS FROM: | |||||||||||
Distributable earnings | |||||||||||
Class 2 | — | (2,673,322 | ) | ||||||||
Class 3 | — | (11,120,134 | ) | ||||||||
Class 4 | — | (9,560,421 | ) | ||||||||
Class 5 | — | (59,441,029 | ) | ||||||||
Class K | — | (103,143,708 | ) | ||||||||
Institutional Class | — | (43,187,502 | ) | ||||||||
Total Distributions to Shareholders | — | (229,126,116 | ) | ||||||||
TRANSACTIONS IN SHARES OF BENEFICIAL INTEREST | |||||||||||
Net proceeds from shares subscribed: | |||||||||||
Class 2 | 3,000 | 3,592,367 | * | ||||||||
Class 3 | 201,944,953 | * | — | ||||||||
Class 4 | 10 | — | |||||||||
Class 5 | — | 5,000,000 | |||||||||
Class K | 161,620,673 | * | 649,159,308 | * | |||||||
Institutional Class | 140,902,758 | 529,206,581 | |||||||||
Dividends reinvested: | |||||||||||
Class 2 | — | 2,673,322 | |||||||||
Class 3 | — | 11,120,134 | |||||||||
Class 4 | — | 9,560,421 | |||||||||
Class 5 | — | 59,441,029 | |||||||||
Class K | — | 82,369,239 | |||||||||
Institutional Class | — | 42,294,883 | |||||||||
Cost of shares redeemed: | |||||||||||
Class 2 | (60,000 | ) | (80,000 | ) | |||||||
Class 4 | (201,944,953 | )* | — | ||||||||
Class 5 | (29,000,000 | ) | (144,626,367 | )* | |||||||
Class K | (246,121,924 | ) | (613,627,474 | ) | |||||||
Institutional Class | (132,447,578 | )* | (558,503,670 | )* | |||||||
Increase (Decrease) in Net Assets from Transactions in Shares of Beneficial Interest | (105,103,061 | ) | 77,579,773 | ||||||||
Total Increase (Decrease) in Net Assets | 386,021,739 | (1,811,913,779 | ) | ||||||||
NET ASSETS | |||||||||||
Beginning of Period | 4,403,039,893 | 6,214,953,672 | |||||||||
End of Period | $ | 4,789,061,632 | $ | 4,403,039,893 |
* See Note D for details of share class conversions.
The accompanying notes are an integral part of the financial statements.
56
Financial Highlights
Semi-Annual Report June 30, 2023
Baillie Gifford Emerging Markets Equities Fund
Selected data for a Class 2 share outstanding throughout each period:
For the Six Months Ended June 30, 2023 (unaudited) | For the Year Ended December 31, 2022 | For the Year Ended December 31, 2021 | For the Year Ended December 31, 2020 | For the Year Ended December 31, 2019 | For the Year Ended December 31, 2018 | ||||||||||||||||||||||
Net asset value, beginning of period | $ | 17.13 | $ | 24.55 | $ | 27.66 | $ | 21.71 | $ | 17.62 | $ | 22.82 | |||||||||||||||
From Investment Operations | |||||||||||||||||||||||||||
Net investment income(a) | 0.33 | 0.77 | 0.34 | 0.19 | 0.63 | 0.28 | |||||||||||||||||||||
Net realized and unrealized gain (loss) on investments and foreign currency | 1.56 | (7.26 | ) | (2.76 | ) | 6.11 | 4.30 | (3.70 | ) | ||||||||||||||||||
Net increase (decrease) in net asset value from investment operations | 1.89 | (6.49 | ) | (2.42 | ) | 6.30 | 4.93 | (3.42 | ) | ||||||||||||||||||
Dividends and Distributions to Shareholders | |||||||||||||||||||||||||||
From net investment income | — | (0.93 | ) | (0.33 | ) | (0.35 | ) | (0.65 | ) | (0.23 | ) | ||||||||||||||||
From net realized gain on investments | — | — | (0.36 | ) | — | (0.19 | ) | (1.55 | ) | ||||||||||||||||||
Total dividends and distributions | — | (0.93 | ) | (0.69 | ) | (0.35 | ) | (0.84 | ) | (1.78 | ) | ||||||||||||||||
Net asset value, end of period | $ | 19.02 | $ | 17.13 | $ | 24.55 | $ | 27.66 | $ | 21.71 | $ | 17.62 | |||||||||||||||
Total Return | |||||||||||||||||||||||||||
Total return based on net asset value(b) | 11.08 | % | (26.44 | )% | (8.75 | )% | 29.06 | % | 28.00 | % | (14.92 | )% | |||||||||||||||
Ratios/Supplemental Data | |||||||||||||||||||||||||||
Net assets, end of period (000's omitted) | $ | 57,533 | $ | 51,848 | $ | 66,301 | $ | 144,906 | $ | 118,856 | $ | 191,177 | |||||||||||||||
Ratio of net expenses to average net assets | 0.81 | %* | 0.83 | % | 0.78 | % | 0.80 | % | 0.83 | % | 0.84 | % | |||||||||||||||
Ratio of net investment income to average net assets | 3.65 | %*(c) | 3.96 | % | 1.20 | % | 0.90 | % | 3.29 | %(c) | 1.31 | % | |||||||||||||||
Portfolio turnover rate(d) | 10 | % | 15 | % | 19 | % | 24 | % | 15 | % | 22 | % |
* Annualized.
(a) Calculated based upon average shares outstanding during the period.
(b) Total investment return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all dividends and distributions, if any, at net asset value during the period, and redemption on the last day of the period. Total return is not annualized for periods less than one year.
(c) Ratio includes taxable stock dividends that were treated as income.
(d) Portfolio turnover rate calculated at Fund level. Portfolio turnover is not annualized for periods less than one year.
The accompanying notes are an integral part of the financial statements.
57
Financial Highlights
Semi-Annual Report June 30, 2023
Baillie Gifford Emerging Markets Equities Fund
Selected data for a Class 3 share outstanding throughout each period:
For the Six Months Ended June 30, 2023 (unaudited) | For the Year Ended December 31, 2022 | For the Year Ended December 31, 2021 | For the Year Ended December 31, 2020 | For the Year Ended December 31, 2019 | For the Year Ended December 31, 2018 | ||||||||||||||||||||||
Net asset value, beginning of period | $ | 17.28 | $ | 24.76 | $ | 27.92 | $ | 21.91 | $ | 17.77 | $ | 23.00 | |||||||||||||||
From Investment Operations | |||||||||||||||||||||||||||
Net investment income(a) | 0.40 | 0.78 | 0.50 | 0.20 | 0.71 | 0.29 | |||||||||||||||||||||
Net realized and unrealized gain (loss) on investments and foreign currency | 1.52 | (7.32 | ) | (2.93 | ) | 6.18 | 4.29 | (3.72 | ) | ||||||||||||||||||
Net increase (decrease) in net asset value from investment operations | 1.92 | (6.54 | ) | (2.43 | ) | 6.38 | 5.00 | (3.43 | ) | ||||||||||||||||||
Dividends and Distributions to Shareholders | |||||||||||||||||||||||||||
From net investment income | — | (0.94 | ) | (0.37 | ) | (0.37 | ) | (0.67 | ) | (0.25 | ) | ||||||||||||||||
From net realized gain on investments | — | — | (0.36 | ) | — | (0.19 | ) | (1.55 | ) | ||||||||||||||||||
Total dividends and distributions | — | (0.94 | ) | (0.73 | ) | (0.37 | ) | (0.86 | ) | (1.80 | ) | ||||||||||||||||
Net asset value, end of period | $ | 19.20 | $ | 17.28 | $ | 24.76 | $ | 27.92 | $ | 21.91 | $ | 17.77 | |||||||||||||||
Total Return | |||||||||||||||||||||||||||
Total return based on net asset value(b) | 11.12 | % | (26.39 | )% | (8.68 | )% | 29.15 | % | 28.09 | % | (14.86 | )% | |||||||||||||||
Ratios/Supplemental Data | |||||||||||||||||||||||||||
Net assets, end of period (000's omitted) | $ | 445,463 | $ | 214,704 | $ | 291,674 | $ | 168,460 | $ | 344,702 | $ | 167,268 | |||||||||||||||
Ratio of net expenses to average net assets | 0.74 | %* | 0.76 | % | 0.71 | % | 0.73 | % | 0.76 | % | 0.77 | % | |||||||||||||||
Ratio of net investment income to average net assets | 4.35 | %*(c) | 3.97 | % | 1.79 | % | 0.95 | % | 3.45 | %(c) | 1.33 | % | |||||||||||||||
Portfolio turnover rate(d) | 10 | % | 15 | % | 19 | % | 24 | % | 15 | % | 22 | % |
* Annualized.
(a) Calculated based upon average shares outstanding during the period.
(b) Total investment return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all dividends and distributions, if any, at net asset value during the period, and redemption on the last day of the period. Total return is not annualized for periods less than one year.
(c) Ratio includes taxable stock dividends that were treated as income.
(d) Portfolio turnover rate calculated at Fund level. Portfolio turnover is not annualized for periods less than one year.
The accompanying notes are an integral part of the financial statements.
58
Financial Highlights
Semi-Annual Report June 30, 2023
Baillie Gifford Emerging Markets Equities Fund
Selected data for a Class 5 share outstanding throughout each period:
For the Six Months Ended June 30, 2023 (unaudited) | For the Year Ended December 31, 2022 | For the Year Ended December 31, 2021 | For the Year Ended December 31, 2020 | For the Year Ended December 31, 2019 | For the Year Ended December 31, 2018 | ||||||||||||||||||||||
Net asset value, beginning of period | $ | 17.80 | $ | 25.47 | $ | 28.69 | $ | 22.50 | $ | 18.23 | $ | 23.55 | |||||||||||||||
From Investment Operations | |||||||||||||||||||||||||||
Net investment income(a) | 0.36 | 0.82 | 0.49 | 0.24 | 0.72 | 0.31 | |||||||||||||||||||||
Net realized and unrealized gain (loss) on investments and foreign currency | 1.63 | (7.53 | ) | (2.96 | ) | 6.33 | 4.42 | (3.81 | ) | ||||||||||||||||||
Net increase (decrease) in net asset value from investment operations | 1.99 | (6.71 | ) | (2.47 | ) | 6.57 | 5.14 | (3.50 | ) | ||||||||||||||||||
Dividends and Distributions to Shareholders | |||||||||||||||||||||||||||
From net investment income | — | (0.96 | ) | (0.39 | ) | (0.38 | ) | (0.68 | ) | (0.27 | ) | ||||||||||||||||
From net realized gain on investments | — | — | (0.36 | ) | — | (0.19 | ) | (1.55 | ) | ||||||||||||||||||
Total dividends and distributions | — | (0.96 | ) | (0.75 | ) | (0.38 | ) | (0.87 | ) | (1.82 | ) | ||||||||||||||||
Net asset value, end of period | $ | 19.79 | $ | 17.80 | $ | 25.47 | $ | 28.69 | $ | 22.50 | $ | 18.23 | |||||||||||||||
Total Return | |||||||||||||||||||||||||||
Total return based on net asset value(b) | 11.17 | % | (26.33 | )% | (8.61 | )% | 29.25 | % | 28.19 | % | (14.80 | )% | |||||||||||||||
Ratios/Supplemental Data | |||||||||||||||||||||||||||
Net assets, end of period (000's omitted) | $ | 1,263,358 | $ | 1,162,457 | $ | 1,746,589 | $ | 1,953,356 | $ | 1,331,946 | $ | 1,063,434 | |||||||||||||||
Ratio of net expenses to average net assets | 0.66 | %* | 0.68 | % | 0.63 | % | 0.65 | % | 0.68 | % | 0.69 | % | |||||||||||||||
Ratio of net investment income to average net assets | 3.80 | %*(c) | 4.01 | % | 1.68 | % | 1.08 | % | 3.47 | %(c) | 1.41 | % | |||||||||||||||
Portfolio turnover rate(d) | 10 | % | 15 | % | 19 | % | 24 | % | 15 | % | 22 | % |
* Annualized.
(a) Calculated based upon average shares outstanding during the period.
(b) Total investment return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all dividends and distributions, if any, at net asset value during the period, and redemption on the last day of the period. Total return is not annualized for periods less than one year.
(c) Ratio includes taxable stock dividends that were treated as income.
(d) Portfolio turnover rate calculated at Fund level. Portfolio turnover is not annualized for periods less than one year.
The accompanying notes are an integral part of the financial statements.
59
Financial Highlights
Semi-Annual Report June 30, 2023
Baillie Gifford Emerging Markets Equities Fund
Selected data for a Class K share outstanding throughout each period:
For the Six Months Ended June 30, 2023 (unaudited) | For the Year Ended December 31, 2022 | For the Year Ended December 31, 2021 | For the Year Ended December 31, 2020 | For the Year Ended December 31, 2019 | For the Year Ended December 31, 2018 | ||||||||||||||||||||||
Net asset value, beginning of period | $ | 17.04 | $ | 24.44 | $ | 27.56 | $ | 21.64 | $ | 17.57 | $ | 22.79 | |||||||||||||||
From Investment Operations | |||||||||||||||||||||||||||
Net investment income(a) | 0.33 | 0.76 | 0.44 | 0.20 | 0.71 | 0.34 | |||||||||||||||||||||
Net realized and unrealized gain (loss) on investments and foreign currency | 1.56 | (7.23 | ) | (2.85 | ) | 6.08 | 4.21 | (3.75 | ) | ||||||||||||||||||
Net increase (decrease) in net asset value from investment operations | 1.89 | (6.47 | ) | (2.41 | ) | 6.28 | 4.92 | (3.41 | ) | ||||||||||||||||||
Dividends and Distributions to Shareholders | |||||||||||||||||||||||||||
From net investment income | — | (0.93 | ) | (0.35 | ) | (0.36 | ) | (0.66 | ) | (0.26 | ) | ||||||||||||||||
From net realized gain on investments | — | — | (0.36 | ) | — | (0.19 | ) | (1.55 | ) | ||||||||||||||||||
Total dividends and distributions | — | (0.93 | ) | (0.71 | ) | (0.36 | ) | (0.85 | ) | (1.81 | ) | ||||||||||||||||
Net asset value, end of period | $ | 18.93 | $ | 17.04 | $ | 24.44 | $ | 27.56 | $ | 21.64 | $ | 17.57 | |||||||||||||||
Total Return | |||||||||||||||||||||||||||
Total return based on net asset value(b) | 11.09 | % | (26.47 | )% | (8.72 | )% | 29.04 | % | 28.00 | % | (14.91 | )% | |||||||||||||||
Ratios/Supplemental Data | |||||||||||||||||||||||||||
Net assets, end of period (000's omitted) | $ | 2,083,466 | $ | 1,949,586 | $ | 2,654,520 | $ | 2,441,338 | $ | 1,328,535 | $ | 499,172 | |||||||||||||||
Ratio of net expenses to average net assets | 0.81 | %* | 0.83 | % | 0.78 | % | 0.80 | % | 0.83 | % | 0.84 | % | |||||||||||||||
Ratio of net investment income to average net assets | 3.64 | %*(c) | 3.94 | % | 1.58 | % | 0.95 | % | 3.55 | %(c) | 1.65 | % | |||||||||||||||
Portfolio turnover rate(d) | 10 | % | 15 | % | 19 | % | 24 | % | 15 | % | 22 | % |
* Annualized.
(a) Calculated based upon average shares outstanding during the period.
(b) Total investment return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all dividends and distributions, if any, at net asset value during the period, and redemption on the last day of the period. Total return is not annualized for periods less than one year.
(c) Ratio includes taxable stock dividends that were treated as income.
(d) Portfolio turnover rate calculated at Fund level. Portfolio turnover is not annualized for periods less than one year.
The accompanying notes are an integral part of the financial statements.
60
Financial Highlights
Semi-Annual Report June 30, 2023
Baillie Gifford Emerging Markets Equities Fund
Selected data for an Institutional Class share outstanding throughout each period:
For the Six Months Ended June 30, 2023 (unaudited) | For the Year Ended December 31, 2022 | For the Year Ended December 31, 2021 | For the Year Ended December 31, 2020 | For the Year Ended December 31, 2019 | For the Year Ended December 31, 2018 | ||||||||||||||||||||||
Net asset value, beginning of period | $ | 17.04 | $ | 24.43 | $ | 27.55 | $ | 21.64 | $ | 17.56 | $ | 22.80 | |||||||||||||||
From Investment Operations | |||||||||||||||||||||||||||
Net investment income(a) | 0.33 | 0.74 | 0.41 | 0.18 | 0.79 | 0.11 | |||||||||||||||||||||
Net realized and unrealized gain (loss) on investments and foreign currency | 1.55 | (7.22 | ) | (2.85 | ) | 6.07 | 4.12 | (3.54 | ) | ||||||||||||||||||
Net increase (decrease) in net asset value from investment operations | 1.88 | (6.48 | ) | (2.44 | ) | 6.25 | 4.91 | (3.43 | ) | ||||||||||||||||||
Dividends and Distributions to Shareholders | |||||||||||||||||||||||||||
From net investment income | — | (0.91 | ) | (0.32 | ) | (0.34 | ) | (0.64 | ) | (0.26 | ) | ||||||||||||||||
From net realized gain on investments | — | — | (0.36 | ) | — | (0.19 | ) | (1.55 | ) | ||||||||||||||||||
Total dividends and distributions | — | (0.91 | ) | (0.68 | ) | (0.34 | ) | (0.83 | ) | (1.81 | ) | ||||||||||||||||
Net asset value, end of period | $ | 18.92 | $ | 17.04 | $ | 24.43 | $ | 27.55 | $ | 21.64 | $ | 17.56 | |||||||||||||||
Total Return | |||||||||||||||||||||||||||
Total return based on net asset value(b) | 11.03 | % | (26.52 | )% | (8.82 | )% | 28.91 | % | 27.94 | % | (14.98 | )% | |||||||||||||||
Ratios/Supplemental Data | |||||||||||||||||||||||||||
Net assets, end of period (000's omitted) | $ | 939,241 | $ | 838,274 | $ | 1,203,032 | $ | 1,226,335 | $ | 663,593 | $ | 255,795 | |||||||||||||||
Ratio of net expenses to average net assets | 0.89 | %* | 0.91 | % | 0.87 | % | 0.89 | % | 0.92 | % | 0.95 | % | |||||||||||||||
Ratio of net investment income to average net assets | 3.58 | %*(c) | 3.81 | % | 1.46 | % | 0.86 | % | 3.81 | %(c) | 0.68 | % | |||||||||||||||
Portfolio turnover rate(d) | 10 | % | 15 | % | 19 | % | 24 | % | 15 | % | 22 | % |
* Annualized.
(a) Calculated based upon average shares outstanding during the period.
(b) Total investment return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all dividends and distributions, if any, at net asset value during the period, and redemption on the last day of the period. Total return is not annualized for periods less than one year.
(c) Ratio includes taxable stock dividends that were treated as income.
(d) Portfolio turnover rate calculated at Fund level. Portfolio turnover is not annualized for periods less than one year.
The accompanying notes are an integral part of the financial statements.
61
Industry Diversification Table
Semi-Annual Report June 30, 2023
June 30, 2023 (unaudited)
Baillie Gifford Emerging Markets ex China Fund
Value | % of Total Net Assets | ||||||||||
Airlines | $ | 11,058 | 1.3 | % | |||||||
Auto Manufacturers | 16,673 | 1.9 | |||||||||
Auto Parts & Equipment | 9,489 | 1.1 | |||||||||
Banks | 137,936 | 15.6 | |||||||||
Building Materials | 22,731 | 2.6 | |||||||||
Chemicals | 15,272 | 1.7 | |||||||||
Commercial Services | 1,440 | 0.2 | |||||||||
Computers | 29,814 | 3.4 | |||||||||
Diversified Financial Services | 19,976 | 2.3 | |||||||||
Electronics | 6,207 | 0.7 | |||||||||
Food * | 0 | 0.0 | |||||||||
Gas | 4,107 | 0.5 | |||||||||
Insurance | 18,287 | 2.1 | |||||||||
Internet | 96,991 | 11.0 | |||||||||
Investment Companies | 5,172 | 0.6 | |||||||||
Leisure Time | 7,150 | 0.8 | |||||||||
Machinery — Construction & Mining | 6,750 | 0.8 | |||||||||
Mining | 53,052 | 6.0 | |||||||||
Miscellaneous Manufacturing | 5,630 | 0.6 | |||||||||
Oil & Gas | 100,968 | 11.4 | |||||||||
Retail | 16,706 | 1.9 | |||||||||
Semiconductors | 215,139 | 24.4 | |||||||||
Software | 12,405 | 1.4 | |||||||||
Telecommunications | 16,340 | 1.8 | |||||||||
Transportation | 6,429 | 0.7 | |||||||||
Total Value of Investments | 835,722 | 94.8 | |||||||||
Other assets less liabilities | 46,115 | 5.2 | |||||||||
Net Assets | $ | 881,837 | 100.0 | % |
* The Fund's holdings in the Food industry are Russian securities valued at $0 as of the date of this report.
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.
62
Portfolio of Investments
Semi-Annual Report June 30, 2023
June 30, 2023 (unaudited)
Baillie Gifford Emerging Markets ex China Fund
Shares | Value | ||||||||||
COMMON STOCKS — 91.9% | |||||||||||
BRAZIL — 11.8% | |||||||||||
B3 SA — Brasil Bolsa Balcao | 4,600 | $ | 14,036 | ||||||||
Banco Bradesco SA ADR | 2,757 | 9,539 | |||||||||
MercadoLibre, Inc. * | 33 | 39,092 | |||||||||
NU Holdings Ltd., Class A * | 693 | 5,468 | |||||||||
Petroleo Brasileiro SA ADR | 2,598 | 35,930 | |||||||||
104,065 | |||||||||||
CANADA — 1.2% | |||||||||||
Ivanhoe Mines Ltd., Class A * | 1,154 | 10,541 | |||||||||
CHILE — 1.1% | |||||||||||
Lundin Mining Corp. | 1,201 | 9,410 | |||||||||
INDIA — 19.6% | |||||||||||
Delhivery Ltd. * | 1,382 | 6,429 | |||||||||
Escorts Kubota Ltd. | 205 | 5,630 | |||||||||
HDFC Bank Ltd. | 2,000 | 41,506 | |||||||||
HDFC Life Insurance Co., Ltd. | 2,302 | 18,287 | |||||||||
ICICI Bank Ltd. | 1,017 | 11,644 | |||||||||
Reliance Industries Ltd. | 1,242 | 38,715 | |||||||||
Reliance Industries Ltd. GDR | 99 | 6,165 | |||||||||
Samvardhana Motherson International Ltd. | 6,153 | 6,448 | |||||||||
Tata Consultancy Services Ltd. | 412 | 16,648 | |||||||||
Tech Mahindra Ltd. | 896 | 12,405 | |||||||||
UltraTech Cement Ltd. | 85 | 8,606 | |||||||||
172,483 | |||||||||||
INDONESIA — 3.7% | |||||||||||
Bank Mandiri Persero Tbk PT | 25,600 | 8,909 | |||||||||
Bank Rakyat Indonesia Persero Tbk PT | 51,200 | 18,693 | |||||||||
Vale Indonesia Tbk PT | 12,300 | 5,191 | |||||||||
32,793 | |||||||||||
MEXICO — 5.7% | |||||||||||
Cemex SAB de CV, Participating Certificate, ADR * | 1,995 | 14,125 | |||||||||
Grupo Financiero Banorte SAB de CV, Class O | 2,378 | 19,563 | |||||||||
Wal-Mart de Mexico SAB de CV | 4,212 | 16,706 | |||||||||
50,394 |
The accompanying notes are an integral part of the financial statements.
63
Portfolio of Investments
Semi-Annual Report June 30, 2023
June 30, 2023 (unaudited)
Baillie Gifford Emerging Markets ex China Fund
Shares | Value | ||||||||||
PANAMA — 1.3% | |||||||||||
Copa Holdings SA, Class A | 100 | $ | 11,058 | ||||||||
PERU — 1.3% | |||||||||||
Credicorp Ltd. | 79 | 11,664 | |||||||||
POLAND — 1.4% | |||||||||||
Allegro.eu SA * | 858 | 6,761 | |||||||||
KGHM Polska Miedz SA | 210 | 5,814 | |||||||||
12,575 | |||||||||||
RUSSIA — 0.0% (a) | |||||||||||
Magnit PJSC *(b) | 87 | 0 | |||||||||
MMC Norilsk Nickel PJSC *(b) | 94 | 0 | |||||||||
MMC Norilsk Nickel PJSC ADR *(b) | 6 | 0 | |||||||||
Moscow Exchange MICEX-RTS PJSC (b) | 2,760 | 0 | |||||||||
Ozon Holdings PLC ADR *(b) | 142 | 0 | |||||||||
Sberbank of Russia PJSC (b) | 5,512 | 0 | |||||||||
0 | |||||||||||
SAUDI ARABIA — 0.7% | |||||||||||
Saudi Tadawul Group Holding Co. | 118 | 5,940 | |||||||||
SINGAPORE — 1.9% | |||||||||||
Sea Ltd. ADR * | 295 | 17,122 | |||||||||
SOUTH AFRICA — 3.2% | |||||||||||
FirstRand Ltd. | 1,270 | 4,627 | |||||||||
Naspers Ltd., N Shares | 104 | 18,789 | |||||||||
Remgro Ltd. | 662 | 5,172 | |||||||||
28,588 | |||||||||||
SOUTH KOREA — 16.7% | |||||||||||
Coupang, Inc. * | 411 | 7,151 | |||||||||
Doosan Bobcat, Inc. | 151 | 6,750 | |||||||||
Hanon Systems | 436 | 3,040 | |||||||||
Hyundai Motor Co. | 106 | 16,673 | |||||||||
Koh Young Technology, Inc. | 527 | 6,207 | |||||||||
LG Chem Ltd. | 30 | 15,272 | |||||||||
NAVER Corp. | 40 | 5,599 |
The accompanying notes are an integral part of the financial statements.
64
Portfolio of Investments
Semi-Annual Report June 30, 2023
June 30, 2023 (unaudited)
Baillie Gifford Emerging Markets ex China Fund
Shares | Value | ||||||||||
NCSoft Corp. | 11 | $ | 2,477 | ||||||||
Samsung Electronics Co., Ltd. | 923 | 50,824 | |||||||||
Samsung SDI Co., Ltd. | 32 | 16,340 | |||||||||
SK Hynix, Inc. | 194 | 17,046 | |||||||||
147,379 | |||||||||||
TAIWAN — 17.4% | |||||||||||
Advantech Co., Ltd. | 1,000 | 13,166 | |||||||||
MediaTek, Inc. | 1,000 | 22,136 | |||||||||
Merida Industry Co., Ltd. | 1,000 | 7,150 | |||||||||
Taiwan Semiconductor Manufacturing Co., Ltd. | 6,000 | 110,840 | |||||||||
153,292 | |||||||||||
THAILAND — 2.2% | |||||||||||
PTT Exploration & Production PCL | 3,000 | 12,711 | |||||||||
SCB X PCL | 2,100 | 6,323 | |||||||||
19,034 | |||||||||||
URUGUAY — 0.2% | |||||||||||
Dlocal Ltd. * | 118 | 1,440 | |||||||||
ZAMBIA — 2.5% | |||||||||||
First Quantum Minerals Ltd. | 934 | 22,096 | |||||||||
Total Common Stocks | |||||||||||
(cost $946,003) | 809,874 | ||||||||||
PREFERRED STOCKS — 2.9% | |||||||||||
BRAZIL — 1.3% | |||||||||||
Petroleo Brasileiro SA ADR 13.73% | 602 | 7,447 | |||||||||
Raizen SA 4.76% | 4,500 | 4,107 | |||||||||
11,554 | |||||||||||
SOUTH KOREA — 1.6% | |||||||||||
Samsung Electronics Co., Ltd. 1.81% | 315 | 14,294 | |||||||||
Total Preferred Stocks | |||||||||||
(cost $30,258) | 25,848 |
The accompanying notes are an integral part of the financial statements.
65
Portfolio of Investments
Semi-Annual Report June 30, 2023
June 30, 2023 (unaudited)
Baillie Gifford Emerging Markets ex China Fund
Value | |||||||
TOTAL INVESTMENTS — 94.8% | |||||||
(cost $976,261) | $ | 835,722 | |||||
Other assets less liabilities — 5.2% | 46,115 | ||||||
NET ASSETS — 100.0% | $ | 881,837 |
(a) Amount rounds to less than 0.1%.
(b) Investment was valued using significant unobservable inputs.
* Non-income producing security.
ADR — American Depositary Receipt
GDR — Global 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, 2023 in valuing the Fund's investments carried at fair value:
Investments in Securities | Level 1 | Level 2 | Level 3 | Total | |||||||||||||||
Common Stocks ** | $ | 250,113 | $ | 559,761 | $ | 0 | $ | 809,874 | |||||||||||
Preferred Stocks ** | 11,554 | 14,294 | — | 25,848 | |||||||||||||||
Total | $ | 261,667 | $ | 574,055 | $ | 0 | $ | 835,722 |
** Refer to Portfolio of Investments for further detail.
Summary of Unobservable Inputs for Level 3 Investments
The ongoing conflict in Russia and Ukraine has led to significant disruption and volatility in the global stock market. This impacted the Fund in terms of suspensions of trading activities on the Russian Stock Exchange as well as suspensions of depositary receipts traded on exchanges outside of Russia. As a result, during the year ended December 31, 2022, management made the decision to value all the Russian securities listed in the Portfolio of Investments to $0 and include them within Level 3.
There were no transfers into or out of Level 3 during the period ended June 30, 2023.
The accompanying notes are an integral part of the financial statements.
66
Statement of Assets and Liabilities
Semi-Annual Report June 30, 2023
June 30, 2023 (unaudited)
Baillie Gifford Emerging Markets ex China Fund
ASSETS | |||||||
Investments, at value (cost $976,261) | $ | 835,722 | |||||
Cash | 66,377 | ||||||
Due from Manager | 17,608 | ||||||
Dividends receivable | 6,015 | ||||||
Prepaid assets | 16,639 | ||||||
Total Assets | 942,361 | ||||||
LIABILITIES | |||||||
Advisory fee payable | 1,157 | ||||||
Deferred India capital gains tax liability (Note A) | 1,298 | ||||||
Administration & Supervisory fee payable | 357 | ||||||
Trustee fee payable | 9 | ||||||
Commitment fee payable | 3 | ||||||
Accrued expenses | 57,700 | ||||||
Total Liabilities | 60,524 | ||||||
NET ASSETS | $ | 881,837 | |||||
COMPOSITION OF NET ASSETS | |||||||
Paid-in capital | $ | 1,035,709 | |||||
Total accumulated (loss) | (153,872 | ) | |||||
$ | 881,837 | ||||||
NET ASSET VALUE, PER SHARE | |||||||
Class K ($440,918 / 52,504 shares outstanding), unlimited authorized, no par value | $ | 8.40 | |||||
Institutional Class ($440,919 / 52,504 shares outstanding), unlimited authorized, no par value | $ | 8.40 |
The accompanying notes are an integral part of the financial statements.
67
Statement of Operations
Semi-Annual Report June 30, 2023
For the Six Months Ended June 30, 2023 (unaudited)
Baillie Gifford Emerging Markets ex China Fund
INVESTMENT INCOME | |||||||
Dividends (net of foreign withholding taxes of $2,132) | $ | 16,176 | |||||
Interest | 347 | ||||||
Total Investment Income | 16,523 | ||||||
EXPENSES | |||||||
Advisory fee (Note B) | 2,245 | ||||||
Administration & Supervisory fee — Class K shares (Note B) | 347 | ||||||
Administration & Supervisory fee — Institutional Class shares (Note B) | 347 | ||||||
Transfer agency | 17,274 | ||||||
Fund accounting | 48,494 | ||||||
Registration fees | 17,297 | ||||||
Professional fees | 16,573 | ||||||
Custody | 3,601 | ||||||
Legal | 486 | ||||||
Trustees' fees | 19 | ||||||
Commitment fees | 5 | ||||||
Miscellaneous | 2,260 | ||||||
Total Expenses | 108,948 | ||||||
Fees waived/expenses reimbursed | (105,397 | ) | |||||
Total Expenses after Waiver | 3,551 | ||||||
Net Investment Income | 12,972 | ||||||
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS AND FOREIGN CURRENCY TRANSACTIONS | |||||||
Net realized gain (loss) from: | |||||||
Investments | (5,898 | ) | |||||
Foreign currency transactions | 662 | ||||||
(5,236 | ) | ||||||
Net change in unrealized appreciation (depreciation) on: | |||||||
Investments (net of change in deferred India capital gains tax liability of $1,298) (Note A) | 123,820 | ||||||
Translation of net assets and liabilities denominated in foreign currencies | (42 | ) | |||||
123,778 | |||||||
Net realized and unrealized gain | 118,542 | ||||||
NET (DECREASE) IN NET ASSETS FROM OPERATIONS | $ | 131,514 |
The accompanying notes are an integral part of the financial statements.
68
Statements of Changes in Net Assets
Semi-Annual Report June 30, 2023
Baillie Gifford Emerging Markets ex China Fund
For the Six Months Ended June 30, 2023 (unaudited) | For the Year Ended December 31, 2022 | ||||||||||
INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS | |||||||||||
Net investment income | $ | 12,972 | $ | 34,232 | |||||||
Net realized (loss) | (5,236 | ) | (19,439 | ) | |||||||
Net change in unrealized appreciation (depreciation) | 123,778 | (266,810 | ) | ||||||||
Net Increase (Decrease) in Net Assets from Operations | 131,514 | (252,017 | ) | ||||||||
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS FROM: | |||||||||||
Distributable earnings | |||||||||||
Class K | — | 17,855 | |||||||||
Institutional Class | — | (17,854 | ) | ||||||||
Total Distributions to Shareholders | — | (35,709 | ) | ||||||||
TRANSACTIONS IN SHARES OF BENEFICIAL INTEREST | |||||||||||
Dividends reinvested: | |||||||||||
Class K | — | 17,855 | |||||||||
Institutional Class | — | 17,854 | |||||||||
Increase in Net Assets from Transactions in Shares of Beneficial Interest | — | 35,709 | |||||||||
Total Increase (Decrease) in Net Assets | 131,514 | (252,017 | ) | ||||||||
NET ASSETS | |||||||||||
Beginning of Period | 750,323 | 1,002,340 | |||||||||
End of Period | $ | 881,837 | $ | 750,323 |
The accompanying notes are an integral part of the financial statements.
69
Financial Highlights
Semi-Annual Report June 30, 2023
Baillie Gifford Emerging Markets ex China Fund
Selected data for a Class K share outstanding throughout each period:
For the Six Months Ended June 30, 2023 (unaudited) | For the Year Ended December 31, 2022 | For the Period December 28, 2021(a) through December 31, 2021 | |||||||||||||
Net asset value, beginning of period | $ | 7.15 | $ | 10.02 | $ | 10.00 | |||||||||
From Investment Operations | |||||||||||||||
Net investment income(b) | 0.12 | 0.34 | 0.01 | ||||||||||||
Net realized and unrealized gain (loss) on investments and foreign currency | 1.13 | (2.85 | ) | 0.01 | |||||||||||
Net Increase (Decrease) in Net Asset Value from Investment Operations | 1.25 | (2.51 | ) | 0.02 | |||||||||||
Dividends and Distributions to Shareholders | |||||||||||||||
From net investment income | — | (0.36 | ) | — | |||||||||||
Total dividends and distributions | — | (0.36 | ) | — | |||||||||||
Net asset value, end of period | $ | 8.40 | $ | 7.15 | $ | 10.02 | |||||||||
Total Return | |||||||||||||||
Total return based on net asset value(c) | 17.62 | % | (25.07 | )% | 0.20 | % | |||||||||
Ratios/Supplemental Data | |||||||||||||||
Net assets, end of period (000's omitted) | $ | 441 | $ | 375 | $ | 501 | |||||||||
Ratio of net expenses to average net assets, before waiver | 26.69 | %* | 19.57 | % | 328.89 | %* | |||||||||
Ratio of net expenses to average net assets, after waiver | 0.87 | %* | 0.87 | % | 0.87 | %* | |||||||||
Ratio of net investment income to average net assets | 3.18 | %* | 4.24 | % | 17.62 | %* | |||||||||
Portfolio turnover rate(d) | 25 | % | 13 | % | 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. Portfolio turnover is not annualized for periods less than one year.
The accompanying notes are an integral part of the financial statements.
70
Financial Highlights
Semi-Annual Report June 30, 2023
Baillie Gifford Emerging Markets ex China Fund
Selected data for an Institutional Class share outstanding throughout each period:
For the Six Months Ended June 30, 2023 (unaudited) | For the Year Ended December 31, 2022 | For the Period December 28, 2021(a) through December 31, 2021 | |||||||||||||
Net asset value, beginning of period | $ | 7.15 | $ | 10.02 | $ | 10.00 | |||||||||
From Investment Operations | |||||||||||||||
Net investment income(b) | 0.12 | 0.34 | 0.01 | ||||||||||||
Net realized and unrealized gain (loss) on investments and foreign currency | 1.13 | (2.85 | ) | 0.01 | |||||||||||
Net Increase (Decrease) in Net Asset Value from Investment Operations | 1.25 | (2.51 | ) | 0.02 | |||||||||||
Dividends and Distributions to Shareholders | |||||||||||||||
From net investment income | — | (0.36 | ) | — | |||||||||||
Total dividends and distributions | — | (0.36 | ) | — | |||||||||||
Net asset value, end of period | $ | 8.40 | $ | 7.15 | $ | 10.02 | |||||||||
Total Return | |||||||||||||||
Total return based on net asset value(c) | 17.62 | % | (25.07 | )% | 0.20 | % | |||||||||
Ratios/Supplemental Data | |||||||||||||||
Net assets, end of period (000's omitted) | $ | 441 | $ | 375 | $ | 501 | |||||||||
Ratio of net expenses to average net assets, before waiver | 26.69 | %* | 19.57 | % | 328.89 | %* | |||||||||
Ratio of net expenses to average net assets, after waiver | 0.87 | %* | 0.87 | % | 0.87 | %* | |||||||||
Ratio of net investment income to average net assets | 3.18 | %* | 4.24 | % | 17.62 | %* | |||||||||
Portfolio turnover rate(d) | 25 | % | 13 | % | 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. Portfolio turnover is not annualized for periods less than one year.
The accompanying notes are an integral part of the financial statements.
71
Industry Diversification Table
Semi-Annual Report June 30, 2023
June 30, 2023 (unaudited)
Baillie Gifford Global Alpha Equities Fund
Value | % of Total Net Assets | ||||||||||
Advertising | $ | 17,525,620 | 1.6 | % | |||||||
Airlines | 25,950,631 | 2.4 | |||||||||
Apparel | 6,421,562 | 0.6 | |||||||||
Auto Manufacturers | 27,147,679 | 2.5 | |||||||||
Auto Parts & Equipment | 4,721,649 | 0.4 | |||||||||
Banks * | 0 | 0.0 | |||||||||
Beverages | 16,404,721 | 1.5 | |||||||||
Biotechnology | 53,452,925 | 4.9 | |||||||||
Building Materials | 61,197,291 | 5.7 | |||||||||
Chemicals | 11,610,050 | 1.1 | |||||||||
Commercial Services | 85,686,763 | 7.9 | |||||||||
Cosmetics/Personal Care | 18,468,725 | 1.7 | |||||||||
Distribution/Wholesale | 14,773,490 | 1.4 | |||||||||
Diversified Financial Services | 64,124,320 | 5.9 | |||||||||
Healthcare — Products | 45,694,940 | 4.2 | |||||||||
Healthcare — Services | 32,832,587 | 3.0 | |||||||||
Home Furnishings | 3,249,191 | 0.3 | |||||||||
Insurance | 64,937,056 | 6.0 | |||||||||
Internet | 194,016,549 | 17.9 | |||||||||
Leisure Time | 3,035,385 | 0.3 | |||||||||
Lodging | 7,406,972 | 0.7 | |||||||||
Machinery — Construction & Mining | 7,475,997 | 0.7 | |||||||||
Machinery — Diversified | 22,070,912 | 2.0 | |||||||||
Media | 5,256,231 | 0.5 | |||||||||
Metal Fabricate/Hardware | 9,187,507 | 0.9 | |||||||||
Mining | 33,963,387 | 3.1 | |||||||||
Miscellaneous Manufacturing | 9,636,511 | 0.9 | |||||||||
Oil & Gas | 29,254,033 | 2.7 | |||||||||
Real Estate | 15,011,643 | 1.4 | |||||||||
Retail | 21,377,695 | 2.0 | |||||||||
Semiconductors | 76,293,803 | 7.1 | |||||||||
Software | 78,728,874 | 7.3 | |||||||||
Total Value of Investments | 1,066,914,699 | 98.6 | |||||||||
Other assets less liabilities | 15,186,357 | 1.4 | |||||||||
Net Assets | $ | 1,082,101,056 | 100.0 | % |
* The Fund's holdings in the Banks industry are Russian securities valued at $0 as of the date of this report.
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.
72
Portfolio of Investments
Semi-Annual Report June 30, 2023
June 30, 2023 (unaudited)
Baillie Gifford Global Alpha Equities Fund
Shares | Value | ||||||||||
COMMON STOCKS — 98.6% | |||||||||||
AUSTRALIA — 3.4% | |||||||||||
BHP Group Ltd. | 614,251 | $ | 18,332,320 | ||||||||
Rio Tinto PLC | 245,966 | 15,631,067 | |||||||||
Woodside Energy Group Ltd. | 133,049 | 3,080,534 | |||||||||
37,043,921 | |||||||||||
BRAZIL — 1.9% | |||||||||||
B3 SA — Brasil Bolsa Balcao | 3,713,400 | 11,330,515 | |||||||||
MercadoLibre, Inc. * | 7,483 | 8,864,362 | |||||||||
20,194,877 | |||||||||||
CANADA — 1.1% | |||||||||||
Shopify, Inc., Class A * | 195,019 | 12,598,227 | |||||||||
CHINA — 5.9% | |||||||||||
Alibaba Group Holding Ltd. * | 834,432 | 8,686,296 | |||||||||
Li Auto, Inc., Class A * | 722,236 | 12,504,789 | |||||||||
Ping An Insurance Group Co. of China Ltd., Class H | 1,652,000 | 10,551,188 | |||||||||
Prosus NV * | 436,405 | 31,959,750 | |||||||||
63,702,023 | |||||||||||
DENMARK — 0.7% | |||||||||||
Genmab A/S * | 19,927 | 7,551,490 | |||||||||
FRANCE — 2.2% | |||||||||||
Adevinta ASA * | 468,111 | 3,076,105 | |||||||||
Pernod Ricard SA | 74,238 | 16,404,721 | |||||||||
Sartorius Stedim Biotech | 19,446 | 4,856,714 | |||||||||
24,337,540 | |||||||||||
GERMANY — 1.4% | |||||||||||
adidas AG | 33,079 | 6,421,562 | |||||||||
Deutsche Boerse AG | 47,021 | 8,680,760 | |||||||||
15,102,322 |
The accompanying notes are an integral part of the financial statements.
73
Portfolio of Investments
Semi-Annual Report June 30, 2023
June 30, 2023 (unaudited)
Baillie Gifford Global Alpha Equities Fund
Shares | Value | ||||||||||
HONG KONG — 2.9% | |||||||||||
AIA Group Ltd. | 1,763,200 | $ | 17,907,940 | ||||||||
Prudential PLC | 958,906 | 13,543,008 | |||||||||
31,450,948 | |||||||||||
INDIA — 3.6% | |||||||||||
Housing Development Finance Corp., Ltd. | 367,955 | 12,694,552 | |||||||||
Reliance Industries Ltd. GDR | 420,290 | 26,173,499 | |||||||||
38,868,051 | |||||||||||
IRELAND — 4.7% | |||||||||||
CRH PLC | 443,789 | 24,547,877 | |||||||||
Ryanair Holdings PLC ADR * | 234,635 | 25,950,631 | |||||||||
50,498,508 | |||||||||||
JAPAN — 5.1% | |||||||||||
CyberAgent, Inc. | 555,400 | 4,060,106 | |||||||||
Denso Corp. | 70,000 | 4,721,650 | |||||||||
Hoshizaki Corp. | 90,500 | 3,249,191 | |||||||||
Olympus Corp. | 898,000 | 14,211,169 | |||||||||
Shiseido Co., Ltd. | 232,100 | 10,521,030 | |||||||||
SMC Corp. | 18,300 | 10,170,443 | |||||||||
Sysmex Corp. | 116,500 | 7,979,899 | |||||||||
54,913,488 | |||||||||||
MACAU — 0.7% | |||||||||||
Sands China Ltd. * | 2,162,800 | 7,406,972 | |||||||||
NETHERLANDS — 1.2% | |||||||||||
Adyen NV * | 4,212 | 7,293,785 | |||||||||
ASM International NV | 13,061 | 5,545,755 | |||||||||
12,839,540 | |||||||||||
NORWAY — 0.5% | |||||||||||
Schibsted ASA, A Shares | 299,308 | 5,256,231 | |||||||||
RUSSIA — 0.0% (a) | |||||||||||
Sberbank of Russia PJSC (b) | 1,284,860 | 0 |
The accompanying notes are an integral part of the financial statements.
74
Portfolio of Investments
Semi-Annual Report June 30, 2023
June 30, 2023 (unaudited)
Baillie Gifford Global Alpha Equities Fund
Shares | Value | ||||||||||
SINGAPORE — 0.6% | |||||||||||
Sea Ltd. ADR * | 110,469 | $ | 6,411,621 | ||||||||
SOUTH KOREA — 1.1% | |||||||||||
Coupang, Inc. * | 376,750 | 6,555,450 | |||||||||
Samsung Electronics Co., Ltd. | 97,534 | 5,370,542 | |||||||||
11,925,992 | |||||||||||
SWEDEN — 1.8% | |||||||||||
Atlas Copco AB, B Shares | 954,444 | 11,900,468 | |||||||||
Epiroc AB, B Shares | 461,896 | 7,475,997 | |||||||||
19,376,465 | |||||||||||
SWITZERLAND — 1.4% | |||||||||||
Cie Financiere Richemont SA | 88,385 | 15,013,784 | |||||||||
TAIWAN — 1.5% | |||||||||||
Taiwan Semiconductor Manufacturing Co., Ltd. | 896,000 | 16,552,107 | |||||||||
UNITED KINGDOM — 0.3% | |||||||||||
Farfetch Ltd., Class A * | 591,704 | 3,573,892 | |||||||||
UNITED STATES — 56.6% | |||||||||||
Adobe, Inc. * | 18,782 | 9,184,210 | |||||||||
Advanced Drainage Systems, Inc. | 80,748 | 9,187,507 | |||||||||
Advanced Micro Devices, Inc. * | 42,235 | 4,810,989 | |||||||||
Albemarle Corp. | 52,042 | 11,610,050 | |||||||||
Alnylam Pharmaceuticals, Inc. * | 66,022 | 12,540,219 | |||||||||
Alphabet, Inc., Class C * | 195,146 | 23,606,812 | |||||||||
Amazon.com, Inc. * | 251,911 | 32,839,118 | |||||||||
Analog Devices, Inc. | 65,788 | 12,816,160 | |||||||||
Arthur J Gallagher & Co. | 60,855 | 13,361,932 | |||||||||
Broadridge Financial Solutions, Inc. | 71,132 | 11,781,593 | |||||||||
CBRE Group, Inc., Class A * | 124,703 | 10,064,779 | |||||||||
Certara, Inc. * | 230,222 | 4,192,343 | |||||||||
Charles Schwab Corp. (The) | 176,196 | 9,986,789 | |||||||||
Chewy, Inc., Class A * | 194,962 | 7,695,150 | |||||||||
Cloudflare, Inc., Class A * | 148,457 | 9,704,634 | |||||||||
CoStar Group, Inc. * | 111,014 | 9,880,246 | |||||||||
Datadog, Inc., Class A * | 60,645 | 5,966,255 |
The accompanying notes are an integral part of the financial statements.
75
Portfolio of Investments
Semi-Annual Report June 30, 2023
June 30, 2023 (unaudited)
Baillie Gifford Global Alpha Equities Fund
Shares | Value | ||||||||||
DoorDash, Inc., Class A * | 114,543 | $ | 8,753,376 | ||||||||
Eaton Corp. PLC | 47,919 | 9,636,511 | |||||||||
Elevance Health, Inc. | 73,899 | 32,832,587 | |||||||||
Entegris, Inc. | 93,167 | 10,324,767 | |||||||||
Estee Lauder Cos., Inc. (The), Class A | 40,471 | 7,947,695 | |||||||||
Exact Sciences Corp. * | 51,928 | 4,876,039 | |||||||||
Floor & Decor Holdings, Inc., Class A * | 61,215 | 6,363,911 | |||||||||
Howard Hughes Corp. (The) * | 62,682 | 4,946,863 | |||||||||
Illumina, Inc. * | 35,200 | 6,599,648 | |||||||||
Markel Group, Inc. * | 6,921 | 9,572,989 | |||||||||
Martin Marietta Materials, Inc. | 79,381 | 36,649,414 | |||||||||
Mastercard, Inc., Class A | 54,492 | 21,431,704 | |||||||||
Meta Platforms, Inc., Class A * | 76,575 | 21,975,493 | |||||||||
Microsoft Corp. | 108,465 | 36,936,671 | |||||||||
Moderna, Inc. * | 76,675 | 9,316,012 | |||||||||
Moody's Corp. | 94,686 | 32,924,216 | |||||||||
Netflix, Inc. * | 15,748 | 6,936,837 | |||||||||
Novocure Ltd. * | 66,062 | 2,741,573 | |||||||||
NVIDIA Corp. | 19,046 | 8,056,839 | |||||||||
Pool Corp. | 15,758 | 5,903,577 | |||||||||
Royalty Pharma PLC, Class A | 431,139 | 13,253,213 | |||||||||
S&P Global, Inc. | 31,894 | 12,785,986 | |||||||||
Service Corp. International | 353,035 | 22,802,531 | |||||||||
SiteOne Landscape Supply, Inc. * | 52,999 | 8,869,913 | |||||||||
Snowflake, Inc., Class A * | 29,296 | 5,155,510 | |||||||||
Spotify Technology SA * | 20,495 | 3,290,472 | |||||||||
STAAR Surgical Co. * | 51,545 | 2,709,721 | |||||||||
Teradyne, Inc. | 115,123 | 12,816,644 | |||||||||
Tesla, Inc. * | 55,938 | 14,642,890 | |||||||||
Thermo Fisher Scientific, Inc. | 15,946 | 8,319,825 | |||||||||
Trade Desk, Inc. (The), Class A * | 226,957 | 17,525,620 | |||||||||
Wayfair, Inc., Class A * | 48,200 | 3,133,482 | |||||||||
YETI Holdings, Inc. * | 78,151 | 3,035,385 | |||||||||
612,296,700 | |||||||||||
TOTAL INVESTMENTS — 98.6% | |||||||||||
(cost $752,868,828) | $ | 1,066,914,699 | |||||||||
Other assets less liabilities — 1.4% | 15,186,357 | ||||||||||
NET ASSETS — 100.0% | $ | 1,082,101,056 |
The accompanying notes are an integral part of the financial statements.
76
Portfolio of Investments
Semi-Annual Report June 30, 2023
June 30, 2023 (unaudited)
Baillie Gifford Global Alpha Equities Fund
* Non-income producing security.
(a) Amount rounds to less than 0.1%.
(b) Investment was valued using significant unobservable inputs.
ADR — American Depositary Receipt
GDR — Global 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, 2023 in valuing the Fund's investments carried at fair value:
Investments in Securities | Level 1 | Level 2 | Level 3 | Total | |||||||||||||||
Common Stocks ** | $ | 687,581,398 | $ | 379,333,301 | $ | 0 | $ | 1,066,914,699 | |||||||||||
Total | $ | 687,581,398 | $ | 379,333,301 | $ | 0 | $ | 1,066,914,699 |
** Refer to Portfolio of Investments for further detail.
Summary of Unobservable Inputs for Level 3 Investments
The ongoing conflict in Russia and Ukraine has led to significant disruption and volatility in the global stock market. This impacted the Fund in terms of suspensions of trading activities on the Russian Stock Exchange as well as suspensions of depositary receipts traded on exchanges outside of Russia. As a result, during the year ended December 31, 2022, management made the decision to value all the Russian securities listed in the Portfolio of Investments to $0 and include them within Level 3.
There were no transfers into or out of Level 3 during the period ended June 30, 2023.
The accompanying notes are an integral part of the financial statements.
77
Statement of Assets and Liabilities
Semi-Annual Report June 30, 2023
June 30, 2023 (unaudited)
Baillie Gifford Global Alpha Equities Fund
ASSETS | |||||||
Investments, at value (cost $752,868,828) | $ | 1,066,914,699 | |||||
Cash | 15,125,518 | ||||||
Foreign cash, at value (cost $686,174) | 686,422 | ||||||
Tax reclaims receivable | 629,673 | ||||||
Dividends receivable | 627,285 | ||||||
Receivable for investments sold | 277,108 | ||||||
Prepaid assets | 18,240 | ||||||
Total Assets | 1,084,278,945 | ||||||
LIABILITIES | |||||||
Advisory fee payable | 1,071,713 | ||||||
Deferred India capital gains tax liability (Note A) | 363,942 | ||||||
Administration & Supervisory fee payable | 175,110 | ||||||
Shareholder Servicing fee payable | 180,539 | ||||||
Payable for investment purchased | 122,235 | ||||||
Capital shares purchased payable | 33,223 | ||||||
IRS Closing agreement tax payable for foreign reclaims (Note A) | 51,724 | ||||||
Trustee fee payable | 12,373 | ||||||
Commitment fee payable | 3,747 | ||||||
Accrued expenses | 163,283 | ||||||
Total Liabilities | 2,177,889 | ||||||
NET ASSETS | $ | 1,082,101,056 | |||||
COMPOSITION OF NET ASSETS | |||||||
Paid-in capital | $ | 847,469,651 | |||||
Total distributable earnings | 234,631,405 | ||||||
$ | 1,082,101,056 | ||||||
NET ASSET VALUE, PER SHARE | |||||||
Class 2 ($187,374,512 / 12,052,910 shares outstanding), unlimited authorized, no par value | $ | 15.55 | |||||
Class 3 ($306,781,108 / 19,051,163 shares outstanding), unlimited authorized, no par value | $ | 16.10 | |||||
Class 4 ($196,533,053 / 11,833,837 shares outstanding), unlimited authorized, no par value | $ | 16.61 | |||||
Class K ($347,436,720 / 22,464,685 shares outstanding), unlimited authorized, no par value | $ | 15.47 | |||||
Institutional Class ($43,975,663 / 2,842,915 shares outstanding), unlimited authorized, no par value | $ | 15.47 |
The accompanying notes are an integral part of the financial statements.
78
Statement of Operations
Semi-Annual Report June 30, 2023
For the Six Months Ended June 30, 2023 (unaudited)
Baillie Gifford Global Alpha Equities Fund
INVESTMENT INCOME | |||||||
Dividends (net of foreign withholding taxes of $507,808) | $ | 5,661,601 | |||||
Interest | 179,543 | ||||||
Litigation income | 145 | ||||||
IRS Closing agreement tax payable for foreign reclaims (Note A) | (51,724 | ) | |||||
Total Investment Income | 5,789,565 | ||||||
EXPENSES | |||||||
Advisory fee (Note B) | 2,153,896 | ||||||
Shareholder Servicing fees — Class 2 shares (Note B) | 151,654 | ||||||
Shareholder Servicing fees — Class 3 shares (Note B) | 91,719 | ||||||
Shareholder Servicing fees — Class 4 shares (Note B) | 100,037 | ||||||
Administration & Supervisory fee — Class K shares (Note B) | 330,022 | ||||||
Administration & Supervisory fee — Institutional Class shares (Note B) | 34,859 | ||||||
Transfer agency | 52,260 | ||||||
Sub-transfer agency — Institutional Class shares | 18,566 | ||||||
Legal | 110,360 | ||||||
Fund accounting | 100,354 | ||||||
Custody | 50,109 | ||||||
Professional fees | 29,606 | ||||||
Trustees' fees | 25,620 | ||||||
Registration fees | 19,501 | ||||||
Commitment fees | 7,797 | ||||||
Line of credit interest | 4,184 | ||||||
Miscellaneous | 27,201 | ||||||
Total Expenses | 3,307,745 | ||||||
Net Investment Income | 2,481,820 | ||||||
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS AND FOREIGN CURRENCY TRANSACTIONS | |||||||
Net realized gain (loss) from: | |||||||
Investments | (11,112,618 | ) | |||||
Foreign currency transactions | 7,395 | ||||||
(11,105,223 | ) | ||||||
Net change in unrealized appreciation on: | |||||||
Investments (net of change in deferred India capital gains tax liability of $55,523) (Note A) | 155,012,744 | ||||||
Translation of net assets and liabilities denominated in foreign currencies | 8,017 | ||||||
155,020,761 | |||||||
Net realized and unrealized gain | 143,915,538 | ||||||
NET INCREASE IN NET ASSETS FROM OPERATIONS | $ | 146,397,358 |
The accompanying notes are an integral part of the financial statements.
79
Statements of Changes in Net Assets
Semi-Annual Report June 30, 2023
Baillie Gifford Global Alpha Equities Fund
For the Six Months Ended June 30, 2023 (unaudited) | For the Year Ended December 31, 2022 | ||||||||||
INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS | |||||||||||
Net investment income | $ | 2,481,820 | $ | 8,584,756 | |||||||
Net realized (loss) | (11,105,223 | ) | (72,074,460 | ) | |||||||
Net change in unrealized appreciation (depreciation) | 155,020,761 | (371,698,761 | ) | ||||||||
Net Increase (Decrease) in Net Assets from Operations | 146,397,358 | (435,188,465 | ) | ||||||||
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS FROM: | |||||||||||
Distributable earnings | |||||||||||
Class 2 | — | (4,894,311 | ) | ||||||||
Class 3 | — | (2,774,341 | ) | ||||||||
Class 4 | — | (9,335,035 | ) | ||||||||
Class K | — | (11,704,716 | ) | ||||||||
Institutional Class | — | (1,142,054 | ) | ||||||||
Total Distributions to Shareholders | — | (29,850,457 | ) | ||||||||
TRANSACTIONS IN SHARES OF BENEFICIAL INTEREST | |||||||||||
Net proceeds from shares subscribed: | |||||||||||
Class 2 | 3,000 | 73,247,462 | * | ||||||||
Class 3 | 183,013,261 | * | 151,183,648 | * | |||||||
Class 4 | — | 196,727,309 | * | ||||||||
Class 5 | — | 230,119,015 | * | ||||||||
Class K | 8,392,399 | 106,320,026 | ** | ||||||||
Institutional Class | 282,842 | 21,599,894 | |||||||||
Dividends reinvested: | |||||||||||
Class 2 | — | 4,894,311 | |||||||||
Class 3 | — | 2,774,341 | |||||||||
Class 4 | — | 9,335,035 | |||||||||
Class K | — | 11,363,164 | |||||||||
Institutional Class | — | 1,130,701 | |||||||||
Cost of shares redeemed: | |||||||||||
Class 2 | (4,500,000 | ) | (31,750,000 | ) | |||||||
Class 3 | — | (119,241,462 | )* | ||||||||
Class 4 | (183,013,261 | )* | (381,302,662 | )* | |||||||
Class 5 | — | (196,727,309 | )* | ||||||||
Class K | (112,129,645 | ) | (70,373,062 | ) | |||||||
Institutional Class | (189,376 | ) | (19,780,953 | ) | |||||||
(Decrease) in Net Assets from Transactions in Shares of Beneficial Interest | (108,140,780 | ) | (10,480,542 | ) | |||||||
Total Increase (Decrease) in Net Assets | 38,256,578 | (475,519,464 | ) | ||||||||
NET ASSETS | |||||||||||
Beginning of Period | 1,043,844,478 | 1,519,363,942 | |||||||||
End of Period | $ | 1,082,101,056 | $ | 1,043,844,478 |
* See Note D for details of share class conversions
** This amount includes an in-kind transfer of $80,804,752.
The accompanying notes are an integral part of the financial statements.
80
Financial Highlights
Semi-Annual Report June 30, 2023
Baillie Gifford Global Alpha Equities Fund
Selected data for a Class 2 share outstanding throughout each period:
For the Six Months Ended June 30, 2023 (unaudited) | For the Year Ended December 31, 2022 | For the Year Ended December 31, 2021 | For the Year Ended December 31, 2020 | For the Year Ended December 31, 2019 | For the Year Ended December 31, 2018 | ||||||||||||||||||||||
Net asset value, beginning of period | $ | 13.57 | $ | 19.72 | $ | 21.18 | $ | 16.46 | $ | 13.13 | $ | 18.85 | |||||||||||||||
From Investment Operations | |||||||||||||||||||||||||||
Net investment income(a) | 0.03 | 0.11 | 0.08 | 0.04 | 0.39 | 0.11 | |||||||||||||||||||||
Net realized and unrealized gain (loss) on investments and foreign currency | 1.95 | (5.85 | ) | 1.54 | 5.93 | 3.89 | (1.93 | ) | |||||||||||||||||||
Net increase (decrease) in net asset value from investment operations | 1.98 | (5.74 | ) | 1.62 | 5.97 | 4.28 | (1.82 | ) | |||||||||||||||||||
Dividends and Distributions to Shareholders | |||||||||||||||||||||||||||
From net investment income | — | (0.01 | ) | (0.30 | ) | (0.13 | ) | (0.57 | ) | (0.13 | ) | ||||||||||||||||
From net realized gain on investments | — | (0.40 | ) | (2.78 | ) | (1.12 | ) | (0.38 | ) | (3.77 | ) | ||||||||||||||||
Total dividends and distributions | — | (0.41 | ) | (3.08 | ) | (1.25 | ) | (0.95 | ) | (3.90 | ) | ||||||||||||||||
Net asset value, end of period | $ | 15.55 | $ | 13.57 | $ | 19.72 | $ | 21.18 | $ | 16.46 | $ | 13.13 | |||||||||||||||
Total Return | |||||||||||||||||||||||||||
Total return based on net asset value(b) | 14.55 | % | (29.08 | )% | 7.65 | % | 36.31 | % | 32.56 | % | (9.44 | )% | |||||||||||||||
Ratios/Supplemental Data | |||||||||||||||||||||||||||
Net assets, end of period (000's omitted) | $ | 187,375 | $ | 167,683 | $ | 187,473 | $ | 250,776 | $ | 173,625 | $ | 129,690 | |||||||||||||||
Ratio of net expenses to average net assets | 0.65 | %* | 0.67 | % | 0.64 | % | 0.65 | % | 0.67 | % | 0.68 | % | |||||||||||||||
Ratio of net investment income to average net assets | 0.43 | %* | 0.77 | % | 0.33 | % | 0.25 | % | 2.52 | %(c) | 0.59 | % | |||||||||||||||
Portfolio turnover rate(d) | 10 | % | 9 | % | 40 | % | 23 | % | 17 | % | 18 | % |
* Annualized.
(a) Calculated based upon average shares outstanding during the period.
(b) Total investment return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all dividends and distributions, if any, at net asset value during the period, and redemption on the last day of the period. Total return is not annualized for periods less than one year.
(c) Ratio includes taxable stock dividends that were treated as income.
(d) Portfolio turnover rate calculated at Fund level. and excludes the value of portfolio securities sold or received in-kind in connection with Fund capital shares sold or redemptions in-kind. Portfolio turnover is not annualized for periods less than one year.
The accompanying notes are an integral part of the financial statements.
81
Financial Highlights
Semi-Annual Report June 30, 2023
Baillie Gifford Global Alpha Equities Fund
Selected data for a Class 3 share outstanding throughout each period:
For the Six Months Ended June 30, 2023 (unaudited) | For the Year Ended December 31, 2022 | For the Year Ended December 31, 2021 | For the Year Ended December 31, 2020 | For the Year Ended December 31, 2019 | For the Year Ended December 31, 2018 | ||||||||||||||||||||||
Net asset value, beginning of period | $ | 14.05 | $ | 20.38 | $ | 21.80 | $ | 16.90 | $ | 13.46 | $ | 19.22 | |||||||||||||||
From Investment Operations | |||||||||||||||||||||||||||
Net investment income(a) | 0.04 | 0.13 | 0.09 | 0.07 | 0.41 | 0.13 | |||||||||||||||||||||
Net realized and unrealized gain (loss) on investments and foreign currency | 2.01 | (6.05 | ) | 1.59 | 6.07 | 3.99 | (1.97 | ) | |||||||||||||||||||
Net increase (decrease) in net asset value from investment operations | 2.05 | (5.92 | ) | 1.68 | 6.14 | 4.40 | (1.84 | ) | |||||||||||||||||||
Dividends and Distributions to Shareholders | |||||||||||||||||||||||||||
From net investment income | — | (0.01 | ) | (0.32 | ) | (0.12 | ) | (0.58 | ) | (0.15 | ) | ||||||||||||||||
From net realized gain on investments | — | (0.40 | ) | (2.78 | ) | (1.12 | ) | (0.38 | ) | (3.77 | ) | ||||||||||||||||
Total dividends and distributions | — | (0.41 | ) | (3.10 | ) | (1.24 | ) | (0.96 | ) | (3.92 | ) | ||||||||||||||||
Net asset value, end of period | $ | 16.10 | $ | 14.05 | $ | 20.38 | $ | 21.80 | $ | 16.90 | $ | 13.46 | |||||||||||||||
Total Return | |||||||||||||||||||||||||||
Total return based on net asset value(b) | 14.59 | % | (29.03 | )% | 7.72 | % | 36.40 | % | 32.65 | % | (9.37 | )% | |||||||||||||||
Ratios/Supplemental Data | |||||||||||||||||||||||||||
Net assets, end of period (000's omitted) | $ | 306,781 | $ | 98,323 | $ | 101,328 | $ | 282,859 | $ | 568,608 | $ | 449,177 | |||||||||||||||
Ratio of net expenses to average net assets | 0.58 | %* | 0.60 | % | 0.57 | % | 0.58 | % | 0.60 | % | 0.61 | % | |||||||||||||||
Ratio of net investment income to average net assets | 0.49 | %* | 0.84 | % | 0.38 | % | 0.41 | % | 2.61 | %(c) | 0.67 | % | |||||||||||||||
Portfolio turnover rate(d) | 10 | % | 9 | % | 40 | % | 23 | % | 17 | % | 18 | % |
* Annualized.
(a) Calculated based upon average shares outstanding during the period.
(b) Total investment return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all dividends and distributions, if any, at net asset value during the period, and redemption on the last day of the period. Total return is not annualized for periods less than one year.
(c) Ratio includes taxable stock dividends that were treated as income.
(d) Portfolio turnover rate calculated at Fund level. and excludes the value of portfolio securities sold or received in-kind in connection with Fund capital shares sold or redemptions in-kind. Portfolio turnover is not annualized for periods less than one year.
The accompanying notes are an integral part of the financial statements.
82
Financial Highlights
Semi-Annual Report June 30, 2023
Baillie Gifford Global Alpha Equities Fund
Selected data for a Class 4 share outstanding throughout each period:
For the Six Months Ended June 30, 2023 (unaudited) | For the Year Ended December 31, 2022 | For the Year Ended December 31, 2021 | For the Year Ended December 31, 2020 | For the Year Ended December 31, 2019 | For the Year Ended December 31, 2018 | ||||||||||||||||||||||
Net asset value, beginning of period | $ | 14.49 | $ | 21.00 | $ | 22.38 | $ | 17.34 | $ | 13.79 | $ | 19.58 | |||||||||||||||
From Investment Operations | |||||||||||||||||||||||||||
Net investment income(a) | 0.04 | 0.13 | 0.10 | 0.03 | 0.42 | 0.11 | |||||||||||||||||||||
Net realized and unrealized gain (loss) on investments and foreign currency | 2.08 | (6.23 | ) | 1.64 | 6.28 | 4.10 | (1.98 | ) | |||||||||||||||||||
Net increase (decrease) in net asset value from investment operations | 2.12 | (6.10 | ) | 1.74 | 6.31 | 4.52 | (1.87 | ) | |||||||||||||||||||
Dividends and Distributions to Shareholders | |||||||||||||||||||||||||||
From net investment income | — | (0.01 | ) | (0.34 | ) | (0.15 | ) | (0.59 | ) | (0.15 | ) | ||||||||||||||||
From net realized gain on investments | — | (0.40 | ) | (2.78 | ) | (1.12 | ) | (0.38 | ) | (3.77 | ) | ||||||||||||||||
Total dividends and distributions | — | (0.41 | ) | (3.12 | ) | (1.27 | ) | (0.97 | ) | (3.92 | ) | ||||||||||||||||
Net asset value, end of period | $ | 16.61 | $ | 14.49 | $ | 21.00 | $ | 22.38 | $ | 17.34 | $ | 13.79 | |||||||||||||||
Total Return | |||||||||||||||||||||||||||
Total return based on net asset value(b) | 14.61 | % | (29.00 | )% | 7.76 | % | 36.45 | % | 32.69 | % | (9.35 | )% | |||||||||||||||
Ratios/Supplemental Data | |||||||||||||||||||||||||||
Net assets, end of period (000's omitted) | $ | 196,533 | $ | 340,858 | $ | 665,712 | $ | 682,239 | $ | 147,092 | $ | 110,854 | |||||||||||||||
Ratio of net expenses to average net assets | 0.55 | %* | 0.57 | % | 0.54 | % | 0.55 | % | 0.57 | % | 0.58 | % | |||||||||||||||
Ratio of net investment income to average net assets | 0.54 | %* | 0.83 | % | 0.41 | % | 0.16 | % | 2.62 | %(c) | 0.57 | % | |||||||||||||||
Portfolio turnover rate(d) | 10 | % | 9 | % | 40 | % | 23 | % | 17 | % | 18 | % |
* Annualized.
(a) Calculated based upon average shares outstanding during the period.
(b) Total investment return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all dividends and distributions, if any, at net asset value during the period, and redemption on the last day of the period. Total return is not annualized for periods less than one year.
(c) Ratio includes taxable stock dividends that were treated as income.
(d) Portfolio turnover rate calculated at Fund level. and excludes the value of portfolio securities sold or received in-kind in connection with Fund capital shares sold or redemptions in-kind. Portfolio turnover is not annualized for periods less than one year.
The accompanying notes are an integral part of the financial statements.
83
Financial Highlights
Semi-Annual Report June 30, 2023
Baillie Gifford Global Alpha Equities Fund
Selected data for a Class K share outstanding throughout each period:
For the Six Months Ended June 30, 2023 (unaudited) | For the Year Ended December 31, 2022 | For the Year Ended December 31, 2021 | For the Year Ended December 31, 2020 | For the Year Ended December 31, 2019 | For the Year Ended December 31, 2018 | ||||||||||||||||||||||
Net asset value, beginning of period | $ | 13.50 | $ | 19.62 | $ | 21.12 | $ | 16.42 | $ | 13.11 | $ | 18.82 | |||||||||||||||
From Investment Operations | |||||||||||||||||||||||||||
Net investment income(a) | 0.03 | 0.11 | 0.05 | 0.03 | 0.35 | 0.11 | |||||||||||||||||||||
Net realized and unrealized gain (loss) on investments and foreign currency | 1.94 | (5.82 | ) | 1.56 | 5.93 | 3.92 | (1.92 | ) | |||||||||||||||||||
Net increase (decrease) in net asset value from investment operations | 1.97 | (5.71 | ) | 1.61 | 5.96 | 4.27 | (1.81 | ) | |||||||||||||||||||
Dividends and Distributions to Shareholders | |||||||||||||||||||||||||||
From net investment income | — | (0.01 | ) | (0.33 | ) | (0.14 | ) | (0.58 | ) | (0.13 | ) | ||||||||||||||||
From net realized gain on investments | — | (0.40 | ) | (2.78 | ) | (1.12 | ) | (0.38 | ) | (3.77 | ) | ||||||||||||||||
Total dividends and distributions | — | (0.41 | ) | (3.11 | ) | (1.26 | ) | (0.96 | ) | (3.90 | ) | ||||||||||||||||
Net asset value, end of period | $ | 15.47 | $ | 13.50 | $ | 19.62 | $ | 21.12 | $ | 16.42 | $ | 13.11 | |||||||||||||||
Total Return | |||||||||||||||||||||||||||
Total return based on net asset value(b) | 14.59 | % | (29.08 | )% | 7.64 | % | 36.35 | % | 32.48 | % | (9.38 | )% | |||||||||||||||
Ratios/Supplemental Data | |||||||||||||||||||||||||||
Net assets, end of period (000's omitted) | $ | 347,437 | $ | 398,663 | $ | 513,807 | $ | 267,923 | $ | 81,234 | $ | 41,427 | |||||||||||||||
Ratio of net expenses to average net assets | 0.65 | %* | 0.67 | % | 0.64 | % | 0.65 | % | 0.67 | % | 0.68 | % | |||||||||||||||
Ratio of net investment income to average net assets | 0.41 | %* | 0.74 | % | 0.23 | % | 0.18 | % | 2.22 | %(c) | 0.56 | % | |||||||||||||||
Portfolio turnover rate(d) | 10 | % | 9 | % | 40 | % | 23 | % | 17 | % | 18 | % |
* Annualized.
(a) Calculated based upon average shares outstanding during the period.
(b) Total investment return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all dividends and distributions, if any, at net asset value during the period, and redemption on the last day of the period. Total return is not annualized for periods less than one year.
(c) Ratio includes taxable stock dividends that were treated as income.
(d) Portfolio turnover rate calculated at Fund level. and excludes the value of portfolio securities sold or received in-kind in connection with Fund capital shares sold or redemptions in-kind. Portfolio turnover is not annualized for periods less than one year.
The accompanying notes are an integral part of the financial statements.
84
Financial Highlights
Semi-Annual Report June 30, 2023
Baillie Gifford Global Alpha Equities Fund
Selected data for an Institutional Class share outstanding throughout each period:
For the Six Months Ended June 30, 2023 (unaudited) | For the Year Ended December 31, 2022 | For the Year Ended December 31, 2021 | For the Year Ended December 31, 2020 | For the Year Ended December 31, 2019 | For the Year Ended December 31, 2018 | ||||||||||||||||||||||
Net asset value, beginning of period | $ | 13.51 | $ | 19.65 | $ | 21.15 | $ | 16.45 | $ | 13.12 | $ | 18.84 | |||||||||||||||
From Investment Operations | |||||||||||||||||||||||||||
Net investment income(a) | 0.02 | 0.09 | 0.05 | 0.02 | 0.39 | 0.12 | |||||||||||||||||||||
Net realized and unrealized gain (loss) on investments and foreign currency | 1.94 | (5.82 | ) | 1.54 | 5.93 | 3.89 | (1.94 | ) | |||||||||||||||||||
Net increase (decrease) in net asset value from investment operations | 1.96 | (5.73 | ) | 1.59 | 5.95 | 4.28 | (1.82 | ) | |||||||||||||||||||
Dividends and Distributions to Shareholders | |||||||||||||||||||||||||||
From net investment income | — | (0.01 | ) | (0.31 | ) | (0.13 | ) | (0.57 | ) | (0.13 | ) | ||||||||||||||||
From net realized gain on investments | — | (0.40 | ) | (2.78 | ) | (1.12 | ) | (0.38 | ) | (3.77 | ) | ||||||||||||||||
Total dividends and distributions | — | (0.41 | ) | (3.09 | ) | (1.25 | ) | (0.95 | ) | (3.90 | ) | ||||||||||||||||
Net asset value, end of period | $ | 15.47 | $ | 13.51 | $ | 19.65 | $ | 21.15 | $ | 16.45 | $ | 13.12 | |||||||||||||||
Total Return | |||||||||||||||||||||||||||
Total return based on net asset value(b) | 14.51 | % | (29.14 | )% | 7.53 | % | 36.22 | % | 32.56 | % | (9.42 | )% | |||||||||||||||
Ratios/Supplemental Data | |||||||||||||||||||||||||||
Net assets, end of period (000's omitted) | $ | 43,976 | $ | 38,317 | $ | 51,045 | $ | 27,677 | $ | 7 | $ | 5 | |||||||||||||||
Ratio of net expenses to average net assets | 0.74 | %* | 0.76 | % | 0.74 | % | 0.74 | % | 0.67 | % | 0.68 | % | |||||||||||||||
Ratio of net investment income to average net assets | 0.34 | %* | 0.58 | % | 0.21 | % | 0.09 | % | 2.56 | %(c) | 0.62 | % | |||||||||||||||
Portfolio turnover rate(d) | 10 | % | 9 | % | 40 | % | 23 | % | 17 | % | 18 | % |
* Annualized.
(a) Calculated based upon average shares outstanding during the period.
(b) Total investment return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all dividends and distributions, if any, at net asset value during the period, and redemption on the last day of the period. Total return is not annualized for periods less than one year.
(c) Ratio includes taxable stock dividends that were treated as income.
(d) Portfolio turnover rate calculated at Fund level. and excludes the value of portfolio securities sold or received in-kind in connection with Fund capital shares sold or redemptions in-kind. Portfolio turnover is not annualized for periods less than one year.
The accompanying notes are an integral part of the financial statements.
85
Industry Diversification Table
Semi-Annual Report June 30, 2023
June 30, 2023 (unaudited)
Baillie Gifford Health Innovation Equities Fund
Value | % of Total Net Assets | ||||||||||
Biotechnology | $ | 9,014,616 | 38.9 | % | |||||||
Electronics | 1,003,345 | 4.3 | |||||||||
Healthcare — Products | 7,781,723 | 33.5 | |||||||||
Healthcare — Services | 845,772 | 3.6 | |||||||||
Internet | 719,552 | 3.1 | |||||||||
Pharmaceuticals | 2,057,231 | 8.9 | |||||||||
Software | 1,312,261 | 5.7 | |||||||||
Total Value of Investments | 22,734,500 | 98.0 | |||||||||
Other assets less liabilities | 458,723 | 2.0 | |||||||||
Net Assets | $ | 23,193,223 | 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.
86
Portfolio of Investments
Semi-Annual Report June 30, 2023
June 30, 2023 (unaudited)
Baillie Gifford Health Innovation Equities Fund
Shares | Value | ||||||||||
COMMON STOCKS — 93.7% | |||||||||||
CHINA — 2.6% | |||||||||||
Wuxi Biologics Cayman, Inc. * | 92,500 | $ | 444,560 | ||||||||
Zai Lab Ltd. * | 61,090 | 168,081 | |||||||||
612,641 | |||||||||||
DENMARK — 15.2% | |||||||||||
ALK-Abello A/S * | 45,384 | 495,876 | |||||||||
Ambu A/S, B Shares * | 68,047 | 1,115,520 | |||||||||
Ascendis Pharma A/S ADR * | 3,755 | 335,134 | |||||||||
Genmab A/S * | 4,169 | 1,579,875 | |||||||||
3,526,405 | |||||||||||
JAPAN — 3.1% | |||||||||||
M3, Inc. | 33,000 | 719,553 | |||||||||
NETHERLANDS — 7.1% | |||||||||||
Argenx SE * | 4,222 | 1,646,562 | |||||||||
UNITED KINGDOM — 0.9% | |||||||||||
Exscientia PLC ADR * | 33,610 | 198,971 | |||||||||
UNITED STATES — 64.8% | |||||||||||
10X Genomics, Inc., Class A * | 17,198 | 960,336 | |||||||||
Alector, Inc. * | 15,758 | 94,706 | |||||||||
Alnylam Pharmaceuticals, Inc. * | 7,279 | 1,382,573 | |||||||||
Denali Therapeutics, Inc. * | 13,669 | 403,372 | |||||||||
Dexcom, Inc. * | 8,094 | 1,040,160 | |||||||||
Doximity, Inc., Class A * | 20,163 | 685,945 | |||||||||
Edwards Lifesciences Corp. * | 10,423 | 983,202 | |||||||||
Exact Sciences Corp. * | 11,862 | 1,113,842 | |||||||||
Health Catalyst, Inc. * | 23,214 | 290,175 | |||||||||
Illumina, Inc. * | 4,714 | 883,828 | |||||||||
Ionis Pharmaceuticals, Inc. * | 13,519 | 554,684 | |||||||||
Lyell Immunopharma, Inc. * | 28,728 | 91,355 | |||||||||
Masimo Corp. * | 3,896 | 641,087 | |||||||||
Moderna, Inc. * | 10,812 | 1,313,658 | |||||||||
Novocure Ltd. * | 7,660 | 317,890 | |||||||||
Oscar Health, Inc., Class A * | 14,082 | 113,501 |
The accompanying notes are an integral part of the financial statements.
87
Portfolio of Investments
Semi-Annual Report June 30, 2023
June 30, 2023 (unaudited)
Baillie Gifford Health Innovation Equities Fund
Shares | Value | ||||||||||
Recursion Pharmaceuticals, Inc., Class A * | 38,180 | $ | 285,205 | ||||||||
Relay Therapeutics, Inc. * | 16,323 | 205,017 | |||||||||
ResMed, Inc. | 2,709 | 591,916 | |||||||||
Sage Therapeutics, Inc. * | 3,681 | 173,081 | |||||||||
Sana Biotechnology, Inc. * | 6,436 | 38,358 | |||||||||
Shockwave Medical, Inc. * | 5,829 | 1,663,655 | |||||||||
STAAR Surgical Co. * | 7,500 | 394,275 | |||||||||
Teladoc Health, Inc. * | 11,363 | 287,711 | |||||||||
Veeva Systems, Inc., Class A * | 1,700 | 336,141 | |||||||||
Vir Biotechnology, Inc. * | 7,393 | 181,350 | |||||||||
15,027,023 | |||||||||||
Total Common Stocks | |||||||||||
(cost $24,489,516) | 21,731,155 | ||||||||||
PREFERRED STOCKS — 4.3% | |||||||||||
GERMANY — 4.3% | |||||||||||
Sartorius AG 0.45% (cost $1,303,137) | 2,896 | 1,003,345 | |||||||||
TOTAL INVESTMENTS — 98.0% | |||||||||||
(cost $25,792,653) | $ | 22,734,500 | |||||||||
Other assets less liabilities — 2.0% | 458,723 | ||||||||||
NET ASSETS — 100.0% | $ | 23,193,223 |
* 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, 2023 in valuing the Fund's investments carried at fair value:
Investments in Securities | Level 1 | Level 2 | Level 3 | Total | |||||||||||||||
Common Stocks ** | $ | 15,561,128 | $ | 6,170,027 | $ | — | $ | 21,731,155 | |||||||||||
Preferred Stocks ** | — | 1,003,345 | — | 1,003,345 | |||||||||||||||
Total | $ | 15,561,128 | $ | 7,173,372 | $ | — | $ | 22,734,500 |
** Refer to Portfolio of Investments for further detail.
The accompanying notes are an integral part of the financial statements.
88
Statement of Assets and Liabilities
Semi-Annual Report June 30, 2023
June 30, 2023 (unaudited)
Baillie Gifford Health Innovation Equities Fund
ASSETS | |||||||
Investments, at value (cost $25,792,653) | $ | 22,734,500 | |||||
Cash | 492,477 | ||||||
Due from Manager | 17,113 | ||||||
Capital shares sold receivable | 5,000 | ||||||
Tax reclaims receivable | 728 | ||||||
Prepaid assets | 17,672 | ||||||
Total Assets | 23,267,490 | ||||||
LIABILITIES | |||||||
Advisory fee payable | 19,434 | ||||||
Administration & Supervisory fee payable | 10,011 | ||||||
Trustee fee payable | 222 | ||||||
Commitment fee payable | 67 | ||||||
Accrued expenses | 44,533 | ||||||
Total Liabilities | 74,267 | ||||||
NET ASSETS | $ | 23,193,223 | |||||
COMPOSITION OF NET ASSETS | |||||||
Paid-in capital | $ | 26,640,399 | |||||
Total accumulated (loss) | (3,447,176 | ) | |||||
$ | 23,193,223 | ||||||
NET ASSET VALUE, PER SHARE | |||||||
Class K ($3,351,182 / 500,968 shares outstanding), unlimited authorized, no par value | $ | 6.69 | |||||
Institutional Class ($19,842,041 / 2,966,096 shares outstanding), unlimited authorized, no par value | $ | 6.69 |
The accompanying notes are an integral part of the financial statements.
89
Statement of Operations
Semi-Annual Report June 30, 2023
For the Six Months Ended June 30, 2023 (unaudited)
Baillie Gifford Health Innovation Equities Fund
INVESTMENT INCOME | |||||||
Dividends (net of foreign withholding taxes of $1,119) | $ | 10,188 | |||||
Interest | 6,586 | ||||||
Total Investment Income | 16,774 | ||||||
EXPENSES | |||||||
Advisory fee (Note B) | 37,764 | ||||||
Administration & Supervisory fee — Class K shares (Note B) | 2,893 | ||||||
Administration & Supervisory fee — Institutional Class shares (Note B) | 16,561 | ||||||
Transfer agency | 18,673 | ||||||
Sub-transfer agency — Institutional Class shares | 2,099 | ||||||
Fund accounting | 47,109 | ||||||
Registration fees | 18,039 | ||||||
Professional fees | 14,844 | ||||||
Custody | 4,865 | ||||||
Legal | 3,855 | ||||||
Trustees' fees | 523 | ||||||
Commitment fees | 159 | ||||||
Miscellaneous | 2,712 | ||||||
Total Expenses | 170,096 | ||||||
Fees waived/expenses reimbursed | (93,614 | ) | |||||
Total Expenses after Waiver | 76,482 | ||||||
Net Investment (Loss) | (59,708 | ) | |||||
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS AND FOREIGN CURRENCY TRANSACTIONS | |||||||
Net realized gain (loss) from: | |||||||
Investments | (312,417 | ) | |||||
Foreign currency transactions | 290 | ||||||
(312,127 | ) | ||||||
Net change in unrealized appreciation (depreciation) on: | |||||||
Investments | 151,737 | ||||||
Translation of net assets and liabilities denominated in foreign currencies | (6 | ) | |||||
151,731 | |||||||
Net realized and unrealized (loss) | (160,396 | ) | |||||
NET (DECREASE) IN NET ASSETS FROM OPERATIONS | $ | (220,104 | ) |
The accompanying notes are an integral part of the financial statements.
90
Statements of Changes in Net Assets
Semi-Annual Report June 30, 2023
Baillie Gifford Health Innovation Equities Fund
For the Six Months Ended June 30, 2023 (unaudited) | For the Year Ended December 31, 2022 | ||||||||||
INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS | |||||||||||
Net investment (loss) | $ | (59,708 | ) | $ | (52,176 | ) | |||||
Net realized gain (loss) | (312,127 | ) | 13,616 | ||||||||
Net change in unrealized appreciation (depreciation) | 151,731 | (3,184,317 | ) | ||||||||
Net (Decrease) in Net Assets from Operations | (220,104 | ) | (3,222,877 | ) | |||||||
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS FROM: | |||||||||||
Distributable earnings | |||||||||||
Class K | — | (268 | ) | ||||||||
Institutional Class | — | (1,390 | ) | ||||||||
Total Distributions to Shareholders | — | (1,658 | ) | ||||||||
TRANSACTIONS IN SHARES OF BENEFICIAL INTEREST | |||||||||||
Net proceeds from shares subscribed: | |||||||||||
Class K | 6,510 | — | |||||||||
Institutional Class | 3,102,052 | 14,252,929 | |||||||||
Dividends reinvested: | |||||||||||
Class K | — | 267 | |||||||||
Institutional Class | — | 1,295 | |||||||||
Cost of shares redeemed: | |||||||||||
Class K | (10 | ) | — | ||||||||
Institutional Class | (610,783 | ) | (90,471 | ) | |||||||
Increase in Net Assets from Transactions in Shares of Beneficial Interest | 2,497,769 | 14,164,020 | |||||||||
Total Increase in Net Assets | 2,277,665 | 10,939,485 | |||||||||
NET ASSETS | |||||||||||
Beginning of Period | 20,915,558 | 9,976,073 | |||||||||
End of Period | $ | 23,193,223 | $ | 20,915,558 |
The accompanying notes are an integral part of the financial statements.
91
Financial Highlights
Semi-Annual Report June 30, 2023
Baillie Gifford Health Innovation Equities Fund
Selected data for a Class K share outstanding throughout each period:
For the Six Months Ended June 30, 2023 (unaudited) | For the Year Ended December 31, 2022 | For the Period December 28, 2021(a) through December 31, 2021 | |||||||||||||
Net asset value, beginning of period | $ | 6.74 | $ | 9.98 | $ | 10.00 | |||||||||
From Investment Operations | |||||||||||||||
Net investment income (loss)(b) | (0.02 | ) | (0.04 | ) | 0.00 | (c) | |||||||||
Net realized and unrealized (loss) on investments and foreign currency | (0.03 | ) | (3.20 | ) | (0.02 | ) | |||||||||
Net (decrease) in net asset value from investment operations | (0.05 | ) | (3.24 | ) | (0.02 | ) | |||||||||
Net asset value, end of period | $ | 6.69 | $ | 6.74 | $ | 9.98 | |||||||||
Total Return | |||||||||||||||
Total return based on net asset value(d) | (0.74 | )% | (32.46 | )% | (0.20 | )% | |||||||||
Ratios/Supplemental Data | |||||||||||||||
Net assets, end of period (000's omitted) | $ | 3,351 | $ | 3,368 | $ | 4,988 | |||||||||
Ratio of net expenses to average net assets, before waiver | 1.47 | %* | 2.69 | % | 33.47 | %* | |||||||||
Ratio of net expenses to average net assets, after waiver | 0.65 | %* | 0.65 | % | 0.65 | %* | |||||||||
Ratio of net investment (loss) to average net assets | (0.50 | )%* | (0.61 | )% | (0.65 | )%* | |||||||||
Portfolio turnover rate(e) | 1 | % | 12 | % | 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. Portfolio turnover is not annualized for periods less than one year.
The accompanying notes are an integral part of the financial statements.
92
Financial Highlights
Semi-Annual Report June 30, 2023
Baillie Gifford Health Innovation Equities Fund
Selected data for an Institutional Class share outstanding throughout each period:
For the Six Months Ended June 30, 2023 (unaudited) | For the Year Ended December 31, 2022 | For the Period December 28, 2021(a) through December 31, 2021 | |||||||||||||
Net asset value, beginning of period | $ | 6.74 | $ | 9.98 | $ | 10.00 | |||||||||
From Investment Operations | |||||||||||||||
Net investment income (loss)(b) | (0.02 | ) | (0.04 | ) | 0.00 | (c) | |||||||||
Net realized and unrealized (loss) on investments and foreign currency | (0.03 | ) | (3.20 | ) | (0.02 | ) | |||||||||
Net (decrease) in net asset value from investment operations | (0.05 | ) | (3.24 | ) | (0.02 | ) | |||||||||
Net asset value, end of period | $ | 6.69 | $ | 6.74 | $ | 9.98 | |||||||||
Total Return | |||||||||||||||
Total return based on net asset value(d) | (0.74 | )% | (32.46 | )% | (0.20 | )% | |||||||||
Ratios/Supplemental Data | |||||||||||||||
Net assets, end of period (000's omitted) | $ | 19,842 | $ | 17,547 | $ | 4,988 | |||||||||
Ratio of net expenses to average net assets, before waiver | 1.49 | %* | 2.69 | % | 33.47 | %* | |||||||||
Ratio of net expenses to average net assets, after waiver | 0.67 | %* | 0.65 | % | 0.65 | %* | |||||||||
Ratio of net investment (loss) to average net assets | (0.52 | )%* | (0.57 | )% | (0.65 | )%* | |||||||||
Portfolio turnover rate(e) | 1 | % | 12 | % | 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. Portfolio turnover is not annualized for periods less than one year.
The accompanying notes are an integral part of the financial statements.
93
Industry Diversification Table
Semi-Annual Report June 30, 2023
June 30, 2023 (unaudited)
Baillie Gifford International Alpha Fund
Value | % of Total Net Assets | ||||||||||
Airlines | $ | 98,279,843 | 4.1 | % | |||||||
Apparel | 32,139,641 | 1.4 | |||||||||
Auto Parts & Equipment | 40,302,651 | 1.7 | |||||||||
Banks | 27,336,112 | 1.2 | |||||||||
Biotechnology | 22,601,824 | 1.0 | |||||||||
Building Materials | 98,254,291 | 4.1 | |||||||||
Chemicals | 39,794,431 | 1.7 | |||||||||
Commercial Services | 198,448,945 | 8.4 | |||||||||
Cosmetics/Personal Care | 30,923,942 | 1.3 | |||||||||
Distribution/Wholesale | 39,875,723 | 1.7 | |||||||||
Diversified Financial Services | 145,505,348 | 6.1 | |||||||||
Electrical Components & Equipment | 11,953,722 | 0.5 | |||||||||
Electronics | 18,873,613 | 0.8 | |||||||||
Energy — Alternate Sources | 13,832,342 | 0.6 | |||||||||
Food | 88,831,780 | 3.8 | |||||||||
Healthcare — Products | 28,883,372 | 1.2 | |||||||||
Healthcare — Services | 5,209,763 | 0.2 | |||||||||
Home Furnishings | 78,433,501 | 3.3 | |||||||||
Insurance | 136,769,362 | 5.8 | |||||||||
Internet | 349,328,927 | 14.8 | |||||||||
Investment Companies | 24,628,078 | 1.0 | |||||||||
Leisure Time | 38,363,728 | 1.6 | |||||||||
Machinery — Construction & Mining | 33,250,232 | 1.4 | |||||||||
Machinery — Diversified | 175,987,934 | 7.4 | |||||||||
Mining | 42,383,841 | 1.8 | |||||||||
Pharmaceuticals | 5,397,039 | 0.2 | |||||||||
Retail | 56,326,363 | 2.4 | |||||||||
Semiconductors | 201,780,866 | 8.5 | |||||||||
Software | 175,677,210 | 7.4 | |||||||||
Toys/Games/Hobbies | 22,903,577 | 1.0 | |||||||||
Transportation | 43,779,600 | 1.8 | |||||||||
Total Value of Investments | 2,326,057,601 | 98.2 | |||||||||
Other assets less liabilities | 42,277,191 | 1.8 | |||||||||
Net Assets | $ | 2,368,334,792 | 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, 2023
June 30, 2023 (unaudited)
Baillie Gifford International Alpha Fund
Shares | Value | ||||||||||
COMMON STOCKS — 98.2% | |||||||||||
AUSTRALIA — 1.8% | |||||||||||
Rio Tinto PLC | 666,940 | $ | 42,383,841 | ||||||||
BRAZIL — 4.2% | |||||||||||
MercadoLibre, Inc. * | 83,497 | 98,910,546 | |||||||||
CANADA — 3.3% | |||||||||||
AbCellera Biologics, Inc. * | 835,455 | 5,397,039 | |||||||||
Constellation Software, Inc. | 16,097 | 33,351,501 | |||||||||
Lumine Group, Inc. * | 959,352 | 13,158,276 | |||||||||
Shopify, Inc., Class A * | 418,061 | 27,006,741 | |||||||||
78,913,557 | |||||||||||
CHINA — 5.4% | |||||||||||
Alibaba Group Holding Ltd. * | 1,618,388 | 16,847,145 | |||||||||
Meituan, Class B * | 917,900 | 14,393,514 | |||||||||
Ping An Insurance Group Co. of China Ltd., Class H | 3,026,500 | 19,330,006 | |||||||||
Prosus NV * | 258,745 | 18,948,971 | |||||||||
Tencent Holdings Ltd. | 740,000 | 31,376,872 | |||||||||
Tencent Music Entertainment Group ADR * | 2,858,742 | 21,097,516 | |||||||||
Wuxi Biologics Cayman, Inc. * | 1,084,000 | 5,209,762 | |||||||||
127,203,786 | |||||||||||
DENMARK — 4.0% | |||||||||||
Ambu A/S, B Shares * | 713,432 | 11,695,560 | |||||||||
Chr. Hansen Holding A/S | 209,273 | 14,548,358 | |||||||||
DSV A/S | 208,433 | 43,779,600 | |||||||||
Novozymes A/S, B Shares | 541,075 | 25,246,073 | |||||||||
95,269,591 | |||||||||||
FINLAND — 1.3% | |||||||||||
Kone Oyj, B Shares | 578,022 | 30,198,526 | |||||||||
FRANCE — 7.8% | |||||||||||
Danone SA | 613,785 | 37,614,861 | |||||||||
Dassault Systemes SE | 883,417 | 39,145,068 | |||||||||
Edenred | 689,724 | 46,200,713 | |||||||||
Kering | 58,203 | 32,139,641 |
The accompanying notes are an integral part of the financial statements.
95
Portfolio of Investments
Semi-Annual Report June 30, 2023
June 30, 2023 (unaudited)
Baillie Gifford International Alpha Fund
Shares | Value | ||||||||||
Nexans SA | 137,842 | $ | 11,953,722 | ||||||||
Sartorius Stedim Biotech | 68,819 | 17,187,811 | |||||||||
184,241,816 | |||||||||||
GERMANY — 8.5% | |||||||||||
BioNTech SE ADR * | 130,288 | 14,061,984 | |||||||||
Deutsche Boerse AG | 242,829 | 44,829,762 | |||||||||
Rational AG | 49,277 | 35,681,529 | |||||||||
SAP SE | 446,542 | 61,000,943 | |||||||||
Scout24 SE | 725,499 | 45,971,778 | |||||||||
201,545,996 | |||||||||||
HONG KONG — 4.1% | |||||||||||
AIA Group Ltd. | 6,862,200 | 69,695,932 | |||||||||
Futu Holdings Ltd. ADR * | 166,054 | 6,598,986 | |||||||||
Hong Kong Exchanges & Clearing Ltd. | 547,700 | 20,751,811 | |||||||||
97,046,729 | |||||||||||
INDIA — 2.9% | |||||||||||
Housing Development Finance Corp., Ltd. | 1,401,465 | 48,350,940 | |||||||||
ICICI Lombard General Insurance Co., Ltd. | 1,232,108 | 20,211,114 | |||||||||
68,562,054 | |||||||||||
IRELAND — 7.0% | |||||||||||
CRH PLC | 1,067,791 | 59,064,109 | |||||||||
Kingspan Group PLC | 588,761 | 39,190,182 | |||||||||
Ryanair Holdings PLC ADR * | 606,299 | 67,056,669 | |||||||||
165,310,960 | |||||||||||
ITALY — 1.7% | |||||||||||
FinecoBank Banca Fineco SpA | 2,030,822 | 27,336,112 | |||||||||
Technoprobe SpA * | 1,723,928 | 13,627,701 | |||||||||
40,963,813 | |||||||||||
JAPAN — 14.6% | |||||||||||
Denso Corp. | 597,500 | 40,302,651 | |||||||||
FANUC Corp. | 1,038,200 | 36,446,684 | |||||||||
Japan Exchange Group, Inc. | 1,427,200 | 24,973,849 | |||||||||
Keyence Corp. | 53,800 | 25,563,431 | |||||||||
MonotaRO Co., Ltd. | 1,692,100 | 21,608,823 |
The accompanying notes are an integral part of the financial statements.
96
Portfolio of Investments
Semi-Annual Report June 30, 2023
June 30, 2023 (unaudited)
Baillie Gifford International Alpha Fund
Shares | Value | ||||||||||
Nidec Corp. | 342,500 | $ | 18,873,613 | ||||||||
Nihon M&A Center Holdings, Inc. | 1,915,200 | 14,735,540 | |||||||||
Nintendo Co., Ltd. | 502,400 | 22,903,577 | |||||||||
Recruit Holdings Co., Ltd. | 300,500 | 9,590,561 | |||||||||
Shimano, Inc. | 151,800 | 25,412,435 | |||||||||
Shiseido Co., Ltd. | 682,200 | 30,923,942 | |||||||||
SMC Corp. | 57,300 | 31,845,158 | |||||||||
Sony Group Corp. | 473,600 | 42,751,972 | |||||||||
345,932,236 | |||||||||||
NETHERLANDS — 8.0% | |||||||||||
Adyen NV * | 28,310 | 49,023,514 | |||||||||
ASML Holding NV | 64,924 | 47,091,229 | |||||||||
EXOR NV | 275,869 | 24,628,079 | |||||||||
IMCD NV | 277,086 | 39,875,723 | |||||||||
Topicus.com, Inc. * | 353,853 | 29,021,422 | |||||||||
189,639,967 | |||||||||||
NORWAY — 0.6% | |||||||||||
Aker Carbon Capture ASA * | 10,538,898 | 13,832,342 | |||||||||
PANAMA — 0.9% | |||||||||||
Copa Holdings SA, Class A | 189,481 | 20,952,809 | |||||||||
RUSSIA — 0.0% (a) | |||||||||||
Magnit PJSC *(b) | 237,700 | 0 | |||||||||
Magnit PJSC GDR Reg S *(b) | 1 | 0 | |||||||||
MMC Norilsk Nickel PJSC *(b) | 77,386 | 0 | |||||||||
MMC Norilsk Nickel PJSC ADR *(b) | 1 | 0 | |||||||||
0 | |||||||||||
SINGAPORE — 0.7% | |||||||||||
Sea Ltd. ADR * | 279,758 | 16,237,154 | |||||||||
SOUTH AFRICA — 1.2% | |||||||||||
Discovery Ltd. * | 3,552,914 | 27,532,311 |
The accompanying notes are an integral part of the financial statements.
97
Portfolio of Investments
Semi-Annual Report June 30, 2023
June 30, 2023 (unaudited)
Baillie Gifford International Alpha Fund
Shares | Value | ||||||||||
SOUTH KOREA — 3.6% | |||||||||||
Coupang, Inc. * | 1,188,771 | $ | 20,684,615 | ||||||||
Samsung Electronics Co., Ltd. | 1,163,481 | 64,065,083 | |||||||||
84,749,698 | |||||||||||
SPAIN — 1.8% | |||||||||||
Amadeus IT Group SA * | 571,024 | 43,483,699 | |||||||||
SWEDEN — 4.1% | |||||||||||
Atlas Copco AB, B Shares | 4,165,233 | 51,934,135 | |||||||||
Epiroc AB, B Shares | 2,054,328 | 33,250,232 | |||||||||
MIPS AB | 261,310 | 12,951,293 | |||||||||
98,135,660 | |||||||||||
SWITZERLAND — 2.8% | |||||||||||
Cie Financiere Richemont SA | 331,589 | 56,326,363 | |||||||||
Wizz Air Holdings PLC * | 295,170 | 10,270,365 | |||||||||
66,596,728 | |||||||||||
TAIWAN — 3.3% | |||||||||||
Taiwan Semiconductor Manufacturing Co., Ltd. | 4,168,000 | 76,996,853 | |||||||||
UNITED KINGDOM — 0.3% | |||||||||||
Oxford Nanopore Technologies PLC * | 3,153,979 | 8,539,840 | |||||||||
UNITED STATES — 4.3% | |||||||||||
Experian PLC | 922,720 | 35,414,919 | |||||||||
Nestle SA | 425,773 | 51,216,918 | |||||||||
Spotify Technology SA * | 101,185 | 16,245,252 | |||||||||
102,877,089 | |||||||||||
TOTAL INVESTMENTS — 98.2% | |||||||||||
(cost $1,680,429,197) | $ | 2,326,057,601 | |||||||||
Other assets less liabilities — 1.8% | 42,277,191 | ||||||||||
NET ASSETS — 100.0% | $ | 2,368,334,792 |
* Non-income producing security.
(a) Amount rounds to less than 0.1%.
(b) Investment was valued using significant unobservable inputs.
ADR — American Depositary Receipt
GDR — Global Depositary Receipt
The accompanying notes are an integral part of the financial statements.
98
Portfolio of Investments
Semi-Annual Report June 30, 2023
June 30, 2023 (unaudited)
Baillie Gifford International Alpha Fund
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, 2023, the net value of these securities was $0 representing 0.0% 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, 2023 in valuing the Fund's investments carried at fair value:
Investments in Securities | Level 1 | Level 2 | Level 3 | Total | |||||||||||||||
Common Stocks ** | $ | 425,852,661 | $ | 1,900,204,940 | $ | 0 | $ | 2,326,057,601 | |||||||||||
Total | $ | 425,852,661 | $ | 1,900,204,940 | $ | 0 | $ | 2,326,057,601 |
** Refer to Portfolio of Investments for further detail.
Summary of Unobservable Inputs for Level 3 Investments
The ongoing conflict in Russia and Ukraine has led to significant disruption and volatility in the global stock market. This impacted the Fund in terms of suspensions of trading activities on the Russian Stock Exchange as well as suspensions of depositary receipts traded on exchanges outside of Russia. As a result, during the year ended December 31, 2022, management made the decision to value all the Russian securities listed in the Portfolio of Investments to $0 and include them within Level 3.
There were no transfers into or out of Level 3 during the period ended June 30, 2023.
The accompanying notes are an integral part of the financial statements.
99
Statement of Assets and Liabilities
Semi-Annual Report June 30, 2023
June 30, 2023 (unaudited)
Baillie Gifford International Alpha Fund
ASSETS | |||||||
Investments, at value (cost $1,680,429,197) | $ | 2,326,057,601 | |||||
Cash | 26,174,335 | ||||||
Foreign cash, at value (cost $488,852) | 488,835 | ||||||
Receivable for investments sold | 26,322,239 | ||||||
Tax reclaims receivable | 5,243,022 | ||||||
Dividends receivable | 1,889,225 | ||||||
Capital shares sold receivable | 287,976 | ||||||
Prepaid assets | 28,459 | ||||||
Total Assets | 2,386,491,692 | ||||||
LIABILITIES | |||||||
Advisory fee payable | 2,009,628 | ||||||
Payable for investment purchased | 12,567,875 | ||||||
Capital shares purchased payable | 1,265,026 | ||||||
Deferred India capital gains tax liability (Note A) | 983,633 | ||||||
Administration & Supervisory fee payable | 392,205 | ||||||
Shareholder Servicing fee payable | 380,177 | ||||||
Trustee fee payable | 27,581 | ||||||
Commitment fee payable | 8,451 | ||||||
Accrued expenses | 522,324 | ||||||
Total Liabilities | 18,156,900 | ||||||
NET ASSETS | $ | 2,368,334,792 | |||||
COMPOSITION OF NET ASSETS | |||||||
Paid-in capital | $ | 1,806,684,455 | |||||
Total distributable earnings | 561,650,337 | ||||||
$ | 2,368,334,792 | ||||||
NET ASSET VALUE, PER SHARE | |||||||
Class 2 ($493,495,317 / 39,663,360 shares outstanding), unlimited authorized, no par value | $ | 12.44 | |||||
Class 3 ($327,035,374 / 25,852,032 shares outstanding), unlimited authorized, no par value | $ | 12.65 | |||||
Class 4 ($588,899,589 / 45,683,607 shares outstanding), unlimited authorized, no par value | $ | 12.89 | |||||
Class 5 ($58,520,171 / 4,445,946 shares outstanding), unlimited authorized, no par value | $ | 13.16 | |||||
Class K ($764,635,480 / 61,708,031 shares outstanding), unlimited authorized, no par value | $ | 12.39 | |||||
Institutional Class ($135,748,861 / 10,864,405 shares outstanding), unlimited authorized, no par value | $ | 12.49 |
The accompanying notes are an integral part of the financial statements.
100
Statement of Operations
Semi-Annual Report June 30, 2023
For the Six Months Ended June 30, 2023 (unaudited)
Baillie Gifford International Alpha Fund
INVESTMENT INCOME | |||||||
Dividends (net of foreign withholding taxes of $3,727,146) | $ | 21,160,945 | |||||
Non-cash income | 2,444,873 | ||||||
Interest | 390,143 | ||||||
Litigation income | 3,058 | ||||||
Total Investment Income | 23,999,019 | ||||||
EXPENSES | |||||||
Advisory fee (Note B) | 3,958,076 | ||||||
Shareholder Servicing fees — Class 2 shares (Note B) | 346,129 | ||||||
Shareholder Servicing fees — Class 3 shares (Note B) | 182,063 | ||||||
Shareholder Servicing fees — Class 4 shares (Note B) | 197,155 | ||||||
Shareholder Servicing fees — Class 5 shares (Note B) | 5,512 | ||||||
Administration & Supervisory fee — Class K shares (Note B) | 651,495 | ||||||
Administration & Supervisory fee — Institutional Class shares (Note B) | 120,217 | ||||||
Transfer agency | 85,626 | ||||||
Sub-transfer agency — Institutional Class shares | 93,983 | ||||||
Custody | 333,448 | ||||||
Legal | �� | 234,880 | |||||
Fund accounting | 197,839 | ||||||
Professional fees | 81,615 | ||||||
Trustees' fees | 53,706 | ||||||
Registration fees | 24,249 | ||||||
Commitment fees | 16,368 | ||||||
Miscellaneous | 113,949 | ||||||
Total Expenses | 6,696,310 | ||||||
Net Investment Income | 17,302,709 | ||||||
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 $283,323) | 49,160,887 | ||||||
Foreign currency transactions | (220,206 | ) | |||||
48,940,681 | |||||||
Net change in unrealized appreciation on: | |||||||
Investments (net of change in deferred India capital gains tax liability of $11,294) (Note A) | 251,439,234 | ||||||
Translation of net assets and liabilities denominated in foreign currencies | 132,869 | ||||||
251,572,103 | |||||||
Net realized and unrealized gain | 300,512,784 | ||||||
NET INCREASE IN NET ASSETS FROM OPERATIONS | $ | 317,815,493 |
The accompanying notes are an integral part of the financial statements.
101
Statements of Changes in Net Assets
Semi-Annual Report June 30, 2023
Baillie Gifford International Alpha Fund
For the Six Months Ended June 30, 2023 (unaudited) | For the Year Ended December 31, 2022 | ||||||||||
INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS | |||||||||||
Net investment income | $ | 17,302,709 | $ | 32,943,304 | |||||||
Net realized gain (loss) | 48,940,681 | (126,110,392 | ) | ||||||||
Net change in unrealized appreciation (depreciation) | 251,572,103 | (978,461,580 | ) | ||||||||
Net Increase (Decrease) in Net Assets from Operations | 317,815,493 | (1,071,628,668 | ) | ||||||||
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS FROM: | |||||||||||
Distributable earnings | |||||||||||
Class 2 | — | (5,649,860 | ) | ||||||||
Class 3 | — | (6,886,811 | ) | ||||||||
Class 4 | — | (9,027,072 | ) | ||||||||
Class 5 | — | (911,339 | ) | ||||||||
Class K | — | (12,025,298 | ) | ||||||||
Institutional Class | — | (1,525,549 | ) | ||||||||
Total Distributions to Shareholders | — | (36,025,929 | ) | ||||||||
TRANSACTIONS IN SHARES OF BENEFICIAL INTEREST | |||||||||||
Net proceeds from shares subscribed: | |||||||||||
Class 2 | 118,364,703 | * | 182,272,469 | * | |||||||
Class 3 | 48,818,366 | 215,842,807 | * | ||||||||
Class 4 | — | 2,420,000 | |||||||||
Class 5 | 1,555,375 | 9,380,896 | |||||||||
Class K | 38,701,745 | * | 138,561,731 | * | |||||||
Institutional Class | 13,507,733 | 158,244,408 | * | ||||||||
Dividends reinvested: | |||||||||||
Class 2 | — | 5,649,860 | |||||||||
Class 3 | — | 6,886,811 | |||||||||
Class 4 | — | 9,027,072 | |||||||||
Class 5 | — | 911,339 | |||||||||
Class K | — | 10,989,690 | |||||||||
Institutional Class | — | 1,453,166 | |||||||||
Cost of shares redeemed: | |||||||||||
Class 2 | — | (81,665,960 | ) | ||||||||
Class 3 | (165,862,603 | )* | (202,418,469 | )* | |||||||
Class 4 | — | (161,424,480 | )* | ||||||||
Class 5 | (2,161,719 | ) | (48,114,155 | ) | |||||||
Class K | (80,723,330 | ) | (320,802,089 | )* | |||||||
Institutional Class | (34,898,478 | )* | (584,695,815 | )* | |||||||
(Decrease) in Net Assets from Transactions in Shares of Beneficial Interest | (62,698,208 | ) | (657,480,719 | ) | |||||||
Total Increase (Decrease) in Net Assets | 255,117,285 | (1,765,135,316 | ) | ||||||||
NET ASSETS | |||||||||||
Beginning of Period | 2,113,217,507 | 3,878,352,823 | |||||||||
End of Period | $ | 2,368,334,792 | $ | 2,113,217,507 |
* See Note D for details of share class conversions.
The accompanying notes are an integral part of the financial statements.
102
Financial Highlights
Semi-Annual Report June 30, 2023
Baillie Gifford International Alpha Fund
Selected data for a Class 2 share outstanding throughout each period:
For the Six Months Ended June 30, 2023 (unaudited) | For the Year Ended December 31, 2022 | For the Year Ended December 31, 2021 | For the Year Ended December 31, 2020 | For the Year Ended December 31, 2019 | For the Year Ended December 31, 2018 | ||||||||||||||||||||||
Net asset value, beginning of period | $ | 10.81 | $ | 15.43 | $ | 16.78 | $ | 13.57 | $ | 10.78 | $ | 14.20 | |||||||||||||||
From Investment Operations | |||||||||||||||||||||||||||
Net investment income(a) | 0.09 | 0.13 | 0.16 | 0.12 | 0.27 | 0.22 | |||||||||||||||||||||
Net realized and unrealized gain (loss) on investments and foreign currency | 1.54 | (4.56 | ) | (0.28 | ) | 3.47 | 3.20 | (2.59 | ) | ||||||||||||||||||
Net increase (decrease) in net asset value from investment operations | 1.63 | (4.43 | ) | (0.12 | ) | 3.59 | 3.47 | (2.37 | ) | ||||||||||||||||||
Dividends and Distributions to Shareholders | |||||||||||||||||||||||||||
From net investment income | — | (0.19 | ) | (0.16 | ) | (0.10 | ) | (0.34 | ) | (0.17 | ) | ||||||||||||||||
From net realized gain on investments | — | — | (1.07 | ) | (0.28 | ) | (0.34 | ) | (0.88 | ) | |||||||||||||||||
Total dividends and distributions | — | (0.19 | ) | (1.23 | ) | (0.38 | ) | (0.68 | ) | (1.05 | ) | ||||||||||||||||
Net asset value, end of period | $ | 12.44 | $ | 10.81 | $ | 15.43 | $ | 16.78 | $ | 13.57 | $ | 10.78 | |||||||||||||||
Total Return | |||||||||||||||||||||||||||
Total return based on net asset value(b) | 15.05 | % | (28.64 | )% | (0.65 | )% | 26.45 | % | 32.14 | % | (16.57 | )% | |||||||||||||||
Ratios/Supplemental Data | |||||||||||||||||||||||||||
Net assets, end of period (000's omitted) | $ | 493,495 | $ | 324,525 | $ | 334,569 | $ | 367,841 | $ | 513,803 | $ | 335,450 | |||||||||||||||
Ratio of net expenses to average net assets | 0.61 | %* | 0.61 | % | 0.58 | % | 0.59 | % | 0.61 | % | 0.62 | % | |||||||||||||||
Ratio of net investment income to average net assets | 1.56 | %*(c) | 1.17 | % | 0.94 | % | 0.85 | % | 2.11 | %(c) | 1.57 | % | |||||||||||||||
Portfolio turnover rate(d) | 7 | % | 19 | % | 16 | % | 24 | % | 13 | % | 33 | % |
* Annualized.
(a) Calculated based upon average shares outstanding during the period.
(b) Total investment return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all dividends and distributions, if any, at net asset value during the period, and redemption on the last day of the period. Total return is not annualized for periods less than one year.
(c) Ratio includes taxable stock dividends that were treated as income.
(d) Portfolio turnover rate calculated at Fund level. Portfolio turnover is not annualized for periods less than one year.
The accompanying notes are an integral part of the financial statements.
103
Financial Highlights
Semi-Annual Report June 30, 2023
Baillie Gifford International Alpha Fund
Selected data for a Class 3 share outstanding throughout each period:
For the Six Months Ended June 30, 2023 (unaudited) | For the Year Ended December 31, 2022 | For the Year Ended December 31, 2021 | For the Year Ended December 31, 2020 | For the Year Ended December 31, 2019 | For the Year Ended December 31, 2018 | ||||||||||||||||||||||
Net asset value, beginning of period | $ | 10.99 | $ | 15.67 | $ | 17.02 | $ | 13.76 | $ | 10.92 | $ | 14.37 | |||||||||||||||
From Investment Operations | |||||||||||||||||||||||||||
Net investment income(a) | 0.09 | 0.15 | 0.18 | 0.13 | 0.28 | 0.22 | |||||||||||||||||||||
Net realized and unrealized gain (loss) on investments and foreign currency | 1.57 | (4.63 | ) | (0.28 | ) | 3.52 | 3.24 | (2.60 | ) | ||||||||||||||||||
Net increase (decrease) in net asset value from investment operations | 1.66 | (4.48 | ) | (0.10 | ) | 3.65 | 3.52 | (2.38 | ) | ||||||||||||||||||
Dividends and Distributions to Shareholders | |||||||||||||||||||||||||||
From net investment income | — | (0.20 | ) | (0.18 | ) | (0.11 | ) | (0.34 | ) | (0.19 | ) | ||||||||||||||||
From net realized gain on investments | — | — | (1.07 | ) | (0.28 | ) | (0.34 | ) | (0.88 | ) | |||||||||||||||||
Total dividends and distributions | — | (0.20 | ) | (1.25 | ) | (0.39 | ) | (0.68 | ) | (1.07 | ) | ||||||||||||||||
Net asset value, end of period | $ | 12.65 | $ | 10.99 | $ | 15.67 | $ | 17.02 | $ | 13.76 | $ | 10.92 | |||||||||||||||
Total Return | |||||||||||||||||||||||||||
Total return based on net asset value(b) | 15.09 | % | (28.59 | )% | (0.58 | )% | 26.54 | % | 32.23 | % | (16.51 | )% | |||||||||||||||
Ratios/Supplemental Data | |||||||||||||||||||||||||||
Net assets, end of period (000's omitted) | $ | 327,035 | $ | 388,155 | $ | 524,717 | $ | 757,194 | $ | 668,206 | $ | 613,224 | |||||||||||||||
Ratio of net expenses to average net assets | 0.54 | %* | 0.54 | % | 0.51 | % | 0.52 | % | 0.54 | % | 0.55 | % | |||||||||||||||
Ratio of net investment income to average net assets | 1.43 | %*(c) | 1.22 | % | 1.01 | % | 0.92 | % | 2.18 | %(c) | 1.58 | % | |||||||||||||||
Portfolio turnover rate(d) | 7 | % | 19 | % | 16 | % | 24 | % | 13 | % | 33 | % |
* Annualized.
(a) Calculated based upon average shares outstanding during the period.
(b) Total investment return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all dividends and distributions, if any, at net asset value during the period, and redemption on the last day of the period. Total return is not annualized for periods less than one year.
(c) Ratio includes taxable stock dividends that were treated as income.
(d) Portfolio turnover rate calculated at Fund level. Portfolio turnover is not annualized for periods less than one year.
The accompanying notes are an integral part of the financial statements.
104
Financial Highlights
Semi-Annual Report June 30, 2023
Baillie Gifford International Alpha Fund
Selected data for a Class 4 share outstanding throughout each period:
For the Six Months Ended June 30, 2023 (unaudited) | For the Year Ended December 31, 2022 | For the Year Ended December 31, 2021 | For the Year Ended December 31, 2020 | For the Year Ended December 31, 2019 | For the Year Ended December 31, 2018 | ||||||||||||||||||||||
Net asset value, beginning of period | $ | 11.20 | $ | 15.96 | $ | 17.32 | $ | 14.00 | $ | 11.10 | $ | 14.59 | |||||||||||||||
From Investment Operations | |||||||||||||||||||||||||||
Net investment income(a) | 0.10 | 0.16 | 0.19 | 0.12 | 0.28 | 0.23 | |||||||||||||||||||||
Net realized and unrealized gain (loss) on investments and foreign currency | 1.59 | (4.72 | ) | (0.30 | ) | 3.60 | 3.31 | (2.65 | ) | ||||||||||||||||||
Net increase (decrease) in net asset value from investment operations | 1.69 | (4.56 | ) | (0.11 | ) | 3.72 | 3.59 | (2.42 | ) | ||||||||||||||||||
Dividends and Distributions to Shareholders | |||||||||||||||||||||||||||
From net investment income | — | (0.20 | ) | (0.18 | ) | (0.12 | ) | (0.35 | ) | (0.19 | ) | ||||||||||||||||
From net realized gain on investments | — | — | (1.07 | ) | (0.28 | ) | (0.34 | ) | (0.88 | ) | |||||||||||||||||
Total dividends and distributions | — | (0.20 | ) | (1.25 | ) | (0.40 | ) | (0.69 | ) | (1.07 | ) | ||||||||||||||||
Net asset value, end of period | $ | 12.89 | $ | 11.20 | $ | 15.96 | $ | 17.32 | $ | 14.00 | $ | 11.10 | |||||||||||||||
Total Return | |||||||||||||||||||||||||||
Total return based on net asset value(b) | 15.10 | % | (28.57 | )% | (0.55 | )% | 26.57 | % | 32.27 | % | (16.49 | )% | |||||||||||||||
Ratios/Supplemental Data | |||||||||||||||||||||||||||
Net assets, end of period (000's omitted) | $ | 588,900 | $ | 511,620 | $ | 912,395 | $ | 1,082,123 | $ | 580,146 | $ | 438,616 | |||||||||||||||
Ratio of net expenses to average net assets | 0.51 | %* | 0.51 | % | 0.48 | % | 0.49 | % | 0.51 | % | 0.52 | % | |||||||||||||||
Ratio of net investment income to average net assets | 1.58 | %*(c) | 1.26 | % | 1.03 | % | 0.82 | % | 2.20 | %(c) | 1.61 | % | |||||||||||||||
Portfolio turnover rate(d) | 7 | % | 19 | % | 16 | % | 24 | % | 13 | % | 33 | % |
* Annualized.
(a) Calculated based upon average shares outstanding during the period.
(b) Total investment return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all dividends and distributions, if any, at net asset value during the period, and redemption on the last day of the period. Total return is not annualized for periods less than one year.
(c) Ratio includes taxable stock dividends that were treated as income.
(d) Portfolio turnover rate calculated at Fund level. Portfolio turnover is not annualized for periods less than one year.
The accompanying notes are an integral part of the financial statements.
105
Financial Highlights
Semi-Annual Report June 30, 2023
Baillie Gifford International Alpha Fund
Selected data for a Class 5 share outstanding throughout each period:
For the Six Months Ended June 30, 2023 (unaudited) | For the Year Ended December 31, 2022 | For the Year Ended December 31, 2021 | For the Year Ended December 31, 2020 | For the Year Ended December 31, 2019 | For the Year Ended December 31, 2018 | ||||||||||||||||||||||
Net asset value, beginning of period | $ | 11.43 | $ | 16.29 | $ | 17.65 | $ | 14.26 | $ | 11.30 | $ | 14.82 | |||||||||||||||
From Investment Operations | |||||||||||||||||||||||||||
Net investment income(a) | 0.10 | 0.17 | 0.20 | 0.14 | 0.30 | 0.21 | |||||||||||||||||||||
Net realized and unrealized gain (loss) on investments and foreign currency | 1.63 | (4.82 | ) | (0.30 | ) | 3.66 | 3.35 | (2.65 | ) | ||||||||||||||||||
Net increase (decrease) in net asset value from investment operations | 1.73 | (4.65 | ) | (0.10 | ) | 3.80 | 3.65 | (2.44 | ) | ||||||||||||||||||
Dividends and Distributions to Shareholders | |||||||||||||||||||||||||||
From net investment income | — | (0.21 | ) | (0.19 | ) | (0.13 | ) | (0.35 | ) | (0.20 | ) | ||||||||||||||||
From net realized gain on investments | — | — | (1.07 | ) | (0.28 | ) | (0.34 | ) | (0.88 | ) | |||||||||||||||||
Total dividends and distributions | — | (0.21 | ) | (1.26 | ) | (0.41 | ) | (0.69 | ) | (1.08 | ) | ||||||||||||||||
Net asset value, end of period | $ | 13.16 | $ | 11.43 | $ | 16.29 | $ | 17.65 | $ | 14.26 | $ | 11.30 | |||||||||||||||
Total Return | |||||||||||||||||||||||||||
Total return based on net asset value(b) | 15.13 | % | (28.53 | )% | (0.50 | )% | 26.64 | % | 32.34 | % | (16.44 | )% | |||||||||||||||
Ratios/Supplemental Data | |||||||||||||||||||||||||||
Net assets, end of period (000's omitted) | $ | 58,520 | $ | 51,400 | $ | 125,578 | $ | 149,745 | $ | 104,935 | $ | 79,293 | |||||||||||||||
Ratio of net expenses to average net assets | 0.46 | %* | 0.46 | % | 0.43 | % | 0.44 | % | 0.46 | % | 0.47 | % | |||||||||||||||
Ratio of net investment income to average net assets | 1.63 | %*(c) | 1.39 | % | 1.09 | % | 0.94 | % | 2.25 | %(c) | 1.55 | % | |||||||||||||||
Portfolio turnover rate(d) | 7 | % | 19 | % | 16 | % | 24 | % | 13 | % | 33 | % |
* Annualized.
(a) Calculated based upon average shares outstanding during the period.
(b) Total investment return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all dividends and distributions, if any, at net asset value during the period, and redemption on the last day of the period. Total return is not annualized for periods less than one year.
(c) Ratio includes taxable stock dividends that were treated as income.
(d) Portfolio turnover rate calculated at Fund level. Portfolio turnover is not annualized for periods less than one year.
The accompanying notes are an integral part of the financial statements.
106
Financial Highlights
Semi-Annual Report June 30, 2023
Baillie Gifford International Alpha Fund
Selected data for a Class K share outstanding throughout each period:
For the Six Months Ended June 30, 2023 (unaudited) | For the Year Ended December 31, 2022 | For the Year Ended December 31, 2021 | For the Year Ended December 31, 2020 | For the Year Ended December 31, 2019 | For the Year Ended December 31, 2018 | ||||||||||||||||||||||
Net asset value, beginning of period | $ | 10.77 | $ | 15.36 | $ | 16.71 | $ | 13.53 | $ | 10.75 | $ | 14.17 | |||||||||||||||
From Investment Operations | |||||||||||||||||||||||||||
Net investment income(a) | 0.09 | 0.14 | 0.16 | 0.10 | 0.26 | 0.17 | |||||||||||||||||||||
Net realized and unrealized gain (loss) on investments and foreign currency | 1.53 | (4.54 | ) | (0.27 | ) | 3.47 | 3.20 | (2.52 | ) | ||||||||||||||||||
Net increase (decrease) in net asset value from investment operations | 1.62 | (4.40 | ) | (0.11 | ) | 3.57 | 3.46 | (2.35 | ) | ||||||||||||||||||
Dividends and Distributions to Shareholders | |||||||||||||||||||||||||||
From net investment income | — | (0.19 | ) | (0.17 | ) | (0.11 | ) | (0.34 | ) | (0.19 | ) | ||||||||||||||||
From net realized gain on investments | — | — | (1.07 | ) | (0.28 | ) | (0.34 | ) | (0.88 | ) | |||||||||||||||||
Total dividends and distributions | — | (0.19 | ) | (1.24 | ) | (0.39 | ) | (0.68 | ) | (1.07 | ) | ||||||||||||||||
Net asset value, end of period | $ | 12.39 | $ | 10.77 | $ | 15.36 | $ | 16.71 | $ | 13.53 | $ | 10.75 | |||||||||||||||
Total Return | |||||||||||||||||||||||||||
Total return based on net asset value(b) | 15.04 | % | (28.65 | )% | (0.62 | )% | 26.40 | % | 32.16 | % | (16.54 | )% | |||||||||||||||
Ratios/Supplemental Data | |||||||||||||||||||||||||||
Net assets, end of period (000's omitted) | $ | 764,636 | $ | 700,531 | $ | 1,222,693 | $ | 1,083,711 | $ | 566,554 | $ | 290,186 | |||||||||||||||
Ratio of net expenses to average net assets | 0.61 | %* | 0.61 | % | 0.58 | % | 0.59 | % | 0.61 | % | 0.62 | % | |||||||||||||||
Ratio of net investment income to average net assets | 1.48 | %*(c) | 1.20 | % | 0.92 | % | 0.74 | % | 2.09 | %(c) | 1.26 | % | |||||||||||||||
Portfolio turnover rate(d) | 7 | % | 19 | % | 16 | % | 24 | % | 13 | % | 33 | % |
* Annualized.
(a) Calculated based upon average shares outstanding during the period.
(b) Total investment return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all dividends and distributions, if any, at net asset value during the period, and redemption on the last day of the period. Total return is not annualized for periods less than one year.
(c) Ratio includes taxable stock dividends that were treated as income.
(d) Portfolio turnover rate calculated at Fund level. Portfolio turnover is not annualized for periods less than one year.
The accompanying notes are an integral part of the financial statements.
107
Financial Highlights
Semi-Annual Report June 30, 2023
Baillie Gifford International Alpha Fund
Selected data for an Institutional Class share outstanding throughout each period:
For the Six Months Ended June 30, 2023 (unaudited) | For the Year Ended December 31, 2022 | For the Year Ended December 31, 2021 | For the Year Ended December 31, 2020 | For the Year Ended December 31, 2019 | For the Year Ended December 31, 2018 | ||||||||||||||||||||||
Net asset value, beginning of period | $ | 10.87 | $ | 15.41 | $ | 16.76 | $ | 13.58 | $ | 10.79 | $ | 14.19 | |||||||||||||||
From Investment Operations | |||||||||||||||||||||||||||
Net investment income(a) | 0.08 | 0.14 | 0.14 | 0.08 | 0.25 | 0.22 | |||||||||||||||||||||
Net realized and unrealized gain (loss) on investments and foreign currency | 1.54 | (4.56 | ) | (0.27 | ) | 3.49 | 3.22 | (2.59 | ) | ||||||||||||||||||
Net increase (decrease) in net asset value from investment operations | 1.62 | (4.42 | ) | (0.13 | ) | 3.57 | 3.47 | (2.37 | ) | ||||||||||||||||||
Dividends and Distributions to Shareholders | |||||||||||||||||||||||||||
From net investment income | — | (0.12 | ) | (0.15 | ) | (0.11 | ) | (0.34 | ) | (0.15 | ) | ||||||||||||||||
From net realized gain on investments | — | — | (1.07 | ) | (0.28 | ) | (0.34 | ) | (0.88 | ) | |||||||||||||||||
Total dividends and distributions | — | (0.12 | ) | (1.22 | ) | (0.39 | ) | (0.68 | ) | (1.03 | ) | ||||||||||||||||
Net asset value, end of period | $ | 12.49 | $ | 10.87 | $ | 15.41 | $ | 16.76 | $ | 13.58 | $ | 10.79 | |||||||||||||||
Total Return | |||||||||||||||||||||||||||
Total return based on net asset value(b) | 14.90 | % | (28.67 | )% | (0.74 | )% | 26.29 | % | 32.11 | % | (16.68 | )% | |||||||||||||||
Ratios/Supplemental Data | |||||||||||||||||||||||||||
Net assets, end of period (000's omitted) | $ | 135,749 | $ | 136,987 | $ | 758,401 | $ | 729,705 | $ | 126,189 | $ | 38,019 | |||||||||||||||
Ratio of net expenses to average net assets | 0.75 | %* | 0.71 | % | 0.68 | % | 0.67 | % | 0.67 | % | 0.72 | % | |||||||||||||||
Ratio of net investment income to average net assets | 1.33 | %*(c) | 1.20 | % | 0.82 | % | 0.52 | % | 1.93 | %(c) | 1.58 | % | |||||||||||||||
Portfolio turnover rate(d) | 7 | % | 19 | % | 16 | % | 24 | % | 13 | % | 33 | % |
* Annualized.
(a) Calculated based upon average shares outstanding during the period.
(b) Total investment return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all dividends and distributions, if any, at net asset value during the period, and redemption on the last day of the period. Total return is not annualized for periods less than one year.
(c) Ratio includes taxable stock dividends that were treated as income.
(d) Portfolio turnover rate calculated at Fund level. Portfolio turnover is not annualized for periods less than one year.
The accompanying notes are an integral part of the financial statements.
108
Industry Diversification Table
Semi-Annual Report June 30, 2023
June 30, 2023 (unaudited)
Baillie Gifford International Concentrated Growth Equities Fund
Value | % of Total Net Assets | ||||||||||
Apparel | $ | 7,528,425 | 8.8 | % | |||||||
Auto Manufacturers | 7,383,931 | 8.6 | |||||||||
Biotechnology | 8,257,248 | 9.7 | |||||||||
Commercial Services | 5,629,652 | 6.6 | |||||||||
Cosmetics/Personal Care | 2,050,629 | 2.4 | |||||||||
Energy — Alternate Sources | 1,105,796 | 1.3 | |||||||||
Food | 2,581,804 | 3.0 | |||||||||
Healthcare — Services | 320,467 | 0.4 | |||||||||
Internet | 27,957,792 | 32.8 | |||||||||
Investment Companies | 1,057,190 | 1.2 | |||||||||
Machinery — Diversified | 1,434,948 | 1.7 | |||||||||
Retail | 2,307,510 | 2.7 | |||||||||
Semiconductors | 15,779,610 | 18.5 | |||||||||
Total Value of Investments | 83,395,002 | 97.7 | |||||||||
Other assets less liabilities | 1,922,012 | 2.3 | |||||||||
Net Assets | $ | 85,317,014 | 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.
109
Portfolio of Investments
Semi-Annual Report June 30, 2023
June 30, 2023 (unaudited)
Baillie Gifford International Concentrated Growth Equities Fund
Shares | Value | ||||||||||
COMMON STOCKS — 97.7% | |||||||||||
BRAZIL — 11.3% | |||||||||||
MercadoLibre, Inc. * | 8,155 | $ | 9,660,413 | ||||||||
CANADA — 2.1% | |||||||||||
Shopify, Inc., Class A * | 27,159 | 1,754,471 | |||||||||
CHINA — 9.8% | |||||||||||
Alibaba Group Holding Ltd. * | 140,124 | 1,458,667 | |||||||||
Meituan, Class B * | 216,830 | 3,400,093 | |||||||||
NIO, Inc. ADR * | 103,830 | 1,006,113 | |||||||||
Tencent Holdings Ltd. | 58,100 | 2,463,509 | |||||||||
8,328,382 | |||||||||||
DENMARK — 3.7% | |||||||||||
Genmab A/S * | 8,242 | 3,123,370 | |||||||||
FRANCE — 11.2% | |||||||||||
Hermes International | 1,739 | 3,780,098 | |||||||||
Kering | 6,788 | 3,748,327 | |||||||||
L'Oreal SA | 4,396 | 2,050,629 | |||||||||
9,579,054 | |||||||||||
GERMANY — 2.7% | |||||||||||
Zalando SE * | 80,013 | 2,307,510 | |||||||||
ITALY — 4.6% | |||||||||||
Ferrari NV | 12,158 | 3,975,032 | |||||||||
JAPAN — 1.6% | |||||||||||
M3, Inc. | 64,100 | 1,397,676 | |||||||||
NETHERLANDS — 20.2% | |||||||||||
Adyen NV * | 3,251 | 5,629,652 | |||||||||
ASML Holding NV | 15,951 | 11,569,715 | |||||||||
17,199,367 | |||||||||||
SOUTH KOREA — 4.6% | |||||||||||
Delivery Hero SE * | 88,801 | 3,917,905 |
The accompanying notes are an integral part of the financial statements.
110
Portfolio of Investments
Semi-Annual Report June 30, 2023
June 30, 2023 (unaudited)
Baillie Gifford International Concentrated Growth Equities Fund
Shares | Value | ||||||||||
SWEDEN — 2.9% | |||||||||||
Atlas Copco AB, B Shares | 115,086 | $ | 1,434,948 | ||||||||
Kinnevik AB, B Shares * | 76,213 | 1,057,190 | |||||||||
2,492,138 | |||||||||||
UNITED KINGDOM — 3.0% | |||||||||||
Ocado Group PLC * | 356,779 | 2,581,804 | |||||||||
UNITED STATES — 20.0% | |||||||||||
Ginkgo Bioworks Holdings, Inc. * | 172,294 | 320,467 | |||||||||
Illumina, Inc. * | 9,823 | 1,841,714 | |||||||||
Moderna, Inc. * | 27,096 | 3,292,164 | |||||||||
NVIDIA Corp. | 9,952 | 4,209,895 | |||||||||
SolarEdge Technologies, Inc. * | 4,110 | 1,105,795 | |||||||||
Spotify Technology SA * | 24,323 | 3,905,058 | |||||||||
Tesla, Inc. * | 9,179 | 2,402,787 | |||||||||
17,077,880 | |||||||||||
TOTAL INVESTMENTS — 97.7% | |||||||||||
(cost $83,485,932) | $ | 83,395,002 | |||||||||
Other assets less liabilities — 2.3% | 1,922,012 | ||||||||||
NET ASSETS — 100.0% | $ | 85,317,014 |
* 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, 2023 in valuing the Fund's investments carried at fair value:
Investments in Securities | Level 1 | Level 2 | Level 3 | Total | |||||||||||||||
Common Stocks ** | $ | 29,498,877 | $ | 53,896,125 | $ | — | $ | 83,395,002 | |||||||||||
Total | $ | 29,498,877 | $ | 53,896,125 | $ | — | $ | 83,395,002 |
** Refer to Portfolio of Investments for further detail.
The accompanying notes are an integral part of the financial statements.
111
Statement of Assets and Liabilities
Semi-Annual Report June 30, 2023
June 30, 2023 (unaudited)
Baillie Gifford International Concentrated Growth Equities Fund
ASSETS | |||||||
Investments, at value (cost $83,485,932) | $ | 83,395,002 | |||||
Cash | 3,195,769 | ||||||
Capital shares sold receivable | 243,087 | ||||||
Tax reclaims receivable | 33,745 | ||||||
Due from Manger | 10,892 | ||||||
Prepaid assets | 17,279 | ||||||
Total Assets | 86,895,774 | ||||||
LIABILITIES | |||||||
Advisory fee payable | 81,567 | ||||||
Payable for investment purchased | 1,327,137 | ||||||
Capital shares purchased payable | 59,040 | ||||||
Administration & Supervisory fee payable | 34,666 | ||||||
Trustee fee payable | 925 | ||||||
Commitment fee payable | 283 | ||||||
Accrued expenses | 75,142 | ||||||
Total Liabilities | 1,578,760 | ||||||
NET ASSETS | $ | 85,317,014 | |||||
COMPOSITION OF NET ASSETS | |||||||
Paid-in capital | $ | 112,947,066 | |||||
Total accumulated (loss) | (27,630,052 | ) | |||||
$ | 85,317,014 | ||||||
Class K ($33,349,247 / 5,039,800 shares outstanding), unlimited authorized, no par value | $ | 6.62 | |||||
Institutional Class ($51,967,767 / 7,961,241 shares outstanding), unlimited authorized, no par value | $ | 6.53 |
The accompanying notes are an integral part of the financial statements.
112
Statement of Operations
Semi-Annual Report June 30, 2023
For the Six Months Ended June 30, 2023 (unaudited)
Baillie Gifford International Concentrated Growth Equities Fund
INVESTMENT INCOME | |||||||
Dividends (net of foreign withholding taxes of $43,469) | $ | 224,713 | |||||
Non-cash income | 172,392 | ||||||
Interest | 15,685 | ||||||
Total Investment Income | 412,790 | ||||||
EXPENSES | |||||||
Advisory fee (Note B) | 159,106 | ||||||
Administration & Supervisory fee — Class K shares (Note B) | 28,274 | ||||||
Administration & Supervisory fee — Institutional Class shares (Note B) | 39,346 | ||||||
Transfer agency | 25,387 | ||||||
Sub-transfer agency — Institutional Class shares | 19,578 | ||||||
Fund accounting | 46,946 | ||||||
Registration fees | 20,234 | ||||||
Professional fees | 16,682 | ||||||
Custody | 8,964 | ||||||
Legal | 8,039 | ||||||
Trustees' fees | 1,853 | ||||||
Line of credit interest | 1,288 | ||||||
Commitment fees | 566 | ||||||
Miscellaneous | 5,036 | ||||||
Total Expenses | 381,299 | ||||||
Fees waived/expenses reimbursed | (75,331 | ) | |||||
Total Expenses after Waiver | 305,968 | ||||||
Net Investment Income | 106,822 | ||||||
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS AND FOREIGN CURRENCY TRANSACTIONS | |||||||
Net realized (loss) from: | |||||||
Investments | (826,033 | ) | |||||
Foreign currency transactions | (12,515 | ) | |||||
(838,548 | ) | ||||||
Net change in unrealized appreciation (depreciation) on: | |||||||
Investments | 12,825,363 | ||||||
Translation of net assets and liabilities denominated in foreign currencies | (2,438 | ) | |||||
12,822,925 | |||||||
Net realized and unrealized gain | 11,984,377 | ||||||
NET INCREASE IN NET ASSETS FROM OPERATIONS | $ | 12,091,199 |
The accompanying notes are an integral part of the financial statements.
113
Statements of Changes in Net Assets
Semi-Annual Report June 30, 2023
Baillie Gifford International Concentrated Growth Equities Fund
For the Six Months Ended June 30, 2023 (unaudited) | For the Year Ended December 31, 2022 | ||||||||||
INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS | |||||||||||
Net investment income (loss) | $ | 106,822 | $ | (145,733 | ) | ||||||
Net realized (loss) | (838,548 | ) | (21,160,572 | ) | |||||||
Net change in unrealized appreciation (depreciation) | 12,822,925 | (32,965,160 | ) | ||||||||
Net increase (Decrease) in Net Assets from Operations | 12,091,199 | (54,271,465 | ) | ||||||||
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS FROM: | |||||||||||
Distributable earnings | |||||||||||
Class K | — | (1,870,224 | ) | ||||||||
Institutional Class | — | (2,240,014 | ) | ||||||||
Total Distributions to Shareholders | — | (4,110,238 | ) | ||||||||
TRANSACTIONS IN SHARES OF BENEFICIAL INTEREST | |||||||||||
Net proceeds from shares subscribed: | |||||||||||
Class K | 3,540,485 | 21,349,940 | |||||||||
Institutional Class | 12,226,389 | 66,139,903 | |||||||||
Dividends reinvested: | |||||||||||
Class K | — | 1,767,282 | |||||||||
Institutional Class | — | 2,240,014 | |||||||||
Cost of shares redeemed: | |||||||||||
Class K | (5,166,884 | ) | (24,487,536 | ) | |||||||
Institutional Class | (4,873,477 | ) | (54,919,668 | ) | |||||||
Increase in Net Assets from Transactions in Shares of Beneficial Interest | 5,726,513 | 12,089,935 | |||||||||
Total Increase (Decrease) in Net Assets | 17,817,712 | (46,291,768 | ) | ||||||||
NET ASSETS | |||||||||||
Beginning of Period | 67,499,302 | 113,791,070 | |||||||||
End of Period | $ | 85,317,014 | $ | 67,499,302 |
The accompanying notes are an integral part of the financial statements.
114
Financial Highlights
Semi-Annual Report June 30, 2023
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, 2023 (unaudited) | For the Year Ended December 31, 2022 | For the Year Ended December 31, 2021 | For the Year Ended December 31, 2020 | For the Year Ended December 31, 2019 | For the Year Ended December 31, 2018 | ||||||||||||||||||||||
Net asset value, beginning of period | $ | 5.63 | $ | 9.89 | $ | 12.31 | $ | 12.70 | $ | 8.75 | $ | 10.05 | |||||||||||||||
From Investment Operations | |||||||||||||||||||||||||||
Net investment income (loss)(a) | 0.01 | (0.01 | ) | 0.04 | (0.04 | ) | 0.03 | (0.03 | ) | ||||||||||||||||||
Net realized and unrealized gain (loss) on investments and foreign currency | 0.98 | (3.91 | ) | 0.03 | 12.16 | 3.94 | (1.27 | ) | |||||||||||||||||||
Net increase (decrease) in net asset value from investment operations | 0.99 | (3.92 | ) | 0.07 | 12.12 | 3.97 | (1.30 | ) | |||||||||||||||||||
Dividends and Distributions to Shareholders | |||||||||||||||||||||||||||
From net investment income | — | (0.00 | )(b) | (0.03 | ) | — | (0.02 | ) | — | ||||||||||||||||||
From net realized gain on investments | — | (0.34 | ) | (2.46 | ) | (12.51 | ) | — | — | ||||||||||||||||||
Total dividends and distributions | — | (0.34 | ) | (2.49 | ) | (12.51 | ) | (0.02 | ) | — | |||||||||||||||||
Net asset value, end of period | $ | 6.62 | $ | 5.63 | $ | 9.89 | $ | 12.31 | $ | 12.70 | $ | 8.75 | |||||||||||||||
Total Return | |||||||||||||||||||||||||||
Total return based on net asset value(c) | 17.58 | % | (39.55 | )% | 0.74 | % | 97.24 | % | 45.26 | % | (12.84 | )% | |||||||||||||||
Ratios/Supplemental Data | |||||||||||||||||||||||||||
Net assets, end of period (000's omitted) | $ | 33,349 | $ | 29,867 | $ | 56,513 | $ | 42,357 | $ | 101,797 | $ | 55,852 | |||||||||||||||
Ratio of net expenses to average net assets, before waiver | 0.91 | % | 0.91 | % | 0.79 | % | 0.79 | % | 0.90 | % | 1.07 | % | |||||||||||||||
Ratio of net expenses to average net assets, after waiver | 0.72 | %* | 0.72 | % | 0.72 | % | 0.72 | % | 0.72 | % | 0.72 | % | |||||||||||||||
Ratio of net investment income (loss) to average net assets | 0.35 | %*(d) | (0.10 | )% | 0.27 | % | (0.26 | )% | 0.26 | %(d) | (0.26 | )% | |||||||||||||||
Portfolio turnover rate(e) | 7 | % | 65 | % | 54 | % | 59 | % | 4 | % | 32 | % |
* 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) Ratio includes taxable stock dividends that were treated as income.
(e) Portfolio turnover rate calculated at Fund level. Portfolio turnover is not annualized for periods less than one year.
The accompanying notes are an integral part of the financial statements.
115
Financial Highlights
Semi-Annual Report June 30, 2023
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, 2023 (unaudited) | For the Year Ended December 31, 2022 | For the Year Ended December 31, 2021 | For the Year Ended December 31, 2020 | For the Year Ended December 31, 2019 | For the Year Ended December 31, 2018 | ||||||||||||||||||||||
Net asset value, beginning of period | $ | 5.56 | $ | 9.78 | $ | 12.19 | $ | 12.65 | $ | 8.72 | $ | 10.05 | |||||||||||||||
From Investment Operations | |||||||||||||||||||||||||||
Net investment income (loss)(a) | 0.01 | (0.01 | ) | 0.01 | (0.09 | ) | 0.03 | (0.06 | ) | ||||||||||||||||||
Net realized and unrealized gain (loss) on investments and foreign currency | 0.96 | (3.87 | ) | 0.05 | 12.14 | 3.92 | (1.27 | ) | |||||||||||||||||||
Net increase (decrease) in net asset value from investment operations | 0.97 | (3.88 | ) | 0.06 | 12.05 | 3.95 | (1.33 | ) | |||||||||||||||||||
Dividends and Distributions to Shareholders | |||||||||||||||||||||||||||
From net investment income | — | (0.00 | )(b) | (0.01 | ) | — | (0.02 | ) | — | ||||||||||||||||||
From net realized gain on investments | — | (0.34 | ) | (2.46 | ) | (12.51 | ) | — | — | ||||||||||||||||||
Total dividends and distributions | — | (0.34 | ) | (2.47 | ) | (12.51 | ) | (0.02 | ) | — | |||||||||||||||||
Net asset value, end of period | $ | 6.53 | $ | 5.56 | $ | 9.78 | $ | 12.19 | $ | 12.65 | $ | 8.72 | |||||||||||||||
Total Return | |||||||||||||||||||||||||||
Total return based on net asset value(c) | 17.45 | % | (39.58 | )% | 0.69 | % | 97.09 | % | 45.32 | % | (13.23 | )% | |||||||||||||||
Ratios/Supplemental Data | |||||||||||||||||||||||||||
Net assets, end of period (000's omitted) | $ | 51,968 | $ | 37,633 | $ | 57,278 | $ | 18,012 | $ | 876 | $ | 476 | |||||||||||||||
Ratio of net expenses to average net assets, before waiver | 0.99 | %* | 1.00 | % | 0.90 | % | 0.87 | % | 0.91 | % | 1.16 | % | |||||||||||||||
Ratio of net expenses to average net assets, after waiver | 0.80 | %* | 0.81 | % | 0.83 | % | 0.80 | % | 0.73 | % | 0.81 | % | |||||||||||||||
Ratio of net investment income (loss) to average net assets | 0.21 | %*(d) | (0.22 | )% | 0.11 | % | (0.47 | )% | 0.30 | %(d) | (0.53 | )% | |||||||||||||||
Portfolio turnover rate(e) | 7 | % | 65 | % | 54 | % | 59 | % | 4 | % | 32 | % |
* 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) Ratio includes taxable stock dividends that were treated as income.
(e) Portfolio turnover rate calculated at Fund level. Portfolio turnover is not annualized for periods less than one year.
The accompanying notes are an integral part of the financial statements.
116
Industry Diversification Table
Semi-Annual Report June 30, 2023
June 30, 2023 (unaudited)
Baillie Gifford International Growth Fund
Value | % of Total Net Assets | ||||||||||
Apparel | $ | 129,045,602 | 4.3 | % | |||||||
Auto Manufacturers | 187,393,766 | 6.3 | |||||||||
Auto Parts & Equipment | 18,839,785 | 0.6 | |||||||||
Banks | 31,880,476 | 1.1 | |||||||||
Beverages | 4,115,410 | 0.1 | |||||||||
Biotechnology | 207,043,567 | 6.9 | |||||||||
Chemicals | 51,290,362 | 1.7 | |||||||||
Commercial Services | 206,482,963 | 6.9 | |||||||||
Computers | 17,048,150 | 0.6 | |||||||||
Cosmetics/Personal Care | 99,848,275 | 3.3 | |||||||||
Diversified Financial Services | 58,809,822 | 2.0 | |||||||||
Electrical Components & Equipment | 16,854,319 | 0.6 | |||||||||
Electronics | 101,790,189 | 3.4 | |||||||||
Energy — Alternate Sources | 56,080,745 | 1.9 | |||||||||
Food | 66,679,303 | 2.2 | |||||||||
Healthcare — Products | 27,544,350 | 0.9 | |||||||||
Healthcare — Services | 17,554,112 | 0.6 | |||||||||
Insurance | 83,405,175 | 2.8 | |||||||||
Internet | 768,745,234 | 25.7 | |||||||||
Investment Companies | 77,405,148 | 2.6 | |||||||||
Machinery — Diversified | 143,021,050 | 4.8 | |||||||||
Media | 9,014,427 | 0.3 | |||||||||
Metal Fabricate/Hardware | 24,893,022 | 0.8 | |||||||||
Retail | 49,399,138 | 1.7 | |||||||||
Semiconductors | 349,333,246 | 11.7 | |||||||||
Software | 137,932,962 | 4.6 | |||||||||
Total Value of Investments | 2,941,450,598 | 98.4 | |||||||||
Other assets less liabilities | 46,749,689 | 1.6 | |||||||||
Net Assets | $ | 2,988,200,287 | 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.
117
Portfolio of Investments
Semi-Annual Report June 30, 2023
June 30, 2023 (unaudited)
Baillie Gifford International Growth Fund
Shares | Value | ||||||||||
COMMON STOCKS — 96.7% | |||||||||||
AUSTRALIA — 2.3% | |||||||||||
WiseTech Global Ltd. | 1,307,420 | $ | 70,127,745 | ||||||||
BELGIUM — 1.4% | |||||||||||
Umicore SA | 1,451,150 | 40,573,015 | |||||||||
BRAZIL — 6.9% | |||||||||||
MercadoLibre, Inc. * | 147,609 | 174,857,621 | |||||||||
NU Holdings Ltd., Class A * | 4,040,618 | 31,880,476 | |||||||||
206,738,097 | |||||||||||
CHINA — 10.1% | |||||||||||
Alibaba Group Holding Ltd. * | 2,127,008 | 22,141,793 | |||||||||
Ganfeng Lithium Group Co., Ltd., Class H * | 1,634,000 | 10,717,346 | |||||||||
Meituan, Class B * | 5,619,850 | 88,124,402 | |||||||||
NIO, Inc. ADR * | 3,098,212 | 30,021,674 | |||||||||
PDD Holdings, Inc. ADR * | 486,138 | 33,611,582 | |||||||||
Tencent Holdings Ltd. | 2,367,400 | 100,380,552 | |||||||||
Wuxi Biologics Cayman, Inc. * | 3,652,500 | 17,554,112 | |||||||||
302,551,461 | |||||||||||
DENMARK — 6.1% | |||||||||||
Ambu A/S, B Shares * | 1,680,212 | 27,544,350 | |||||||||
Genmab A/S * | 293,158 | 111,094,483 | |||||||||
Vestas Wind Systems A/S * | 1,609,472 | 42,791,559 | |||||||||
181,430,392 | |||||||||||
FRANCE — 7.8% | |||||||||||
Adevinta ASA * | 752,367 | 4,944,042 | |||||||||
Kering | 233,694 | 129,045,602 | |||||||||
L'Oreal SA | 214,048 | 99,848,275 | |||||||||
233,837,919 | |||||||||||
GERMANY — 3.9% | |||||||||||
Aixtron SE | 1,179,242 | 40,044,187 | |||||||||
HelloFresh SE * | 1,110,944 | 27,476,625 | |||||||||
Zalando SE * | 1,712,917 | 49,399,138 | |||||||||
116,919,950 |
The accompanying notes are an integral part of the financial statements.
118
Portfolio of Investments
Semi-Annual Report June 30, 2023
June 30, 2023 (unaudited)
Baillie Gifford International Growth Fund
Shares | Value | ||||||||||
HONG KONG — 3.6% | |||||||||||
AIA Group Ltd. | 8,212,000 | $ | 83,405,175 | ||||||||
Hong Kong Exchanges & Clearing Ltd. | 657,501 | 24,912,062 | |||||||||
108,317,237 | |||||||||||
INDIA — 0.6% | |||||||||||
Housing Development Finance Corp., Ltd. | 522,919 | 18,040,854 | |||||||||
ISRAEL — 2.3% | |||||||||||
Mobileye Global, Inc., Class A * | 490,364 | 18,839,785 | |||||||||
Wix.com Ltd. * | 625,756 | 48,959,149 | |||||||||
67,798,934 | |||||||||||
ITALY — 5.8% | |||||||||||
Ferrari NV | 481,337 | 157,372,092 | |||||||||
Prysmian SpA | 402,985 | 16,854,319 | |||||||||
174,226,411 | |||||||||||
JAPAN — 6.5% | |||||||||||
CyberAgent, Inc. | 1,328,800 | 9,713,844 | |||||||||
GMO Payment Gateway, Inc. | 210,600 | 16,519,362 | |||||||||
M3, Inc. | 2,209,100 | 48,168,583 | |||||||||
Nidec Corp. | 924,600 | 50,950,489 | |||||||||
SBI Holdings, Inc. | 822,200 | 15,856,906 | |||||||||
SMC Corp. | 97,400 | 54,131,211 | |||||||||
195,340,395 | |||||||||||
NETHERLANDS — 17.9% | |||||||||||
Adyen NV * | 96,174 | 166,541,414 | |||||||||
Argenx SE * | 246,026 | 95,949,085 | |||||||||
ASML Holding NV | 303,805 | 220,358,432 | |||||||||
EXOR NV | 572,247 | 51,087,088 | |||||||||
533,936,019 | |||||||||||
NEW ZEALAND — 0.8% | |||||||||||
Xero Ltd. * | 284,357 | 22,782,664 |
The accompanying notes are an integral part of the financial statements.
119
Portfolio of Investments
Semi-Annual Report June 30, 2023
June 30, 2023 (unaudited)
Baillie Gifford International Growth Fund
Shares | Value | ||||||||||
NORWAY — 0.9% | |||||||||||
AutoStore Holdings Ltd. * | 7,788,131 | $ | 17,048,150 | ||||||||
Schibsted ASA, A Shares | 241,038 | 4,232,936 | |||||||||
Schibsted ASA, B Shares | 288,179 | 4,781,492 | |||||||||
26,062,578 | |||||||||||
SINGAPORE — 0.6% | |||||||||||
Sea Ltd. ADR * | 314,596 | 18,259,152 | |||||||||
SOUTH KOREA — 2.9% | |||||||||||
Coupang, Inc. * | 1,537,346 | 26,749,820 | |||||||||
Delivery Hero SE * | 1,342,003 | 59,209,251 | |||||||||
85,959,071 | |||||||||||
SWEDEN — 3.8% | |||||||||||
Atlas Copco AB, A Shares | 6,157,135 | 88,889,838 | |||||||||
Kinnevik AB, B Shares * | 1,897,274 | 26,318,060 | |||||||||
115,207,898 | |||||||||||
SWITZERLAND — 1.6% | |||||||||||
Temenos AG | 297,453 | 23,684,892 | |||||||||
VAT Group AG | 60,097 | 24,893,022 | |||||||||
48,577,914 | |||||||||||
TAIWAN — 3.0% | |||||||||||
Taiwan Semiconductor Manufacturing Co., Ltd. | 4,814,000 | 88,930,626 | |||||||||
UNITED KINGDOM — 2.1% | |||||||||||
Ocado Group PLC * | 5,417,410 | 39,202,678 | |||||||||
Wise PLC, Class A * | 2,802,170 | 23,422,187 | |||||||||
62,624,865 | |||||||||||
UNITED STATES — 5.8% | |||||||||||
Elastic NV * | 332,777 | 21,337,661 | |||||||||
Oatly Group AB ADR * | 2,007,517 | 4,115,410 | |||||||||
SolarEdge Technologies, Inc. * | 49,393 | 13,289,187 | |||||||||
Spotify Technology SA * | 832,298 | 133,625,444 | |||||||||
172,367,702 | |||||||||||
Total Common Stocks | |||||||||||
(cost $1,988,144,206) | 2,890,610,899 |
The accompanying notes are an integral part of the financial statements.
120
Portfolio of Investments
Semi-Annual Report June 30, 2023
June 30, 2023 (unaudited)
Baillie Gifford International Growth Fund
Shares | Value | ||||||||||
PREFERRED STOCKS — 1.7% | |||||||||||
GERMANY — 1.7% | |||||||||||
Sartorius AG 0.45% (cost $33,481,918) | 146,741 | $ | 50,839,699 | ||||||||
TOTAL INVESTMENTS — 98.4% | |||||||||||
(cost $2,021,626,124) | $ | 2,941,450,598 | |||||||||
Other assets less liabilities — 1.6% | 46,749,689 | ||||||||||
NET ASSETS — 100.0% | $ | 2,988,200,287 |
* 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 6/30/2023 in valuing the Fund's investments carried at fair value:
Investments in Securities | Level 1 | Level 2 | Level 3 | Total | |||||||||||||||
Common Stocks ** | $ | 555,546,961 | $ | 2,335,063,938 | $ | — | $ | 2,890,610,899 | |||||||||||
Preferred Stocks ** | — | 50,839,699 | — | 50,839,699 | |||||||||||||||
Total | $ | 555,546,961 | $ | 2,385,903,637 | $ | — | $ | 2,941,450,598 |
** Refer to Portfolio of Investments for further detail.
The accompanying notes are an integral part of the financial statements.
121
Statement of Assets and Liabilities
Semi-Annual Report June 30, 2023
June 30, 2023 (unaudited)
Baillie Gifford International Growth Fund
ASSETS | |||||||
Investments, at value (cost $2,021,626,124) | $ | 2,941,450,598 | |||||
Cash | 47,632,946 | ||||||
Foreign cash, at value (cost $257,780) | 257,315 | ||||||
Tax reclaims receivable | 2,406,205 | ||||||
Capital shares sold receivable | 272,792 | ||||||
Dividends receivable | 259,633 | ||||||
Prepaid assets | 31,835 | ||||||
Total Assets | 2,992,311,324 | ||||||
LIABILITIES | |||||||
Advisory fee payable | 2,464,620 | ||||||
Shareholder Servicing fee payable | 501,864 | ||||||
Deferred India capital gains tax liability (Note A) | 482,397 | ||||||
Administration & Supervisory fee payable | 131,882 | ||||||
Capital shares purchased payable | 122,269 | ||||||
IRS Closing agreement tax payable for foreign reclaims (Note A) | 5,505 | ||||||
Trustee fee payable | 32,196 | ||||||
Commitment fee payable | 9,798 | ||||||
Accrued expenses | 360,506 | ||||||
Total Liabilities | 4,111,037 | ||||||
NET ASSETS | $ | 2,988,200,287 | |||||
COMPOSITION OF NET ASSETS | |||||||
Paid-in capital | $ | 2,057,623,419 | |||||
Total distributable earnings | 930,576,868 | ||||||
$ | 2,988,200,287 | ||||||
NET ASSET VALUE, PER SHARE | |||||||
Class 2 ($699,906,718 / 56,376,777 shares outstanding), unlimited authorized, no par value | $ | 12.41 | |||||
Class 3 ($241,862,887 / 19,421,869 shares outstanding), unlimited authorized, no par value | $ | 12.45 | |||||
Class 4 ($556,952,958 / 44,700,030 shares outstanding), unlimited authorized, no par value | $ | 12.46 | |||||
Class 5 ($1,163,838,002 / 93,133,774 shares outstanding), unlimited authorized, no par value | $ | 12.50 | |||||
Class K ($65,265,228 / 5,268,663 shares outstanding), unlimited authorized, no par value | $ | 12.39 | |||||
Institutional Class ($260,374,494 / 21,083,133 shares outstanding), unlimited authorized, no par value | $ | 12.35 |
The accompanying notes are an integral part of the financial statements.
122
Statement of Operations
Semi-Annual Report June 30, 2023
For the Six Months Ended June 30, 2023 (unaudited)
Baillie Gifford International Growth Fund
INVESTMENT INCOME | |||||||
Dividends (net of foreign withholding taxes of $2,162,940) | $ | 13,637,792 | |||||
Non-cash income | 6,077,219 | ||||||
Interest | 451,858 | ||||||
Litigation income | 344 | ||||||
IRS Closing agreement tax payable for foreign reclaims (Note A) | (5,505 | ) | |||||
Total Investment Income | 20,161,708 | ||||||
EXPENSES | |||||||
Advisory fee (Note B) | 4,841,257 | ||||||
Shareholder Servicing fees — Class 2 shares (Note B) | 561,758 | ||||||
Shareholder Servicing fees — Class 3 shares (Note B) | 119,032 | ||||||
Shareholder Servicing fees — Class 4 shares (Note B) | 188,842 | ||||||
Shareholder Servicing fees — Class 5 shares (Note B) | 112,733 | ||||||
Administration & Supervisory fee — Class K shares (Note B) | 53,572 | ||||||
Administration & Supervisory fee — Institutional Class shares (Note B) | 202,804 | ||||||
Transfer agency | 77,080 | ||||||
Sub-transfer agency — Institutional Class shares | 91,869 | ||||||
Legal | 286,828 | ||||||
Fund accounting | 239,267 | ||||||
Custody | 170,478 | ||||||
Professional fees | 87,640 | ||||||
Trustees' fees | 66,558 | ||||||
Registration fees | 26,593 | ||||||
Commitment fees | 20,284 | ||||||
Miscellaneous | 72,524 | ||||||
Total Expenses | 7,219,119 | ||||||
Net Investment Income | 12,942,589 | ||||||
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS AND FOREIGN CURRENCY TRANSACTIONS | |||||||
Net realized gain (loss) from: | |||||||
Investments | 41,402,880 | ||||||
Foreign currency transactions | (68,074 | ) | |||||
41,334,806 | |||||||
Net change in unrealized appreciation on: | |||||||
Investments (net of change in deferred India capital gains tax liability of $74,987) (Note A) | 293,131,385 | ||||||
Translation of net assets and liabilities denominated in foreign currencies | 33,996 | ||||||
293,165,381 | |||||||
Net realized and unrealized gain | 334,500,187 | ||||||
NET INCREASE IN NET ASSETS FROM OPERATIONS | $ | 347,442,776 |
The accompanying notes are an integral part of the financial statements.
123
Statements of Changes in Net Assets
Semi-Annual Report June 30, 2023
Baillie Gifford International Growth Fund
For the Six Months Ended June 30, 2023 (unaudited) | For the Year Ended December 31, 2022 | ||||||||||
INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS | |||||||||||
Net investment income | $ | 12,942,589 | $ | 19,913,803 | |||||||
Net realized gain (loss) | 41,334,806 | (13,743,913 | ) | ||||||||
Net change in unrealized appreciation (depreciation) | 293,165,381 | (1,322,207,177 | ) | ||||||||
Net Increase (Decrease) in Net Assets from Operations | 347,442,776 | (1,316,037,287 | ) | ||||||||
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS FROM: | |||||||||||
Distributable earnings | |||||||||||
Class 2 | — | (3,692,032 | ) | ||||||||
Class 3 | — | (1,457,987 | ) | ||||||||
Class 4 | — | (3,381,707 | ) | ||||||||
Class 5 | — | (7,602,619 | ) | ||||||||
Class K | — | (335,676 | ) | ||||||||
Institutional Class | — | (961,021 | ) | ||||||||
Total Distributions to Shareholders | — | (17,431,042 | ) | ||||||||
TRANSACTIONS IN SHARES OF BENEFICIAL INTEREST | |||||||||||
Net proceeds from shares subscribed: | |||||||||||
Class 2 | 28,503,000 | 342,081,605 | * | ||||||||
Class 3 | 1,800,000 | 151,313,900 | * | ||||||||
Class 4 | — | 50,000,000 | |||||||||
Class K | 1,051,682 | 10,780,634 | |||||||||
Institutional Class | 65,877,460 | 226,507,373 | |||||||||
Dividends reinvested: | |||||||||||
Class 2 | — | 3,691,376 | |||||||||
Class 3 | — | 1,456,319 | |||||||||
Class 4 | — | 3,381,707 | |||||||||
Class 5 | — | 7,602,619 | |||||||||
Class K | — | 335,676 | |||||||||
Institutional Class | — | 918,730 | |||||||||
Cost of shares redeemed: | |||||||||||
Class 2 | (7,145,987 | ) | (1,550,000 | )* | |||||||
Class 3 | (15,200,000 | ) | (272,875,605 | )* | |||||||
Class 4 | — | (134,613,900 | ) | ||||||||
Class K | (470,286 | ) | (7,662,243 | ) | |||||||
Institutional Class | (28,875,498 | ) | (239,977,847 | ) | |||||||
Increase in Net Assets from Transactions in Shares of Beneficial Interest | 45,540,371 | 141,390,344 | |||||||||
Total Increase (Decrease) in Net Assets | 392,983,147 | (1,192,077,985 | ) | ||||||||
NET ASSETS | |||||||||||
Beginning of Period | 2,595,217,140 | 3,787,295,125 | |||||||||
End of Period | $ | 2,988,200,287 | $ | 2,595,217,140 |
* See Note D for details of share class conversions.
The accompanying notes are an integral part of the financial statements.
124
Financial Highlights
Semi-Annual Report June 30, 2023
Baillie Gifford International Growth Fund
Selected data for a Class 2 share outstanding throughout each period:
For the Six Months Ended June 30, 2023 (unaudited) | For the Year Ended December 31, 2022 | For the Year Ended December 31, 2021 | For the Year Ended December 31, 2020 | For the Year Ended December 31, 2019 | For the Year Ended December 31, 2018 | ||||||||||||||||||||||
Net asset value, beginning of period | $ | 10.96 | $ | 16.81 | $ | 21.56 | $ | 14.59 | $ | 10.74 | $ | 14.39 | |||||||||||||||
From Investment Operations | |||||||||||||||||||||||||||
Net investment income(a) | 0.05 | 0.08 | 0.15 | 0.00 | (b) | 0.15 | 0.11 | ||||||||||||||||||||
Net realized and unrealized gain (loss) on investments and foreign currency | 1.40 | (5.87 | ) | (2.20 | ) | 9.17 | 3.87 | (2.61 | ) | ||||||||||||||||||
Net increase (decrease) in net asset value from investment operations | 1.45 | (5.79 | ) | (2.05 | ) | 9.17 | 4.02 | (2.50 | ) | ||||||||||||||||||
Dividends and Distributions to Shareholders | |||||||||||||||||||||||||||
From net investment income | — | (0.01 | ) | (0.41 | ) | — | (0.15 | ) | (0.10 | ) | |||||||||||||||||
From net realized gain on investments | — | (0.05 | ) | (2.29 | ) | (2.20 | ) | (0.02 | ) | (1.03 | ) | ||||||||||||||||
Return of capital | — | — | — | — | — | (0.02 | ) | ||||||||||||||||||||
Total dividends and distributions | — | (0.06 | ) | (2.70 | ) | (2.20 | ) | (0.17 | ) | (1.15 | ) | ||||||||||||||||
Net asset value, end of period | $ | 12.41 | $ | 10.96 | $ | 16.81 | $ | 21.56 | $ | 14.59 | $ | 10.74 | |||||||||||||||
Total Return | |||||||||||||||||||||||||||
Total return based on net asset value(c) | 13.31 | % | (34.43 | )% | (9.40 | )% | 62.95 | % | (37.34 | )% | (17.33 | )% | |||||||||||||||
Ratios/Supplemental Data | |||||||||||||||||||||||||||
Net assets, end of period (000's omitted) | $ | 699,907 | $ | 598,426 | $ | 455,384 | $ | 599,275 | $ | 874,230 | $ | 632,645 | |||||||||||||||
Ratio of net expenses to average net assets | 0.58 | %* | 0.60 | % | 0.57 | % | 0.58 | % | 0.60 | % | 0.60 | % | |||||||||||||||
Ratio of net investment income to average net assets | 0.83 | %*(d) | 0.68 | % | 0.68 | % | 0.02 | % | 1.16 | %(d) | 0.72 | % | |||||||||||||||
Portfolio turnover rate(e) | 4 | % | 12 | % | 13 | % | 26 | % | 6 | % | 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) Ratio includes taxable stock dividends that were treated as income.
(e) Portfolio turnover rate calculated at Fund level and excludes the value of portfolio securities sold or received in-kind in connection with Fund capital shares sold or redemptions in-kind. Portfolio turnover is not annualized for periods less than one year.
The accompanying notes are an integral part of the financial statements.
125
Financial Highlights
Semi-Annual Report June 30, 2023
Baillie Gifford International Growth Fund
Selected data for a Class 3 share outstanding throughout each period:
For the Six Months Ended June 30, 2023 (unaudited) | For the Year Ended December 31, 2022 | For the Year Ended December 31, 2021 | For the Year Ended December 31, 2020 | For the Year Ended December 31, 2019 | For the Year Ended December 31, 2018 | ||||||||||||||||||||||
Net asset value, beginning of period | $ | 10.99 | $ | 16.85 | $ | 21.63 | $ | 14.62 | $ | 10.76 | $ | 14.42 | |||||||||||||||
From Investment Operations | |||||||||||||||||||||||||||
Net investment income(a) | 0.06 | 0.08 | 0.16 | 0.01 | 0.16 | 0.11 | |||||||||||||||||||||
Net realized and unrealized gain (loss) on investments and foreign currency | 1.40 | (5.87 | ) | (2.21 | ) | 9.20 | 3.88 | (2.61 | ) | ||||||||||||||||||
Net increase (decrease) in net asset value from investment operations | 1.46 | (5.79 | ) | (2.05 | ) | 9.21 | 4.04 | (2.50 | ) | ||||||||||||||||||
Dividends and Distributions to Shareholders | |||||||||||||||||||||||||||
From net investment income | — | (0.02 | ) | (0.44 | ) | — | (0.16 | ) | (0.11 | ) | |||||||||||||||||
From net realized gain on investments | — | (0.05 | ) | (2.29 | ) | (2.20 | ) | (0.02 | ) | (1.03 | ) | ||||||||||||||||
Return of capital | — | — | — | — | — | (0.02 | ) | ||||||||||||||||||||
Total dividends and distributions | — | (0.07 | ) | (2.73 | ) | (2.20 | ) | (0.18 | ) | (1.16 | ) | ||||||||||||||||
Net asset value, end of period | $ | 12.45 | $ | 10.99 | $ | 16.85 | $ | 21.63 | $ | 14.62 | $ | 10.76 | |||||||||||||||
Total Return | |||||||||||||||||||||||||||
Total return based on net asset value(b) | 13.35 | % | (34.38 | )% | (9.34 | )% | 63.07 | % | 37.44 | % | (17.27 | )% | |||||||||||||||
Ratios/Supplemental Data | |||||||||||||||||||||||||||
Net assets, end of period (000's omitted) | $ | 241,863 | $ | 225,485 | $ | 503,783 | $ | 693,179 | $ | 546,477 | $ | 393,050 | |||||||||||||||
Ratio of net expenses to average net assets | 0.51 | %* | 0.53 | % | 0.50 | % | 0.51 | % | 0.53 | % | 0.53 | % | |||||||||||||||
Ratio of net investment income to average net assets | 0.92 | %*(c) | 0.64 | % | 0.74 | % | 0.03 | % | 1.22 | %(c) | 0.74 | % | |||||||||||||||
Portfolio turnover rate(d) | 4 | % | 12 | % | 13 | % | 26 | % | 6 | % | 14 | % |
* Annualized.
(a) Calculated based upon average shares outstanding during the period.
(b) Total investment return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all dividends and distributions, if any, at net asset value during the period, and redemption on the last day of the period. Total return is not annualized for periods less than one year.
(c) Ratio includes taxable stock dividends that were treated as income.
(d) Portfolio turnover rate calculated at Fund level and excludes the value of portfolio securities sold or received in-kind in connection with Fund capital shares sold or redemptions in-kind. Portfolio turnover is not annualized for periods less than one year.
The accompanying notes are an integral part of the financial statements.
126
Financial Highlights
Semi-Annual Report June 30, 2023
Baillie Gifford International Growth Fund
Selected data for a Class 4 share outstanding throughout each period:
For the Six Months Ended June 30, 2023 (unaudited) | For the Year Ended December 31, 2022 | For the Year Ended December 31, 2021 | For the Year Ended December 31, 2020 | For the Year Ended December 31, 2019 | For the Year Ended December 31, 2018 | ||||||||||||||||||||||
Net asset value, beginning of period | $ | 10.99 | $ | 16.86 | $ | 21.65 | $ | 14.63 | $ | 10.77 | $ | 14.43 | |||||||||||||||
From Investment Operations | |||||||||||||||||||||||||||
Net investment income(a) | 0.06 | 0.09 | 0.17 | 0.01 | 0.16 | 0.12 | |||||||||||||||||||||
Net realized and unrealized gain (loss) on investments and foreign currency | 1.41 | (5.89 | ) | (2.21 | ) | 9.21 | 3.88 | (2.61 | ) | ||||||||||||||||||
Net increase (decrease) in net asset value from investment operations | 1.47 | (5.80 | ) | (2.04 | ) | 9.22 | 4.04 | (2.49 | ) | ||||||||||||||||||
Dividends and Distributions to Shareholders | |||||||||||||||||||||||||||
From net investment income | — | (0.02 | ) | (0.46 | ) | 0.00 | (b) | (0.16 | ) | (0.12 | ) | ||||||||||||||||
From net realized gain on investments | — | (0.05 | ) | (2.29 | ) | (2.20 | ) | (0.02 | ) | (1.03 | ) | ||||||||||||||||
Return of capital | — | — | — | — | — | (0.02 | ) | ||||||||||||||||||||
Total dividends and distributions | — | (0.07 | ) | (2.75 | ) | (2.20 | ) | (0.18 | ) | (1.17 | ) | ||||||||||||||||
Net asset value, end of period | $ | 12.46 | $ | 10.99 | $ | 16.86 | $ | 21.65 | $ | 14.63 | $ | 10.77 | |||||||||||||||
Total Return | |||||||||||||||||||||||||||
Total return based on net asset value(c) | 13.37 | % | (34.36 | )% | (9.31 | )% | 63.12 | % | 37.48 | % | (17.24 | )% | |||||||||||||||
Ratios/Supplemental Data | |||||||||||||||||||||||||||
Net assets, end of period (000's omitted) | $ | 556,953 | $ | 491,265 | $ | 860,635 | $ | 969,427 | $ | 283,094 | $ | 205,923 | |||||||||||||||
Ratio of net expenses to average net assets | 0.48 | %* | 0.50 | % | 0.47 | % | 0.48 | % | 0.50 | % | 0.50 | % | |||||||||||||||
Ratio of net investment income to average net assets | 0.93 | %*(d) | 0.72 | % | 0.78 | % | 0.06 | % | 1.26 | %(d) | 0.83 | % | |||||||||||||||
Portfolio turnover rate(e) | 4 | % | 12 | % | 13 | % | 26 | % | 6 | % | 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) Ratio includes taxable stock dividends that were treated as income.
(e) Portfolio turnover rate calculated at Fund level and excludes the value of portfolio securities sold or received in-kind in connection with Fund capital shares sold or redemptions in-kind. Portfolio turnover is not annualized for periods less than one year.
The accompanying notes are an integral part of the financial statements.
127
Financial Highlights
Semi-Annual Report June 30, 2023
Baillie Gifford International Growth Fund
Selected data for a Class 5 share outstanding throughout each period:
For the Six Months Ended June 30, 2023 (unaudited) | For the Year Ended December 31, 2022 | For the Year Ended December 31, 2021 | For the Year Ended December 31, 2020 | For the Year Ended December 31, 2019 | For the Year Ended December 31, 2018 | ||||||||||||||||||||||
Net asset value, beginning of period | $ | 11.02 | $ | 16.91 | $ | 21.70 | $ | 14.66 | $ | 10.79 | $ | 14.46 | |||||||||||||||
From Investment Operations | |||||||||||||||||||||||||||
Net investment income(a) | 0.06 | 0.09 | 0.18 | 0.02 | 0.17 | 0.12 | |||||||||||||||||||||
Net realized and unrealized gain (loss) on investments and foreign currency | 1.42 | (5.90 | ) | (2.21 | ) | 9.23 | 3.89 | (2.61 | ) | ||||||||||||||||||
Net increase (decrease) in net asset value from investment operations | 1.48 | (5.81 | ) | (2.03 | ) | 9.25 | 4.06 | (2.49 | ) | ||||||||||||||||||
Dividends and Distributions to Shareholders | |||||||||||||||||||||||||||
From net investment income | — | (0.03 | ) | (0.47 | ) | (0.01 | ) | (0.17 | ) | (0.13 | ) | ||||||||||||||||
From net realized gain on investments | — | (0.05 | ) | (2.29 | ) | (2.20 | ) | (0.02 | ) | (1.03 | ) | ||||||||||||||||
Return of capital | — | — | — | — | — | (0.02 | ) | ||||||||||||||||||||
Total dividends and distributions | — | (0.08 | ) | (2.76 | ) | (2.21 | ) | (0.19 | ) | (1.18 | ) | ||||||||||||||||
Net asset value, end of period | $ | 12.50 | $ | 11.02 | $ | 16.91 | $ | 21.70 | $ | 14.66 | $ | 10.79 | |||||||||||||||
Total Return | |||||||||||||||||||||||||||
Total return based on net asset value(b) | 13.40 | % | (34.33 | )% | (9.27 | )% | 63.20 | % | 37.55 | % | (17.20 | )% | |||||||||||||||
Ratios/Supplemental Data | |||||||||||||||||||||||||||
Net assets, end of period (000's omitted) | $ | 1,163,838 | $ | 1,026,319 | $ | 1,562,791 | $ | 1,842,231 | $ | 1,298,918 | $ | 944,366 | |||||||||||||||
Ratio of net expenses to average net assets | 0.43 | %* | 0.45 | % | 0.42 | % | 0.43 | % | 0.45 | % | 0.45 | % | |||||||||||||||
Ratio of net investment income to average net assets | 0.98 | %*(c) | 0.79 | % | 0.82 | % | 0.13 | % | 1.31 | %(c) | 0.84 | % | |||||||||||||||
Portfolio turnover rate(d) | 4 | % | 12 | % | 13 | % | 26 | % | 6 | % | 14 | % |
* Annualized.
(a) Calculated based upon average shares outstanding during the period.
(b) Total investment return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all dividends and distributions, if any, at net asset value during the period, and redemption on the last day of the period. Total return is not annualized for periods less than one year.
(c) Ratio includes taxable stock dividends that were treated as income.
(d) Portfolio turnover rate calculated at Fund level and excludes the value of portfolio securities sold or received in-kind in connection with Fund capital shares sold or redemptions in-kind. Portfolio turnover is not annualized for periods less than one year.
The accompanying notes are an integral part of the financial statements.
128
Financial Highlights
Semi-Annual Report June 30, 2023
Baillie Gifford International Growth Fund
Selected data for a Class K share outstanding throughout each period:
For the Six Months Ended June 30, 2023 (unaudited) | For the Year Ended December 31, 2022 | For the Year Ended December 31, 2021 | For the Year Ended December 31, 2020 | For the Year Ended December 31, 2019 | For the Year Ended December 31, 2018 | ||||||||||||||||||||||
Net asset value, beginning of period | $ | 10.93 | $ | 16.77 | $ | 21.54 | $ | 14.58 | $ | 10.73 | $ | 14.38 | |||||||||||||||
From Investment Operations | |||||||||||||||||||||||||||
Net investment income (loss)(a) | 0.05 | 0.08 | 0.15 | (0.05 | )(b) | 0.15 | 0.10 | ||||||||||||||||||||
Net realized and unrealized gain (loss) on investments and foreign currency | 1.41 | (5.86 | ) | (2.20 | ) | 9.21 | 3.87 | (2.60 | ) | ||||||||||||||||||
Net increase (decrease) in net asset value from investment operations | 1.46 | (5.78 | ) | (2.05 | ) | 9.16 | 4.02 | (2.50 | ) | ||||||||||||||||||
Dividends and Distributions to Shareholders | |||||||||||||||||||||||||||
From net investment income | — | (0.01 | ) | (0.43 | ) | — | (c) | (0.15 | ) | (0.10 | ) | ||||||||||||||||
From net realized gain on investments | — | (0.05 | ) | (2.29 | ) | (2.20 | ) | (0.02 | ) | (1.03 | ) | ||||||||||||||||
Return of capital | — | — | — | — | — | (0.02 | ) | ||||||||||||||||||||
Total dividends and distributions | — | (0.06 | ) | (2.72 | ) | (2.20 | ) | (0.17 | ) | (1.15 | ) | ||||||||||||||||
Net asset value, end of period | $ | 12.39 | $ | 10.93 | $ | 16.77 | $ | 21.54 | $ | 14.58 | $ | 10.73 | |||||||||||||||
Total Return | |||||||||||||||||||||||||||
Total return based on net asset value(d) | 13.36 | % | (34.43 | )% | (9.43 | )% | 62.95 | % | 37.40 | % | (17.32 | )% | |||||||||||||||
Ratios/Supplemental Data | |||||||||||||||||||||||||||
Net assets, end of period (000's omitted) | $ | 65,265 | $ | 57,075 | $ | 82,820 | $ | 130,401 | $ | 7 | $ | 5 | |||||||||||||||
Ratio of net expenses to average net assets | 0.58 | %* | 0.60 | % | 0.57 | % | 0.58 | % | 0.60 | % | 0.60 | % | |||||||||||||||
Ratio of net investment income (loss) to average net assets | 0.83 | %*(e) | 0.66 | % | 0.69 | % | (0.26 | )% | 1.17 | %(e) | 0.72 | % | |||||||||||||||
Portfolio turnover rate(f) | 4 | % | 12 | % | 13 | % | 26 | % | 6 | % | 14 | % |
* Annualized.
(a) Calculated based upon average shares outstanding during the period.
(b) 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.
(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) Ratio includes taxable stock dividends that were treated as income.
(f) Portfolio turnover rate calculated at Fund level and excludes the value of portfolio securities sold or received in-kind in connection with Fund capital shares sold or redemptions in-kind. Portfolio turnover is not annualized for periods less than one year.
The accompanying notes are an integral part of the financial statements.
129
Financial Highlights
Semi-Annual Report June 30, 2023
Baillie Gifford International Growth Fund
Selected data for an Institutional Class share outstanding throughout each period:
For the Six Months Ended June 30, 2023 (unaudited) | For the Year Ended December 31, 2022 | For the Year Ended December 31, 2021 | For the Year Ended December 31, 2020 | For the Year Ended December 31, 2019 | For the Year Ended December 31, 2018 | ||||||||||||||||||||||
Net asset value, beginning of period | $ | 10.90 | $ | 16.72 | $ | 21.48 | $ | 14.55 | $ | 10.72 | $ | 14.38 | |||||||||||||||
From Investment Operations | |||||||||||||||||||||||||||
Net investment income (loss)(a) | 0.04 | 0.07 | 0.12 | (0.03 | ) | 0.15 | (0.01 | ) | |||||||||||||||||||
Net realized and unrealized gain (loss) on investments and foreign currency | 1.41 | (5.84 | ) | (2.18 | ) | 9.16 | 3.85 | (2.49 | ) | ||||||||||||||||||
Net increase (decrease) in net asset value from investment operations | 1.45 | (5.77 | ) | (2.06 | ) | 9.13 | 4.00 | (2.50 | ) | ||||||||||||||||||
Dividends and Distributions to Shareholders | |||||||||||||||||||||||||||
From net investment income | — | — | (0.41 | ) | — | (0.15 | ) | (0.11 | ) | ||||||||||||||||||
From net realized gain on investments | — | (0.05 | ) | (2.29 | ) | (2.20 | ) | (0.02 | ) | (1.03 | ) | ||||||||||||||||
Return of capital | — | — | — | — | — | (0.02 | ) | ||||||||||||||||||||
Total dividends and distributions | — | (0.05 | ) | (2.70 | ) | (2.20 | ) | (0.17 | ) | (1.16 | ) | ||||||||||||||||
Net asset value, end of period | $ | 12.35 | $ | 10.90 | $ | 16.72 | $ | 21.48 | $ | 14.55 | $ | 10.72 | |||||||||||||||
Total Return | |||||||||||||||||||||||||||
Total return based on net asset value(b) | 13.30 | % | (34.49 | )% | (9.49 | )% | 62.84 | % | 37.25 | % | (17.34 | )% | |||||||||||||||
Ratios/Supplemental Data | |||||||||||||||||||||||||||
Net assets, end of period (000's omitted) | $ | 260,374 | $ | 196,648 | $ | 321,882 | $ | 308,176 | $ | 26,800 | $ | 2,081 | |||||||||||||||
Ratio of net expenses to average net assets | 0.66 | %* | 0.68 | % | 0.65 | % | 0.64 | % | 0.65 | % | 0.69 | % | |||||||||||||||
Ratio of net investment income (loss) to average net assets | 0.71 | %*(c) | 0.60 | % | 0.55 | % | (0.16 | )% | 1.09 | %(c) | (0.23 | )% | |||||||||||||||
Portfolio turnover rate(d) | 4 | % | 12 | % | 13 | % | 26 | % | 6 | % | 14 | % |
* Annualized.
(a) Calculated based upon average shares outstanding during the period.
(b) Total investment return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all dividends and distributions, if any, at net asset value during the period, and redemption on the last day of the period. Total return is not annualized for periods less than one year.
(c) Ratio includes taxable stock dividends that were treated as income.
(d) Portfolio turnover rate calculated at Fund level and excludes the value of portfolio securities sold or received in-kind in connection with Fund capital shares sold or redemptions in-kind. Portfolio turnover is not annualized for periods less than one year.
The accompanying notes are an integral part of the financial statements.
130
Industry Diversification Table
Semi-Annual Report June 30, 2023
June 30, 2023 (unaudited)
Baillie Gifford International Smaller Companies Fund
Value | % of Total Net Assets | ||||||||||
Biotechnology | $ | 170,618 | 1.2 | % | |||||||
Building Materials | 595,044 | 4.0 | |||||||||
Chemicals | 187,798 | 1.3 | |||||||||
Commercial Services | 935,227 | 6.4 | |||||||||
Computers | 142,060 | 1.0 | |||||||||
Distribution/Wholesale | 816,661 | 5.5 | |||||||||
Diversified Financial Services | 1,613,361 | 11.0 | |||||||||
Electrical Components & Equipment | 117,347 | 0.8 | |||||||||
Electronics | 792,471 | 5.4 | |||||||||
Entertainment | 62,060 | 0.4 | |||||||||
Food | 11,719 | 0.1 | |||||||||
Hand/Machine Tools | 215,573 | 1.5 | |||||||||
Healthcare — Products | 130,498 | 0.9 | |||||||||
Insurance | 49,396 | 0.3 | |||||||||
Internet | 1,332,003 | 9.0 | |||||||||
Investment Companies | 47,643 | 0.3 | |||||||||
Leisure Time | 533,721 | 3.6 | |||||||||
Machinery — Diversified | 379,377 | 2.6 | |||||||||
Media | 17,729 | 0.1 | |||||||||
Mining | 39,415 | 0.3 | |||||||||
Miscellaneous Manufacturing | 654,239 | 4.4 | |||||||||
Pharmaceuticals | 188,115 | 1.3 | |||||||||
Private Equity | 52,154 | 0.4 | |||||||||
Retail | 506,525 | 3.4 | |||||||||
Semiconductors | 1,895,001 | 12.9 | |||||||||
Software | 2,133,705 | 14.5 | |||||||||
Telecommunications | 293,162 | 2.0 | |||||||||
Toys/Games/Hobbies | 457,676 | 3.1 | |||||||||
Total Value of Investments | 14,370,298 | 97.7 | |||||||||
Other assets less liabilities | 343,970 | 2.3 | |||||||||
Net Assets | $ | 14,714,268 | 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.
131
Portfolio of Investments
Semi-Annual Report June 30, 2023
June 30, 2023 (unaudited)
Baillie Gifford International Smaller Companies Fund
Shares | Value | ||||||||||
COMMON STOCKS — 97.7% | |||||||||||
AUSTRALIA — 1.4% | |||||||||||
Cleanspace Holdings Ltd. * | 14,694 | $ | 1,958 | ||||||||
Netwealth Group Ltd. | 17,953 | 166,701 | |||||||||
Vulcan Energy Resources Ltd. * | 14,023 | 39,415 | |||||||||
208,074 | |||||||||||
BELGIUM — 1.0% | |||||||||||
Melexis NV | 1,496 | 146,904 | |||||||||
CANADA — 5.0% | |||||||||||
Docebo, Inc. * | 5,550 | 219,696 | |||||||||
Kinaxis, Inc. * | 3,561 | 508,848 | |||||||||
728,544 | |||||||||||
CHINA — 3.4% | |||||||||||
Airtac International Group | 15,229 | 503,298 | |||||||||
DENMARK — 0.8% | |||||||||||
ALK-Abello A/S * | 10,346 | 113,043 | |||||||||
FINLAND — 0.2% | |||||||||||
Nanoform Finland PLC * | 17,143 | 35,729 | |||||||||
FRANCE — 1.5% | |||||||||||
Cellectis SA ADR * | 10,403 | 20,494 | |||||||||
ESI Group * | 1,300 | 209,954 | |||||||||
230,448 | |||||||||||
GERMANY — 5.7% | |||||||||||
Aumann AG | 3,322 | 50,532 | |||||||||
Auto1 Group SE * | 9,585 | 89,039 | |||||||||
Hypoport SE * | 2,470 | 451,374 | |||||||||
New Work SE | 916 | 123,631 | |||||||||
Tonies SE, Class A * | 21,879 | 116,586 | |||||||||
Veganz Group AG * | 716 | 11,720 | |||||||||
842,882 |
The accompanying notes are an integral part of the financial statements.
132
Portfolio of Investments
Semi-Annual Report June 30, 2023
June 30, 2023 (unaudited)
Baillie Gifford International Smaller Companies Fund
Shares | Value | ||||||||||
HONG KONG — 0.9% | |||||||||||
Hypebeast Ltd. * | 481,000 | $ | 18,722 | ||||||||
Johnson Electric Holdings Ltd. | 91,500 | 117,347 | |||||||||
136,069 | |||||||||||
INDIA — 1.7% | |||||||||||
CreditAccess Grameen Ltd. * | 12,451 | 189,729 | |||||||||
PVR Inox Ltd. * | 3,700 | 62,060 | |||||||||
251,789 | |||||||||||
IRELAND — 1.0% | |||||||||||
Keywords Studios PLC | 6,180 | 142,060 | |||||||||
ISRAEL — 2.7% | |||||||||||
Maytronics Ltd. | 20,809 | 285,162 | |||||||||
Nayax Ltd. * | 5,639 | 107,231 | |||||||||
392,393 | |||||||||||
ITALY — 6.4% | |||||||||||
Brunello Cucinelli SpA | 4,267 | 375,689 | |||||||||
Reply SpA | 2,828 | 321,523 | |||||||||
Technogym SpA | 26,848 | 248,559 | |||||||||
945,771 | |||||||||||
JAPAN — 24.6% | |||||||||||
Anicom Holdings, Inc. | 11,300 | 49,396 | |||||||||
Appier Group, Inc. * | 7,100 | 87,103 | |||||||||
Bengo4.com, Inc. * | 7,000 | 186,963 | |||||||||
COLOPL, Inc. | 20,400 | 92,349 | |||||||||
Demae-Can Co., Ltd. * | 8,500 | 23,985 | |||||||||
DMG Mori Co., Ltd. | 12,400 | 215,572 | |||||||||
eGuarantee, Inc. | 10,800 | 144,090 | |||||||||
Freee K.K. * | 2,700 | 61,523 | |||||||||
GA Technologies Co., Ltd. * | 11,300 | 111,852 | |||||||||
Infomart Corp. | 64,000 | 147,204 | |||||||||
Inter Action Corp. | 4,000 | 38,885 | |||||||||
Iriso Electronics Co., Ltd. | 5,200 | 151,375 | |||||||||
Istyle, Inc. * | 15,000 | 58,001 |
The accompanying notes are an integral part of the financial statements.
133
Portfolio of Investments
Semi-Annual Report June 30, 2023
June 30, 2023 (unaudited)
Baillie Gifford International Smaller Companies Fund
Shares | Value | ||||||||||
Jade Group, Inc. * | 7,900 | $ | 97,691 | ||||||||
JMDC, Inc. | 3,700 | 147,787 | |||||||||
Kamakura Shinsho Ltd. | 21,300 | 107,497 | |||||||||
Katitas Co., Ltd. | 11,900 | 206,032 | |||||||||
KH Neochem Co., Ltd. | 11,500 | 187,798 | |||||||||
Kitanotatsujin Corp. | 40,400 | 81,521 | |||||||||
Megachips Corp. | 9,000 | 234,240 | |||||||||
Optex Group Co., Ltd. | 10,000 | 141,070 | |||||||||
Outsourcing, Inc. | 14,700 | 140,259 | |||||||||
Raksul, Inc. * | 27,200 | 256,491 | |||||||||
Sansan, Inc. * | 9,700 | 114,423 | |||||||||
Shima Seiki Manufacturing Ltd. | 6,500 | 84,030 | |||||||||
Snow Peak, Inc. | 7,400 | 96,569 | |||||||||
Tsugami Corp. | 25,200 | 242,858 | |||||||||
WealthNavi, Inc. * | 11,200 | 105,231 | |||||||||
3,611,795 | |||||||||||
NEW ZEALAND — 0.5% | |||||||||||
Volpara Health Technologies Ltd. * | 144,415 | 72,152 | |||||||||
SOUTH KOREA — 3.9% | |||||||||||
Douzone Bizon Co., Ltd. | 4,964 | 117,095 | |||||||||
Koh Young Technology, Inc. | 22,226 | 261,794 | |||||||||
Park Systems Corp. | 1,053 | 150,942 | |||||||||
Wantedlab, Inc. * | 4,359 | 42,328 | |||||||||
572,159 | |||||||||||
SWEDEN — 11.1% | |||||||||||
AddTech AB, B Shares | 24,057 | 524,646 | |||||||||
Avanza Bank Holding AB | 21,614 | 440,452 | |||||||||
Cellavision AB | 1,790 | 30,471 | |||||||||
HMS Networks AB | 5,987 | 293,162 | |||||||||
Paradox Interactive AB | 7,233 | 182,546 | |||||||||
Storytel AB * | 5,732 | 17,729 | |||||||||
VNV Global AB * | 25,658 | 47,642 | |||||||||
Xvivo Perfusion AB * | 3,136 | 88,334 | |||||||||
1,624,982 |
The accompanying notes are an integral part of the financial statements.
134
Portfolio of Investments
Semi-Annual Report June 30, 2023
June 30, 2023 (unaudited)
Baillie Gifford International Smaller Companies Fund
Shares | Value | ||||||||||
SWITZERLAND — 4.9% | |||||||||||
Bossard Holding AG | 913 | $ | 202,977 | ||||||||
Sensirion Holding AG * | 3,415 | 374,005 | |||||||||
u-blox Holding AG | 1,299 | 142,584 | |||||||||
719,566 | |||||||||||
TAIWAN — 9.6% | |||||||||||
ASPEED Technology, Inc. | 3,100 | 285,525 | |||||||||
Chroma ATE, Inc. | 47,000 | 379,301 | |||||||||
Global Unichip Corp. | 13,000 | 672,857 | |||||||||
TCI Co., Ltd. | 13,148 | 75,072 | |||||||||
1,412,755 | |||||||||||
UNITED KINGDOM — 10.2% | |||||||||||
Alpha Group International PLC | 10,309 | 278,214 | |||||||||
Angle PLC * | 72,211 | 11,693 | |||||||||
dotdigital group PLC | 73,839 | 79,402 | |||||||||
FD Technologies PLC * | 7,495 | 182,750 | |||||||||
Games Workshop Group PLC | 2,458 | 341,090 | |||||||||
Molten Ventures PLC * | 15,369 | 52,154 | |||||||||
Naked Wines PLC * | 28,449 | 34,267 | |||||||||
Oxford Nanopore Technologies PLC * | 42,249 | 114,395 | |||||||||
Team17 Group PLC * | 22,496 | 102,852 | |||||||||
Trustpilot Group PLC * | 61,941 | 53,413 | |||||||||
Victoria PLC * | 33,146 | 247,942 | |||||||||
1,498,172 | |||||||||||
UNITED STATES — 1.2% | |||||||||||
Burford Capital Ltd. | 14,879 | 181,713 | |||||||||
TOTAL INVESTMENTS — 97.7% | |||||||||||
(cost $14,267,052) | $ | 14,370,298 | |||||||||
Other assets less liabilities — 2.3% | 343,970 | ||||||||||
NET ASSETS — 100.0% | $ | 14,714,268 |
* 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.
135
Portfolio of Investments
Semi-Annual Report June 30, 2023
June 30, 2023 (unaudited)
Baillie Gifford International Smaller Companies Fund
Fair Value Measurement
The following is a summary of the inputs used as of June 30, 2023 in valuing the Fund's investments carried at fair value:
Investments in Securities | Level 1 | Level 2 | Level 3 | Total | |||||||||||||||
Common Stocks ** | $ | 2,155,591 | $ | 12,214,707 | $ | — | $ | 14,370,298 | |||||||||||
Total | $ | 2,155,591 | $ | 12,214,707 | $ | — | $ | 14,370,298 |
** Refer to Portfolio of Investments for further detail.
The accompanying notes are an integral part of the financial statements.
136
Statement of Assets and Liabilities
Semi-Annual Report June 30, 2023
June 30, 2023 (unaudited)
Baillie Gifford International Smaller Companies Fund
ASSETS | |||||||
Investments, at value (cost $14,267,052) | $ | 14,370,298 | |||||
Cash | 419,278 | ||||||
Foreign cash, at value (cost $7) | 9 | ||||||
Tax reclaims receivable | 38,258 | ||||||
Due from Manager | 20,580 | ||||||
Dividends receivable | 10,550 | ||||||
Receivable for investments sold | 1,574 | ||||||
Prepaid assets | 14,785 | ||||||
Total Assets | 14,875,332 | ||||||
LIABILITIES | |||||||
Advisory fee payable | 43,040 | ||||||
Deferred India capital gains tax liability (Note A) | 26,804 | ||||||
Administration & Supervisory fee payable | 12,615 | ||||||
Payable for investment purchased | 6,345 | ||||||
Trustee fee payable | 414 | ||||||
Commitment fee payable | 126 | ||||||
Accrued expenses | 71,720 | ||||||
Total Liabilities | 161,064 | ||||||
NET ASSETS | $ | 14,714,268 | |||||
COMPOSITION OF NET ASSETS | |||||||
Paid-in capital | $ | 32,666,597 | |||||
Total accumulated (loss) | (17,952,329 | ) | |||||
$ | 14,714,268 | ||||||
NET ASSET VALUE, PER SHARE | |||||||
Class K ($17,575 / 1,389 shares outstanding), unlimited authorized, no par value | $ | 12.66 | |||||
Institutional Class ($14,696,693 / 1,162,656 shares outstanding), unlimited authorized, no par value | $ | 12.64 |
The accompanying notes are an integral part of the financial statements.
137
Statement of Operations
Semi-Annual Report June 30, 2023
For the Six Months Ended June 30, 2023 (unaudited)
Baillie Gifford International Smaller Companies Fund
INVESTMENT INCOME | |||||||
Dividends (net of foreign withholding taxes of $37,144) | $ | 223,719 | |||||
Interest | 16,198 | ||||||
Total Investment Income | 239,917 | ||||||
EXPENSES | |||||||
Advisory fee (Note B) | 98,354 | ||||||
Administration & Supervisory fee — Institutional Class shares (Note B) | 11,755 | ||||||
Administration & Supervisory fee — Class K shares (Note B) | 17,072 | ||||||
Transfer agency | 22,023 | ||||||
Sub-transfer agency — Institutional Class shares | 5,772 | ||||||
Fund accounting | 58,018 | ||||||
Registration fees | 20,340 | ||||||
Professional fees | 19,183 | ||||||
Custody | 10,636 | ||||||
Legal | 5,333 | ||||||
Trustees' fees | 911 | ||||||
Commitment fees | 278 | ||||||
Miscellaneous | 3,377 | ||||||
Total Expenses | 273,052 | ||||||
Fees waived/expenses reimbursed | (114,662 | ) | |||||
Total Expenses after Waiver | 158,390 | ||||||
Net Investment Income | 81,527 | ||||||
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 $16,325) | (8,619,658 | ) | |||||
Foreign currency transactions | 10,502 | ||||||
(8,609,156 | ) | ||||||
Net change in unrealized appreciation (depreciation) on: | |||||||
Investments (net of change in deferred India capital gains tax liability of $23,193) (Note A) | 12,380,257 | ||||||
Translation of net assets and liabilities denominated in foreign currencies | (3,129 | ) | |||||
12,377,128 | |||||||
Net realized and unrealized gain | 3,767,972 | ||||||
NET INCREASE IN NET ASSETS FROM OPERATIONS | $ | 3,849,499 |
The accompanying notes are an integral part of the financial statements.
138
Statements of Changes in Net Assets
Semi-Annual Report June 30, 2023
Baillie Gifford International Smaller Companies Fund
For the Six Months Ended June 30, 2023 (unaudited) | For the Year Ended December 31, 2022 | ||||||||||
INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS | |||||||||||
Net investment income | $ | 81,527 | $ | 80,742 | |||||||
Net realized (loss) | (8,609,156 | ) | (9,206,258 | ) | |||||||
Net change in unrealized appreciation (depreciation) | 12,377,128 | (13,846,066 | ) | ||||||||
Net Increase (Decrease) in Net Assets from Operations | 3,849,499 | (22,971,582 | ) | ||||||||
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS FROM: | |||||||||||
Distributable earnings | |||||||||||
Class K | — | (35,904 | ) | ||||||||
Institutional Class | — | (14,391 | ) | ||||||||
Total Distributions to Shareholders | — | (50,295 | ) | ||||||||
TRANSACTIONS IN SHARES OF BENEFICIAL INTEREST | |||||||||||
Net proceeds from shares subscribed: | |||||||||||
Class K | 1,568,800 | 1,526,400 | |||||||||
Institutional Class | 554,800 | 14,373,256 | |||||||||
Dividends reinvested: | |||||||||||
Class K | — | 35,491 | |||||||||
Institutional Class | — | 14,391 | |||||||||
Cost of shares redeemed: | |||||||||||
Class K | (26,754,378 | ) | (4,101,595 | ) | |||||||
Institutional Class | — | (10,217,456 | ) | ||||||||
Increase (Decrease) in Net Assets from Transactions in Shares of Beneficial Interest | (24,630,778 | ) | 1,630,487 | ||||||||
Total (Decrease) in Net Assets | (20,781,279 | ) | (21,391,390 | ) | |||||||
NET ASSETS | |||||||||||
Beginning of Period | 35,495,547 | 56,886,937 | |||||||||
End of Period | $ | 14,714,268 | $ | 35,495,547 |
The accompanying notes are an integral part of the financial statements.
139
Financial Highlights
Semi-Annual Report June 30, 2023
Baillie Gifford International Smaller Companies Fund
Selected data for a Class K share outstanding throughout each period:
For the Six Months Ended June 30, 2023 (unaudited) | For the Year Ended December 31, 2022 | For the Year Ended December 31, 2021 | 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 | $ | 11.26 | $ | 18.55 | $ | 17.49 | $ | 12.30 | $ | 9.95 | $ | 10.00 | |||||||||||||||
From Investment Operations | |||||||||||||||||||||||||||
Net investment income (loss)(b) | 0.03 | 0.03 | (0.06 | ) | (0.03 | ) | 0.01 | 0.01 | |||||||||||||||||||
Net realized and unrealized gain (loss) on investments and foreign currency | 1.37 | (7.30 | ) | 1.20 | 6.00 | 2.64 | (0.06 | ) | |||||||||||||||||||
Net increase (decrease) in net asset value from investment operations | 1.40 | (7.27 | ) | 1.14 | 5.97 | 2.65 | (0.05 | ) | |||||||||||||||||||
Dividends and Distributions to Shareholders | |||||||||||||||||||||||||||
From net investment income | — | (0.02 | ) | (0.01 | ) | — | (0.11 | ) | — | ||||||||||||||||||
From net realized gain on investments | — | — | (0.07 | ) | (0.78 | ) | (0.19 | ) | — | ||||||||||||||||||
Total dividends and distributions | — | (0.02 | ) | (0.08 | ) | (0.78 | ) | (0.30 | ) | — | |||||||||||||||||
Net asset value, end of period | $ | 12.66 | $ | 11.26 | $ | 18.55 | $ | 17.49 | $ | 12.30 | $ | 9.95 | |||||||||||||||
Total Return | |||||||||||||||||||||||||||
Total return based on net asset value(c) | 12.43 | % | (39.20 | )% | 6.49 | % | 48.61 | % | 26.58 | % | (0.50 | )% | |||||||||||||||
Ratios/Supplemental Data | |||||||||||||||||||||||||||
Net assets, end of period (000's omitted) | $ | 17 | $ | 22,910 | $ | 41,517 | $ | 936 | $ | 630 | $ | 497 | |||||||||||||||
Ratio of net expenses to average net assets, before waiver | 1.58 | %* | 1.55 | % | 1.84 | % | 17.20 | % | 15.15 | % | 95.80 | %* | |||||||||||||||
Ratio of net expenses to average net assets, after waiver | 0.90 | %* | 0.90 | % | 0.90 | % | 0.90 | % | 0.90 | % | 0.90 | %* | |||||||||||||||
Ratio of net investment income (loss) to average net assets | 0.43 | %* | 0.23 | % | (0.31 | )% | (0.23 | )% | 0.13 | % | 1.85 | %* | |||||||||||||||
Portfolio turnover rate(d) | 12 | % | 44 | % | 16 | % | 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. Portfolio turnover is not annualized for periods less than one year.
The accompanying notes are an integral part of the financial statements.
140
Financial Highlights
Semi-Annual Report June 30, 2023
Baillie Gifford International Smaller Companies Fund
Selected data for an Institutional Class share outstanding throughout each period:
For the Six Months Ended June 30, 2023 (unaudited) | For the Year Ended December 31, 2022 | For the Year Ended December 31, 2021 | 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 | $ | 11.25 | $ | 18.55 | $ | 17.49 | $ | 12.30 | $ | 9.95 | $ | 10.00 | |||||||||||||||
From Investment Operations | |||||||||||||||||||||||||||
Net investment income (loss)(b) | 0.03 | 0.02 | (0.06 | ) | (0.03 | ) | 0.01 | 0.01 | |||||||||||||||||||
Net realized and unrealized gain (loss) on investments and foreign currency | 1.36 | (7.31 | ) | 1.20 | 6.00 | 2.64 | (0.06 | ) | |||||||||||||||||||
Net increase (decrease) in net asset value from investment operations | 1.39 | (7.29 | ) | 1.14 | 5.97 | 2.65 | (0.05 | ) | |||||||||||||||||||
Dividends and Distributions to Shareholders | |||||||||||||||||||||||||||
From net investment income | — | (0.01 | ) | (0.01 | ) | — | (0.11 | ) | — | ||||||||||||||||||
From net realized gain on investments | — | — | (0.07 | ) | (0.78 | ) | (0.19 | ) | — | ||||||||||||||||||
Return of capital | — | — | — | — | — | — | |||||||||||||||||||||
Total dividends and distributions | — | (0.01 | ) | (0.08 | ) | (0.78 | ) | (0.30 | ) | — | |||||||||||||||||
Net asset value, end of period | $ | 12.64 | $ | 11.25 | $ | 18.55 | $ | 17.49 | $ | 12.30 | $ | 9.95 | |||||||||||||||
Total Return | |||||||||||||||||||||||||||
Total return based on net asset value(c) | 12.36 | % | (39.28 | )% | 6.48 | % | 48.61 | % | 26.58 | % | (0.50 | )% | |||||||||||||||
Ratios/Supplemental Data | |||||||||||||||||||||||||||
Net assets, end of period (000's omitted) | $ | 14,697 | $ | 12,586 | $ | 15,370 | $ | 936 | $ | 630 | $ | 498 | |||||||||||||||
Ratio of net expenses to average net assets, before waiver | 1.66 | %* | 1.65 | % | 1.91 | % | 17.20 | % | 15.15 | % | 95.80 | %* | |||||||||||||||
Ratio of net expenses to average net assets, after waiver | 0.98 | %* | 0.99 | % | 0.97 | % | 0.90 | % | 0.90 | % | 0.90 | %* | |||||||||||||||
Ratio of net investment income (loss) to average net assets | 0.55 | %* | 0.17 | % | (0.30 | )% | (0.23 | )% | 0.13 | % | 1.85 | %* | |||||||||||||||
Portfolio turnover rate(d) | 12 | % | 44 | % | 16 | % | 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. Portfolio turnover is not annualized for periods less than one year.
The accompanying notes are an integral part of the financial statements.
141
Industry Diversification Table
Semi-Annual Report June 30, 2023
June 30, 2023 (unaudited)
Baillie Gifford Long Term Global Growth Fund
Value | % of Total Net Assets | ||||||||||
Advertising | $ | 23,525,382 | 3.5 | % | |||||||
Aerospace/Defense | 7,582,284 | 1.1 | |||||||||
Apparel | 44,459,652 | 6.6 | |||||||||
Auto Manufacturers | 39,884,936 | 5.9 | |||||||||
Auto Parts & Equipment | 16,988,035 | 2.5 | |||||||||
Biotechnology | 60,958,730 | 9.1 | |||||||||
Commercial Services | 26,436,194 | 3.9 | |||||||||
Diversified Financial Services | 15,200,687 | 2.3 | |||||||||
Healthcare — Products | 23,594,886 | 3.5 | |||||||||
Healthcare — Services | 3,135,367 | 0.5 | |||||||||
Internet | 189,992,177 | 28.2 | |||||||||
Pharmaceuticals | 27,673,986 | 4.1 | |||||||||
Semiconductors | 101,610,506 | 15.1 | |||||||||
Software | 85,111,203 | 12.6 | |||||||||
Total Value of Investments | 666,154,025 | 98.9 | |||||||||
Other assets less liabilities | 7,212,775 | 1.1 | |||||||||
Net Assets | $ | 673,366,800 | 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.
142
Portfolio of Investments
Semi-Annual Report June 30, 2023
June 30, 2023 (unaudited)
Baillie Gifford Long Term Global Growth Fund
Shares | Value | ||||||||||
COMMON STOCKS — 98.9% | |||||||||||
BRAZIL — 2.0% | |||||||||||
MercadoLibre, Inc. * | 11,451 | $ | 13,564,855 | ||||||||
CANADA — 3.1% | |||||||||||
Shopify, Inc., Class A * | 328,029 | 21,190,673 | |||||||||
CHINA — 13.8% | |||||||||||
Alibaba Group Holding Ltd. * | 925,252 | 9,631,717 | |||||||||
BeiGene Ltd. ADR * | 55,847 | 9,957,520 | |||||||||
Contemporary Amperex Technology Co., Ltd., Class A | 537,660 | 16,988,036 | |||||||||
Meituan, Class B * | 1,221,290 | 19,150,947 | |||||||||
NIO, Inc. ADR * | 643,034 | 6,231,000 | |||||||||
PDD Holdings, Inc. ADR * | 317,366 | 21,942,685 | |||||||||
Tencent Holdings Ltd. | 214,900 | 9,112,013 | |||||||||
93,013,918 | |||||||||||
FRANCE — 6.6% | |||||||||||
Hermes International | 8,803 | 19,135,252 | |||||||||
Kering | 45,861 | 25,324,400 | |||||||||
44,459,652 | |||||||||||
GERMANY — 1.8% | |||||||||||
BioNTech SE ADR * | 110,331 | 11,908,025 | |||||||||
INDIA — 2.3% | |||||||||||
Housing Development Finance Corp., Ltd. | 440,596 | 15,200,687 | |||||||||
NETHERLANDS — 8.1% | |||||||||||
Adyen NV * | 13,882 | 24,039,012 | |||||||||
ASML Holding NV | 42,341 | 30,711,135 | |||||||||
54,750,147 | |||||||||||
SINGAPORE — 0.9% | |||||||||||
Sea Ltd. ADR * | 101,006 | 5,862,388 | |||||||||
SOUTH KOREA — 2.0% | |||||||||||
Coupang, Inc. * | 789,640 | 13,739,736 |
The accompanying notes are an integral part of the financial statements.
143
Portfolio of Investments
Semi-Annual Report June 30, 2023
June 30, 2023 (unaudited)
Baillie Gifford Long Term Global Growth Fund
Shares | Value | ||||||||||
UNITED STATES — 58.3% | |||||||||||
Advanced Micro Devices, Inc. * | 143,097 | $ | 16,300,179 | ||||||||
Affirm Holdings, Inc. * | 156,372 | 2,397,183 | |||||||||
Amazon.com, Inc. * | 297,800 | 38,821,208 | |||||||||
Atlassian Corp., Class A * | 123,635 | 20,747,189 | |||||||||
Cloudflare, Inc., Class A * | 281,910 | 18,428,457 | |||||||||
Datadog, Inc., Class A * | 73,897 | 7,269,987 | |||||||||
Dexcom, Inc. * | 215,345 | 27,673,986 | |||||||||
Ginkgo Bioworks Holdings, Inc. * | 1,685,681 | 3,135,367 | |||||||||
Illumina, Inc. * | 84,357 | 15,816,094 | |||||||||
Intuitive Surgical, Inc. * | 69,003 | 23,594,886 | |||||||||
Joby Aviation, Inc. * | 739,014 | 7,582,284 | |||||||||
Moderna, Inc. * | 191,581 | 23,277,091 | |||||||||
Netflix, Inc. * | 45,766 | 20,159,465 | |||||||||
NVIDIA Corp. | 129,070 | 54,599,191 | |||||||||
ROBLOX Corp., Class A * | 290,614 | 11,711,744 | |||||||||
Samsara, Inc., Class A * | 306,837 | 8,502,453 | |||||||||
Spotify Technology SA * | 104,743 | 16,816,489 | |||||||||
Tesla, Inc. * | 128,563 | 33,653,936 | |||||||||
Trade Desk, Inc. (The), Class A * | 304,654 | 23,525,382 | |||||||||
Workday, Inc., Class A * | 81,683 | 18,451,373 | |||||||||
392,463,944 | |||||||||||
TOTAL INVESTMENTS — 98.9% | |||||||||||
(cost $487,424,582) | $ | 666,154,025 | |||||||||
Other assets less liabilities — 1.1% | 7,212,775 | ||||||||||
NET ASSETS — 100.0% | $ | 673,366,800 |
* 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, 2023 in valuing the Fund's investments carried at fair value:
Investments in Securities | Level 1 | Level 2 | Level 3 | Total | |||||||||||||||
Common Stocks ** | $ | 496,860,826 | $ | 169,293,199 | $ | — | $ | 666,154,025 | |||||||||||
Total | $ | 496,860,826 | $ | 169,293,199 | $ | — | $ | 666,154,025 |
** Refer to Portfolio of Investments for further detail.
The accompanying notes are an integral part of the financial statements.
144
Statement of Assets and Liabilities
Semi-Annual Report June 30, 2023
June 30, 2023 (unaudited)
Baillie Gifford Long Term Global Growth Fund
ASSETS | |||||||
Investments, at value (cost $487,424,582) | $ | 666,154,025 | |||||
Cash | 9,352,007 | ||||||
Capital shares sold receivable | 96,231 | ||||||
Tax reclaims receivable | 202,057 | ||||||
Prepaid assets | 18,248 | ||||||
Total Assets | 675,822,568 | ||||||
LIABILITIES | |||||||
Advisory fee payable | 706,767 | ||||||
Payable for investment purchased | 1,269,127 | ||||||
Administration & Supervisory fee payable | 216,062 | ||||||
Capital shares purchased payable | 11,612 | ||||||
Deferred India capital gains tax liability (Note A) | 55,657 | ||||||
Shareholder Servicing fee payable | 39,008 | ||||||
Trustee fee payable | 6,949 | ||||||
Commitment fee payable | 2,129 | ||||||
Accrued expenses | 148,457 | ||||||
Total Liabilities | 2,455,768 | ||||||
NET ASSETS | $ | 673,366,800 | |||||
COMPOSITION OF NET ASSETS | |||||||
Paid-in capital | $ | 711,520,077 | |||||
Total accumulated (loss) | (38,153,277 | ) | |||||
$ | 673,366,800 | ||||||
NET ASSET VALUE, PER SHARE | |||||||
Class 2 ($77,678,460 / 3,116,399 shares outstanding), unlimited authorized, no par value | $ | 24.93 | |||||
Class 4 ($51,394,377 / 1,774,513 shares outstanding), unlimited authorized, no par value | $ | 28.96 | |||||
Class K ($304,326,131 / 12,203,480 shares outstanding), unlimited authorized, no par value | $ | 24.94 | |||||
Institutional Class ($239,967,832 / 9,670,150 shares outstanding), unlimited authorized, no par value | $ | 24.82 |
The accompanying notes are an integral part of the financial statements.
145
Statement of Operations
Semi-Annual Report June 30, 2023
For the Six Months Ended June 30, 2023 (unaudited)
Baillie Gifford Long Term Global Growth Fund
INVESTMENT INCOME | |||||||
Dividends (net of foreign withholding taxes of $238,635) | $ | 1,171,092 | |||||
Non-cash income | 974,144 | ||||||
Interest | 132,476 | ||||||
Total Investment Income | 2,277,712 | ||||||
EXPENSES | |||||||
Advisory fee (Note B) | 1,358,470 | ||||||
Shareholder Servicing fees — Class 2 shares (Note B) | 59,108 | ||||||
Shareholder Servicing fees — Class 4 shares (Note B) | 16,099 | ||||||
Shareholder Servicing fees — Class K shares (Note B) | 233,845 | ||||||
Administration & Supervisory fee — Institutional Class shares (Note B) | 181,150 | ||||||
Transfer agency | 57,633 | ||||||
Sub-transfer agency — Institutional Class shares | 104,647 | ||||||
Legal | 60,440 | ||||||
Fund accounting | 57,939 | ||||||
Custody | 28,994 | ||||||
Registration fees | 23,873 | ||||||
Professional fees | 18,049 | ||||||
Trustees' fees | 13,856 | ||||||
Commitment fees | 4,226 | ||||||
Miscellaneous | 25,672 | ||||||
Total Expenses | 2,244,001 | ||||||
Net Investment Income | 33,711 | ||||||
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS AND FOREIGN CURRENCY TRANSACTIONS | |||||||
Net realized (loss) from: | |||||||
Investments | (21,598,292 | ) | |||||
Foreign currency transactions | (416 | ) | |||||
(21,598,708 | ) | ||||||
Net change in unrealized appreciation on: | |||||||
Investments (net of change in deferred India capital gains tax liability of $55,657) (Note A) | 168,678,116 | ||||||
Translation of net assets and liabilities denominated in foreign currencies | 7,393 | ||||||
168,685,509 | |||||||
Net realized and unrealized gain | 147,086,801 | ||||||
NET INCREASE IN NET ASSETS FROM OPERATIONS | $ | 147,120,512 |
The accompanying notes are an integral part of the financial statements.
146
Statements of Changes in Net Assets
Semi-Annual Report June 30, 2023
Baillie Gifford Long Term Global Growth Fund
For the Six Months Ended June 30, 2023 (unaudited) | For the Year Ended December 31, 2022 | ||||||||||
INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS | |||||||||||
Net investment income (loss) | $ | 33,711 | $ | (2,528,428 | ) | ||||||
Net realized (loss) | (21,598,708 | ) | (189,489,586 | ) | |||||||
Net change in unrealized appreciation (depreciation) | 168,685,509 | (336,220,659 | ) | ||||||||
Net Increase (Decrease) in Net Assets from Operations | 147,120,512 | (528,238,673 | ) | ||||||||
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS FROM: | |||||||||||
Distributable earnings | |||||||||||
Class 2 | — | (2,238,949 | ) | ||||||||
Class 4 | — | (1,281,675 | ) | ||||||||
Class K | — | (8,926,777 | ) | ||||||||
Institutional Class | — | (6,589,232 | ) | ||||||||
Total Distributions to Shareholders | — | (19,036,633 | ) | ||||||||
TRANSACTIONS IN SHARES OF BENEFICIAL INTEREST | |||||||||||
Net proceeds from shares subscribed: | |||||||||||
Class 2 | 3,000 | 6,000 | |||||||||
Class 4 | — | 53,862,692 | |||||||||
Class K | 2,248,977 | 48,885,953 | |||||||||
Institutional Class | 35,203,969 | 222,264,057 | |||||||||
Dividends reinvested: | |||||||||||
Class 2 | — | 2,238,949 | |||||||||
Class 4 | — | 1,281,675 | |||||||||
Class K | — | 8,277,694 | |||||||||
Institutional Class | — | 6,561,366 | |||||||||
Cost of shares redeemed: | |||||||||||
Class 2 | — | (7,000,000 | ) | ||||||||
Class 5 | — | (74,362,692 | ) | ||||||||
Class K | (6,173,809 | ) | (36,691,886 | ) | |||||||
Institutional Class | (22,716,710 | ) | (340,255,603 | ) | |||||||
Increase (Decrease) in Net Assets from Transactions in Shares of Beneficial Interest | 8,565,427 | (114,931,795 | ) | ||||||||
Total Increase (Decrease) in Net Assets | 155,685,939 | (662,207,101 | ) | ||||||||
NET ASSETS | |||||||||||
Beginning of Period | 517,680,861 | 1,179,887,962 | |||||||||
End of Period | $ | 673,366,800 | $ | 517,680,861 |
The accompanying notes are an integral part of the financial statements.
147
Financial Highlights
Semi-Annual Report June 30, 2023
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, 2023 (unaudited) | For the Year Ended December 31, 2022 | For the Year Ended December 31, 2021 | For the Year Ended December 31, 2020 | For the Year Ended December 31, 2019 | For the Year Ended December 31, 2018 | ||||||||||||||||||||||
Net asset value, beginning of period | $ | 19.45 | $ | 37.47 | $ | 38.45 | $ | 20.68 | $ | 15.51 | $ | 17.33 | |||||||||||||||
From Investment Operations | |||||||||||||||||||||||||||
Net investment income (loss)(a) | 0.00 | (b) | (0.08 | ) | (0.25 | ) | (0.17 | ) | (0.07 | ) | (0.04 | ) | |||||||||||||||
Net realized and unrealized gain (loss) on investments and foreign currency | 5.48 | (17.19 | ) | 1.20 | 21.17 | 5.27 | (0.22 | ) | |||||||||||||||||||
Net increase (decrease) in net asset value from investment operations | 5.48 | 17.27 | 0.95 | 21.00 | 5.20 | (0.26 | ) | ||||||||||||||||||||
Dividends and Distributions to Shareholders | |||||||||||||||||||||||||||
From net realized gain on investments | — | (0.75 | ) | (1.93 | ) | (3.23 | ) | (0.03 | ) | (1.56 | ) | ||||||||||||||||
Total dividends and distributions | — | (0.75 | ) | (1.93 | ) | (3.23 | ) | (0.03 | ) | (1.56 | ) | ||||||||||||||||
Net asset value, end of period | $ | 24.93 | $ | 19.45 | $ | 37.47 | $ | 38.45 | $ | 20.68 | $ | 15.51 | |||||||||||||||
Total Return | |||||||||||||||||||||||||||
Total return based on net asset value(c) | 28.13 | % | (46.04 | )% | 2.50 | % | 101.77 | % | 33.49 | % | (1.42 | )% | |||||||||||||||
Ratios/Supplemental Data | |||||||||||||||||||||||||||
Net assets, end of period (000's omitted) | $ | 77,678 | $ | 60,624 | $ | 121,252 | $ | 131,695 | $ | 72,023 | $ | 54,661 | |||||||||||||||
Ratio of net expenses to average net assets | 0.72 | %* | 0.73 | % | 0.70 | % | 0.71 | % | 0.76 | % | 0.79 | % | |||||||||||||||
Ratio of net investment income (loss) to average net assets | 0.04 | %*(d) | (0.33 | )% | (0.60 | )% | (0.58 | )% | (0.40 | )% | (0.22 | )% | |||||||||||||||
Portfolio turnover rate(e) | 8 | % | 28 | % | 16 | % | 40 | % | 5 | % | 16 | % |
* 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) Ratio includes taxable stock dividends that were treated as income.
(e) Portfolio turnover rate calculated at Fund level. Portfolio turnover is not annualized for periods less than one year.
The accompanying notes are an integral part of the financial statements.
148
Financial Highlights
Semi-Annual Report June 30, 2023
Baillie Gifford Long Term Global Growth Fund
Selected data for a Class 4 share outstanding throughout each period:
For the Six Months Ended June 30, 2023 (unaudited) | For the Period April 13, 2022(a) through December 31, 2022 | For the Period January 1, 2020 through July 13, 2020 | For the Period April 10, 2019(b) through December 31, 2019 | For the Period January 1, 2018 through April 9, 2018 | For the Year Ended December 31, 2017 | ||||||||||||||||||||||
Net asset value, beginning of period | $ | 22.59 | $ | 31.38 | $ | 24.24 | $ | 21.80 | $ | 19.99 | $ | 12.96 | |||||||||||||||
From Investment Operations | |||||||||||||||||||||||||||
Net investment income (loss)(c) | 0.02 | (0.06 | ) | (0.05 | ) | (0.04 | ) | (0.03 | ) | (0.07 | ) | ||||||||||||||||
Net realized and unrealized gain (loss) on investments and foreign currency | 6.35 | (7.98 | ) | 9.71 | 2.51 | 1.11 | 7.10 | ||||||||||||||||||||
Net increase (decrease) in net asset value from investment operations | 6.37 | (8.04 | ) | 9.66 | 2.47 | 1.08 | 7.03 | ||||||||||||||||||||
Dividends and Distributions to Shareholders | |||||||||||||||||||||||||||
From net realized gain on investments | — | (0.75 | ) | — | (0.03 | ) | — | — | |||||||||||||||||||
Total dividends and distributions | — | (0.75 | ) | — | (0.03 | ) | — | — | |||||||||||||||||||
Proceeds from Purchase Fees and Redemption Fees(c) | — | — | — | — | — | 0.00 | (d) | ||||||||||||||||||||
Net asset value, end of period | $ | 28.96 | $ | 22.59 | $ | 33.90 | $ | 24.24 | $ | 21.07 | $ | 19.99 | |||||||||||||||
Total Return | |||||||||||||||||||||||||||
Total return based on net asset value(e) | 28.19 | % | (25.57 | )% | 39.84 | % | 11.34 | % | 5.41 | % | 54.22 | % | |||||||||||||||
Ratios/Supplemental Data | |||||||||||||||||||||||||||
Net assets, end of period (000's omitted) | $ | 51,394 | $ | 40,092 | $ | — | $ | 74,808 | $ | — | $ | 58,802 | |||||||||||||||
Ratio of net expenses to average net assets, before waiver | 0.62 | %* | 0.65 | %* | 0.63 | %* | 0.66 | %* | 0.67 | %* | 0.72 | % | |||||||||||||||
Ratio of net expenses to average net assets, after waiver | 0.62 | %* | 0.65 | %* | 0.63 | %* | 0.66 | %* | 0.67 | %* | 0.67 | % | |||||||||||||||
Ratio of net investment income (loss) to average net assets | 0.14 | %*(f) | (0.34 | )%* | (0.38 | )%* | (0.27 | )%* | 0.15 | %* | (0.41 | )% | |||||||||||||||
Portfolio turnover rate(g) | 8 | % | 28 | % | 40 | % | 5 | % | 16 | % | 13 | % |
* Annualized.
(a) Recommencement of investment operations. Class had no shareholders from July 13, 2020 to April 12, 2022. All shares of this class were redeemed at $33.90 on July 13, 2020. New shares were issued at $31.38 on April 13, 2022.
(b) Recommencement of investment operations. Class had no shareholders from April 9, 2018 to April 9, 2019. All shares of this class were redeemed at $21.07 on April 9, 2018. New shares were issued at $21.80 on April 10, 2019.
(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) Ratio includes taxable stock dividends that were treated as income.
(g) Portfolio turnover rate calculated at Fund level. Portfolio turnover is not annualized for periods less than one year.
The accompanying notes are an integral part of the financial statements.
149
Financial Highlights
Semi-Annual Report June 30, 2023
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, 2023 (unaudited) | For the Year Ended December 31, 2022 | For the Year Ended December 31, 2021 | For the Year Ended December 31, 2020 | For the Year Ended December 31, 2019 | For the Year Ended December 31, 2018 | ||||||||||||||||||||||
Net asset value, beginning of period | $ | 19.46 | $ | 37.48 | $ | 38.47 | $ | 20.69 | $ | 15.52 | $ | 17.34 | |||||||||||||||
From Investment Operations | |||||||||||||||||||||||||||
Net investment income (loss)(a) | 0.00 | (b) | (0.08 | ) | (0.25 | ) | (0.17 | ) | (0.07 | ) | (0.04 | ) | |||||||||||||||
Net realized and unrealized gain (loss) on investments and foreign currency | 5.48 | (17.19 | ) | 1.19 | 21.18 | 5.27 | (0.22 | ) | |||||||||||||||||||
Net increase (decrease) in net asset value from investment operations | 5.48 | (17.27 | ) | 0.94 | 21.01 | 5.20 | (0.26 | ) | |||||||||||||||||||
Dividends and Distributions to Shareholders | |||||||||||||||||||||||||||
From net realized gain on investments | — | (0.75 | ) | (1.93 | ) | (3.23 | ) | (0.03 | ) | (1.56 | ) | ||||||||||||||||
Total dividends and distributions | — | (0.75 | ) | (1.93 | ) | (3.23 | ) | (0.03 | ) | (1.56 | ) | ||||||||||||||||
Net asset value, end of period | $ | 24.94 | $ | 19.46 | $ | 37.48 | $ | 38.47 | $ | 20.69 | $ | 15.52 | |||||||||||||||
Total Return | |||||||||||||||||||||||||||
Total return based on net asset value(c) | 28.16 | % | (46.04 | )% | 2.48 | % | 101.76 | % | 33.50 | % | (1.41 | )% | |||||||||||||||
Ratios/Supplemental Data | |||||||||||||||||||||||||||
Net assets, end of period (000's omitted) | $ | 304,326 | $ | 240,856 | $ | 432,975 | $ | 221,188 | $ | 136,096 | $ | 75,402 | |||||||||||||||
Ratio of net expenses to average net assets, before waiver | 0.72 | %* | 0.73 | % | 0.70 | % | 0.71 | % | 0.76 | % | 0.79 | % | |||||||||||||||
Ratio of net expenses to average net assets, after waiver | 0.72 | %* | 0.73 | % | 0.70 | % | 0.71 | % | 0.76 | % | 0.77 | % | |||||||||||||||
Ratio of net investment income (loss) to average net assets | 0.04 | %*(d) | (0.34 | )% | (0.61 | )% | (0.57 | )% | (0.41 | )% | (0.23 | )% | |||||||||||||||
Portfolio turnover rate(e) | 8 | % | 28 | % | 16 | % | 40 | % | 5 | % | 16 | % |
* 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) Ratio includes taxable stock dividends that were treated as income.
(e) Portfolio turnover rate calculated at Fund level. Portfolio turnover is not annualized for periods less than one year.
The accompanying notes are an integral part of the financial statements.
150
Financial Highlights
Semi-Annual Report June 30, 2023
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, 2023 (unaudited) | For the Year Ended December 31, 2022 | For the Year Ended December 31, 2021 | For the Year Ended December 31, 2020 | For the Year Ended December 31, 2019 | For the Year Ended December 31, 2018 | ||||||||||||||||||||||
Net asset value, beginning of period | $ | 19.38 | $ | 37.36 | $ | 38.38 | $ | 20.66 | $ | 15.51 | $ | 17.34 | |||||||||||||||
From Investment Operations | |||||||||||||||||||||||||||
Net investment (loss)(a) | (0.01 | ) | (0.10 | ) | (0.29 | ) | (0.22 | ) | (0.10 | ) | (0.19 | ) | |||||||||||||||
Net realized and unrealized gain (loss) on investments and foreign currency | 5.45 | (17.13 | ) | 1.20 | 21.17 | 5.28 | (0.08 | ) | |||||||||||||||||||
Net increase (decrease) in net asset value from investment operations | 5.44 | (17.23 | ) | 0.91 | 20.95 | 5.18 | (0.27 | ) | |||||||||||||||||||
Dividends and Distributions to Shareholders | |||||||||||||||||||||||||||
From net realized gain on investments | — | (0.75 | ) | (1.93 | ) | (3.23 | ) | (0.03 | ) | (1.56 | ) | ||||||||||||||||
Total dividends and distributions | — | (0.75 | ) | (1.93 | ) | (3.23 | ) | (0.03 | ) | (1.56 | ) | ||||||||||||||||
Net asset value, end of period | $ | 24.82 | $ | 19.38 | $ | 37.36 | $ | 38.38 | $ | 20.66 | $ | 15.51 | |||||||||||||||
Total Return | |||||||||||||||||||||||||||
Total return based on net asset value(b) | 28.02 | % | (46.08 | )% | 2.40 | % | 101.61 | % | 33.40 | % | (1.47 | )% | |||||||||||||||
Ratios/Supplemental Data | |||||||||||||||||||||||||||
Net assets, end of period (000's omitted) | $ | 239,968 | $ | 176,109 | $ | 525,321 | $ | 350,860 | $ | 57,009 | $ | 356 | |||||||||||||||
Ratio of net expenses to average net assets, before waiver | 0.81 | %* | 0.84 | % | 0.80 | % | 0.79 | % | 0.86 | % | 0.88 | % | |||||||||||||||
Ratio of net expenses to average net assets, after waiver | 0.81 | %* | 0.84 | % | 0.80 | % | 0.79 | % | 0.86 | % | 0.87 | % | |||||||||||||||
Ratio of net investment (loss) to average net assets | (0.07 | )%*(c) | (0.42 | )% | (0.71 | )% | (0.68 | )% | (0.53 | )% | (0.91 | )% | |||||||||||||||
Portfolio turnover rate(d) | 8 | % | 28 | % | 16 | % | 40 | % | 5 | % | 16 | % |
* Annualized.
(a) Calculated based upon average shares outstanding during the period.
(b) Total investment return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all dividends and distributions, if any, at net asset value during the period, and redemption on the last day of the period. Total return is not annualized for periods less than one year.
(c) Ratio includes taxable stock dividends that were treated as income.
(d) Portfolio turnover rate calculated at Fund level. Portfolio turnover is not annualized for periods less than one year.
The accompanying notes are an integral part of the financial statements.
151
Industry Diversification Table
Semi-Annual Report June 30, 2023
June 30, 2023 (unaudited)
Baillie Gifford U.S. Discovery Fund
Value | % of Total Net Assets | ||||||||||
Aerospace/Defense | $ | 93,995 | 3.6 | % | |||||||
Biotechnology | 156,454 | 6.0 | |||||||||
Chemicals | 15,848 | 0.6 | |||||||||
Commercial Services | 139,284 | 5.3 | |||||||||
Computers | 158,483 | 6.0 | |||||||||
Diversified Financial Services | 10,480 | 0.4 | |||||||||
Electrical Components & Equipment | 96,284 | 3.7 | |||||||||
Healthcare — Products | 457,305 | 17.4 | |||||||||
Healthcare — Services | 29,666 | 1.1 | |||||||||
Insurance | 24,147 | 0.9 | |||||||||
Internet | 142,298 | 5.4 | |||||||||
Miscellaneous Manufacturing | 108,292 | 4.1 | |||||||||
Pharmaceuticals | 58,102 | 2.2 | |||||||||
Real Estate | 18,531 | 0.7 | |||||||||
Retail | 58,505 | 2.2 | |||||||||
Semiconductors | 215,631 | 8.2 | |||||||||
Software | 739,132 | 28.2 | |||||||||
Telecommunications | 42,573 | 1.6 | |||||||||
Total Value of Investments | 2,565,010 | 97.6 | |||||||||
Other assets less liabilities | 61,944 | 2.4 | |||||||||
Net Assets | $ | 2,626,954 | 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.
152
Portfolio of Investments
Semi-Annual Report June 30, 2023
June 30, 2023 (unaudited)
Baillie Gifford U.S. Discovery Fund
Shares | Value | ||||||||||
COMMON STOCKS — 97.6% | |||||||||||
ISRAEL — 2.5% | |||||||||||
JFrog Ltd. * | 2,372 | $ | 65,704 | ||||||||
UNITED STATES — 95.1% | |||||||||||
Adaptimmune Therapeutics PLC ADR * | 8,657 | 8,008 | |||||||||
AeroVironment, Inc. * | 919 | 93,995 | |||||||||
Ambarella, Inc. * | 904 | 75,638 | |||||||||
American Well Corp., Class A * | 6,844 | 14,372 | |||||||||
Appian Corp., Class A * | 1,391 | 66,212 | |||||||||
Axon Enterprise, Inc. * | 555 | 108,292 | |||||||||
Bandwidth, Inc., Class A * | 1,966 | 26,895 | |||||||||
BlackLine, Inc. * | 1,124 | 60,494 | |||||||||
Calix, Inc. * | 853 | 42,573 | |||||||||
Cardlytics, Inc. * | 2,501 | 15,806 | |||||||||
Cargurus, Inc. * | 2,114 | 47,840 | |||||||||
CEVA, Inc. * | 944 | 24,119 | |||||||||
Chegg, Inc. * | 1,519 | 13,489 | |||||||||
Codexis, Inc. * | 5,660 | 15,848 | |||||||||
CS Disco, Inc. * | 2,424 | 19,925 | |||||||||
CyberArk Software Ltd. * | 513 | 80,197 | |||||||||
Denali Therapeutics, Inc. * | 862 | 25,438 | |||||||||
Digimarc Corp. * | 1,331 | 39,185 | |||||||||
Doximity, Inc., Class A * | 1,789 | 60,862 | |||||||||
Everbridge, Inc. * | 991 | 26,658 | |||||||||
EverQuote, Inc., Class A * | 4,057 | 26,371 | |||||||||
Exact Sciences Corp. * | 1,086 | 101,975 | |||||||||
Expensify, Inc., Class A * | 2,767 | 22,081 | |||||||||
Fiverr International Ltd. * | 1,176 | 30,588 | |||||||||
Freshpet, Inc. * | 889 | 58,505 | |||||||||
HashiCorp, Inc., Class A * | 2,193 | 57,413 | |||||||||
IPG Photonics Corp. * | 475 | 64,514 | |||||||||
LendingTree, Inc. * | 474 | 10,480 | |||||||||
LiveRamp Holdings, Inc. * | 2,585 | 73,828 | |||||||||
Novanta, Inc. * | 523 | 96,284 | |||||||||
Novocure Ltd. * | 1,344 | 55,776 | |||||||||
Pacira BioSciences, Inc. * | 1,450 | 58,101 | |||||||||
PhenomeX, Inc. * | 2,009 | 984 | |||||||||
Precision BioSciences, Inc. * | 4,062 | 2,137 |
The accompanying notes are an integral part of the financial statements.
153
Portfolio of Investments
Semi-Annual Report June 30, 2023
June 30, 2023 (unaudited)
Baillie Gifford U.S. Discovery Fund
Shares | Value | ||||||||||
Progyny, Inc. * | 1,321 | $ | 51,968 | ||||||||
Quanterix Corp. * | 2,072 | 46,724 | |||||||||
Redfin Corp. * | 1,492 | 18,531 | |||||||||
Schrodinger, Inc. * | 2,112 | 105,431 | |||||||||
Shockwave Medical, Inc. * | 168 | 47,949 | |||||||||
Sprout Social, Inc., Class A * | 1,585 | 73,164 | |||||||||
STAAR Surgical Co. * | 1,085 | 57,038 | |||||||||
Stratasys Ltd. * | 1,773 | 31,488 | |||||||||
Sutro Biopharma, Inc. * | 4,968 | 23,101 | |||||||||
Tabula Rasa HealthCare, Inc. * | 2,080 | 17,160 | |||||||||
Tandem Diabetes Care, Inc. * | 751 | 18,430 | |||||||||
Teladoc Health, Inc. * | 604 | 15,293 | |||||||||
TransMedics Group, Inc. * | 1,541 | 129,413 | |||||||||
Trupanion, Inc. * | 1,227 | 24,147 | |||||||||
Twist Bioscience Corp. * | 2,192 | 44,848 | |||||||||
Upwork, Inc. * | 4,015 | 37,500 | |||||||||
Varonis Systems, Inc. * | 1,756 | 46,797 | |||||||||
Veeco Instruments, Inc. * | 2,000 | 51,360 | |||||||||
Xencor, Inc. * | 2,080 | 51,938 | |||||||||
Zuora, Inc., Class A * | 7,488 | 82,143 | |||||||||
2,499,306 | |||||||||||
TOTAL INVESTMENTS — 97.6% | |||||||||||
(cost $2,977,912) | $ | 2,565,010 | |||||||||
Other assets less liabilities — 2.4% | 61,944 | ||||||||||
NET ASSETS — 100.0% | $ | 2,626,954 |
* 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, 2023 in valuing the Fund's investments carried at fair value:
Investments in Securities | Level 1 | Level 2 | Level 3 | Total | |||||||||||||||
Common Stocks ** | $ | 2,565,010 | $ | — | $ | — | $ | 2,565,010 | |||||||||||
Total | $ | 2,565,010 | $ | — | $ | — | $ | 2,565,010 |
** Refer to Portfolio of Investments for further detail.
The accompanying notes are an integral part of the financial statements.
154
Statement of Assets and Liabilities
Semi-Annual Report June 30, 2023
June 30, 2023 (unaudited)
Baillie Gifford U.S. Discovery Fund
ASSETS | |||||||
Investments, at value (cost $2,977,912) | $ | 2,565,010 | |||||
Cash | 85,414 | ||||||
Due from Manager | 16,262 | ||||||
Prepaid assets | 22,003 | ||||||
Total Assets | 2,688,689 | ||||||
LIABILITIES | |||||||
Advisory fee payable | 3,133 | ||||||
Administration & Supervisory fee payable | 1,065 | ||||||
Trustee fee payable | 35 | ||||||
Commitment fee payable | 11 | ||||||
Accrued expenses | 57,491 | ||||||
Total Liabilities | 61,735 | ||||||
NET ASSETS | $ | 2,626,954 | |||||
COMPOSITION OF NET ASSETS | |||||||
Paid-in capital | $ | 4,068,545 | |||||
Total accumulated (loss) | (1,441,591 | ) | |||||
$ | 2,626,954 | ||||||
NET ASSET VALUE, PER SHARE | |||||||
Class K ($2,370,816 / 463,560 shares outstanding), unlimited authorized, no par value | $ | 5.11 | |||||
Institutional Class ($256,138 / 50,109 shares outstanding), unlimited authorized, no par value | $ | 5.11 |
The accompanying notes are an integral part of the financial statements.
155
Statement of Operations
Semi-Annual Report June 30, 2023
For the Six Months Ended June 30, 2023 (unaudited)
Baillie Gifford U.S. Discovery Fund
INVESTMENT INCOME | |||||||
Interest | $ | 765 | |||||
Total Investment Income | 765 | ||||||
EXPENSES | |||||||
Advisory fee (Note B) | 6,603 | ||||||
Administration & Supervisory fee — Class K shares (Note B) | 2,034 | ||||||
Administration & Supervisory fee — Institutional Class shares (Note B) | 211 | ||||||
Transfer agency | 18,718 | ||||||
Fund accounting | 47,140 | ||||||
Registration fees | 17,664 | ||||||
Professional fees | 13,184 | ||||||
Custody | 1,208 | ||||||
Legal | 284 | ||||||
Line of credit interest | 74 | ||||||
Trustees' fees | 65 | ||||||
Commitment fees | 20 | ||||||
Miscellaneous | 2,256 | ||||||
Total Expenses | 109,461 | ||||||
Fees waived/expenses reimbursed | (98,631 | ) | |||||
Total Expenses after Waiver | 10,830 | ||||||
Net Investment (Loss) | (10,065 | ) | |||||
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS | |||||||
Net realized (loss) from: | |||||||
Investments | (115,198 | ) | |||||
(115,198 | ) | ||||||
Net change in unrealized appreciation on: | |||||||
Investments | 412,306 | ||||||
412,306 | |||||||
Net realized and unrealized gain | 297,108 | ||||||
NET INCREASE IN NET ASSETS FROM OPERATIONS | $ | 287,043 |
The accompanying notes are an integral part of the financial statements.
156
Statements of Changes in Net Assets
Semi-Annual Report June 30, 2023
Baillie Gifford U.S. Discovery Fund
For the Six Months Ended June 30, 2023 (unaudited) | For the Year Ended December 31, 2022 | ||||||||||
INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS | |||||||||||
Net investment (loss) | $ | (10,065 | ) | $ | (21,574 | ) | |||||
Net realized (loss) | (115,198 | ) | (896,106 | ) | |||||||
Net change in unrealized appreciation (depreciation) | 412,306 | (583,200 | ) | ||||||||
Net Increase (Decrease) in Net Assets from Operations | 287,043 | (1,500,880 | ) | ||||||||
TRANSACTIONS IN SHARES OF BENEFICIAL INTEREST | |||||||||||
Net proceeds from shares subscribed: | |||||||||||
Class K | — | 4,455,000 | |||||||||
Dividends reinvested: | |||||||||||
Class K | — | — | |||||||||
Cost of shares redeemed: | |||||||||||
Class K | (500,000 | ) | (1,642,910 | ) | |||||||
Increase (Decrease) in Net Assets from Transactions in Shares of Beneficial Interest | (500,000 | ) | 2,812,090 | ||||||||
Total Increase (Decrease) in Net Assets | (212,957 | ) | 1,311,210 | ||||||||
NET ASSETS | |||||||||||
Beginning of Period | 2,839,911 | 1,528,701 | |||||||||
End of Period | $ | 2,626,954 | $ | 2,839,911 |
The accompanying notes are an integral part of the financial statements.
157
Financial Highlights
Semi-Annual Report June 30, 2023
Baillie Gifford U.S. Discovery Fund
Selected data for a Class K share outstanding throughout each period:
For the Six Months Ended June 30, 2023 (unaudited) | For the Year Ended December 31, 2022 | For the Period May 5, 2021(a) through December 31, 2021 | |||||||||||||
Net asset value, beginning of period | $ | 4.69 | $ | 8.64 | $ | 10.00 | |||||||||
From Investment Operations | |||||||||||||||
Net investment (loss)(b) | (0.02 | ) | (0.04 | ) | (0.05 | ) | |||||||||
Net realized and unrealized gain (loss) on investments and foreign currency | 0.44 | (3.91 | ) | (1.29 | ) | ||||||||||
Net increase (decrease) in net asset value from investment operations | 0.42 | (3.95 | ) | (1.34 | ) | ||||||||||
Dividends and Distributions to Shareholders | |||||||||||||||
From net realized gain on investments | — | — | (0.02 | ) | |||||||||||
Total dividends and distributions | — | — | (0.02 | ) | |||||||||||
Net asset value, end of period | $ | 5.11 | $ | 4.69 | $ | 8.64 | |||||||||
Total Return | |||||||||||||||
Total return based on net asset value(c) | 8.96 | % | (45.72 | )% | (13.41 | )% | |||||||||
Ratios/Supplemental Data | |||||||||||||||
Net assets, end of period (000's omitted) | $ | 2,371 | $ | 2,605 | $ | 1,096 | |||||||||
Ratio of net expenses to average net assets, before waiver | 8.29 | %* | 6.90 | % | 9.87 | %* | |||||||||
Ratio of net expenses to average net assets, after waiver | 0.82 | %* | 0.82 | % | 0.82 | %* | |||||||||
Ratio of net investment (loss) to average net assets | (0.76 | )%* | (0.81 | )% | (0.82 | )%* | |||||||||
Portfolio turnover rate(d) | 7 | % | 86 | % | 6 | % |
* 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. Portfolio turnover is not annualized for periods less than one year.
The accompanying notes are an integral part of the financial statements.
158
Financial Highlights
Semi-Annual Report June 30, 2023
Baillie Gifford U.S. Discovery Fund
Selected data for an Institutional Class share outstanding throughout each period:
For the Six Months Ended June 30, 2023 (unaudited) | For the Year Ended December 31, 2022 | For the Period May 5, 2021(a) through December 31, 2021 | |||||||||||||
Net asset value, beginning of period | $ | 4.69 | $ | 8.64 | $ | 10.00 | |||||||||
From Investment Operations | |||||||||||||||
Net investment (loss)(b) | (0.02 | ) | (0.05 | ) | (0.05 | ) | |||||||||
Net realized and unrealized gain (loss) on investments and foreign currency | 0.44 | (3.90 | ) | (1.29 | ) | ||||||||||
Net increase (decrease) in net asset value from investment operations | 0.42 | (3.95 | ) | (1.34 | ) | ||||||||||
Dividends and Distributions to Shareholders |
| ||||||||||||||
From net realized gain on investments | — | — | (0.02 | ) | |||||||||||
Total dividends and distributions | — | — | (0.02 | ) | |||||||||||
Net asset value, end of period | $ | 5.11 | $ | 4.69 | $ | 8.64 | |||||||||
Total Return | |||||||||||||||
Total return based on net asset value(c) | 8.96 | % | (45.72 | )% | (13.41 | )% | |||||||||
Ratios/Supplemental Data | |||||||||||||||
Net assets, end of period (000's omitted) | $ | 256 | $ | 235 | $ | 433 | |||||||||
Ratio of net expenses to average net assets, before waiver | 8.29 | %* | 6.90 | % | 9.87 | %* | |||||||||
Ratio of net expenses to average net assets, after waiver | 0.82 | %* | 0.82 | % | 0.82 | %* | |||||||||
Ratio of net investment (loss) to average net assets | (0.76 | )%* | (0.81 | )% | (0.82 | )%* | |||||||||
Portfolio turnover rate(d) | 7 | % | 86 | % | 6 | % |
* 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. Portfolio turnover is not annualized for periods less than one year.
The accompanying notes are an integral part of the financial statements.
159
Industry Diversification Table
Semi-Annual Report June 30, 2023
June 30, 2023 (unaudited)
Baillie Gifford U.S. Equity Growth Fund
Value | % of Total Net Assets | ||||||||||
Advertising | $ | 4,121,077 | 8.5 | % | |||||||
Auto Manufacturers | 3,224,016 | 6.6 | |||||||||
Biotechnology | 4,467,400 | 9.2 | |||||||||
Commercial Services | 3,481,327 | 7.2 | |||||||||
Distribution/Wholesale | 1,524,736 | 3.1 | |||||||||
Healthcare — Products | 1,733,991 | 3.6 | |||||||||
Healthcare — Services | 215,087 | 0.4 | |||||||||
Insurance | 226,902 | 0.5 | |||||||||
Internet | 14,960,602 | 30.8 | |||||||||
Real Estate | 336,768 | 0.7 | |||||||||
Retail | 365,998 | 0.7 | |||||||||
Semiconductors | 3,382,045 | 6.9 | |||||||||
Software | 9,612,550 | 19.8 | |||||||||
Total Value of Investments | 47,652,499 | 98.0 | |||||||||
Other assets less liabilities | 976,001 | 2.0 | |||||||||
Net Assets | $ | 48,628,500 | 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.
160
Portfolio of Investments
Semi-Annual Report June 30, 2023
June 30, 2023 (unaudited)
Baillie Gifford U.S. Equity Growth Fund
Shares | Value | ||||||||||
COMMON STOCKS — 98.0% | |||||||||||
CANADA — 8.1% | |||||||||||
Shopify, Inc., Class A * | 60,706 | $ | 3,921,608 | ||||||||
UNITED STATES — 89.9% | |||||||||||
10X Genomics, Inc., Class A * | 9,217 | 514,677 | |||||||||
Affirm Holdings, Inc. * | 21,055 | 322,773 | |||||||||
Alnylam Pharmaceuticals, Inc. * | 6,352 | 1,206,499 | |||||||||
Amazon.com, Inc. * | 25,394 | 3,310,362 | |||||||||
Chegg, Inc. * | 21,521 | 191,106 | |||||||||
Chewy, Inc., Class A * | 24,564 | 969,541 | |||||||||
Cloudflare, Inc., Class A * | 20,352 | 1,330,410 | |||||||||
CoStar Group, Inc. * | 21,135 | 1,881,015 | |||||||||
Coursera, Inc. * | 31,842 | 414,583 | |||||||||
Datadog, Inc., Class A * | 10,174 | 1,000,918 | |||||||||
Denali Therapeutics, Inc. * | 23,124 | 682,389 | |||||||||
DoorDash, Inc., Class A * | 19,490 | 1,489,426 | |||||||||
Doximity, Inc., Class A * | 15,138 | 514,995 | |||||||||
Duolingo, Inc. * | 8,784 | 1,255,585 | |||||||||
Ginkgo Bioworks Holdings, Inc. * | 115,638 | 215,087 | |||||||||
HashiCorp, Inc., Class A * | 18,853 | 493,572 | |||||||||
Illumina, Inc. * | 697 | 130,681 | |||||||||
Lemonade, Inc. * | 13,466 | 226,902 | |||||||||
MarketAxess Holdings, Inc. | 2,570 | 671,849 | |||||||||
Meta Platforms, Inc., Class A * | 1,687 | 484,135 | |||||||||
Moderna, Inc. * | 17,977 | 2,184,206 | |||||||||
Netflix, Inc. * | 4,743 | 2,089,244 | |||||||||
Novocure Ltd. * | 11,606 | 481,649 | |||||||||
NVIDIA Corp. | 7,995 | 3,382,045 | |||||||||
Penumbra, Inc. * | 2,144 | 737,665 | |||||||||
Pinterest, Inc., Class A * | 26,200 | 716,308 | |||||||||
Recursion Pharmaceuticals, Inc., Class A * | 23,550 | 175,919 | |||||||||
Redfin Corp. * | 27,115 | 336,768 | |||||||||
Rivian Automotive, Inc., Class A * | 9,808 | 163,401 | |||||||||
ROBLOX Corp., Class A * | 23,484 | 946,405 | |||||||||
Roku, Inc. * | 10,294 | 658,404 | |||||||||
Samsara, Inc., Class A * | 8,183 | 226,751 | |||||||||
Sana Biotechnology, Inc. * | 14,716 | 87,707 | |||||||||
Snap, Inc., Class A * | 32,114 | 380,230 |
The accompanying notes are an integral part of the financial statements.
161
Portfolio of Investments
Semi-Annual Report June 30, 2023
June 30, 2023 (unaudited)
Baillie Gifford U.S. Equity Growth Fund
Shares | Value | ||||||||||
Snowflake, Inc., Class A * | 5,633 | $ | 991,295 | ||||||||
Sweetgreen, Inc., Class A * | 28,549 | 365,998 | |||||||||
Tesla, Inc. * | 11,692 | 3,060,615 | |||||||||
Trade Desk, Inc. (The), Class A * | 53,368 | 4,121,077 | |||||||||
Twilio, Inc., Class A * | 12,586 | 800,721 | |||||||||
Watsco, Inc. | 3,997 | 1,524,736 | |||||||||
Wayfair, Inc., Class A * | 14,480 | 941,345 | |||||||||
Workday, Inc., Class A * | 6,493 | 1,466,704 | |||||||||
Zoom Video Communications, Inc., Class A * | 8,621 | 585,193 | |||||||||
43,730,891 | |||||||||||
TOTAL INVESTMENTS — 98.0% | |||||||||||
(cost $50,666,460) | $ | 47,652,499 | |||||||||
Other assets less liabilities — 2.0% | 976,001 | ||||||||||
NET ASSETS — 100.0% | $ | 48,628,500 |
* 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, 2023 in valuing the Fund's investments carried at fair value:
Investments in Securities | Level 1 | Level 2 | Level 3 | Total | |||||||||||||||
Common Stocks ** | $ | 47,652,499 | $ | — | $ | — | $ | 47,652,499 | |||||||||||
Total | $ | 47,652,499 | $ | — | $ | — | $ | 47,652,499 |
** Refer to Portfolio of Investments for further detail.
The accompanying notes are an integral part of the financial statements.
162
Statement of Assets and Liabilities
Semi-Annual Report June 30, 2023
June 30, 2023 (unaudited)
Baillie Gifford U.S. Equity Growth Fund
ASSETS | |||||||
Investments, at value (cost $50,666,460) | $ | 47,652,499 | |||||
Cash | 1,339,091 | ||||||
Capital shares sold receivable | 74,952 | ||||||
Due from Manager | 13,285 | ||||||
Prepaid assets | 13,708 | ||||||
Total Assets | 49,093,535 | ||||||
LIABILITIES | |||||||
Advisory fee payable | 35,500 | ||||||
Payable for investment purchased | 333,228 | ||||||
Administration & Supervisory fee payable | 18,288 | ||||||
Capital shares purchased payable | 11,536 | ||||||
Trustee fee payable | 481 | ||||||
Commitment fee payable | 147 | ||||||
Accrued expenses | 65,855 | ||||||
Total Liabilities | 465,035 | ||||||
NET ASSETS | $ | 48,628,500 | |||||
COMPOSITION OF NET ASSETS | |||||||
Paid-in capital | $ | 69,064,675 | |||||
Total accumulated (loss) | (20,436,175 | ) | |||||
$ | 48,628,500 | ||||||
NET ASSET VALUE, PER SHARE | |||||||
Class K ($21,913,599 / 1,172,204 shares outstanding), unlimited authorized, no par value | $ | 18.69 | |||||
Institutional Class ($26,714,901 / 1,435,519 shares outstanding), unlimited authorized, no par value | $ | 18.61 |
The accompanying notes are an integral part of the financial statements.
163
Statement of Operations
Semi-Annual Report June 30, 2023
For the Six Months Ended June 30, 2023 (unaudited)
Baillie Gifford U.S. Equity Growth Fund
INVESTMENT INCOME | |||||||
Dividends | $ | 27,144 | |||||
Interest | 8,695 | ||||||
Total Investment Income | 35,839 | ||||||
EXPENSES | |||||||
Advisory fee (Note B) | 68,172 | ||||||
Administration & Supervisory fee — Class K shares (Note B) | 16,041 | ||||||
Administration & Supervisory fee — Institutional Class shares (Note B) | 19,078 | ||||||
Transfer agency | 26,051 | ||||||
Sub-transfer agency — Institutional Class shares | 10,245 | ||||||
Fund accounting | 46,860 | ||||||
Registration fees | 19,765 | ||||||
Professional fees | 13,184 | ||||||
Legal | 4,123 | ||||||
Custody | 2,370 | ||||||
Trustees' fees | 941 | ||||||
Commitment fees | 286 | ||||||
Miscellaneous | 3,611 | ||||||
Total Expenses | 230,727 | ||||||
Fees waived/expenses reimbursed | (86,204 | ) | |||||
Total Expenses after Waiver | 144,523 | ||||||
Net Investment (Loss) | (108,684 | ) | |||||
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS | |||||||
Net realized (loss) from: | |||||||
Investments | (2,647,905 | ) | |||||
(2,647,905 | ) | ||||||
Net change in unrealized appreciation on: | |||||||
Investments | 14,726,702 | ||||||
14,726,702 | |||||||
Net realized and unrealized gain | 12,078,797 | ||||||
NET INCREASE IN NET ASSETS FROM OPERATIONS | $ | 11,970,113 |
The accompanying notes are an integral part of the financial statements.
164
Statements of Changes in Net Assets
Semi-Annual Report June 30, 2023
Baillie Gifford U.S. Equity Growth Fund
For the Six Months Ended June 30, 2023 (unaudited) | For the Year Ended December 31, 2022 | ||||||||||
INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS | |||||||||||
Net investment (loss) | $ | (108,684 | ) | $ | (285,761 | ) | |||||
Net realized (loss) | (2,647,905 | ) | (11,108,390 | ) | |||||||
Net change in unrealized appreciation (depreciation) | 14,726,702 | (38,498,352 | ) | ||||||||
Net Increase (Decrease) in Net Assets from Operations | 11,970,113 | (49,892,503 | ) | ||||||||
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS FROM: | |||||||||||
Distributable earnings | |||||||||||
Class K | — | (1,476,563 | ) | ||||||||
Institutional Class | — | (1,702,423 | ) | ||||||||
Total Distributions to Shareholders | — | (3,178,986 | ) | ||||||||
TRANSACTIONS IN SHARES OF BENEFICIAL INTEREST | |||||||||||
Net proceeds from shares subscribed: | |||||||||||
Class K | 299,453 | 738,649 | |||||||||
Institutional Class | 3,499,361 | 8,520,193 | |||||||||
Dividends reinvested: | |||||||||||
Class K | — | 1,438,401 | |||||||||
Institutional Class | — | 1,702,423 | |||||||||
Cost of shares redeemed: | |||||||||||
Class K | (205,744 | ) | (1,849,937 | ) | |||||||
Institutional Class | (1,922,582 | ) | (19,967,202 | ) | |||||||
Increase (Decrease) in Net Assets from Transactions in Shares of Beneficial Interest | 1,670,488 | (9,417,473 | ) | ||||||||
Total Increase (Decrease) in Net Assets | 13,640,601 | (62,488,962 | ) | ||||||||
NET ASSETS | |||||||||||
Beginning of Period | 34,987,899 | 97,476,861 | |||||||||
End of Period | $ | 48,628,500 | $ | 34,987,899 |
The accompanying notes are an integral part of the financial statements.
165
Financial Highlights
Semi-Annual Report June 30, 2023
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, 2023 (unaudited) | For the Year Ended December 31, 2022 | For the Year Ended December 31, 2021 | For the Year Ended December 31, 2020 | For the Year Ended December 31, 2019 | For the Year Ended December 31, 2018 | ||||||||||||||||||||||
Net asset value, beginning of period | $ | 13.95 | $ | 34.63 | $ | 39.85 | $ | 18.25 | $ | 14.25 | $ | 13.39 | |||||||||||||||
From Investment Operations | |||||||||||||||||||||||||||
Net investment (loss)(a) | (0.04 | ) | (0.10 | ) | (0.25 | ) | (0.16 | ) | (0.08 | ) | (0.07 | ) | |||||||||||||||
Net realized and unrealized gain (loss) on investments and foreign currency | 4.78 | (19.21 | ) | (1.40 | ) | 23.07 | 4.33 | 1.22 | |||||||||||||||||||
Net increase (decrease) in net asset value from investment operations | 4.74 | (19.31 | ) | (1.65 | ) | 22.91 | 4.25 | 1.15 | |||||||||||||||||||
Dividends and Distributions to Shareholders | |||||||||||||||||||||||||||
From net realized gain on investments | — | (1.37 | ) | (3.57 | ) | (1.31 | ) | (0.25 | ) | (0.29 | ) | ||||||||||||||||
Total dividends and distributions | — | (1.37 | ) | (3.57 | ) | (1.31 | ) | (0.25 | ) | (0.29 | ) | ||||||||||||||||
Net asset value, end of period | $ | 18.69 | $ | 13.95 | $ | 34.63 | $ | 39.85 | $ | 18.25 | $ | 14.25 | |||||||||||||||
Total Return | |||||||||||||||||||||||||||
Total return based on net asset value(b) | 33.98 | % | (55.58 | )% | (4.17 | )% | 125.57 | % | 29.78 | % | 8.60 | % | |||||||||||||||
Ratios/Supplemental Data | |||||||||||||||||||||||||||
Net assets, end of period (000's omitted) | $ | 21,914 | $ | 16,273 | $ | 38,673 | $ | 58,076 | $ | 13,867 | $ | 10,594 | |||||||||||||||
Ratio of net expenses to average net assets, before waiver | 1.07 | %* | 0.97 | % | 0.68 | % | 0.97 | % | 1.72 | % | 7.75 | % | |||||||||||||||
Ratio of net expenses to average net assets, after waiver | 0.65 | %* | 0.65 | % | 0.65 | % | 0.65 | % | 0.65 | % | 0.63 | % | |||||||||||||||
Ratio of net investment (loss) to average net assets | (0.48 | )%* | (0.53 | )% | (0.58 | )% | (0.55 | )% | (0.45 | )% | (0.46 | )% | |||||||||||||||
Portfolio turnover rate(c) | 8 | % | 14 | % | 70 | % | 33 | % | 18 | % | 107 | % |
* Annualized.
(a) Calculated based upon average shares outstanding during the period.
(b) Total investment return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all dividends and distributions, if any, at net asset value during the period, and redemption on the last day of the period. Total return is not annualized for periods less than one year.
(c) Portfolio turnover rate calculated at Fund level. Portfolio turnover is not annualized for periods less than one year.
The accompanying notes are an integral part of the financial statements.
166
Financial Highlights
Semi-Annual Report June 30, 2023
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, 2023 (unaudited) | For the Year Ended December 31, 2022 | For the Year Ended December 31, 2021 | For the Year Ended December 31, 2020 | For the Year Ended December 31, 2019 | For the Year Ended December 31, 2018 | ||||||||||||||||||||||
Net asset value, beginning of period | $ | 13.90 | $ | 34.53 | $ | 39.78 | $ | 18.23 | $ | 14.21 | $ | 13.39 | |||||||||||||||
From Investment Operations | |||||||||||||||||||||||||||
Net investment (loss)(a) | (0.05 | ) | (0.13 | ) | (0.29 | ) | (0.20 | ) | (0.10 | ) | (0.10 | ) | |||||||||||||||
Net realized and unrealized gain (loss) on investments and foreign currency | 4.76 | (19.13 | ) | (1.39 | ) | 23.06 | 4.37 | 1.21 | |||||||||||||||||||
Net increase (decrease) in net asset value from investment operations | 4.71 | (19.26 | ) | (1.68 | ) | 22.86 | 4.27 | 1.11 | |||||||||||||||||||
Dividends and Distributions to Shareholders | |||||||||||||||||||||||||||
From net realized gain on investments | — | (1.37 | ) | (3.57 | ) | (1.31 | ) | (0.25 | ) | (0.29 | ) | ||||||||||||||||
Total dividends and distributions | — | (1.37 | ) | (3.57 | ) | (1.31 | ) | (0.25 | ) | (0.29 | ) | ||||||||||||||||
Net asset value, end of period | $ | 18.61 | $ | 13.90 | $ | 34.53 | $ | 39.78 | $ | 18.23 | $ | 14.21 | |||||||||||||||
Total Return | |||||||||||||||||||||||||||
Total return based on net asset value(b) | 33.98 | % | (55.63 | )% | (4.25 | )% | 125.43 | % | 30.01 | %(c) | 8.30 | % | |||||||||||||||
Ratios/Supplemental Data | |||||||||||||||||||||||||||
Net assets, end of period (000's omitted) | $ | 26,715 | $ | 18,714 | $ | 58,804 | $ | 42,732 | $ | 3,464 | $ | 6 | |||||||||||||||
Ratio of net expenses to average net assets, before waiver | 1.16 | %* | 1.08 | % | 0.77 | % | 1.06 | % | 1.82 | % | 6.69 | % | |||||||||||||||
Ratio of net expenses to average net assets, after waiver | 0.74 | %* | 0.76 | % | 0.75 | % | 0.74 | % | 0.75 | % | 0.78 | % | |||||||||||||||
Ratio of net investment (loss) to average net assets | (0.57 | )%* | (0.64 | )% | (0.68 | )% | (0.65 | )% | (0.56 | )% | (0.53 | )% | |||||||||||||||
Portfolio turnover rate(d) | 8 | % | 14 | % | 70 | % | 33 | % | 18 | % | 107 | % |
* Annualized.
(a) Calculated based upon average shares outstanding during the period.
(b) Total investment return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all dividends and distributions, if any, at net asset value during the period, and redemption on the last day of the period. Total return is not annualized for periods less than one year.
(c) Excluding reimbursement received from the Manager, total return for the period is 29.72%.
(d) Portfolio turnover rate calculated at Fund level. Portfolio turnover is not annualized for periods less than one year.
The accompanying notes are an integral part of the financial statements.
167
Notes to Financial Statements (unaudited)
Semi-Annual Report June 30, 2023
Note A — Organization and Accounting Policies
As of June 30, 2023, each fund identified in the table below (each, a "Fund", and collectively, the "Funds") was a series of Baillie Gifford Funds (the "Trust"). The Trust includes one series, Baillie Gifford International All Cap Fund, that is not included in this report. 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.
At a meeting held on December 13, 2022, the Board of Trustees of the Trust (the "Board") approved the liquidation and termination of Baillie Gifford Global Stewardship Equities Fund. It was liquidated and terminated on March 30, 2023.
The following table is a summary of classes of the Funds with shares outstanding as of June 30, 2023:
Class 2 | Class 3 | Class 4 | Class 5 | Class K | Institutional Class | ||||||||||||||||||||||
Baillie Gifford China A Shares Growth Fund | N/A | N/A | N/A | N/A | X | X | |||||||||||||||||||||
Baillie Gifford China Equities Fund | N/A | N/A | N/A | N/A | X | X | |||||||||||||||||||||
Baillie Gifford Developed EAFE All Cap Fund | X | X | N/A | N/A | X | X | |||||||||||||||||||||
Baillie Gifford EAFE Plus All Cap Fund | X | X | N/A | N/A | X | X | |||||||||||||||||||||
Baillie Gifford Emerging Markets Equities Fund | X | X | N/A | X | X | X | |||||||||||||||||||||
Baillie Gifford Emerging Markets ex China Fund | N/A | N/A | N/A | N/A | X | X | |||||||||||||||||||||
Baillie Gifford Global Alpha Equities Fund | X | X | X | N/A | X | X | |||||||||||||||||||||
Baillie Gifford Health Innovation Equities Fund | N/A | N/A | N/A | N/A | X | X | |||||||||||||||||||||
Baillie Gifford International Alpha Fund | X | X | X | X | X | X | |||||||||||||||||||||
Baillie Gifford International Concentrated Growth Equities Fund | N/A | N/A | N/A | N/A | X | X | |||||||||||||||||||||
Baillie Gifford International Growth Fund | X | X | X | X | X | X | |||||||||||||||||||||
Baillie Gifford International Smaller Companies Fund | N/A | N/A | N/A | N/A | X | X | |||||||||||||||||||||
Baillie Gifford Long Term Global Growth Fund | X | N/A | X | N/A | X | X | |||||||||||||||||||||
Baillie Gifford U.S. Discovery Fund | N/A | N/A | N/A | N/A | X | X | |||||||||||||||||||||
Baillie Gifford U.S. Equity Growth Fund | N/A | N/A | N/A | N/A | X | X |
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 generally accepted accounting principles 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
Pursuant to Rule 2a-5 under the 1940 Act, the Board has designated the Funds' investment adviser, Baillie Gifford Overseas Limited (the "Manager") as the valuation designee (the "Valuation Designee") to determine the fair value, in good faith, of securities and other instruments for which no readily available market quotation exists, subject to the Board's oversight.
168
Notes to Financial Statements (unaudited)
Semi-Annual Report June 30, 2023
Investments for which there are readily available market quotations are valued at market 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 the Valuation Designee.
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.
The Valuation Designee 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, 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 that the Funds have the ability to access
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, 2023 is disclosed at the end of each Fund's Portfolio of Investments.
169
Notes to Financial Statements (unaudited)
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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.
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 Statements of Operations, and is recorded at the fair 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.
U.S. 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.
As a result of several court cases in certain countries across the European Union ("EU"), some Funds may file European tax reclaims for previously withheld taxes on dividends earned in those countries. These additional filings are subject to various administrative proceedings by the local jurisdictions' tax authorities within the EU, as well as a number of related judicial proceedings. If a positive decision is reached and as such, reclaims become payable to the Funds, they are reflected as Windfall Tax Recovery within investment income in the Statements of Operations and related receivables, if any, will be reflected within tax reclaims receivable in the Statements of Assets and Liabilities. If the associated cash is received, the Funds will generally follow, for tax purposes, IRS guidance in Notice 2016-10 and reduce the current year foreign taxes paid by the amount of the refund. When uncertainty exists as to the ultimate resolution of these proceedings and the likelihood of receipt of these EU reclaims, no amounts are reflected in the financial statements.
In the event that EU reclaims received by a Fund during a fiscal year exceed foreign withholding taxes paid by the Fund, and the Fund previously passed through to its shareholders foreign taxes incurred by the Fund to be used as a credit or deduction on a shareholder's income tax return, the Fund will enter into a closing agreement with the IRS in order to pay the associated tax liability on behalf of the Fund's shareholders.
Such an event occurred in September 2022 when Baillie Gifford Global Alpha Equities Fund and Baillie Gifford International Growth Fund successfully recovered taxes withheld by Sweden. As such, both Funds determined to enter into a closing agreement with the IRS and have recorded the remaining closing agreement tax due as a reduction to income, as reflected in the Statements of
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Notes to Financial Statements (unaudited)
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Operations. As at June 30, 2023, the closing agreement is pending approval by the IRS and the associated outstanding tax payable is reflected in the Statements of Assets and Liabilities.
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 in India or other such foreign jurisdictions, 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 tax 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, 2023, Baillie Gifford EAFE Plus All Cap Fund, Baillie Gifford Emerging Markets Equities Fund, Baillie Gifford Emerging Markets ex China Fund, Baillie Gifford Global Alpha Equities Fund, Baillie Gifford International Alpha Fund, Baillie Gifford International Growth Fund, Baillie Gifford International Smaller Companies Fund and Baillie Gifford Long Term Global Growth Fund recorded a deferred liability for potential future India capital gains
taxes of $58,773, $14,776,105, $1,298, $363,942, $983,633, $482,397, $26,804 and $55,657, respectively.
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.
At December 31, 2022 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 China A Shares Growth Fund | $ | (58 | ) | $ | (2,513 | ) | $ | (2,571 | ) | ||||||
Baillie Gifford China Equities Fund | (194,883 | ) | (58,975 | ) | (253,858 | ) | |||||||||
Baillie Gifford Developed EAFE All Cap Fund | (9,582,017 | ) | (863,354 | ) | (10,445,371 | ) | |||||||||
Baillie Gifford EAFE Plus All Cap Fund | (2,242,540 | ) | — | (2,242,540 | ) | ||||||||||
Baillie Gifford Emerging Markets Equities Fund | (92,966,834 | ) | (86,423,380 | ) | (179,390,214 | ) | |||||||||
Baillie Gifford Emerging Markets ex China Fund | (19,387 | ) | — | (19,387 | ) | ||||||||||
Baillie Gifford Global Alpha Equities Fund | (60,489,750 | ) | (14,378,685 | ) | (74,868,435 | ) | |||||||||
Baillie Gifford Health Innovation Equities Fund | — | — | — | ||||||||||||
Baillie Gifford International Alpha Fund | (66,793,114 | ) | — | (66,793,114 | ) | ||||||||||
Baillie Gifford International Concentrated Growth Equities Fund | (5,203,159 | ) | (6,406,718 | ) | (11,609,877 | ) | |||||||||
Baillie Gifford International Growth Fund | — | — | — | ||||||||||||
Baillie Gifford International Smaller Companies Fund | (5,948,855 | ) | (83,862 | ) | (6,032,717 | ) | |||||||||
Baillie Gifford Long Term Global Growth Fund | (66,952,996 | ) | (68,133,753 | ) | (135,086,749 | ) | |||||||||
Baillie Gifford U.S. Discovery Fund | (829,595 | ) | (67,232 | ) | (896,827 | ) | |||||||||
Baillie Gifford U.S. Equity Growth Fund | (3,404,558 | ) | (8,404,127 | ) | (11,808,685 | ) |
171
Notes to Financial Statements (unaudited)
Semi-Annual Report June 30, 2023
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, 2022, the Funds shown below incurred and will elect to defer net post-October or late year losses as indicated.
At December 31, 2022, 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 China A Shares Growth Fund | $ | (2,571 | ) | $ | — | ||||||
Baillie Gifford China Equities Fund | (253,858 | ) | (152,935 | ) | |||||||
Baillie Gifford Developed EAFE All Cap Fund | (10,445,371 | ) | — | ||||||||
Baillie Gifford EAFE Plus All Cap Fund | (2,242,540 | ) | (1,075,051 | ) | |||||||
Baillie Gifford Emerging Markets Equities Fund | (179,390,214 | ) | (31,231,955 | ) | |||||||
Baillie Gifford Emerging Markets ex China Fund | (19,387 | ) | — | ||||||||
Baillie Gifford Global Alpha Equities Fund | (74,868,435 | ) | — | ||||||||
Baillie Gifford Health Innovation Equities Fund | — | — | |||||||||
Baillie Gifford International Alpha Fund | (66,793,114 | ) | (64,568,326 | ) | |||||||
Baillie Gifford International Concentrated Growth Equities Fund | (11,609,877 | ) | (1,209,914 | ) | |||||||
Baillie Gifford International Growth Fund | — | (29,130,779 | ) | ||||||||
Baillie Gifford International Smaller Companies Fund | (6,032,717 | ) | (1,808,819 | ) | |||||||
Baillie Gifford Long Term Global Growth Fund | (135,086,749 | ) | (34,314,972 | ) | |||||||
Baillie Gifford U.S. Discovery Fund | (896,827 | ) | — | ||||||||
Baillie Gifford U.S. Equity Growth Fund | (11,808,685 | ) | — |
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, 2023 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 | $ | 1,231,243 | $ | 246,377 | $ | (309,545 | ) | $ | (63,168 | ) | |||||||||
Baillie Gifford China Equities Fund | 2,988,601 | 15,781 | (1,015,396 | ) | (999,615 | ) | |||||||||||||
Baillie Gifford Developed EAFE All Cap Fund | 530,757,664 | 143,259,248 | (69,691,661 | ) | 73,567,587 | ||||||||||||||
Baillie Gifford EAFE Plus All Cap Fund | 411,713,722 | 124,829,553 | (53,752,360 | ) | 71,077,193 | ||||||||||||||
Baillie Gifford Emerging Markets Equities Fund | 4,525,339,747 | 1,262,298,176 | (1,049,748,453 | ) | 212,549,723 | ||||||||||||||
Baillie Gifford Emerging Markets ex China Fund | 978,177 | 47,064 | (189,519 | ) | (142,455 | ) | |||||||||||||
Baillie Gifford Global Alpha Equities Fund | 759,370,788 | 382,828,585 | (75,284,674 | ) | 307,543,911 |
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Fund | Cost of Investments | Gross Appreciation | Gross (Depreciation) | Net Appreciation (Depreciation) | |||||||||||||||
Baillie Gifford Health Innovation Equities Fund | $ | 25,809,825 | $ | 1,167,234 | $ | (4,242,559 | ) | $ | (3,075,325 | ) | |||||||||
Baillie Gifford International Alpha Fund | 1,708,266,180 | 889,034,008 | (271,242,587 | ) | 617,791,421 | ||||||||||||||
Baillie Gifford International Concentrated Growth Equities Fund | 97,471,366 | 16,296,937 | (30,373,301 | ) | (14,076,364 | ) | |||||||||||||
Baillie Gifford International Growth Fund | 2,036,557,934 | 1,193,749,526 | (288,856,862 | ) | 904,892,664 | ||||||||||||||
Baillie Gifford International Smaller Companies Fund | 15,963,613 | 2,677,417 | (4,270,732 | ) | (1,593,315 | ) | |||||||||||||
Baillie Gifford Long Term Global Growth Fund | 513,284,589 | 236,115,268 | (83,245,832 | ) | 152,869,436 | ||||||||||||||
Baillie Gifford U.S. Discovery Fund | 2,984,511 | 400,404 | (819,905 | ) | (419,501 | ) | |||||||||||||
Baillie Gifford U.S. Equity Growth Fund | 53,523,400 | 11,758,406 | (17,629,307 | ) | (5,870,901 | ) |
Note B — Investment Management and Other Services
The Funds are advised and managed by the Manager. The Manager, an investment adviser registered with 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 China Equities 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 Emerging Markets ex China 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% |
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Fund | Average Daily Net Assets of the Fund (billions) | Annual Rate at Each Asset Level | |||||||||
Baillie Gifford Health Innovation 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% | |||||||||
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 amounts listed below. This contractual waiver will continue until April 30, 2024.
Fund | Class | Expense Limitation | |||||||||
Baillie Gifford China A Shares Growth Fund | Class K and Institutional Class | 0.87 | % | ||||||||
Baillie Gifford China Equities Fund | Class K and Institutional Class | 0.87 | % | ||||||||
Baillie Gifford Emerging Markets ex China Fund | Class K and Institutional Class | 0.87 | % | ||||||||
Baillie Gifford Health Innovation Equities Fund | Class K and Institutional Class | 0.65 | % | ||||||||
Baillie Gifford International Concentrated Growth Equities Fund | Class K and Institutional Class | 0.72 | % | ||||||||
Baillie Gifford International Smaller Companies Fund | Class K and Institutional Class | 0.90 | % | ||||||||
Baillie Gifford U.S. Discovery Fund | Class K and Institutional Class | 0.82 | % | ||||||||
Baillie Gifford U.S. Equity Growth Fund | Class K and Institutional Class | 0.65 | % |
Fees waived or expenses reimbursed 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 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.
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Notes to Financial Statements (unaudited)
Semi-Annual Report June 30, 2023
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, 2023 were as follows:
Fund | Purchases | Sales | |||||||||
Baillie Gifford China A Shares Growth Fund | $ | 17,286 | $ | 51,282 | |||||||
Baillie Gifford China Equities Fund | 250,353 | 54,470 | |||||||||
Baillie Gifford Developed EAFE All Cap Fund | 30,176,954 | 44,534,534 | |||||||||
Baillie Gifford EAFE Plus All Cap Fund | 26,085,900 | 28,924,500 | |||||||||
Baillie Gifford Emerging Markets Equities Fund | 434,474,152 | 480,906,390 | |||||||||
Baillie Gifford Emerging Markets ex China Fund | 192,917 | 206,564 | |||||||||
Baillie Gifford Global Alpha Equities Fund | 103,846,010 | 201,642,398 | |||||||||
Baillie Gifford Health Innovation Equities Fund | 2,603,676 | 152,361 | |||||||||
Baillie Gifford International Alpha Fund | 149,664,721 | 200,193,455 | |||||||||
Baillie Gifford International Concentrated Growth Equities Fund | 9,164,823 | 5,448,711 | |||||||||
Baillie Gifford International Growth Fund | 154,010,857 | 126,447,269 | |||||||||
Baillie Gifford International Smaller Companies Fund | 3,749,951 | 27,764,528 | |||||||||
Baillie Gifford Long Term Global Growth Fund | 58,810,756 | 48,391,426 | |||||||||
Baillie Gifford U.S. Discovery Fund | 172,676 | 703,640 | |||||||||
Baillie Gifford U.S. Equity Growth Fund | 4,687,193 | 3,223,833 |
175
Notes to Financial Statements (unaudited)
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Note D — Transactions in Shares of Beneficial Interest
Baillie Gifford China A Shares Growth Fund | |||||||||||||||||||
For the Period Ended June 30, 2023 | For the Year Ended December 31, 2022 | ||||||||||||||||||
Shares | Amount | Shares | Amount | ||||||||||||||||
Class K Shares | |||||||||||||||||||
Shares sold | — | $ | — | — | $ | — | |||||||||||||
Shares issued in reinvestment of dividends and distributions | — | — | 1,604 | 18,603 | |||||||||||||||
Shares redeemed | — | — | — | — | |||||||||||||||
Net Increase (Decrease) | — | $ | — | 1,604 | $ | 18,603 | |||||||||||||
Institutional Class Shares | |||||||||||||||||||
Shares sold | — | $ | — | — | $ | — | |||||||||||||
Shares issued in reinvestment of dividends and distributions | — | — | 1,604 | 18,603 | |||||||||||||||
Shares redeemed | — | — | — | — | |||||||||||||||
Net Increase (Decrease) | — | $ | — | 1,604 | $ | 18,603 | |||||||||||||
Total Net Increase (Decrease) | — | $ | — | 3,208 | $ | 37,206 | |||||||||||||
Baillie Gifford China Equities Fund | |||||||||||||||||||
For the Period Ended June 30, 2023 | For the Year Ended December 31, 2022 | ||||||||||||||||||
Shares | Amount | Shares | Amount | ||||||||||||||||
Class K Shares | |||||||||||||||||||
Shares sold | — | $ | — | — | $ | — | |||||||||||||
Shares issued in reinvestment of dividends and distributions | — | — | 268 | 1,566 | |||||||||||||||
Shares redeemed | — | — | (55,353 | ) | (308,872 | ) | |||||||||||||
Net Increase (Decrease) | — | $ | — | (55,085 | ) | $ | (307,306 | ) | |||||||||||
Institutional Class Shares | |||||||||||||||||||
Shares sold | 35,521 | $ | 203,600 | 87,890 | $ | 593,485 | |||||||||||||
Shares issued in reinvestment of dividends and distributions | — | — | 2,008 | 11,711 | |||||||||||||||
Shares redeemed | — | — | (3,887 | ) | (27,175 | ) | |||||||||||||
Net Increase (Decrease) | 35,521 | $ | 203,600 | 86,011 | $ | 578,021 | |||||||||||||
Total Net Increase (Decrease) | 35,521 | $ | 203,600 | 30,926 | $ | 270,715 |
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Notes to Financial Statements (unaudited)
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Baillie Gifford Developed EAFE All Cap Fund | |||||||||||||||||||
For the Period Ended June 30, 2023 | For the Year Ended December 31, 2022 | ||||||||||||||||||
Shares | Amount | Shares | Amount | ||||||||||||||||
Class 2 Shares | |||||||||||||||||||
Shares sold | 234 | $ | 3,000 | 6,275,170 | (a) | $ | 82,492,963 | (a) | |||||||||||
Shares issued in reinvestment of dividends and distributions | — | — | 114,263 | 1,315,372 | |||||||||||||||
Shares redeemed | — | — | (634,271 | ) | (7,500,000 | ) | |||||||||||||
Net Increase (Decrease) | 234 | $ | 3,000 | 5,755,162 | $ | 76,308,335 | |||||||||||||
Class 3 Shares | |||||||||||||||||||
Shares sold | — | $ | — | 6,675,899 | (b) | $ | 88,645,931 | (b) | |||||||||||
Shares issued in reinvestment of dividends and distributions | — | — | 64,977 | 755,979 | |||||||||||||||
Shares redeemed | — | — | (6,212,069 | )(c) | (82,486,963 | )(c) | |||||||||||||
Net Increase (Decrease) | — | $ | — | 528,807 | $ | 6,914,947 | |||||||||||||
Class 4 Shares | |||||||||||||||||||
Shares sold | — | $ | — | — | $ | — | |||||||||||||
Shares issued in reinvestment of dividends and distributions | — | — | — | — | |||||||||||||||
Shares redeemed | — | — | (6,651,854 | )(d) | (88,645,931 | )(d) | |||||||||||||
Net Increase (Decrease) | — | $ | — | (6,651,854 | ) | $ | (88,645,931 | ) | |||||||||||
Class K Shares | |||||||||||||||||||
Shares sold | 1,263,588 | $ | 16,257,506 | 3,758,575 | $ | 45,155,999 | |||||||||||||
Shares issued in reinvestment of dividends and distributions | — | — | 179,601 | 2,063,614 | |||||||||||||||
Shares redeemed | (919,129 | ) | (11,440,700 | ) | (5,425,132 | ) | (62,875,742 | ) | |||||||||||
Net Increase (Decrease) | 344,459 | $ | 4,816,806 | (1,486,956 | ) | $ | (15,656,129 | ) | |||||||||||
Institutional Class Shares | |||||||||||||||||||
Shares sold | 325,576 | $ | 4,018,679 | 20,510,124 | $ | 232,591,735 | |||||||||||||
Shares issued in reinvestment of dividends and distributions | — | — | 115,248 | 1,320,743 | |||||||||||||||
Shares redeemed | (1,409,359 | ) | (17,693,705 | ) | (11,436,995 | ) | (127,032,078 | ) | |||||||||||
Net Increase (Decrease) | (1,083,783 | ) | $ | (13,675,026 | ) | 9,188,377 | $ | 106,880,400 | |||||||||||
Total Net Increase (Decrease) | (739,090 | ) | $ | (8,855,220 | ) | 7,333,536 | $ | 85,801,622 |
(a) 6,274,682 shares and $82,486,963 converted into Class 2 from Class 3.
(b) 6,675,899 shares and $88,645,931 converted into Class 3 from Class 4.
(c) 6,212,069 shares and $82,486,963 converted from Class 3 into Class 2.
(d) 6,651,854 shares and $88,645,931 converted from Class 4 into Class 3.
177
Notes to Financial Statements (unaudited)
Semi-Annual Report June 30, 2023
Baillie Gifford EAFE Plus All Cap Fund | |||||||||||||||||||
For the Period Ended June 30, 2023 | For the Year Ended December 31, 2022 | ||||||||||||||||||
Shares | Amount | Shares | Amount | ||||||||||||||||
Class 2 Shares | |||||||||||||||||||
Shares sold | 323,331 | $ | 4,503,000 | 4,384,864 | (a) | $ | 66,979,275 | (a) | |||||||||||
Shares issued in reinvestment of dividends and distributions | — | — | 332,581 | 4,407,368 | |||||||||||||||
Shares redeemed | — | — | (538,157 | ) | (7,100,000 | ) | |||||||||||||
Net Increase (Decrease) | 323,331 | $ | 4,503,000 | 4,179,288 | $ | 64,286,643 | |||||||||||||
Class 3 Shares | |||||||||||||||||||
Shares sold | — | $ | — | 2,729,644 | (b) | $ | 48,661,226 | (b) | |||||||||||
Shares issued in reinvestment of dividends and distributions | — | — | 231,760 | 3,067,698 | |||||||||||||||
Shares redeemed | (238,624 | ) | (3,500,000 | ) | (4,418,442 | )(c) | (67,348,275 | )(c) | |||||||||||
Net Increase (Decrease) | (238,624 | ) | $ | (3,500,000 | ) | (1,457,038 | ) | $ | (15,619,351 | ) | |||||||||
Class 4 Shares | |||||||||||||||||||
Shares sold | — | $ | — | — | $ | — | |||||||||||||
Shares issued in reinvestment of dividends and distributions | — | — | — | — | |||||||||||||||
Shares redeemed | — | — | (246,485 | )(d) | (3,764,253 | )(d) | |||||||||||||
Net Increase (Decrease) | — | $ | — | (246,485 | ) | $ | (3,764,253 | ) | |||||||||||
Class K Shares | |||||||||||||||||||
Shares sold | 20,958 | $ | 303,348 | 1,007,240 | $ | 14,784,641 | |||||||||||||
Shares issued in reinvestment of dividends and distributions | — | — | 237,189 | 3,130,898 | |||||||||||||||
Shares redeemed | (319,463 | ) | (4,639,133 | ) | (274,901 | ) | (3,894,300 | ) | |||||||||||
Net Increase (Decrease) | (298,505 | ) | $ | (4,335,785 | ) | 969,528 | $ | 14,021,239 | |||||||||||
Institutional Class Shares | |||||||||||||||||||
Shares sold | 82,178 | $ | 1,214,797 | 135,560 | $ | 2,016,768 | |||||||||||||
Shares issued in reinvestment of dividends and distributions | — | — | 33,573 | 441,482 | |||||||||||||||
Shares redeemed | (31,356 | ) | (434,640 | ) | (984,443 | ) | (12,855,574 | ) | |||||||||||
Net Increase (Decrease) | 50,822 | $ | 780,157 | (815,310 | ) | $ | (10,397,324 | ) | |||||||||||
Total Net Increase (Decrease) | (162,976 | ) | $ | (2,552,628 | ) | 2,629,983 | $ | 48,526,954 |
(a) 4,384,445 shares and $66,973,275 converted into Class 2 from Class 3.
(b) 246,833 shares and $3,764,253 converted into Class 3 from Class 4.
(c) 4,391,633 shares and $66,973,275 converted from Class 3 into Class 2.
(d) 246,485 shares and $3,764,253 converted from Class 4 into Class 3.
178
Notes to Financial Statements (unaudited)
Semi-Annual Report June 30, 2023
Baillie Gifford Emerging Markets Equities Fund | |||||||||||||||||||
For the Period Ended June 30, 2023 | For the Year Ended December 31, 2022 | ||||||||||||||||||
Shares | Amount | Shares | Amount | ||||||||||||||||
Class 2 Shares | |||||||||||||||||||
Shares sold | 159 | $ | 3,000 | 174,843 | (a) | $ | 3,592,367 | (a) | |||||||||||
Shares issued in reinvestment of dividends and distributions | — | — | 156,220 | 2,673,322 | |||||||||||||||
Shares redeemed | (3,284 | ) | (60,000 | ) | (4,418 | ) | (80,000 | ) | |||||||||||
Net Increase (Decrease) | (3,125 | ) | $ | (57,000 | ) | 326,645 | $ | 6,185,689 | |||||||||||
Class 3 Shares | |||||||||||||||||||
Shares sold | 10,775,052 | (b) | $ | 201,944,953 | (b) | — | $ | — | |||||||||||
Shares issued in reinvestment of dividends and distributions | — | — | 644,033 | 11,120,134 | |||||||||||||||
Shares redeemed | — | — | — | — | |||||||||||||||
Net Increase (Decrease) | 10,775,052 | $ | 201,944,953 | 644,033 | $ | 11,120,134 | |||||||||||||
Class 4 Shares | |||||||||||||||||||
Shares sold | — | $ | — | — | $ | — | |||||||||||||
Shares issued in reinvestment of dividends and distributions | — | — | 545,447 | 9,560,421 | |||||||||||||||
Shares redeemed | (10,613,488 | )(c) | (201,944,943 | )(c) | — | — | |||||||||||||
Net Increase (Decrease) | (10,613,488 | ) | $ | (201,944,943 | ) | 545,447 | $ | 9,560,421 | |||||||||||
Class 5 Shares | |||||||||||||||||||
Shares sold | — | $ | — | 272,126 | $ | 5,000,000 | |||||||||||||
Shares issued in reinvestment of dividends and distributions | — | — | 3,341,711 | 59,441,029 | |||||||||||||||
Shares redeemed | (1,458,224 | ) | (29,000,000 | ) | (6,895,066 | )(d) | (144,626,367 | )(d) | |||||||||||
Net Increase (Decrease) | (1,458,224 | ) | $ | (29,000,000 | ) | (3,281,229 | ) | $ | (80,185,338 | ) | |||||||||
Class K Shares | |||||||||||||||||||
Shares sold | 8,851,073 | (e) | $ | 161,620,673 | (e) | 33,644,739 | (f) | $ | 649,159,308 | (f) | |||||||||
Shares issued in reinvestment of dividends and distributions | — | — | 4,836,714 | 82,369,239 | |||||||||||||||
Shares redeemed | (13,188,728 | ) | (246,121,924 | ) | (32,727,321 | ) | (613,627,474 | ) | |||||||||||
Net Increase (Decrease) | (4,337,655 | ) | $ | (84,501,251 | ) | 5,754,132 | $ | 117,901,073 |
179
Notes to Financial Statements (unaudited)
Semi-Annual Report June 30, 2023
Baillie Gifford Emerging Markets Equities Fund | |||||||||||||||||||
For the Period Ended June 30, 2023 | For the Year Ended December 31, 2022 | ||||||||||||||||||
Shares | Amount | Shares | Amount | ||||||||||||||||
Institutional Class Shares | |||||||||||||||||||
Shares sold | 7,693,706 | $ | 140,902,758 | 26,815,013 | $ | 529,206,581 | |||||||||||||
Shares issued in reinvestment of dividends and distributions | — | — | 2,483,551 | 42,294,883 | |||||||||||||||
Shares redeemed | (7,246,329 | )(g) | (132,447,578 | )(g) | (29,357,992 | )(h) | (558,503,670 | )(h) | |||||||||||
Net Increase (Decrease) | 447,377 | $ | 8,455,180 | (59,428 | ) | $ | 12,997,794 | ||||||||||||
Total Net Increase (Decrease) | (5,190,063 | ) | $ | (105,103,061 | ) | 3,929,600 | $ | 77,579,773 |
(a) 174,533 shares and $3,586,367 converted into Class 2 from Class 5.
(b) 10,775,052 shares and $201,944,953 converted into Class 3 from Class 4.
(c) 10,613,488 shares and $201,944,953 converted from Class 4 into Class 3.
(d) 168,163 shares and $3,586,367 converted from Class 5 into Class 2.
(e) 144,124 shares and $2,717,783 converted into Class K from Institutional Class.
(f) 84,183 shares and $1,876,386 converted into Class K from Institutional Class.
(g) 144,192 shares and $2,717,783 converted from Institutional Class into Class K.
(h) 84,183 shares and $1,876,386 converted from Institutional Class into Class K.
Baillie Gifford Emerging Markets ex China Fund | |||||||||||||||||||
For the Period Ended June 30, 2023 | For the Year Ended December 31, 2022 | ||||||||||||||||||
Shares | Amount | Shares | Amount | ||||||||||||||||
Class K Shares | |||||||||||||||||||
Shares sold | — | $ | — | — | $ | — | |||||||||||||
Shares issued in reinvestment of dividends and distributions | — | — | 2,504 | 17,855 | |||||||||||||||
Shares redeemed | — | — | — | — | |||||||||||||||
Net Increase (Decrease) | — | $ | — | 2,504 | $ | 17,855 | |||||||||||||
Institutional Class Shares | |||||||||||||||||||
Shares sold | — | $ | — | — | $ | — | |||||||||||||
Shares issued in reinvestment of dividends and distributions | — | — | 2,504 | 17,854 | |||||||||||||||
Shares redeemed | — | — | — | — | |||||||||||||||
Net Increase (Decrease) | — | $ | — | 2,504 | $ | 17,854 | |||||||||||||
Total Net Increase (Decrease) | — | $ | — | 5,008 | $ | 35,709 |
180
Notes to Financial Statements (unaudited)
Semi-Annual Report June 30, 2023
Baillie Gifford Global Alpha Equities Fund | |||||||||||||||||||
For the Period Ended June 30, 2023 | For the Year Ended December 31, 2022 | ||||||||||||||||||
Shares | Amount | Shares | Amount | ||||||||||||||||
Class 2 Shares | |||||||||||||||||||
Shares sold | 205 | $ | 3,000 | 4,607,121 | (a) | $ | 73,247,462 | (a) | |||||||||||
Shares issued in reinvestment of dividends and distributions | — | — | 366,379 | 4,894,311 | |||||||||||||||
Shares redeemed | (303,247 | ) | (4,500,000 | ) | (2,124,537 | ) | (31,750,000 | ) | |||||||||||
Net Increase (Decrease) | (303,042 | ) | $ | (4,497,000 | ) | 2,848,963 | $ | 46,391,773 | |||||||||||
Class 3 Shares | |||||||||||||||||||
Shares sold | 12,054,304 | (b) | $ | 183,013,261 | (b) | 9,107,174 | (c) | $ | 151,183,648 | (c) | |||||||||
Shares issued in reinvestment of dividends and distributions | — | — | 200,570 | 2,774,341 | |||||||||||||||
Shares redeemed | — | — | (7,281,855 | )(d) | (119,241,462 | )(d) | |||||||||||||
Net Increase (Decrease) | 12,054,304 | $ | 183,013,261 | 2,025,889 | $ | 34,716,527 | |||||||||||||
Class 4 Shares | |||||||||||||||||||
Shares sold | — | $ | — | 11,504,588 | (e) | $ | 196,727,309 | (e) | |||||||||||
Shares issued in reinvestment of dividends and distributions | — | — | 654,457 | 9,335,035 | |||||||||||||||
Shares redeemed | (11,688,611 | )(f) | (183,013,261 | )(f) | (20,344,448 | )(g) | (381,302,662 | )(g) | |||||||||||
Net Increase (Decrease) | (11,688,611 | ) | $ | (183,013,261 | ) | (8,185,403 | ) | $ | (175,240,318 | ) | |||||||||
Class 5 Shares | |||||||||||||||||||
Shares sold | — | $ | — | 10,892,744 | (h) | $ | 230,119,015 | (h) | |||||||||||
Shares issued in reinvestment of dividends and distributions | — | — | — | — | |||||||||||||||
Shares redeemed | — | — | (10,892,744 | )(i) | (196,727,309 | )(i) | |||||||||||||
Net Increase (Decrease) | — | $ | — | — | $ | 33,391,706 | |||||||||||||
Class K Shares | |||||||||||||||||||
Shares sold | 582,766 | $ | 8,392,399 | 7,303,892 | $ | 106,320,026 | (j) | ||||||||||||
Shares issued in reinvestment of dividends and distributions | — | — | 855,016 | 11,363,164 | |||||||||||||||
Shares redeemed | (7,646,154 | ) | (112,129,645 | ) | (4,816,330 | ) | (70,373,062 | ) | |||||||||||
Net Increase (Decrease) | (7,063,388 | ) | $ | (103,737,246 | ) | 3,342,578 | $ | 47,310,128 |
181
Notes to Financial Statements (unaudited)
Semi-Annual Report June 30, 2023
Baillie Gifford Global Alpha Equities Fund | |||||||||||||||||||
For the Period Ended June 30, 2023 | For the Year Ended December 31, 2022 | ||||||||||||||||||
Shares | Amount | Shares | Amount | ||||||||||||||||
Institutional Class Shares | |||||||||||||||||||
Shares sold | 19,237 | $ | 282,842 | 1,405,960 | $ | 21,599,894 | |||||||||||||
Shares issued in reinvestment of dividends and distributions | — | — | 85,015 | 1,130,701 | |||||||||||||||
Shares redeemed | (12,656 | ) | (189,376 | ) | (1,252,083 | ) | (19,780,953 | ) | |||||||||||
Net Increase (Decrease) | 6,581 | $ | 93,466 | 238,892 | $ | 2,949,642 | |||||||||||||
Total Net Increase (Decrease) | (6,994,156 | ) | $ | (108,140,780 | ) | 270,919 | $ | (10,480,542 | ) |
(a) 4,312,417 shares and $69,241,462 converted into Class 2 from Class 3.
(b) 12,054,304 shares and $183,013,261 converted into Class 3 from Class 4.
(c) 9,107,174 shares and $151,183,648 converted into Class 3 from Class 4.
(d) 4,171,047 shares and 69,241,462 converted from Class 3 into Class 2.
(e) 11,504,588 shares and $196,727,309 converted into Class 4 from Class 5.
(f) 11,688,611 shares and $183,013,261 converted from Class 4 into Class 3.
(g) 11,503,248 shares and $230,119,015 converted from Class 4 into Class 5. 8,841,200 shares and $151,183,648 converted from Class 4 into Class 3.
(h) 10,892,744 shares and $230,119,015 converted into Class 5 from Class 4.
(i) 10,892,744 shares and $196,727,309 converted from Class 5 into Class 4.
(j) This amount includes an in-kind transfer of $80,804,752.
Baillie Gifford Health Innovation Equities Fund | |||||||||||||||||||
For the Period Ended June 30, 2023 | For the Year Ended December 31, 2022 | ||||||||||||||||||
Shares | Amount | Shares | Amount | ||||||||||||||||
Class K Shares | |||||||||||||||||||
Shares sold | 928 | $ | 6,510 | — | $ | — | |||||||||||||
Shares issued in reinvestment of dividends and distributions | — | — | 41 | 267 | |||||||||||||||
Shares redeemed | (1 | ) | (10 | ) | — | — | |||||||||||||
Net Increase (Decrease) | 927 | $ | 6,500 | 41 | $ | 267 | |||||||||||||
Institutional Class Shares | |||||||||||||||||||
Shares sold | 450,334 | $ | 3,102,052 | 2,117,775 | $ | 14,252,929 | |||||||||||||
Shares issued in reinvestment of dividends and distributions | — | — | 198 | 1,295 | |||||||||||||||
Shares redeemed | (88,824 | ) | (610,783 | ) | (13,387 | ) | (90,471 | ) | |||||||||||
Net Increase (Decrease) | 361,510 | $ | 2,491,269 | 2,104,586 | $ | 14,163,753 | |||||||||||||
Total Net Increase (Decrease) | 362,437 | $ | 2,497,769 | 2,104,627 | $ | 14,164,020 |
182
Notes to Financial Statements (unaudited)
Semi-Annual Report June 30, 2023
Baillie Gifford International Alpha Fund | |||||||||||||||||||
For the Period Ended June 30, 2023 | For the Year Ended December 31, 2022 | ||||||||||||||||||
Shares | Amount | Shares | Amount | ||||||||||||||||
Class 2 Shares | |||||||||||||||||||
Shares sold | 9,655,572 | (a) | $ | 118,364,703 | (a) | 14,636,098 | (b) | $ | 182,272,469 | (b) | |||||||||
Shares issued in reinvestment of dividends and distributions | — | — | 526,774 | 5,649,860 | |||||||||||||||
Shares redeemed | — | — | (6,843,280 | ) | (81,665,960 | ) | |||||||||||||
Net Increase (Decrease) | 9,655,572 | $ | 118,364,703 | 8,319,592 | $ | 106,256,369 | |||||||||||||
Class 3 Shares | |||||||||||||||||||
Shares sold | 3,909,801 | $ | 48,818,366 | 17,301,906 | (c) | $ | 215,842,807 | (c) | |||||||||||
Shares issued in reinvestment of dividends and distributions | — | — | 631,754 | 6,886,811 | |||||||||||||||
Shares redeemed | (13,370,680 | )(d) | (165,862,603 | )(d) | (16,098,948 | )(e) | (202,418,469 | )(e) | |||||||||||
Net Increase (Decrease) | (9,460,879 | ) | $ | (117,044,237 | ) | 1,834,712 | $ | 20,311,149 | |||||||||||
Class 4 Shares | |||||||||||||||||||
Shares sold | — | $ | — | 161,654 | $ | 2,420,000 | |||||||||||||
Shares issued in reinvestment of dividends and distributions | — | — | 812,759 | 9,027,072 | |||||||||||||||
Shares redeemed | — | — | (12,448,965 | )(f) | (161,424,480 | )(f) | |||||||||||||
Net Increase (Decrease) | — | $ | — | (11,474,552 | ) | $ | (149,977,408 | ) | |||||||||||
Class 5 Shares | |||||||||||||||||||
Shares sold | 119,657 | $ | 1,555,375 | 802,568 | $ | 9,380,896 | |||||||||||||
Shares issued in reinvestment of dividends and distributions | — | — | 80,379 | 911,339 | |||||||||||||||
Shares redeemed | (169,663 | ) | (2,161,719 | ) | (4,096,653 | ) | (48,114,155 | ) | |||||||||||
Net Increase (Decrease) | (50,006 | ) | $ | (606,344 | ) | (3,213,706 | ) | $ | (37,821,920 | ) | |||||||||
Class K Shares | |||||||||||||||||||
Shares sold | 3,229,675 | (g) | $ | 38,701,745 | (g) | 12,791,395 | (h) | $ | 138,561,731 | (h) | |||||||||
Shares issued in reinvestment of dividends and distributions | — | — | 1,028,997 | 10,989,690 | |||||||||||||||
Shares redeemed | (6,563,349 | ) | (80,723,330 | ) | (28,387,144 | )(i) | (320,802,089 | )(i) | |||||||||||
Net Increase (Decrease) | (3,333,674 | ) | $ | (42,021,585 | ) | (14,566,752 | ) | $ | (171,250,668 | ) |
183
Notes to Financial Statements (unaudited)
Semi-Annual Report June 30, 2023
Baillie Gifford International Alpha Fund | |||||||||||||||||||
For the Period Ended June 30, 2023 | For the Year Ended December 31, 2022 | ||||||||||||||||||
Shares | Amount | Shares | Amount | ||||||||||||||||
Institutional Class Shares | |||||||||||||||||||
Shares sold | 1,118,504 | $ | 13,507,733 | 12,616,613 | (j) | $ | 158,244,408 | (j) | |||||||||||
Shares issued in reinvestment of dividends and distributions | — | — | 134,802 | 1,453,166 | |||||||||||||||
Shares redeemed | (2,859,156 | )(k) | (34,898,478 | )(k) | (49,358,422 | )(l) | (584,695,815 | )(l) | |||||||||||
Net Increase (Decrease) | (1,740,652 | ) | $ | (21,390,745 | ) | (36,607,007 | ) | $ | (424,998,241 | ) | |||||||||
Total Net Increase (Decrease) | (4,929,639 | ) | $ | (62,698,208 | ) | (55,707,713 | ) | $ | (657,480,719 | ) |
(a) 9,655,323 shares and $118,361,703 converted into Class 2 from Class 3.
(b) 13,766,810 shares and $172,466,469 converted into Class 2 from Class 3.
(c) 12,679,738 shares and $161,424,480 converted into Class 3 from Class 4.
(d) 9,497,810 shares and $118,361,703 converted from Class 3 to Class 2.
(e) 13,547,076 shares and $172,466,469 converted from Class 3 into Class 2.
(f) 12,448,965 shares and $161,424,480 converted from Class 4 into Class 3.
(g) 326 shares and $3,948 converted into Class K from Institutional Class.
(h) 1,915 shares and $21,719 converted into Class K from Institutional Class.
(i) 6,147 shares and $83,656 converted from Class K into Institutional Class.
(j) 6,124 shares and $83,656 converted into Institutional Class from Class K.
(k) 323 shares and $3,948 converted from Institutional Class into Class K.
(l) 1,910 shares and $21,719 converted from Institutional Class into Class K.
Baillie Gifford International Concentrated Growth Equities Fund | |||||||||||||||||||
For the Period Ended June 30, 2023 | For the Year Ended December 31, 2022 | ||||||||||||||||||
Shares | Amount | Shares | Amount | ||||||||||||||||
Class K Shares | |||||||||||||||||||
Shares sold | 543,307 | $ | 3,540,485 | 3,297,607 | $ | 21,349,940 | |||||||||||||
Shares issued in reinvestment of dividends and distributions | — | — | 319,004 | 1,767,282 | |||||||||||||||
Shares redeemed | (809,469 | ) | (5,166,884 | ) | (4,023,433 | ) | (24,487,536 | ) | |||||||||||
Net Increase (Decrease) | (266,162 | ) | $ | (1,626,399 | ) | (406,822 | ) | $ | (1,370,314 | ) | |||||||||
Institutional Class Shares | |||||||||||||||||||
Shares sold | 1,965,614 | $ | 12,226,389 | 8,490,864 | $ | 66,139,903 | |||||||||||||
Shares issued in reinvestment of dividends and distributions | — | — | 409,509 | 2,240,014 | |||||||||||||||
Shares redeemed | (778,894 | ) | (4,873,477 | ) | (7,983,474 | ) | (54,919,668 | ) | |||||||||||
Net Increase (Decrease) | 1,186,720 | $ | 7,352,912 | 916,899 | $ | 13,460,249 | |||||||||||||
Total Net Increase (Decrease) | 920,558 | $ | 5,726,513 | 510,077 | $ | 12,089,935 |
184
Notes to Financial Statements (unaudited)
Semi-Annual Report June 30, 2023
Baillie Gifford International Growth Fund | |||||||||||||||||||
For the Period Ended June 30, 2023 | For the Year Ended December 31, 2022 | ||||||||||||||||||
Shares | Amount | Shares | Amount | ||||||||||||||||
Class 2 Shares | |||||||||||||||||||
Shares sold | 2,326,381 | $ | 28,503,000 | 27,299,774 | (a) | $ | 342,081,605 | (a) | |||||||||||
Shares issued in reinvestment of dividends and distributions | — | — | 342,206 | 3,691,376 | |||||||||||||||
Shares redeemed | (570,433 | ) | (7,145,987 | ) | (105,915 | ) | (1,550,000 | ) | |||||||||||
Net Increase (Decrease) | 1,755,948 | $ | 21,357,013 | 27,536,065 | $ | 344,222,981 | |||||||||||||
Class 3 Shares | |||||||||||||||||||
Shares sold | 145,346 | $ | 1,800,000 | 12,234,680 | (b) | $ | 151,313,900 | (b) | |||||||||||
Shares issued in reinvestment of dividends and distributions | — | — | 134,639 | 1,456,319 | |||||||||||||||
Shares redeemed | (1,248,187 | ) | (15,200,000 | ) | (21,739,338 | )(c) | (272,875,605 | )(c) | |||||||||||
Net Increase (Decrease) | (1,102,841 | ) | $ | (13,400,000 | ) | (9,370,019 | ) | $ | (120,105,386 | ) | |||||||||
Class 4 Shares | |||||||||||||||||||
Shares sold | — | $ | — | 4,340,428 | $ | 50,000,000 | |||||||||||||
Shares issued in reinvestment of dividends and distributions | — | — | 312,522 | 3,381,707 | |||||||||||||||
Shares redeemed | — | — | (10,994,906 | )(d) | (134,613,900 | )(d) | |||||||||||||
Net Increase (Decrease) | — | $ | — | (6,341,956 | ) | $ | (81,232,193 | ) | |||||||||||
Class 5 Shares | |||||||||||||||||||
Shares sold | — | $ | — | — | $ | — | |||||||||||||
Shares issued in reinvestment of dividends and distributions | — | — | 700,721 | 7,602,619 | |||||||||||||||
Shares redeemed | — | — | — | — | |||||||||||||||
Net Increase (Decrease) | — | $ | — | 700,721 | $ | 7,602,619 | |||||||||||||
Class K Shares | |||||||||||||||||||
Shares sold | 86,453 | $ | 1,051,682 | 806,923 | $ | 10,780,634 | |||||||||||||
Shares issued in reinvestment of dividends and distributions | — | — | 31,197 | 335,676 | |||||||||||||||
Shares redeemed | (38,732 | ) | (470,286 | ) | (555,229 | ) | (7,662,243 | ) | |||||||||||
Net Increase (Decrease) | 47,721 | $ | 581,396 | 282,891 | $ | 3,454,067 | |||||||||||||
Institutional Class Shares | |||||||||||||||||||
Shares sold | 5,459,397 | $ | 65,877,460 | 18,989,593 | $ | 226,507,373 | |||||||||||||
Shares issued in reinvestment of dividends and distributions | — | — | 85,623 | 918,730 | |||||||||||||||
Shares redeemed | (2,412,824 | ) | (28,875,498 | ) | (20,285,609 | ) | (239,977,847 | ) | |||||||||||
Net Increase (Decrease) | 3,046,573 | $ | 37,001,962 | (1,210,393 | ) | $ | (12,551,744 | ) | |||||||||||
Total Net Increase (Decrease) | 3,747,401 | $ | 45,540,371 | 11,597,309 | $ | 141,390,344 |
(a) 20,387,845 shares and $255,875,605 converted into Class 2 from Class 3.
(b) 8,871,130 shares and $111,613,900 converted into Class 3 from Class 4.
(c) 20,337,125 shares and $255,875,605 converted from Class 3 into Class 2.
(d) 8,865,493 shares and $111,613,900 converted from Class 4 into Class 3.
185
Notes to Financial Statements (unaudited)
Semi-Annual Report June 30, 2023
Baillie Gifford International Smaller Companies Fund | |||||||||||||||||||
For the Period Ended June 30, 2023 | For the Year Ended December 31, 2022 | ||||||||||||||||||
Shares | Amount | Shares | Amount | ||||||||||||||||
Class K Shares | |||||||||||||||||||
Shares sold | 124,022 | $ | 1,568,800 | 115,612 | $ | 1,526,400 | |||||||||||||
Shares issued in reinvestment of dividends and distributions | — | — | 3,223 | 35,491 | |||||||||||||||
Shares redeemed | (2,157,195 | ) | (26,754,378 | ) | (322,332 | ) | (4,101,595 | ) | |||||||||||
Net Increase (Decrease) | (2,033,173 | ) | $ | (25,185,578 | ) | (203,497 | ) | $ | (2,539,704 | ) | |||||||||
Institutional Class Shares | |||||||||||||||||||
Shares sold | 44,026 | $ | 554,800 | 1,240,005 | $ | 14,373,256 | |||||||||||||
Shares issued in reinvestment of dividends and distributions | — | — | 1,308 | 14,391 | |||||||||||||||
Shares redeemed | — | — | (951,432 | ) | (10,217,456 | ) | |||||||||||||
Net Increase (Decrease) | 44,026 | $ | 554,800 | 289,881 | $ | 4,170,191 | |||||||||||||
Total Net Increase (Decrease) | (1,989,147 | ) | $ | (24,630,778 | ) | 86,384 | $ | 1,630,487 | |||||||||||
Baillie Gifford Long Term Global Growth Fund | |||||||||||||||||||
For the Period Ended June 30, 2023 | For the Year Ended December 31, 2022 | ||||||||||||||||||
Shares | Amount | Shares | Amount | ||||||||||||||||
Class 2 Shares | |||||||||||||||||||
Shares sold | 135 | $ | 3,000 | 248 | $ | 6,000 | |||||||||||||
Shares issued in reinvestment of dividends and distributions | — | — | 117,877 | 2,238,949 | |||||||||||||||
Shares redeemed | — | — | (238,116 | ) | (7,000,000 | ) | |||||||||||||
Net Increase (Decrease) | 135 | $ | 3,000 | (119,991 | ) | $ | (4,755,051 | ) | |||||||||||
Class 4 Shares | |||||||||||||||||||
Shares sold | — | $ | — | 1,716,411 | (a) | $ | 53,862,692 | (a) | |||||||||||
Shares issued in reinvestment of dividends and distributions | — | — | 58,102 | 1,281,675 | |||||||||||||||
Shares redeemed | — | — | — | — | |||||||||||||||
Net Increase (Decrease) | — | $ | — | 1,774,513 | $ | 55,144,367 | |||||||||||||
Class 5 Shares | |||||||||||||||||||
Shares sold | — | $ | — | — | $ | — | |||||||||||||
Shares issued in reinvestment of dividends and distributions | — | — | — | — | |||||||||||||||
Shares redeemed | — | — | (2,065,875 | )(b) | (74,362,692 | )(b) | |||||||||||||
Net Increase (Decrease) | — | $ | — | (2,065,875 | ) | $ | (74,362,692 | ) |
186
Notes to Financial Statements (unaudited)
Semi-Annual Report June 30, 2023
Baillie Gifford Long Term Global Growth Fund | |||||||||||||||||||
For the Period Ended June 30, 2023 | For the Year Ended December 31, 2022 | ||||||||||||||||||
Shares | Amount | Shares | Amount | ||||||||||||||||
Class K Shares | |||||||||||||||||||
Shares sold | 100,713 | $ | 2,248,977 | 1,960,500 | $ | 48,885,953 | |||||||||||||
Shares issued in reinvestment of dividends and distributions | — | — | 435,668 | 8,277,694 | |||||||||||||||
Shares redeemed | (272,126 | ) | (6,173,809 | ) | (1,572,029 | ) | (36,691,886 | ) | |||||||||||
Net Increase (Decrease) | (171,413 | ) | $ | (3,924,832 | ) | 824,139 | $ | 20,471,761 | |||||||||||
Institutional Class Shares | |||||||||||||||||||
Shares sold | 1,596,209 | $ | 35,203,969 | 8,690,764 | $ | 222,264,057 | |||||||||||||
Shares issued in reinvestment of dividends and distributions | — | — | 346,795 | 6,561,366 | |||||||||||||||
Shares redeemed | (1,014,458 | ) | (22,716,710 | ) | (14,009,874 | ) | (340,255,603 | ) | |||||||||||
Net Increase (Decrease) | 581,751 | $ | 12,487,259 | (4,972,315 | ) | $ | (111,430,180 | ) | |||||||||||
Total Net Increase (Decrease) | 410,473 | $ | 8,565,427 | (4,559,529 | ) | $ | (114,931,795 | ) |
(a) 1,716,411 shares and $53,862,692 converted into Class 4 from Class 5.
(b) 1,527,868 shares and $53,862,692 converted from Class 5 into Class 4.
Baillie Gifford U.S. Discovery Fund | |||||||||||||||||||
For the Period Ended June 30, 2023 | For the Year Ended December 31, 2022 | ||||||||||||||||||
Shares | Amount | Shares | Amount | ||||||||||||||||
Class K Shares | |||||||||||||||||||
Shares sold | — | $ | — | 745,444 | $ | 4,455,000 | |||||||||||||
Shares issued in reinvestment of dividends and distributions | — | — | — | — | |||||||||||||||
Shares redeemed | (91,575 | ) | (500,000 | ) | (317,164 | ) | (1,642,910 | ) | |||||||||||
Net Increase (Decrease) | (91,575 | ) | $ | (500,000 | ) | 428,280 | $ | 2,812,090 | |||||||||||
Institutional Class Shares | |||||||||||||||||||
Shares sold | — | $ | — | — | $ | — | |||||||||||||
Shares issued in reinvestment of dividends and distributions | — | — | — | — | |||||||||||||||
Shares redeemed | — | — | — | — | |||||||||||||||
Net Increase (Decrease) | — | $ | — | — | $ | — | |||||||||||||
Total Net Increase (Decrease) | (91,575 | ) | $ | (500,000 | ) | 428,280 | $ | 2,812,090 |
187
Notes to Financial Statements (unaudited)
Semi-Annual Report June 30, 2023
Baillie Gifford U.S. Equity Growth Fund | |||||||||||||||||||
For the Period Ended June 30, 2023 | For the Year Ended December 31, 2022 | ||||||||||||||||||
Shares | Amount | Shares | Amount | ||||||||||||||||
Class K Shares | |||||||||||||||||||
Shares sold | 18,977 | $ | 299,453 | 37,695 | $ | 738,649 | |||||||||||||
Shares issued in reinvestment of dividends and distributions | — | — | 107,344 | 1,438,401 | |||||||||||||||
Shares redeemed | (13,102 | ) | (205,744 | ) | (95,410 | ) | (1,849,937 | ) | |||||||||||
Net Increase (Decrease) | 5,875 | $ | 93,709 | 49,629 | $ | 327,113 | |||||||||||||
Institutional Class Shares | |||||||||||||||||||
Shares sold | 209,969 | $ | 3,499,361 | 440,682 | $ | 8,520,193 | |||||||||||||
Shares issued in reinvestment of dividends and distributions | — | — | 127,618 | 1,702,423 | |||||||||||||||
Shares redeemed | (121,204 | ) | (1,922,582 | ) | (924,299 | ) | (19,967,202 | ) | |||||||||||
Net Increase (Decrease) | 88,765 | $ | 1,576,779 | (355,999 | ) | $ | (9,744,586 | ) | |||||||||||
Total Net Increase (Decrease) | 94,640 | $ | 1,670,488 | (306,370 | ) | $ | (9,417,473 | ) |
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, 2023, the following Funds had one or more shareholders which beneficially owned 25% or more of the Fund's voting securities:
Fund | |||
Baillie Gifford China A Shares Growth Fund(1) | |||
Baillie Gifford China Equities Fund(1)(2) | |||
Baillie Gifford Developed EAFE All Cap Fund | |||
Baillie Gifford EAFE Plus All Cap Fund | |||
Baillie Gifford Emerging Markets ex China Fund(1) | |||
Baillie Gifford Health Innovation Equities Fund(1)(2) | |||
Baillie Gifford International Concentrated Growth Equities Fund(2) | |||
Baillie Gifford International Growth Fund | |||
Baillie Gifford International Smaller Companies Fund | |||
Baillie Gifford Long Term Global Growth Fund | |||
Baillie Gifford U.S. Discovery Fund |
(1) At June 30, 2023, Baillie Gifford International LLC, a wholly owned subsidiary of the Manager, beneficially owned 25% or more of the Fund's voting securities and as a result may be deemed to control such Funds.
(2) The Fund has two shareholders which each beneficially own 25% or more of the Fund's voting securities.
Purchase and redemption activity of these accounts may have a significant effect on the operation of each Fund.
188
Notes to Financial Statements (unaudited)
Semi-Annual Report June 30, 2023
Note F — Commitments and Contingencies
Each of the Funds indemnifies the Trust's officers and each member of the Board 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 18, 2023, and expiring April 16, 2024 (unless renewed), 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 Secured Overnight Financing Rate + 0.10%.
The Funds pay a share of a commitment fee on the portion of the facility which is undrawn. The commitment fee is 0.25% on undrawn amounts.
The rate payable at June 30, 2023 was 6.34% on any amounts drawn down.
The following borrowings were made against the credit facility during the period:
Fund | Maximum Amount Borrowed | Average Amount Borrowed(1) | Average Interest Rate | ||||||||||||
Baillie Gifford Emerging Market Equities Fund | $ | 12,100,000 | $ | 10,610,000 | 5.66 | % | |||||||||
Baillie Gifford Global Alpha Equities Fund | 19,500,000 | 11,750,000 | 6.41 | % | |||||||||||
Baillie Gifford International Concentrated Growth Equities Fund | 1,500,000 | 1,225,000 | 6.03 | % | |||||||||||
Baillie Gifford U.S Discovery Fund | 450,000 | 450,000 | 5.90 | % |
(1) Average amount borrowed is calculated using days with outstanding borrowings.
Note H — Principal Risks
The below is a selection of the Funds' principal risks. The Funds' full list of principal risks, including more commonly known risks, are further described within their respective prospectuses.
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.
189
Notes to Financial Statements (unaudited)
Semi-Annual Report June 30, 2023
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 China Equities Fund, Baillie Gifford Emerging Markets ex China Fund, Baillie Gifford International Concentrated Growth Equities Fund, Baillie Gifford Health Innovation Equities Fund, Baillie Gifford Long Term Global Growth Fund, Baillie Gifford U.S. Discovery Fund and Baillie Gifford U.S. Equity Growth Fund are all non-diversified Funds.
Market Disruption and Geopolitical Risk
Geopolitical, environmental and other events may disrupt securities markets and adversely affect global economies and markets. These disruptions could prevent the Funds from implementing their investment strategies and achieving their investment objectives, and increase the Funds' exposure to the other risks detailed in this Prospectus. Given the increasing interdependence among global economies and markets, conditions in one country, market, or region might adversely affect markets, issuers, and/or foreign exchange rates in other countries, including the U.S.
War, terrorism, public health crises, and other geopolitical events, such as sanctions, tariffs, trade disputes, the imposition of exchange controls or other cross-border trade barriers, have led, and in the future may lead, to increased short-term market volatility and may have adverse long-term effects on U.S. and world economies and markets generally. For instance, the 2022 Russian invasion of Ukraine and the sanctions that followed had immediate negative effects on global financial markets, sovereign debt and the markets for certain securities and commodities, such as oil and natural gas, and reduced the liquidity and value of Russian securities to zero or near zero. Similarly, terrorism in the U.S. and around the world has resulted in increased geopolitical risk.
Natural and environmental disasters, such as earthquakes and tsunamis, can be highly disruptive to economies and markets, adversely impacting individual companies and industries, securities markets, interest rates, credit ratings, inflation, investor sentiment, and other factors affecting the value of the Funds' investments. Similarly, dramatic disruptions can be caused by communicable diseases, epidemics, pandemics, plagues and other public health crises.
For further information on the risks of investing in each Fund, please refer to each Fund's prospectus.
190
Notes to Financial Statements (unaudited)
Semi-Annual Report June 30, 2023
Note I — Legal Notice
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. Discovery & 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.
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.
On June 16, 2023, Magnit PJSC announced a Tender Offer to provide shareholders with an opportunity to monetize their stakes in Magnit. The Manager undertook this Tender Offer and successfully received full allocation for all shares held, resulting in payments received in Baillie Gifford Emerging Markets Equities Fund, Baillie Gifford Emerging Markets ex China Fund and Baillie Gifford International Alpha Fund of $8,913,080, $2,139 and $5,843,925 respectively. These Funds are also due to receive a further de minimis payment in relation to holdings in Magnit PJSC GDR.
There were no other subsequent events identified between June 30, 2023 and the issuance of the Financial Statements.
191
Supplemental Information (unaudited)
Semi-Annual Report June 30, 2023
Management of the Trust
Independent 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
Suzanne Quinn, Chief Compliance Officer and AML Compliance Officer
Lesley-Anne Archibald, Vice President
Kelly Cameron, Vice President
Neil Riddell, Chief Risk Officer
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 +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 +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 +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.
192
BOARD CONSIDERATIONS REGARDING
2023 CONTRACT RENEWAL (unaudited)
Semi-Annual Report June 30, 2023
BAILLIE GIFFORD FUNDS
On June 22, 2023, 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 listed below, respectively (each a "Fund" and collectively, the "Funds"), and Baillie Gifford Overseas Limited (the "Manager"):
• Baillie Gifford Global Alpha Equities Fund | • Baillie Gifford China A Shares Growth Fund | ||||||
• Baillie Gifford Long Term Global Growth Fund | • Baillie Gifford China Equities Fund | ||||||
• Baillie Gifford Developed EAFE All Cap Fund | • Baillie Gifford Emerging Markets Equities Fund | ||||||
• Baillie Gifford EAFE Plus All Cap Fund | • Baillie Gifford Emerging Markets ex China Fund | ||||||
• Baillie Gifford International Alpha Fund | • Baillie Gifford U.S. Discovery Fund | ||||||
• Baillie Gifford International Concentrated Growth Equities Fund | • Baillie Gifford U.S. Equity Growth Fund | ||||||
• Baillie Gifford International Growth Fund | • Baillie Gifford Health Innovation Equities Fund | ||||||
• Baillie Gifford International Smaller Companies Fund | |
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 additional materials and other information 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 for each Fund.
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 and that the Manager employs a long-term investment approach. The Board considered underperformance in recent periods and the Manager's explanations, generally attributing underperformance to the unfavorable market environment for growth companies (after a lengthy period of favorable market conditions for growth investing) shaped by high inflation, rising interest rates and geopolitical tensions, among other factors. 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
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Semi-Annual Report June 30, 2023
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 and Baillie Gifford U.S. Discovery 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 Global Alpha Equities Fund
The Board reviewed total return information for the one-year, three-year, five-year, ten-year and since inception (November 15, 2011) periods ended March 31, 2023 for the Fund compared to a benchmark index (MSCI ACWI Index) and the average total returns of a performance universe of funds provided by Broadridge, and calendar year returns for 2013 through 2022 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 below the benchmark index and above the average of the performance universe for the one-year period, below the benchmark index and the average of the performance universe for the three-year and five-year periods and above the benchmark index and the average of the performance universe for the ten-year and since inception periods. The Board considered that the Manager was consistent in its long-term investing philosophy and that periods of underperformance were to be expected.
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 the expense peer group. The Board also reviewed the fee schedules for other clients 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 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, 2023 for the Fund compared to a benchmark index (MSCI ACWI Index) and the average total returns of a performance universe of funds provided by Broadridge, and calendar year returns for 2014 through 2022 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 below the benchmark index and the average of the performance universe for the one-year and three-year periods and above the benchmark index and the average of the performance universe for the five-year and since inception periods. The Board considered that the Manager was consistent in its long-term investing philosophy and that periods of underperformance were to be expected.
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 the expense peer group. The Board also reviewed the fee schedules for other clients of the Manager with a similar investment mandate. The Board considered whether there were economies of scale with respect to
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Semi-Annual Report June 30, 2023
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 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, 2023 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 2022 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 below the benchmark index and above the average of the performance universe for the one-year, five-year and since inception periods and below the benchmark index and the average of the performance universe for the three-year period. The Board considered that the Manager was consistent in its long-term investing philosophy and that periods of underperformance were to be expected.
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 the expense peer group. The Board also reviewed the fee schedules for other clients 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, 2023 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 2013 through 2022 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 below the benchmark index and above the average of the performance universe for the one-year and ten-year periods, below the benchmark index and the average of the performance universe for the three-year and five-year periods and above the benchmark index and the average of the performance universe for the since inception period. The Board considered that the Manager was consistent in its long-term investing philosophy and that periods of underperformance were to be expected.
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 the expense peer group. The Board also reviewed the fee schedules for other clients 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.
195
BOARD CONSIDERATIONS REGARDING
2023 CONTRACT RENEWAL (unaudited)
Semi-Annual Report June 30, 2023
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, 2023 for the Fund compared to a benchmark index (MSCI ACWI ex USA Index) and the average total returns of a performance universe of funds provided by Broadridge, and calendar year returns for 2013 through 2022 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 one-year, ten-year and since inception periods and below the benchmark index and the average of the performance universe for the three-year and five-year periods. The Board considered that the Manager was consistent in its long-term investing philosophy and that periods of underperformance were to be expected.
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 the expense peer group. The Board also reviewed the fee schedules for other clients 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, five-year and since inception (December 14, 2017) periods ended March 31, 2023 for the Fund compared to a benchmark index (MSCI ACWI ex USA Index) and the average total returns of a performance universe of funds provided by Broadridge, and calendar year returns for 2018 through 2022 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 below the benchmark index and the average of the performance universe for the one-year period and above the benchmark index and the average of the performance universe for the three-year, five-year and since inception periods. The Board considered that the Manager was consistent in its long-term investing philosophy and that periods of underperformance were to be expected.
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 the expense peer group. The Board also reviewed the fee schedules for other clients 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, 2024. 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, 2023 for the Fund compared to a benchmark index (MSCI ACWI ex USA Index) and the average total returns of a performance universe of funds provided by Broadridge, and calendar year returns for 2013
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Semi-Annual Report June 30, 2023
through 2022 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 below the benchmark index and the average of the performance universe for the one-year, three-year and five-year periods and above the benchmark index and the average of the performance universe for the ten-year and since inception periods. The Board considered that the Manager was consistent in its long-term investing philosophy and that periods of underperformance were to be expected.
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 the expense peer group. The Board also reviewed the fee schedules for other clients 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, three-year and since inception (December 19, 2018) periods ended March 31, 2023 for the Fund compared to a benchmark index (MSCI ACWI ex USA Small Cap Index) and the average total returns of a performance universe of funds provided by Broadridge, and calendar year returns for 2019 through 2022 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 below the benchmark index and the average of the performance universe for the one-year period, below the benchmark index and above the average of the performance universe for the three-year period and above the benchmark index and the average of the performance universe for the since inception period. The Board considered that the Manager was consistent in its long-term investing philosophy and that periods of underperformance were to be expected.
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 the expense peer group. The Board also reviewed the fee schedules for other clients 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, 2024. On the basis of the information provided, the Board concluded that the advisory fee was reasonable.
Baillie Gifford China A Shares Growth Fund
The Board reviewed total return information for the one-year, three-year and since inception (December 19, 2019) periods ended March 31, 2023 for the Fund compared to a benchmark index (MSCI China A Onshore Index) and the average total returns of a performance universe of funds provided by Broadridge, and calendar year returns for 2020 through 2022 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 below the average of the performance universe for the one-year period and above the benchmark index and the average of the performance universe for the three-year and since inception periods. The Board considered that the Manager was consistent in its long-term investing philosophy and that periods of underperformance were to be expected.
197
BOARD CONSIDERATIONS REGARDING
2023 CONTRACT RENEWAL (unaudited)
Semi-Annual Report June 30, 2023
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 the expense peer group. The Board also reviewed the fee schedules for other clients 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, 2024. On the basis of the information provided, the Board concluded that the advisory fee was reasonable.
Baillie Gifford China Equities Fund
The Board reviewed total return information for the one-year and since inception (July 7, 2021) periods ended March 31, 2023 for the Fund compared to a benchmark index (MSCI China All Shares Index) and the average total returns of a performance universe of funds provided by Broadridge, and calendar year returns for 2022 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 below the benchmark index and the average of the performance universe for one-year and since inception periods. The Board considered that the Fund had been operational for a short period of time, which provided a limited opportunity to evaluate performance. The Board considered that the Manager was consistent in its long-term investing philosophy and that periods of underperformance were to be expected.
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 the expense peer group. The Board also reviewed the fee schedules for other clients 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, 2024. 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, 2023 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 2013 through 2022 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, five-year, ten-year and since inception periods and below the benchmark index and above the average of the performance universe for the three-year period. The Board considered that the Manager was consistent in its long-term investing philosophy and that periods of underperformance were to be expected.
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 the expense peer group. The Board also reviewed the fee schedules for other clients of the Manager
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BOARD CONSIDERATIONS REGARDING
2023 CONTRACT RENEWAL (unaudited)
Semi-Annual Report June 30, 2023
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 Emerging Markets ex China Fund
The Board reviewed total return information for the one-year and since inception (December 28, 2021) periods ended March 31, 2023 for the Fund compared to a benchmark index (MSCI Emerging Markets ex China Index) and the average total returns of a performance universe of funds provided by Broadridge, and calendar year returns for 2022 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 period and below the benchmark index and above the average of the performance universe for the since inception period. The Board considered that the Fund had been operational for a short period of time, which provided a limited opportunity to evaluate performance. The Board considered that the Manager was consistent in its long-term investing philosophy and that periods of underperformance were to be expected.
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 the expense peer group. The Board also reviewed the fee schedules for other clients 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, 2024. On the basis of the information provided, the Board concluded that the advisory fee was reasonable.
Baillie Gifford U.S. Discovery Fund
The Board reviewed total return information for the one-year and since inception (May 5, 2021) periods ended March 31, 2023 for the Fund compared to a benchmark index (Russell 2500 Growth Index) and the average total return of a performance universe of funds provided by Broadridge, and calendar year returns for 2022 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 below the benchmark index and the average of the performance universe for the one-year and since inception periods. The Board considered that the Fund had been operational for a short period of time, which provided a limited opportunity to evaluate performance. The Board considered that the Manager was consistent in its long-term investing philosophy and that periods of underperformance were to be expected.
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 the expense peer group. The Board also reviewed the fee schedules for other clients 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, 2024. On the basis of the information provided, the Board concluded that the advisory fee was reasonable.
199
BOARD CONSIDERATIONS REGARDING
2023 CONTRACT RENEWAL (unaudited)
Semi-Annual Report June 30, 2023
Baillie Gifford U.S. Equity Growth Fund
The Board reviewed total return information for the one-year, three-year, five-year and since inception (December 5, 2016) periods ended March 31, 2023 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 2022 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 below the benchmark index and the average of the performance universe for the one-year, three-year and five-year periods and below the benchmark index and above the average of the performance universe for the since inception period. The Board considered that the Manager was consistent in its long-term investing philosophy and that periods of underperformance were to be expected.
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 the expense peer group. The Board also reviewed the fee schedules for other clients 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, 2024. On the basis of the information provided, the Board concluded that the advisory fee was reasonable.
Baillie Gifford Health Innovation Equities Fund
The Board reviewed total return information for the one-year and since inception (December 28, 2021) periods ended March 31, 2023 for the Fund compared to a benchmark index (MSCI ACWI Index) and the average total returns of a performance universe of funds provided by Broadridge, and calendar year returns for 2022 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 below the benchmark index and the average of the performance universe for the one-year and since inception periods. The Board considered that the Fund had been operational for a short period of time, which provided a limited opportunity to evaluate performance. The Board considered that the Manager was consistent in its long-term investing philosophy and that periods of underperformance were to be expected.
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 the expense peer group. The Board also reviewed the fee schedules for other clients 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, 2024. 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.
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Copyright © Baillie Gifford & Co 2023.
BAILLIE GIFFORD FUNDS
Baillie Gifford International All Cap Fund
Semi-Annual Report
June 30, 2023
(unaudited)
Index
Page Number | |||||||
01 | Fund Expenses | ||||||
03 | Industry Diversification Table | ||||||
04 | Portfolio of Investments | ||||||
09 | Financial Statements | ||||||
12 | Financial Highlights | ||||||
15 | Notes to Financial Statements | ||||||
Supplemental Information | |||||||
23 | Management of the Trust | ||||||
24 | Board Considerations Regarding 2023 Contract Renewal |
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 based on a variety of factors. The respective parties disclaim any responsibility to update such views.
Actual outcomes may differ significantly from the views expressed. These views may not be relied on as investment advice or as an indication of trading intent on behalf of the Fund.
All investments entail risk, including the possible loss of principal.
Fund Expenses (unaudited)
Semi-Annual Report June 30, 2023
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, 2023 to June 30, 2023.
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, 2023
Beginning Account Value January 1, 2023 | Ending Account Value June 30, 2023 | Annualized Expense Ratios Based on the Period January 1, 2023 to June 30, 2023 | Expenses Paid During Period* | ||||||||||||||||
Baillie Gifford International All Cap Fund — Class 2 | |||||||||||||||||||
Actual | $ | 1,000 | $ | 1,107.50 | 0.63 | % | $ | 3.29 | |||||||||||
Hypothetical (5% return before expenses) | $ | 1,000 | $ | 1,021.67 | 0.63 | % | $ | 3.16 | |||||||||||
Baillie Gifford International All Cap Fund — Class 3 | |||||||||||||||||||
Actual | $ | 1,000 | $ | 1,107.80 | 0.56 | % | $ | 2.93 | |||||||||||
Hypothetical (5% return before expenses) | $ | 1,000 | $ | 1,022.02 | 0.56 | % | $ | 2.81 | |||||||||||
Baillie Gifford International All Cap Fund — Class 5 | |||||||||||||||||||
Actual | $ | 1,000 | $ | 1,108.30 | 0.48 | % | $ | 2.51 | |||||||||||
Hypothetical (5% return before expenses) | $ | 1,000 | $ | 1,022.41 | 0.48 | % | $ | 2.41 |
* 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, 2023. Expenses are calculated by multiplying the annualized
expense ratio by the average account value for the period; then multiplying the result by the number of days in the most recent fiscal half-year; and then dividing that result by the number of days in the calendar year.
02
Industry Diversification Table
Semi-Annual Report June 30, 2023
June 30, 2023 (unaudited)
Baillie Gifford International All Cap Fund
Value | % of Total Net Assets | ||||||||||
Apparel | $ | 15,955,507 | 4.8 | % | |||||||
Auto Parts & Equipment | 6,047,251 | 1.8 | |||||||||
Banks | 7,489,108 | 2.3 | |||||||||
Beverages | 12,816,633 | 3.9 | |||||||||
Biotechnology | 1,945,247 | 0.6 | |||||||||
Building Materials | 1,595,569 | 0.5 | |||||||||
Chemicals | 3,310,403 | 1.0 | |||||||||
Commercial Services | 21,369,242 | 6.4 | |||||||||
Cosmetics/Personal Care | 13,541,760 | 4.1 | |||||||||
Distribution/Wholesale | 5,842,334 | 1.8 | |||||||||
Diversified Financial Services | 10,229,233 | 3.1 | |||||||||
Electronics | 20,465,891 | 6.2 | |||||||||
Energy — Alternate Sources | 1,956,486 | 0.6 | |||||||||
Food | 5,677,818 | 1.7 | |||||||||
Hand/Machine Tools | 4,811,669 | 1.4 | |||||||||
Healthcare — Products | 13,863,413 | 4.2 | |||||||||
Healthcare — Services | 3,384,250 | 1.0 | |||||||||
Insurance | 9,249,305 | 2.8 | |||||||||
Internet | 52,750,040 | 15.9 | |||||||||
Investment Companies | 9,627,877 | 2.9 | |||||||||
Leisure Time | 3,766,665 | 1.1 | |||||||||
Machinery — Construction & Mining | 7,814,532 | 2.4 | |||||||||
Machinery — Diversified | 18,371,547 | 5.5 | |||||||||
Oil & Gas | 4,115,830 | 1.2 | |||||||||
Retail | 27,538,191 | 8.3 | |||||||||
Semiconductors | 22,042,581 | 6.6 | |||||||||
Software | 11,449,610 | 3.5 | |||||||||
Toys/Games/Hobbies | 4,383,379 | 1.3 | |||||||||
Transportation | 6,730,528 | 2.0 | |||||||||
Total Value of Investments | 328,141,899 | 98.9 | |||||||||
Other assets less liabilities | 3,582,932 | 1.1 | |||||||||
Net Assets | $ | 331,724,831 | 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, 2023
June 30, 2023 (unaudited)
Baillie Gifford International All Cap Fund
Shares | Value | ||||||||||
COMMON STOCKS — 97.2% | |||||||||||
AUSTRALIA — 1.2% | |||||||||||
Cochlear Ltd. | 27,125 | $ | 4,155,770 | ||||||||
BELGIUM — 1.4% | |||||||||||
Anheuser-Busch InBev SA/NV | 79,855 | 4,525,978 | |||||||||
BRAZIL — 3.4% | |||||||||||
MercadoLibre, Inc. * | 5,123 | 6,068,706 | |||||||||
Raia Drogasil SA | 840,580 | 5,184,062 | |||||||||
11,252,768 | |||||||||||
CANADA — 2.8% | |||||||||||
Canadian Pacific Kansas City Ltd. | 38,921 | 3,143,647 | |||||||||
Shopify, Inc., Class A * | 95,496 | 6,169,042 | |||||||||
9,312,689 | |||||||||||
CHINA — 9.0% | |||||||||||
Alibaba Group Holding Ltd. * | 389,656 | 4,056,253 | |||||||||
Baidu, Inc., Class A * | 147,608 | 2,517,570 | |||||||||
BeiGene Ltd. * | 141,869 | 1,945,247 | |||||||||
Contemporary Amperex Technology Co., Ltd., Class A | 86,999 | 2,748,841 | |||||||||
Li Ning Co., Ltd. | 411,000 | 2,219,475 | |||||||||
LONGi Green Energy Technology Co., Ltd., Class A | 494,486 | 1,956,486 | |||||||||
Meituan, Class B * | 193,200 | 3,029,553 | |||||||||
Ping An Insurance Group Co. of China Ltd., Class H | 588,500 | 3,758,701 | |||||||||
Prosus NV * | 102,779 | 7,526,933 | |||||||||
29,759,059 | |||||||||||
DENMARK — 1.1% | |||||||||||
DSV A/S | 17,077 | 3,586,880 | |||||||||
FRANCE — 4.8% | |||||||||||
Kering | 5,835 | 3,222,082 | |||||||||
LVMH Moet Hennessy Louis Vuitton SE | 6,906 | 6,511,752 | |||||||||
Remy Cointreau SA | 30,295 | 4,862,974 | |||||||||
Ubisoft Entertainment SA * | 44,099 | 1,246,477 | |||||||||
15,843,285 |
The accompanying notes are an integral part of the financial statements.
04
Portfolio of Investments
Semi-Annual Report June 30, 2023
June 30, 2023 (unaudited)
Baillie Gifford International All Cap Fund
Shares | Value | ||||||||||
GERMANY — 3.3% | |||||||||||
adidas AG | 15,599 | $ | 3,028,203 | ||||||||
Auto1 Group SE * | 173,896 | 1,615,380 | |||||||||
Nemetschek SE | 37,634 | 2,809,633 | |||||||||
Zalando SE * | 121,257 | 3,496,954 | |||||||||
10,950,170 | |||||||||||
HONG KONG — 3.1% | |||||||||||
AIA Group Ltd. | 540,600 | 5,490,604 | |||||||||
Techtronic Industries Co., Ltd. | 440,000 | 4,811,669 | |||||||||
10,302,273 | |||||||||||
INDIA — 5.0% | |||||||||||
Housing Development Finance Corp., Ltd. | 216,415 | 7,466,379 | |||||||||
MakeMyTrip Ltd. * | 54,285 | 1,464,609 | |||||||||
Reliance Industries Ltd. | 132,040 | 4,115,830 | |||||||||
United Spirits Ltd. * | 307,565 | 3,427,681 | |||||||||
16,474,499 | |||||||||||
JAPAN — 18.7% | |||||||||||
Cosmos Pharmaceutical Corp. | 35,000 | 3,548,866 | |||||||||
Denso Corp. | 48,900 | 3,298,409 | |||||||||
Kao Corp. | 36,600 | 1,328,211 | |||||||||
Keyence Corp. | 9,600 | 4,561,504 | |||||||||
Murata Manufacturing Co., Ltd. | 82,700 | 4,750,365 | |||||||||
Nidec Corp. | 63,300 | 3,488,174 | |||||||||
Nippon Paint Holdings Co., Ltd. | 400,000 | 3,310,403 | |||||||||
Olympus Corp. | 317,800 | 5,029,298 | |||||||||
Pigeon Corp. | 98,100 | 1,354,280 | |||||||||
Recruit Holdings Co., Ltd. | 87,500 | 2,792,593 | |||||||||
Shimano, Inc. | 22,500 | 3,766,665 | |||||||||
Shiseido Co., Ltd. | 153,100 | 6,939,982 | |||||||||
SMC Corp. | 11,000 | 6,113,381 | |||||||||
Sugi Holdings Co., Ltd. | 30,500 | 1,362,751 | |||||||||
Sysmex Corp. | 68,300 | 4,678,344 | |||||||||
Unicharm Corp. | 105,400 | 3,919,288 | |||||||||
Z Holdings Corp. | 738,800 | 1,780,574 | |||||||||
62,023,088 |
The accompanying notes are an integral part of the financial statements.
05
Portfolio of Investments
Semi-Annual Report June 30, 2023
June 30, 2023 (unaudited)
Baillie Gifford International All Cap Fund
Shares | Value | ||||||||||
MEXICO — 0.9% | |||||||||||
Wal-Mart de Mexico SAB de CV | 769,396 | $ | 3,051,603 | ||||||||
NETHERLANDS — 7.4% | |||||||||||
Adyen NV * | 3,175 | 5,498,045 | |||||||||
ASML Holding NV | 12,232 | 8,872,219 | |||||||||
EXOR NV | 41,878 | 3,738,639 | |||||||||
IMCD NV | 29,372 | 4,226,954 | |||||||||
Topicus.com, Inc. * | 29,393 | 2,410,681 | |||||||||
24,746,538 | |||||||||||
NEW ZEALAND — 1.5% | |||||||||||
Xero Ltd. * | 62,192 | 4,982,819 | |||||||||
PORTUGAL — 1.7% | |||||||||||
Jeronimo Martins SGPS SA | 206,102 | 5,677,818 | |||||||||
SINGAPORE — 2.3% | |||||||||||
United Overseas Bank Ltd. | 360,899 | 7,489,108 | |||||||||
SOUTH KOREA — 0.6% | |||||||||||
Coupang, Inc. * | 116,967 | 2,035,226 | |||||||||
SWEDEN — 5.7% | |||||||||||
Atlas Copco AB, A Shares | 35,164 | 507,658 | |||||||||
Atlas Copco AB, B Shares | 576,574 | 7,189,003 | |||||||||
Epiroc AB, B Shares | 236,234 | 3,823,555 | |||||||||
Investor AB, B Shares | 294,387 | 5,889,237 | |||||||||
Nibe Industrier AB, B Shares | 167,807 | 1,595,569 | |||||||||
19,005,022 | |||||||||||
SWITZERLAND — 3.6% | |||||||||||
Cie Financiere Richemont SA | 51,066 | 8,674,480 | |||||||||
Lonza Group AG | 5,662 | 3,384,250 | |||||||||
12,058,730 | |||||||||||
TAIWAN — 4.0% | |||||||||||
Taiwan Semiconductor Manufacturing Co., Ltd. ADR | 130,503 | 13,170,363 |
The accompanying notes are an integral part of the financial statements.
06
Portfolio of Investments
Semi-Annual Report June 30, 2023
June 30, 2023 (unaudited)
Baillie Gifford International All Cap Fund
Shares | Value | ||||||||||
UNITED KINGDOM — 11.5% | |||||||||||
Ashtead Group PLC | 57,405 | $ | 3,979,941 | ||||||||
Auto Trader Group PLC | 771,938 | 5,993,732 | |||||||||
Burberry Group PLC | 118,349 | 3,193,470 | |||||||||
Farfetch Ltd., Class A * | 203,822 | 1,231,085 | |||||||||
Games Workshop Group PLC | 31,588 | 4,383,379 | |||||||||
Hargreaves Lansdown PLC | 266,524 | 2,762,855 | |||||||||
Intertek Group PLC | 49,545 | 2,685,732 | |||||||||
Rightmove PLC | 756,084 | 5,022,858 | |||||||||
Trainline PLC * | 662,288 | 2,195,286 | |||||||||
Weir Group PLC (The) | 178,762 | 3,990,978 | |||||||||
Wise PLC, Class A * | 337,622 | 2,822,043 | |||||||||
38,261,359 | |||||||||||
UNITED STATES — 4.2% | |||||||||||
Experian PLC | 93,559 | 3,590,888 | |||||||||
Mettler-Toledo International, Inc. * | 4,976 | 6,526,721 | |||||||||
Spotify Technology SA * | 22,788 | 3,658,613 | |||||||||
13,776,222 | |||||||||||
Total Common Stocks | |||||||||||
(cost $250,943,632) | 322,441,267 | ||||||||||
PREFERRED STOCKS — 1.7% | |||||||||||
GERMANY — 1.7% | |||||||||||
Sartorius AG 0.45% (cost $1,827,606) | 16,454 | 5,700,632 | |||||||||
TOTAL INVESTMENTS — 98.9% | |||||||||||
(cost $252,771,238) | $ | 328,141,899 | |||||||||
Other assets less liabilities — 1.1% | 3,582,932 | ||||||||||
NET ASSETS — 100.0% | $ | 331,724,831 |
* 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, 2023
June 30, 2023 (unaudited)
Baillie Gifford International All Cap Fund
Fair Value Measurement
The following is a summary of the inputs used as of June 30, 2023 in valuing the Fund's investments carried at fair value:
Investments in Securities | Level 1 | Level 2 | Level 3 | Total | |||||||||||||||
Common Stocks ** | $ | 56,309,644 | $ | 266,131,623 | $ | — | $ | 322,441,267 | |||||||||||
Preferred Stocks ** | — | 5,700,632 | — | 5,700,632 | |||||||||||||||
Total | $ | 56,309,644 | $ | 271,832,255 | $ | — | $ | 328,141,899 |
** 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, 2023
June 30, 2023 (unaudited)
Baillie Gifford International All Cap Fund
ASSETS | |||||||
Investments, at value (cost $252,771,238) | $ | 328,141,899 | |||||
Cash | 3,316,418 | ||||||
Foreign cash, at value (cost $92,683) | 92,803 | ||||||
Tax reclaims receivable | 452,343 | ||||||
Dividends receivable | 436,126 | ||||||
Prepaid assets | 2,165 | ||||||
Total Assets | 332,441,754 | ||||||
LIABILITIES | |||||||
Advisory fee payable | 291,129 | ||||||
Deferred India capital gains tax liability (Note A) | 260,545 | ||||||
Shareholder Servicing fee payable | 87,621 | ||||||
Trustee fee payable | 3,839 | ||||||
Commitment fee payable | 1,165 | ||||||
Accrued expenses | 72,624 | ||||||
Total Liabilities | 716,923 | ||||||
NET ASSETS | $ | 331,724,831 | |||||
COMPOSITION OF NET ASSETS | |||||||
Paid-in capital | $ | 254,223,599 | |||||
Total distributable earnings | 77,501,232 | ||||||
$ | 331,724,831 | ||||||
NET ASSET VALUE, PER SHARE | |||||||
Class 2 ($67,617,136 / 5,434,247 shares outstanding), unlimited authorized, no par value | $ | 12.44 | |||||
Class 3 ($227,403,021 / 17,985,043 shares outstanding), unlimited authorized, no par value | $ | 12.64 | |||||
Class 5 ($36,704,674 / 2,822,916 shares outstanding), unlimited authorized, no par value | $ | 13.00 |
The accompanying notes are an integral part of the financial statements.
09
Statement of Operations
Semi-Annual Report June 30, 2023
For the Six Months Ended June 30, 2023 (unaudited)
Baillie Gifford International All Cap Fund
INVESTMENT INCOME | |||||||
Dividends (net of foreign withholding taxes of $258,526) | $ | 2,324,522 | |||||
Litigation income | 20 | ||||||
Interest | 38,517 | ||||||
Total Investment Income | 2,363,059 | ||||||
EXPENSES | |||||||
Advisory fee (Note B) | 582,267 | ||||||
Shareholder Servicing fees — Class 2 shares (Note B) | 55,933 | ||||||
Shareholder Servicing fees — Class 3 shares (Note B) | 115,607 | ||||||
Shareholder Servicing fees — Class 5 shares (Note B) | 3,571 | ||||||
Transfer agency | 27,011 | ||||||
Fund accounting | 49,287 | ||||||
Legal | 34,388 | ||||||
Professional fees | 30,023 | ||||||
Custody | 24,787 | ||||||
Trustees' fees | 7,840 | ||||||
Commitment fees | 2,386 | ||||||
Miscellaneous | 8,365 | ||||||
Total Expenses | 941,465 | ||||||
Net Investment Income | 1,421,594 | ||||||
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 $112,428) | 865,269 | ||||||
Foreign currency transactions | (20,223 | ) | |||||
845,046 | |||||||
Net change in unrealized appreciation on: | |||||||
Investments (net of change in deferred India capital gains tax liabilitiy of $57,889) (Note A) | 30,715,569 | ||||||
Translation of net assets and liabilities denominated in foreign currencies | 3,547 | ||||||
30,719,116 | |||||||
Net realized and unrealized gain | 31,564,162 | ||||||
NET INCREASE IN NET ASSETS FROM OPERATIONS | $ | 32,985,756 |
The accompanying notes are an integral part of the financial statements.
10
Statements of Changes in Net Assets
Semi-Annual Report June 30, 2023
Baillie Gifford International All Cap Fund
For the Six Months Ended June 30, 2023 (unaudited) | For the Year Ended December 31, 2022 | ||||||||||
INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS | |||||||||||
Net investment income | $ | 1,421,594 | $ | 2,763,165 | |||||||
Net realized gain | 845,046 | 7,917,352 | |||||||||
Net change in unrealized appreciation (depreciation) | 30,719,116 | (155,270,400 | ) | ||||||||
Net Increase (Decrease) in Net Assets from Operations | 32,985,756 | (144,589,883 | ) | ||||||||
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS FROM: | |||||||||||
Distributable earnings | |||||||||||
Class 2 | — | (1,409,109 | ) | ||||||||
Class 3 | — | (5,024,230 | ) | ||||||||
Class 4 | — | — | |||||||||
Class 5 | — | (732,708 | ) | ||||||||
Total Distributions to Shareholders | — | (7,166,047 | ) | ||||||||
TRANSACTIONS IN SHARES OF BENEFICIAL INTEREST | |||||||||||
Net proceeds from shares subscribed: | |||||||||||
Class 2 | — | — | |||||||||
Class 3 | — | 144,914,059 | * | ||||||||
Class 4 | — | — | |||||||||
Class 5 | — | — | |||||||||
Dividends reinvested: | |||||||||||
Class 2 | — | 1,409,109 | |||||||||
Class 3 | — | 5,024,230 | |||||||||
Class 4 | — | — | |||||||||
Class 5 | — | 732,708 | |||||||||
Cost of shares redeemed: | |||||||||||
Class 2 | — | (20,000,000 | ) | ||||||||
Class 3 | (16,500,000 | ) | — | ||||||||
Class 4 | — | (131,414,059 | )* | ||||||||
Class 5 | — | — | |||||||||
Increase (Decrease) in Net Assets from Transactions in Shares of Beneficial Interest | (16,500,000 | ) | 666,047 | ||||||||
Total Increase (Decrease) in Net Assets | 16,485,756 | (151,089,883 | ) | ||||||||
NET ASSETS | |||||||||||
Beginning of Period | 315,239,075 | 466,328,958 | |||||||||
End of Period | $ | 331,724,831 | $ | 315,239,075 |
* 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, 2023
Baillie Gifford International All Cap Fund
Selected data for a Class 2 share outstanding throughout each period:
For the Six Months Ended June 30, 2023 (unaudited) | For the Year Ended December 31, 2022 | For the Year Ended December 31, 2021 | For the Year Ended December 31, 2020 | For the Year Ended December 31, 2019 | For the Year Ended December 31, 2018 | ||||||||||||||||||||||
Net asset value, beginning of period | $ | 11.24 | $ | 16.83 | $ | 20.27 | $ | 15.82 | $ | 12.26 | $ | 14.85 | |||||||||||||||
From Investment Operations | |||||||||||||||||||||||||||
Net investment income(a) | 0.05 | 0.09 | 0.05 | 0.06 | 0.27 | 0.15 | |||||||||||||||||||||
Net realized and unrealized gain (loss) on investments and foreign currency | 1.15 | (5.41 | ) | 0.60 | 5.20 | 3.73 | (2.61 | ) | |||||||||||||||||||
Net increase (decrease) in net asset value from investment operations | 1.20 | (5.32 | ) | 0.65 | 5.26 | 4.00 | (2.46 | ) | |||||||||||||||||||
Dividends and Distributions to Shareholders | |||||||||||||||||||||||||||
From net investment income | — | — | (0.19 | ) | (0.18 | ) | (0.44 | ) | (0.13 | ) | |||||||||||||||||
From net realized gain on investments | — | (0.27 | ) | (3.90 | ) | (0.63 | ) | — | — | ||||||||||||||||||
Total dividends and distributions | — | (0.27 | ) | (4.09 | ) | (0.81 | ) | (0.44 | ) | (0.13 | ) | ||||||||||||||||
Net asset value, end of period | $ | 12.44 | $ | 11.24 | $ | 16.83 | $ | 20.27 | $ | 15.82 | $ | 12.26 | |||||||||||||||
Total Return | |||||||||||||||||||||||||||
Total return based on net asset value(b) | 10.75 | % | (31.67 | )% | 3.34 | % | 33.31 | % | 32.65 | % | (16.63 | )% | |||||||||||||||
Ratios/Supplemental Data | |||||||||||||||||||||||||||
Net assets, end of period (000's omitted) | $ | 67,617 | $ | 61,057 | $ | 112,388 | $ | 183,037 | $ | 258,860 | $ | 242,317 | |||||||||||||||
Ratio of net expenses to average net assets | 0.63 | %* | 0.64 | % | 0.61 | % | 0.62 | % | 0.65 | % | 0.64 | % | |||||||||||||||
Ratio of net investment income to average net assets | 0.81 | %* | 0.71 | % | 0.26 | % | 0.34 | % | 1.92 | %(c) | 1.02 | % | |||||||||||||||
Portfolio turnover rate(d) | 5 | % | 19 | % | 14 | % | 12 | % | 13 | % | 15 | % |
* Annualized.
(a) Calculated based upon average shares outstanding during the period.
(b) Total investment return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all dividends and distributions, if any, at net asset value during the period, and redemption on the last day of the period. Total return is not annualized for periods less than one year.
(c) Large increase due to one-off taxable stock dividends that were treated as income.
(d) Portfolio turnover rate calculated at Fund level. Portfolio turnover is not annualized for periods less than one year.
The accompanying notes are an integral part of the financial statements.
12
Financial Highlights
Semi-Annual Report June 30, 2023
Baillie Gifford International All Cap Fund
Selected data for a Class 3 share outstanding throughout each period:
For the Six Months Ended June 30, 2023 (unaudited) | For the Year Ended December 31, 2022 | For the Year Ended December 31, 2021 | For the Year Ended December 31, 2020 | For the Year Ended December 31, 2019 | For the Year Ended December 31, 2018 | ||||||||||||||||||||||
Net asset value, beginning of period | $ | 11.41 | $ | 17.08 | $ | 20.50 | $ | 15.99 | $ | 12.39 | $ | 15.01 | |||||||||||||||
From Investment Operations | |||||||||||||||||||||||||||
Net investment income(a) | 0.05 | 0.12 | 0.09 | 0.07 | 0.30 | 0.16 | |||||||||||||||||||||
Net realized and unrealized gain (loss) on investments and foreign currency | 1.18 | (5.52 | ) | 0.59 | 5.27 | 3.75 | (2.64 | ) | |||||||||||||||||||
Net increase (decrease) in net asset value from investment operations | 1.23 | (5.40 | ) | 0.68 | 5.34 | 4.05 | (2.48 | ) | |||||||||||||||||||
Dividends and Distributions to Shareholders | |||||||||||||||||||||||||||
From net investment income | — | — | (0.20 | ) | (0.20 | ) | (0.45 | ) | (0.14 | ) | |||||||||||||||||
From net realized gain on investments | — | (0.27 | ) | (3.90 | ) | (0.63 | ) | — | — | ||||||||||||||||||
Total dividends and distributions | — | (0.27 | ) | (4.10 | ) | (0.83 | ) | (0.45 | ) | (0.14 | ) | ||||||||||||||||
Net asset value, end of period | $ | 12.64 | $ | 11.41 | $ | 17.08 | $ | 20.50 | $ | 15.99 | $ | 12.39 | |||||||||||||||
Total Return | |||||||||||||||||||||||||||
Total return based on net asset value(b) | 10.78 | % | (31.62 | )% | 3.41 | % | 33.40 | % | 32.74 | % | (16.57 | )% | |||||||||||||||
Ratios/Supplemental Data | |||||||||||||||||||||||||||
Net assets, end of period (000's omitted) | $ | 227,403 | $ | 221,064 | $ | 133,796 | $ | 331,138 | $ | 158,198 | $ | 119,176 | |||||||||||||||
Ratio of net expenses to average net assets | 0.56 | %* | 0.58 | % | 0.54 | % | 0.55 | % | 0.58 | % | 0.57 | % | |||||||||||||||
Ratio of net investment income to average net assets | 0.85 | %* | 1.03 | % | 0.41 | % | 0.44 | % | 2.04 | %(c) | 1.09 | % | |||||||||||||||
Portfolio turnover rate(d) | 5 | % | 19 | % | 14 | % | 12 | % | 13 | % | 15 | % |
* Annualized.
(a) Calculated based upon average shares outstanding during the period.
(b) Total investment return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all dividends and distributions, if any, at net asset value during the period, and redemption on the last day of the period. Total return is not annualized for periods less than one year.
(c) Large increase due to one-off taxable stock dividends that were treated as income.
(d) Portfolio turnover rate calculated at Fund level. Portfolio turnover is not annualized for periods less than one year.
The accompanying notes are an integral part of the financial statements.
13
Financial Highlights
Semi-Annual Report June 30, 2023
Baillie Gifford International All Cap Fund
Selected data for a Class 5 share outstanding throughout each period:
For the Six Months Ended June 30, 2023 (unaudited) | For the Year Ended December 31, 2022 | For the Year Ended December 31, 2021 | For the Year Ended December 31, 2020 | For the Period July 10, 2019 through December 31, 2019(a) | For the Period January 1, 2019 through April 10, 2019(a) | For the Period January 10, 2018(b) through December 31, 2018 | |||||||||||||||||||||||||
Net asset value, beginning of period | $ | 11.73 | $ | 17.53 | $ | 20.96 | $ | 16.33 | $ | 15.14 | $ | 12.64 | $ | 15.72 | |||||||||||||||||
From Investment Operations | |||||||||||||||||||||||||||||||
Net investment income(c) | 0.06 | 0.12 | 0.09 | 0.09 | 0.20 | 0.06 | 0.18 | ||||||||||||||||||||||||
Net realized and unrealized gain (loss) on investments and foreign currency | 1.21 | (5.65 | ) | 0.61 | 5.38 | 1.46 | 1.97 | (3.11 | ) | ||||||||||||||||||||||
Net increase (decrease) in net asset value from investment operations | 1.27 | (5.53 | ) | 0.70 | 5.47 | 1.66 | 2.03 | (2.93 | ) | ||||||||||||||||||||||
Dividends and Distributions to Shareholders | |||||||||||||||||||||||||||||||
From net investment income | — | — | (0.23 | ) | (0.21 | ) | (0.47 | ) | — | (0.15 | ) | ||||||||||||||||||||
From net realized gain on investments | — | (0.27 | ) | (3.90 | ) | (0.63 | ) | — | — | — | |||||||||||||||||||||
Total dividends and distributions | — | (0.27 | ) | (4.13 | ) | (0.84 | ) | (0.47 | ) | — | (0.15 | ) | |||||||||||||||||||
Net asset value, end of period | $ | 13.00 | $ | 11.73 | $ | 17.53 | $ | 20.96 | $ | 16.33 | $ | 14.67 | $ | 12.64 | |||||||||||||||||
Total Return | |||||||||||||||||||||||||||||||
Total return based on net asset value(d) | 10.83 | % | (31.56 | )% | 3.49 | % | 33.51 | % | 10.95 | % | 16.02 | % | (18.61 | )% | |||||||||||||||||
Ratios/Supplemental Data | |||||||||||||||||||||||||||||||
Net assets, end of period (000's omitted) | $ | 36,705 | $ | 33,119 | $ | 48,392 | $ | 60,321 | $ | 45,183 | $ | 39,464 | $ | 34,016 | |||||||||||||||||
Ratio of net expenses to average net assets | 0.48 | %* | 0.49 | % | 0.46 | % | 0.47 | % | 0.50 | %* | 0.49 | %* | 0.49 | %* | |||||||||||||||||
Ratio of net investment income to average net assets | �� | 0.96 | %* | 0.91 | % | 0.43 | % | 0.51 | % | 2.66 | %(e) | 1.59 | %* | 1.21 | %* | ||||||||||||||||
Portfolio turnover rate(f) | 5 | % | 19 | % | 14 | % | 12 | % | 13 | % | 13 | % | 15 | % |
* Annualized.
(a) 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.
(b) Commencement of investment operations.
(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) Large increase due to one-off taxable stock dividends that were treated as income.
(f) Portfolio turnover rate calculated at Fund level. Portfolio turnover is not annualized for periods less than one year.
The accompanying notes are an integral part of the financial statements.
14
Notes to Financial Statements (unaudited)
Semi-Annual Report June 30, 2023
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, 2023.
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 generally accepted accounting principles 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
Pursuant to Rule 2a-5 under the 1940 Act, the Board of Trustees of the Trust (the "Board") has designated the Fund's investment adviser, Baillie Gifford Overseas Limited (the "Manager") as the valuation designee (the "Valuation Designee") to determine the fair value, in good faith, of securities and other instruments for which no readily available market quotation exists, subject to the Board's oversight.
Investments for which there are readily available market quotations are valued at market 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 the Valuation Designee.
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.
The Valuation Designee 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, 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 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,
15
Notes to Financial Statements (unaudited)
Semi-Annual Report June 30, 2023
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 which the Fund has the ability to access
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, 2023 is disclosed at the end of the Fund's Portfolio of Investments.
For the six months ended June 30, 2023, 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.
16
Notes to Financial Statements (unaudited)
Semi-Annual Report June 30, 2023
U.S. Federal and Other Taxes
The 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 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.
As a result of several court cases in certain countries across the European Union ("EU"), the Fund may file European tax reclaims for previously withheld taxes on dividends earned in those countries. These additional filings are subject to various administrative proceedings by the local jurisdictions' tax authorities within the EU, as well as a number of related judicial proceedings. If a positive decision is reached and as such, reclaims becomes payable to the Fund, they will be reflected as windfall tax recovery within investment income in the Statement of Operations and related receivables, if any, will be reflected within tax reclaims receivable in the Statements of Assets and Liabilities. If the associated cash is received, the Fund will generally follow, for tax purposes, IRS guidance in Notice 2016-10 and reduce the current year foreign taxes paid by the amount of the refund. When uncertainty exists as to the ultimate resolution of these proceedings and the likelihood of receipt of these EU reclaims, no amounts are reflected in the financial statements.
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 in India or other such jurisdictions, 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 tax 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, 2023, the Fund recorded a deferred tax liability for potential future India capital gains taxes of $260,545.
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, 2022, 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.
During the year ended December 31, 2022, the Fund did not incur 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.
17
Notes to Financial Statements (unaudited)
Semi-Annual Report June 30, 2023
The Fund's cost of investments and gross unrealized appreciation (depreciation) at June 30, 2023 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 | $ | 256,868,331 | $ | 104,625,153 | $ | (33,351,585 | ) | $ | 71,273,568 |
Note B — Investment Management and Other Services
The Fund is advised and managed by the Manager. The Manager, an investment adviser registered with 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. The fee paid by Class 2 shares is 0.17%, Class 3 shares is 0.10%, and Class 5 shares is 0.02%.
The Bank of New York Mellon ("BNYM") 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 six months ended June 30, 2023 were as follows:
Fund | Purchases | Sales | |||||||||
Baillie Gifford International All Cap Fund | $ | 16,591,204 | $ | 31,589,499 |
18
Notes to Financial Statements (unaudited)
Semi-Annual Report June 30, 2023
Note D — Transactions in Shares of Beneficial Interest
Baillie Gifford International All Cap Fund | |||||||||||||||||||
For the Period Ended June 30, 2023 | For the Year Ended December 31, 2022 | ||||||||||||||||||
Shares | Amount | Shares | Amount | ||||||||||||||||
Class 2 Shares | |||||||||||||||||||
Shares sold | — | $ | — | — | $ | — | |||||||||||||
Shares issued in reinvestment of dividends and distributions | — | — | 126,470 | 1,409,109 | |||||||||||||||
Shares redeemed | — | — | (1,368,700 | ) | (20,000,000 | ) | |||||||||||||
Net Increase (Decrease) | — | $ | — | (1,242,230 | ) | $ | (18,590,891 | ) | |||||||||||
Class 3 Shares | |||||||||||||||||||
Shares sold | — | $ | — | 11,092,291 | (a) | $ | 144,914,059 | (a) | |||||||||||
Shares issued in reinvestment of dividends and distributions | — | — | 443,915 | 5,024,230 | |||||||||||||||
Shares redeemed | (1,383,951 | ) | (16,500,000 | ) | — | — | |||||||||||||
Net Increase (Decrease) | (1,383,951 | ) | $ | (16,500,000 | ) | 11,536,206 | $ | 149,938,289 | |||||||||||
Class 4 Shares | |||||||||||||||||||
Shares sold | — | $ | — | — | $ | — | |||||||||||||
Shares issued in reinvestment of dividends and distributions | — | — | — | — | |||||||||||||||
Shares redeemed | — | — | (9,968,903 | )(b) | (131,414,059 | )(b) | |||||||||||||
Net Increase (Decrease) | — | $ | — | (9,968,903 | ) | $ | (131,414,059 | ) | |||||||||||
Class 5 Shares | |||||||||||||||||||
Shares sold | — | $ | — | — | $ | — | |||||||||||||
Shares issued in reinvestment of dividends and distributions | — | — | 62,979 | 732,708 | |||||||||||||||
Shares redeemed | — | — | — | — | |||||||||||||||
Net Increase (Decrease) | — | $ | — | 62,979 | $ | 732,708 | |||||||||||||
Total Net Increase (Decrease) | (1,383,951 | ) | $ | (16,500,000 | ) | 388,052 | $ | 666,047 |
(a) 10,055,711 shares and $131,414,059 converted into Class 3 from Class 4.
(b) 9,968,903 shares and $131,414,059 converted from Class 4 into Class 3.
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, 2023, the Fund had two shareholders which beneficially owned 25% or more of the Fund's voting securities. Purchase and redemption activity of these accounts may have a significant effect on the operation of the Fund.
19
Notes to Financial Statements (unaudited)
Semi-Annual Report June 30, 2023
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 BNYM on May 1, 2017, most recently renewed April 18, 2023 and expiring April 16, 2024 (unless renewed), 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 Secured Overnight Financing Rate + 0.10%.
The Fund pays a share of a commitment fee on the portion of the facility which is undrawn. The commitment fee is 0.25% on undrawn amounts.
The rate payable at June 30, 2023 was 6.34% on any amount drawn down. There were no borrowings made against the credit facility during the period.
Note H — Principal Risks
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.
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 index. The Manager's judgments about the attractiveness, relative value, or potential appreciation of a 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.
Non-U.S. Investment Risk
Non-U.S. securities are subject to additional risks, including less liquidity, increased volatility, less transparency, withholding or other taxes, increased vulnerability to adverse changes in local and global
20
Notes to Financial Statements (unaudited)
Semi-Annual Report June 30, 2023
economic conditions, less regulation, and possible fluctuation in value due to adverse political conditions. Foreign portfolio transactions generally involve higher commission rates, transfer taxes, and custodial costs than similar transactions in the U.S.
Asia Risk
Investing in securities of companies located in or with exposure to Asian countries involves certain risks and considerations not typically associated with investing in securities of U.S. issuers, including different financial reporting standards, currency exchange rate fluctuations, and highly regulated markets with the potential for government interference. The economies of many Asian countries are heavily dependent on international trade and on only a few industries or commodities and, as a result, can be adversely affected by trade barriers, exchange controls and other measures imposed or negotiated by the countries with which they trade. Some Asian securities may be less liquid than U.S. or other foreign securities.
Market Disruption and Geopolitical Risk
Geopolitical, environmental and other events may disrupt securities markets and adversely affect global economies and markets. These disruptions could prevent the Fund from implementing its investment strategies and achieving its investment objectives, and increase the Fund's exposure to the other risks detailed in the Prospectus. Given the increasing interdependence among global economies and markets, conditions in one country, market, or region might adversely affect markets, issuers, and/or foreign exchange rates in other countries, including the U.S.
War, terrorism, public health crises, and other geopolitical events, such as sanctions, tariffs, trade disputes, the imposition of exchange controls or other cross-border trade barriers, have led, and in the future may lead, to increased short-term market volatility and may have adverse long-term effects on U.S. and world economies and markets generally. For instance, the 2022 Russian invasion of Ukraine and the sanctions that followed had immediate negative effects on global financial markets, sovereign debt and the markets for certain securities and commodities, such as oil and natural
gas, and reduced the liquidity and value of Russian securities to zero or near zero. Similarly, terrorism in the U.S. and around the world has resulted in increased geopolitical risk.
Natural and environmental disasters, such as earthquakes and tsunamis, can be highly disruptive to economies and markets, adversely impacting individual companies and industries, securities markets, interest rates, credit ratings, inflation, investor sentiment, and other factors affecting the value of the Fund's investments. Similarly, dramatic disruptions can be caused by communicable diseases, epidemics, pandemics, plagues and other public health crises.
For further information on the risks of investing in the Fund, please refer to the Prospectus.
Note I — Legal Notice
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)
21
Notes to Financial Statements (unaudited)
Semi-Annual Report June 30, 2023
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, 2023 and the issuance of the Financial Statements.
22
Supplemental Information (unaudited)
Semi-Annual Report June 30, 2023
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
Suzanne Quinn, Chief Compliance Officer and AML Compliance Officer
Lesley-Anne Archibald, Vice President
Kelly Cameron, Vice President
Neil Riddell, Chief Risk Officer
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 +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 +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 +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.
23
BOARD CONSIDERATIONS REGARDING
2023 CONTRACT RENEWAL (unaudited)
Semi-Annual Report June 30, 2023
On June 22, 2023, 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 additional materials and other information 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 for the Fund.
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 and that the Manager employs a long-term investment approach. The Board considered underperformance in recent periods and the Manager's explanations, generally attributing underperformance to the unfavorable market environment for growth companies (after a lengthy period of favorable market conditions for growth investing) shaped by high inflation, rising interest rates and geopolitical tensions, among other factors. 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, ten-year and since inception (September 24, 2012) periods ended March 31, 2023 for the Fund compared to a benchmark index (MSCI ACWI ex USA Index) and the average total returns of a performance universe of funds provided by Broadridge, and calendar year returns for 2013 through 2022 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 below the benchmark index and the average of the performance universe for the one-year and three-year periods, below the benchmark index and above the average of the performance universe for the five-year period and above the benchmark index and the average of the performance universe for the ten-year and since inception periods. The Board considered that the Manager was consistent in its long-term investing philosophy and that periods of underperformance were to be expected.
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
24
BOARD CONSIDERATIONS REGARDING
2023 CONTRACT RENEWAL (unaudited)
Semi-Annual Report June 30, 2023
advisory fee (plus the shareholder service fee) was below the average contractual management fee of the expense peer group. The Board also reviewed the fee schedules for other clients 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 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.
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 2023.
(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 ‘A’ | ATCO A | SE0017486889 | 52,964
18,326
22,586 | 01/09/2023 03/02/2023 05/02/2023 | 1,500,223 | 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 ‘A’ | ATCO A | SE0017486889 | 13,804 | 01/10/2023 | 778,603 | Sudan Accountability and Divestment Act of 2007 |
Name of Issuer | Exchange Ticker Symbol | Security Identifier (CUSIP number/ISIN) | Total number of Shares Divested | Date Securities were Divested | Amount Held on Filing Date | Statute | ||||||||||
ATLAS COPCO ‘B’ | ATCO B | SE0017486897 | 54,124 | 05/26/2023 | 288,168 | Sudan Accountability and Divestment Act of 2007 |
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 ‘B’ | ATCO B | SE0017486897 | 38,983
61,089
50,344 | 02/02/2023 05/08/2023 06/27/2023 | 954,444 | Sudan Accountability and Divestment Act of 2007 |
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 ‘B’ | ATCO B | SE0017486897 | 122,185
119,352 | 04/11/2023 06/15/2023 | 4,165,233 | 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 ‘B’ | ATCO B | SE0017486897 | 24,981
18,405 | 03/15/2023 06/26/2023 | 576,574 | 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 ‘B’ | ATCO B | SE0017486897 | 2,027 | 05/25/2023 | 112,098 | 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. |
(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 29, 2023
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 29, 2023 | ||
By (Signature and Title)* | /s/Lindsay Cockburn | |
Lindsay Cockburn, Treasurer | ||
(principal financial officer) |
Date August 29, 2023
* Print the name and title of each signing officer under his or her signature.