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, 2020
Form N-CSR is to be used by management investment companies to file reports with the Commission not later than 10 days after the transmission to stockholders of any report that is required to be transmitted to stockholders under Rule 30e-1 under the Investment Company Act of 1940 (17 CFR 270.30e-1). The Commission may use the information provided on Form N-CSR in its regulatory, disclosure review, inspection, and policymaking roles.
A registrant is required to disclose the information specified by Form N-CSR, and the Commission will make this information public. A registrant is not required to respond to the collection of information contained in Form N-CSR unless the Form displays a currently valid Office of Management and Budget ("OMB") control number. Please direct comments concerning the accuracy of the information collection burden estimate and any suggestions for reducing the burden to Secretary, Securities and Exchange Commission, 450 Fifth Street, NW, Washington, DC 20549-0609. The OMB has reviewed this collection of information under the clearance requirements of 44 U.S.C. § 3507.
Item 1. Reports to Stockholders.
The Report to Shareholders is attached herewith.
BAILLIE GIFFORD FUNDS
Baillie Gifford China A Shares Fund
Baillie Gifford Developed EAFE All Cap Fund
Baillie Gifford EAFE Plus All Cap Fund
Baillie Gifford Emerging Markets Equities Fund
Baillie Gifford Global Alpha Equities Fund
Baillie Gifford Global Stewardship Equities Fund
Baillie Gifford International Alpha Fund
Baillie Gifford International Concentrated Growth Equities Fund
Baillie Gifford International Growth Fund
Baillie Gifford International Smaller Companies Fund
Baillie Gifford Long Term Global Growth Fund
Baillie Gifford Positive Change Equities Fund
Baillie Gifford U.S. Equity Growth Fund
Semi-Annual Report
June 30, 2020
(unaudited)
Beginning January 1, 2021, as permitted by regulations adopted by the Securities and Exchange Commission, paper copies of your Fund's annual and semi-annual shareholder reports will not be sent by mail unless you specifically request to receive paper copies. Instead, the reports will be made available on the Funds' website (https://www.bailliegifford.com/en/usa/professional-investor/literature/), and you will be notified by mail each time a shareholder report that includes your Fund is posted and provided with a website link to access the report.
If you have already elected to receive shareholders reports electronically, your election will not be affected and you need not take any further action. You may elect to receive shareholder reports and other communications from the Funds electronically anytime in advance of January 1, 2021 by contacting your financial intermediary (such as broker-dealer or bank) or, if you are a direct investor, by calling 1-844-394-6127 or by sending an e-mail request to BGFundsReporting@bailliegifford.com.
If you currently receive reports in paper and wish to continue to do so after January 1, 2021, you may elect to receive all future reports in paper free of charge. If you invest through a financial intermediary, you can contact your financial intermediary to request to receive paper copies of your shareholder reports. If you invest directly with the Funds, you can call 1-844-394-6127 or send an email request to BGFundsReporting@bailliegifford.com. Your election to receive reports in paper will apply to all funds held in your account (whether or not they are Baillie Gifford Funds) if you invest through your financial intermediary or all Funds held with the Baillie Gifford Funds complex if you invest directly with the Funds.
Index
Page Number | |||||||
01 | Fund Expenses | ||||||
Baillie Gifford China A Shares Fund | |||||||
08 | Industry Diversification Table | ||||||
09 | Portfolio of Investments | ||||||
11 | Statement of Assets and Liabilities | ||||||
12 | Statement of Operations | ||||||
13 | Statements of Changes in Net Assets | ||||||
Financial Highlights | |||||||
14 | Selected Data for Class K | ||||||
15 | Selected Data for Institutional Class | ||||||
Baillie Gifford Developed EAFE All Cap Fund | |||||||
16 | Industry Diversification Table | ||||||
17 | Portfolio of Investments | ||||||
21 | Statement of Assets and Liabilities | ||||||
22 | Statement of Operations | ||||||
23 | Statements of Changes in Net Assets | ||||||
Financial Highlights | |||||||
24 | Selected Data for Class 2 | ||||||
25 | Selected Data for Class 3 | ||||||
26 | Selected Data for Class K | ||||||
27 | Selected Data for Institutional Class | ||||||
Baillie Gifford EAFE Plus All Cap Fund | |||||||
28 | Industry Diversification Table | ||||||
29 | Portfolio of Investments | ||||||
33 | Statement of Assets and Liabilities | ||||||
34 | Statement of Operations | ||||||
35 | Statements of Changes in Net Assets | ||||||
Financial Highlights | |||||||
36 | Selected Data for Class 2 | ||||||
37 | Selected Data for Class K | ||||||
38 | Selected Data for Institutional Class | ||||||
Baillie Gifford Emerging Markets Equities Fund | |||||||
39 | Industry Diversification Table | ||||||
40 | Portfolio of Investments | ||||||
44 | Statement of Assets and Liabilities | ||||||
45 | Statement of Operations | ||||||
46 | Statements of Changes in Net Assets | ||||||
Financial Highlights | |||||||
47 | Selected Data for Class 2 | ||||||
48 | Selected Data for Class 3 | ||||||
49 | Selected Data for Class 4 | ||||||
50 | Selected Data for Class 5 | ||||||
51 | Selected Data for Class K | ||||||
52 | Selected Data for Institutional Class | ||||||
Baillie Gifford Global Alpha Equities Fund | |||||||
53 | Industry Diversification Table | ||||||
54 | Portfolio of Investments | ||||||
59 | Statement of Assets and Liabilities | ||||||
60 | Statement of Operations | ||||||
61 | Statements of Changes in Net Assets | ||||||
Financial Highlights | |||||||
62 | Selected Data for Class 2 | ||||||
63 | Selected Data for Class 3 | ||||||
64 | Selected Data for Class 4 | ||||||
65 | Selected Data for Class K | ||||||
66 | Selected Data for Institutional Class | ||||||
Baillie Gifford Global Stewardship Equities Fund | |||||||
67 | Industry Diversification Table | ||||||
68 | Portfolio of Investments | ||||||
72 | Statement of Assets and Liabilities | ||||||
73 | Statement of Operations | ||||||
74 | Statements of Changes in Net Assets | ||||||
Financial Highlights | |||||||
75 | Selected Data for Class K | ||||||
76 | Selected Data for Institutional Class | ||||||
Baillie Gifford International Alpha Fund | |||||||
77 | Industry Diversification Table | ||||||
78 | Portfolio of Investments | ||||||
83 | Statement of Assets and Liabilities | ||||||
84 | Statement of Operations | ||||||
85 | Statements of Changes in Net Assets | ||||||
Financial Highlights | |||||||
86 | Selected Data for Class 2 |
Page Number | |||||||
87 | Selected Data for Class 3 | ||||||
88 | Selected Data for Class 4 | ||||||
89 | Selected Data for Class 5 | ||||||
90 | Selected Data for Class K | ||||||
91 | Selected Data for Institutional Class | ||||||
Baillie Gifford International Concentrated Growth Equities Fund | |||||||
92 | Industry Diversification Table | ||||||
93 | Portfolio of Investments | ||||||
95 | Statement of Assets and Liabilities | ||||||
96 | Statement of Operations | ||||||
97 | Statements of Changes in Net Assets | ||||||
Financial Highlights | |||||||
98 | Selected Data for Class K | ||||||
99 | Selected Data for Institutional Class | ||||||
Baillie Gifford International Growth Fund | |||||||
100 | Industry Diversification Table | ||||||
101 | Portfolio of Investments | ||||||
105 | Statement of Assets and Liabilities | ||||||
106 | Statement of Operations | ||||||
107 | Statements of Changes in Net Assets | ||||||
Financial Highlights | |||||||
108 | Selected Data for Class 2 | ||||||
109 | Selected Data for Class 3 | ||||||
110 | Selected Data for Class 4 | ||||||
111 | Selected Data for Class 5 | ||||||
112 | Selected Data for Class K | ||||||
113 | Selected Data for Institutional Class | ||||||
Baillie Gifford International Smaller Companies Fund | |||||||
114 | Industry Diversification Table | ||||||
115 | Portfolio of Investments | ||||||
119 | Statement of Assets and Liabilities | ||||||
120 | Statement of Operations | ||||||
121 | Statements of Changes in Net Assets | ||||||
Financial Highlights | |||||||
122 | Selected Data for Class K | ||||||
123 | Selected Data for Institutional Class | ||||||
Baillie Gifford Long Term Global Growth Fund | |||||||
124 | Industry Diversification Table | ||||||
125 | Portfolio of Investments | ||||||
127 | Statement of Assets and Liabilities | ||||||
128 | Statement of Operations | ||||||
129 | Statements of Changes in Net Assets | ||||||
Financial Highlights | |||||||
130 | Selected Data for Class 2 | ||||||
131 | Selected Data for Class 4 | ||||||
132 | Selected Data for Class K | ||||||
133 | Selected Data for Institutional Class | ||||||
Baillie Gifford Positive Change Equities Fund | |||||||
134 | Industry Diversification Table | ||||||
135 | Portfolio of Investments | ||||||
138 | Statement of Assets and Liabilities | ||||||
139 | Statement of Operations | ||||||
140 | Statements of Changes in Net Assets | ||||||
Financial Highlights | |||||||
141 | Selected Data for Class K | ||||||
142 | Selected Data for Institutional Class | ||||||
Baillie Gifford U.S. Equity Growth Fund | |||||||
143 | Industry Diversification Table | ||||||
144 | Portfolio of Investments | ||||||
146 | Statement of Assets and Liabilities | ||||||
147 | Statement of Operations | ||||||
148 | Statements of Changes in Net Assets | ||||||
Financial Highlights | |||||||
149 | Selected Data for Class K | ||||||
150 | Selected Data for Institutional Class | ||||||
151 | Notes to Financial Statements | ||||||
Supplemental Information | |||||||
176 | Management of the Trust | ||||||
177 | Board Considerations Regarding New Fund's Contract Approval |
This report is intended for shareholders of the funds listed on the front of this report (each, a "Fund", and collectively the "Funds") and may not be used as sales literature unless preceded or accompanied by a current prospectus for each Fund.
The statements and views expressed in this report are as of this report's period end and are subject to change at any time. All investments entail risk, including the possible loss of principal.
Source: © David Robertson / Alamy Stock Photo
Fund Expenses (unaudited)
Semi-Annual Report June 30, 2020
As a shareholder of Baillie Gifford China A Shares Fund, Baillie Gifford Developed EAFE All Cap Fund, Baillie Gifford EAFE Plus All Cap Fund, Baillie Gifford Emerging Markets Equities Fund, Baillie Gifford Global Alpha Equities Fund, Baillie Gifford Global Stewardship Equities Fund, Baillie Gifford International Alpha Fund, Baillie Gifford International Concentrated Growth Equities Fund, Baillie Gifford International Growth Fund, Baillie Gifford International Smaller Companies Fund, Baillie Gifford Long Term Global Growth Fund, Baillie Gifford Positive Change Equities Fund and/or Baillie Gifford U.S. Equity Growth Fund, you incur two types of costs: (1) transaction costs, which may include purchase fees and redemption fees 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 the other mutual funds.
The example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period from January 1, 2020 to June 30, 2020.
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, such as purchase fees and redemption fees. 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, 2020
Beginning Account Value 1/01/20 | Ending Account Value 6/30/20 | Annualized Expense Ratios Based on the Period 1/01/20 to 6/30/20 | Expenses Paid During Period(1) | ||||||||||||||||
Baillie Gifford China A Shares Fund — Class K | |||||||||||||||||||
Actual | $ | 1,000 | $ | 1,339.20 | 0.87 | % | $ | 5.06 | |||||||||||
Hypothetical (5% return before expenses) | $ | 1,000 | $ | 1,020.54 | 0.87 | % | $ | 4.37 | |||||||||||
Baillie Gifford China A Shares Fund — Institutional Class | |||||||||||||||||||
Actual | $ | 1,000 | $ | 1,339.20 | 0.87 | % | $ | 5.06 | |||||||||||
Hypothetical (5% return before expenses) | $ | 1,000 | $ | 1,020.54 | 0.87 | % | $ | 4.37 | |||||||||||
Baillie Gifford Developed EAFE All Cap Fund — Class 2 | |||||||||||||||||||
Actual | $ | 1,000 | $ | 992.10 | 0.64 | % | $ | 3.17 | |||||||||||
Hypothetical (5% return before expenses) | $ | 1,000 | $ | 1,021.68 | 0.64 | % | $ | 3.22 | |||||||||||
Baillie Gifford Developed EAFE All Cap Fund — Class 3 | |||||||||||||||||||
Actual | $ | 1,000 | $ | 992.50 | 0.57 | % | $ | 2.82 | |||||||||||
Hypothetical (5% return before expenses) | $ | 1,000 | $ | 1,022.03 | 0.57 | % | $ | 2.87 | |||||||||||
Baillie Gifford Developed EAFE All Cap Fund — Class K | |||||||||||||||||||
Actual | $ | 1,000 | $ | 992.40 | 0.64 | % | $ | 3.17 | |||||||||||
Hypothetical (5% return before expenses) | $ | 1,000 | $ | 1,021.68 | 0.64 | % | $ | 3.22 | |||||||||||
Baillie Gifford Developed EAFE All Cap Fund — Institutional Class | |||||||||||||||||||
Actual | $ | 1,000 | $ | 991.60 | 0.75 | % | $ | 3.71 | |||||||||||
Hypothetical (5% return before expenses) | $ | 1,000 | $ | 1,021.13 | 0.75 | % | $ | 3.77 | |||||||||||
Baillie Gifford EAFE Plus All Cap Fund — Class 2 | |||||||||||||||||||
Actual | $ | 1,000 | $ | 989.20 | 0.64 | % | $ | 3.17 | |||||||||||
Hypothetical (5% return before expenses) | $ | 1,000 | $ | 1,021.68 | 0.64 | % | $ | 3.22 | |||||||||||
Baillie Gifford EAFE Plus All Cap Fund — Class K | |||||||||||||||||||
Actual | $ | 1,000 | $ | 989.20 | 0.64 | % | $ | 3.17 | |||||||||||
Hypothetical (5% return before expenses) | $ | 1,000 | $ | 1,021.68 | 0.64 | % | $ | 3.22 | |||||||||||
Baillie Gifford EAFE Plus All Cap Fund — Institutional Class | |||||||||||||||||||
Actual | $ | 1,000 | $ | 988.60 | 0.74 | % | $ | 3.66 | |||||||||||
Hypothetical (5% return before expenses) | $ | 1,000 | $ | 1,021.18 | 0.74 | % | $ | 3.72 |
02
Fund Expenses (unaudited)
Semi-Annual Report June 30, 2020
Beginning Account Value 1/01/20 | Ending Account Value 6/30/20 | Annualized Expense Ratios Based on the Period 1/01/20 to 6/30/20 | Expenses Paid During Period(1) | ||||||||||||||||
Baillie Gifford Emerging Markets Equities Fund — Class 2 | |||||||||||||||||||
Actual | $ | 1,000 | $ | 914.40 | 0.81 | % | $ | 3.86 | |||||||||||
Hypothetical (5% return before expenses) | $ | 1,000 | $ | 1,020.84 | 0.81 | % | $ | 4.07 | |||||||||||
Baillie Gifford Emerging Markets Equities Fund — Class 3 | |||||||||||||||||||
Actual | $ | 1,000 | $ | 914.70 | 0.74 | % | $ | 3.52 | |||||||||||
Hypothetical (5% return before expenses) | $ | 1,000 | $ | 1,021.18 | 0.74 | % | $ | 3.72 | |||||||||||
Baillie Gifford Emerging Markets Equities Fund — Class 4 | |||||||||||||||||||
Actual* | $ | 1,000 | $ | 895.50 | 0.71 | % | $ | 3.18 | |||||||||||
Hypothetical (5% return before expenses) | $ | 1,000 | $ | 1,021.33 | 0.71 | % | $ | 3.39 | |||||||||||
Baillie Gifford Emerging Markets Equities Fund — Class 5 | |||||||||||||||||||
Actual | $ | 1,000 | $ | 915.10 | 0.66 | % | $ | 3.14 | |||||||||||
Hypothetical (5% return before expenses) | $ | 1,000 | $ | 1,021.58 | 0.66 | % | $ | 3.32 | |||||||||||
Baillie Gifford Emerging Markets Equities Fund — Class K | |||||||||||||||||||
Actual | $ | 1,000 | $ | 914.50 | 0.81 | % | $ | 3.86 | |||||||||||
Hypothetical (5% return before expenses) | $ | 1,000 | $ | 1,020.84 | 0.81 | % | $ | 4.07 | |||||||||||
Baillie Gifford Emerging Markets Equities Fund — Institutional Class | |||||||||||||||||||
Actual | $ | 1,000 | $ | 914.00 | 0.90 | % | $ | 4.28 | |||||||||||
Hypothetical (5% return before expenses) | $ | 1,000 | $ | 1,020.39 | 0.90 | % | $ | 4.52 | |||||||||||
Baillie Gifford Global Alpha Equities Fund — Class 2 | |||||||||||||||||||
Actual | $ | 1,000 | $ | 1,038.60 | 0.66 | % | $ | 3.35 | |||||||||||
Hypothetical (5% return before expenses) | $ | 1,000 | $ | 1,021.58 | 0.66 | % | $ | 3.32 | |||||||||||
Baillie Gifford Global Alpha Equities Fund — Class 3 | |||||||||||||||||||
Actual | $ | 1,000 | $ | 1,038.90 | 0.59 | % | $ | 2.99 | |||||||||||
Hypothetical (5% return before expenses) | $ | 1,000 | $ | 1,021.93 | 0.59 | % | $ | 2.97 | |||||||||||
Baillie Gifford Global Alpha Equities Fund — Class 4 | |||||||||||||||||||
Actual | $ | 1,000 | $ | 1,039.10 | 0.56 | % | $ | 2.84 | |||||||||||
Hypothetical (5% return before expenses) | $ | 1,000 | $ | 1,022.08 | 0.56 | % | $ | 2.82 |
03
Fund Expenses (unaudited)
Semi-Annual Report June 30, 2020
Beginning Account Value 1/01/20 | Ending Account Value 6/30/20 | Annualized Expense Ratios Based on the Period 1/01/20 to 6/30/20 | Expenses Paid During Period(1) | ||||||||||||||||
Baillie Gifford Global Alpha Equities Fund — Class K | |||||||||||||||||||
Actual | $ | 1,000 | $ | 1,039.00 | 0.66 | % | $ | 3.35 | |||||||||||
Hypothetical (5% return before expenses) | $ | 1,000 | $ | 1,021.58 | 0.66 | % | $ | 3.32 | |||||||||||
Baillie Gifford Global Alpha Equities Fund — Institutional Class | |||||||||||||||||||
Actual | $ | 1,000 | $ | 1,038.30 | 0.69 | % | $ | 3.50 | |||||||||||
Hypothetical (5% return before expenses) | $ | 1,000 | $ | 1,021.43 | 0.69 | % | $ | 3.47 | |||||||||||
Baillie Gifford Global Stewardship Equities Fund — Class K | |||||||||||||||||||
Actual | $ | 1,000 | $ | 1,253.90 | 0.65 | % | $ | 3.64 | |||||||||||
Hypothetical (5% return before expenses) | $ | 1,000 | $ | 1,021.63 | 0.65 | % | $ | 3.27 | |||||||||||
Baillie Gifford Global Stewardship Equities Fund — Institutional Class | |||||||||||||||||||
Actual | $ | 1,000 | $ | 1,253.90 | 0.65 | % | $ | 3.64 | |||||||||||
Hypothetical (5% return before expenses) | $ | 1,000 | $ | 1,021.63 | 0.65 | % | $ | 3.27 | |||||||||||
Baillie Gifford International Alpha Fund — Class 2 | |||||||||||||||||||
Actual | $ | 1,000 | $ | 994.60 | 0.60 | % | $ | 2.98 | |||||||||||
Hypothetical (5% return before expenses) | $ | 1,000 | $ | 1,021.88 | 0.60 | % | $ | 3.02 | |||||||||||
Baillie Gifford International Alpha Fund — Class 3 | |||||||||||||||||||
Actual | $ | 1,000 | $ | 995.00 | 0.53 | % | $ | 2.63 | |||||||||||
Hypothetical (5% return before expenses) | $ | 1,000 | $ | 1,022.23 | 0.53 | % | $ | 2.66 | |||||||||||
Baillie Gifford International Alpha Fund — Class 4 | |||||||||||||||||||
Actual | $ | 1,000 | $ | 995.10 | 0.50 | % | $ | 2.48 | |||||||||||
Hypothetical (5% return before expenses) | $ | 1,000 | $ | 1,022.38 | 0.50 | % | $ | 2.51 | |||||||||||
Baillie Gifford International Alpha Fund — Class 5 | |||||||||||||||||||
Actual | $ | 1,000 | $ | 995.40 | 0.45 | % | $ | 2.23 | |||||||||||
Hypothetical (5% return before expenses) | $ | 1,000 | $ | 1,022.63 | 0.45 | % | $ | 2.26 | |||||||||||
Baillie Gifford International Alpha Fund — Class K | |||||||||||||||||||
Actual | $ | 1,000 | $ | 994.80 | 0.60 | % | $ | 2.98 | |||||||||||
Hypothetical (5% return before expenses) | $ | 1,000 | $ | 1,021.88 | 0.60 | % | $ | 3.02 |
04
Fund Expenses (unaudited)
Semi-Annual Report June 30, 2020
Beginning Account Value 1/01/20 | Ending Account Value 6/30/20 | Annualized Expense Ratios Based on the Period 1/01/20 to 6/30/20 | Expenses Paid During Period(1) | ||||||||||||||||
Baillie Gifford International Alpha Fund — Institutional Class | |||||||||||||||||||
Actual | $ | 1,000 | $ | 994.10 | 0.65 | % | $ | 3.22 | |||||||||||
Hypothetical (5% return before expenses) | $ | 1,000 | $ | 1,021.63 | 0.65 | % | $ | 3.27 | |||||||||||
Baillie Gifford International Concentrated Growth Equities Fund — Class K | |||||||||||||||||||
Actual | $ | 1,000 | $ | 1,292.90 | 0.72 | % | $ | 4.10 | |||||||||||
Hypothetical (5% return before expenses) | $ | 1,000 | $ | 1,021.28 | 0.72 | % | $ | 3.62 | |||||||||||
Baillie Gifford International Concentrated Growth Equities Fund — Institutional Class | |||||||||||||||||||
Actual | $ | 1,000 | $ | 1,292.50 | 0.73 | % | $ | 4.16 | |||||||||||
Hypothetical (5% return before expenses) | $ | 1,000 | $ | 1,021.28 | 0.73 | % | $ | 3.67 | |||||||||||
Baillie Gifford International Growth Fund — Class 2 | |||||||||||||||||||
Actual | $ | 1,000 | $ | 1,175.40 | 0.58 | % | $ | 3.14 | |||||||||||
Hypothetical (5% return before expenses) | $ | 1,000 | $ | 1,021.98 | 0.58 | % | $ | 2.92 | |||||||||||
Baillie Gifford International Growth Fund — Class 3 | |||||||||||||||||||
Actual | $ | 1,000 | $ | 1,175.80 | 0.51 | % | $ | 2.76 | |||||||||||
Hypothetical (5% return before expenses) | $ | 1,000 | $ | 1,022.33 | 0.51 | % | $ | 2.56 | |||||||||||
Baillie Gifford International Growth Fund — Class 4 | |||||||||||||||||||
Actual | $ | 1,000 | $ | 1,176.00 | 0.48 | % | $ | 2.60 | |||||||||||
Hypothetical (5% return before expenses) | $ | 1,000 | $ | 1,022.48 | 0.48 | % | $ | 2.41 | |||||||||||
Baillie Gifford International Growth Fund — Class 5 | |||||||||||||||||||
Actual | $ | 1,000 | $ | 1,176.30 | 0.43 | % | $ | 2.33 | |||||||||||
Hypothetical (5% return before expenses) | $ | 1,000 | $ | 1,022.73 | 0.43 | % | $ | 2.16 | |||||||||||
Baillie Gifford International Growth Fund — Class K | |||||||||||||||||||
Actual | $ | 1,000 | $ | 1,175.60 | 0.58 | % | $ | 3.14 | |||||||||||
Hypothetical (5% return before expenses) | $ | 1,000 | $ | 1,021.98 | 0.58 | % | $ | 2.92 | |||||||||||
Baillie Gifford International Growth Fund — Institutional Class | |||||||||||||||||||
Actual | $ | 1,000 | $ | 1,175.30 | 0.61 | % | $ | 3.30 | |||||||||||
Hypothetical (5% return before expenses) | $ | 1,000 | $ | 1,021.83 | 0.61 | % | $ | 3.07 |
05
Fund Expenses (unaudited)
Semi-Annual Report June 30, 2020
Beginning Account Value 1/01/20 | Ending Account Value 6/30/20 | Annualized Expense Ratios Based on the Period 1/01/20 to 6/30/20 | Expenses Paid During Period(1) | ||||||||||||||||
Baillie Gifford International Smaller Companies Fund — Class K | |||||||||||||||||||
Actual | $ | 1,000 | $ | 1,059.40 | 0.90 | % | $ | 4.61 | |||||||||||
Hypothetical (5% return before expenses) | $ | 1,000 | $ | 1,020.39 | 0.90 | % | $ | 4.52 | |||||||||||
Baillie Gifford International Smaller Companies Fund — Institutional Class | |||||||||||||||||||
Actual | $ | 1,000 | $ | 1,059.40 | 0.90 | % | $ | 4.61 | |||||||||||
Hypothetical (5% return before expenses) | $ | 1,000 | $ | 1,020.39 | 0.90 | % | $ | 4.52 | |||||||||||
Baillie Gifford Long Term Global Growth Fund — Class 2 | |||||||||||||||||||
Actual | $ | 1,000 | $ | 1,397.70 | 0.73 | % | $ | 4.35 | |||||||||||
Hypothetical (5% return before expenses) | $ | 1,000 | $ | 1,021.23 | 0.73 | % | $ | 3.67 | |||||||||||
Baillie Gifford Long Term Global Growth Fund — Class 4 | |||||||||||||||||||
Actual | $ | 1,000 | $ | 1,398.40 | 0.63 | % | $ | 3.76 | |||||||||||
Hypothetical (5% return before expenses) | $ | 1,000 | $ | 1,021.73 | 0.63 | % | $ | 3.17 | |||||||||||
Baillie Gifford Long Term Global Growth Fund — Class K | |||||||||||||||||||
Actual | $ | 1,000 | $ | 1,397.30 | 0.73 | % | $ | 4.35 | |||||||||||
Hypothetical (5% return before expenses) | $ | 1,000 | $ | 1,021.23 | 0.73 | % | $ | 3.67 | |||||||||||
Baillie Gifford Long Term Global Growth Fund — Institutional Class | |||||||||||||||||||
Actual | $ | 1,000 | $ | 1,397.40 | 0.81 | % | $ | 4.83 | |||||||||||
Hypothetical (5% return before expenses) | $ | 1,000 | $ | 1,020.84 | 0.81 | % | $ | 4.07 | |||||||||||
Baillie Gifford Positive Change Equities Fund — Class K | |||||||||||||||||||
Actual | $ | 1,000 | $ | 1,284.80 | 0.65 | % | $ | 3.69 | |||||||||||
Hypothetical (5% return before expenses) | $ | 1,000 | $ | 1,021.63 | 0.65 | % | $ | 3.27 | |||||||||||
Baillie Gifford Positive Change Equities Fund — Institutional Class | |||||||||||||||||||
Actual | $ | 1,000 | $ | 1,284.10 | 0.65 | % | $ | 3.69 | |||||||||||
Hypothetical (5% return before expenses) | $ | 1,000 | $ | 1,021.63 | 0.65 | % | $ | 3.27 | |||||||||||
Baillie Gifford U.S. Equity Growth Fund — Class K | |||||||||||||||||||
Actual | $ | 1,000 | $ | 1,443.30 | 0.65 | % | $ | 3.95 | |||||||||||
Hypothetical (5% return before expenses) | $ | 1,000 | $ | 1,021.63 | 0.65 | % | $ | 3.27 |
06
Fund Expenses (unaudited)
Semi-Annual Report June 30, 2020
Beginning Account Value 1/01/20 | Ending Account Value 6/30/20 | Annualized Expense Ratios Based on the Period 1/01/20 to 6/30/20 | Expenses Paid During Period(1) | ||||||||||||||||
Baillie Gifford U.S. Equity Growth Fund — Institutional Class | |||||||||||||||||||
Actual | $ | 1,000 | $ | 1,443.20 | 0.72 | % | $ | 4.37 | |||||||||||
Hypothetical (5% return before expenses) | $ | 1,000 | $ | 1,021.63 | 0.72 | % | $ | 3.62 |
* Recommencement of operations on January 10, 2020. Expenses are calculated using the Fund's annualized expense ratio, multiplied by the ending value for the period, multiplied by 173/366 (to reflect recommencement of operation).
(1) Unless otherwise indicated, expenses are calculated using the Fund's annualized expense ratio, multiplied by the average account value for the period, multiplied by 182/366 (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, 2020. Expenses are calculated by multiplying the annualized expense ratio by the average account value for the period; then multiplying the result by the number of days in the
most recent fiscal half-year; and then dividing that result by the number of days in the calendar year. Expense ratios for the most recent fiscal year may differ from expense ratios based on the one-year data in the financial highlights.
07
Industry Diversification Table
Semi-Annual Report June 30, 2020
June 30, 2020 (unaudited)
Baillie Gifford China A Shares Fund
Value | % of Total Net Assets | ||||||||||
Advertising | $ | 18,284 | 1.3 | % | |||||||
Beverages | 129,642 | 9.4 | |||||||||
Commercial Services | 69,096 | 5.0 | |||||||||
Cosmetics/Personal Care | 33,217 | 2.4 | |||||||||
Electrical Components & Equipment | 47,356 | 3.4 | |||||||||
Electronics | 59,675 | 4.3 | |||||||||
Food | 91,229 | 6.6 | |||||||||
Healthcare — Products | 74,943 | 5.5 | |||||||||
Healthcare — Services | 191,778 | 13.9 | |||||||||
Home Furnishings | 55,105 | 4.0 | |||||||||
Insurance | 98,174 | 7.1 | |||||||||
Internet | 25,531 | 1.9 | |||||||||
Leisure Time | 54,791 | 4.0 | |||||||||
Metal Fabricate/Hardware | 78,472 | 5.7 | |||||||||
Pharmaceuticals | 163,599 | 11.9 | |||||||||
Software | 128,135 | 9.3 | |||||||||
Transportation | 39,507 | 2.9 | |||||||||
Total Value of Investments | 1,358,534 | 98.6 | |||||||||
Other assets less liabilities | 19,674 | 1.4 | |||||||||
Net Assets | $ | 1,378,208 | 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, 2020
June 30, 2020 (unaudited)
Baillie Gifford China A Shares Fund
Shares | Value | ||||||||||
COMMON STOCKS — 98.6% | |||||||||||
CHINA — 98.6% | |||||||||||
Asymchem Laboratories Tianjin Co., Ltd., Class A | 2,100 | $ | 72,194 | ||||||||
Berry Genomics Co., Ltd., Class A * | 5,800 | 49,204 | |||||||||
BGI Genomics Co., Ltd., Class A * | 3,400 | 74,943 | |||||||||
China Tourism Group Duty Free Corp., Ltd., Class A * | 2,500 | 54,791 | |||||||||
Contemporary Amperex Technology Co., Ltd., Class A | 1,900 | 47,356 | |||||||||
Focus Media Information Technology Co., Ltd., Class A | 23,100 | 18,284 | |||||||||
Foshan Haitian Flavouring & Food Co., Ltd., Class A | 3,600 | 63,411 | |||||||||
Glodon Co., Ltd., Class A | 8,100 | 80,178 | |||||||||
Guangzhou Kingmed Diagnostics Group Co., Ltd., Class A | 4,000 | 50,772 | |||||||||
Hangzhou Hikvision Digital Technology Co., Ltd., Class A | 6,200 | 26,788 | |||||||||
Hangzhou Tigermed Consulting Co., Ltd., Class A | 4,800 | 69,096 | |||||||||
Iflytek Co., Ltd., Class A | 3,500 | 18,640 | |||||||||
Inner Mongolia Yili Industrial Group Co., Ltd., Class A | 6,300 | 27,818 | |||||||||
Jiangsu Hengrui Medicine Co., Ltd., Class A | 5,060 | 66,129 | |||||||||
Kweichow Moutai Co., Ltd., Class A | 300 | 62,300 | |||||||||
Luzhou Laojiao Co., Ltd., Class A | 2,200 | 28,467 | |||||||||
Midea Group Co., Ltd., Class A | 6,500 | 55,105 | |||||||||
NanJi E-Commerce Co., Ltd., Class A | 8,500 | 25,531 | |||||||||
Ping An Insurance Group Co. of China Ltd., Class A | 9,700 | 98,174 | |||||||||
Proya Cosmetics Co., Ltd., Class A | 1,300 | 33,217 | |||||||||
SF Holding Co., Ltd., Class A | 5,100 | 39,507 | |||||||||
Shenzhen Inovance Technology Co., Ltd., Class A | 6,100 | 32,887 | |||||||||
Topchoice Medical Corp., Class A * | 1,700 | 40,170 | |||||||||
Wuliangye Yibin Co., Ltd., Class A | 1,600 | 38,875 | |||||||||
WuXi AppTec Co., Ltd., Class A | 3,780 | 51,632 | |||||||||
Yonyou Network Technology Co., Ltd., Class A | 4,680 | 29,317 | |||||||||
Yunnan Baiyao Group Co., Ltd., Class A | 1,900 | 25,276 | |||||||||
Zhejiang Sanhua Intelligent Controls Co., Ltd., Class A | 25,220 | 78,472 | |||||||||
1,358,534 | |||||||||||
TOTAL INVESTMENTS — 98.6% | |||||||||||
(cost $979,231) | $ | 1,358,534 | |||||||||
Other assets less liabilities — 1.4% | 19,674 | ||||||||||
NET ASSETS — 100.0% | $ | 1,378,208 |
* 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.
09
Portfolio of Investments
Semi-Annual Report June 30, 2020
June 30, 2020 (unaudited)
Baillie Gifford China A Shares Fund
Fair Value Measurement
The following is a summary of the inputs used as of June 30, 2020 in valuing the Fund's investments carried at fair value:
Investments in Securities | Level 1 | Level 2 | Level 3 | Total | |||||||||||||||
Common Stocks ** | $ | — | $ | 1,358,534 | $ | — | $ | 1,358,534 | |||||||||||
Total | $ | — | $ | 1,358,534 | $ | — | $ | 1,358,534 |
** 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, 2020
June 30, 2020 (unaudited)
Baillie Gifford China A Shares Fund
ASSETS | |||||||
Investments, at value (cost $979,231) | $ | 1,358,534 | |||||
Cash | 58,836 | ||||||
Foreign cash, at value (cost 59,918) | 59,948 | ||||||
Due from Investment Advisor | 22,661 | ||||||
Total Assets | 1,499,979 | ||||||
LIABILITIES | |||||||
Advisory fee payable | 1,579 | ||||||
Payable for investments purchased | 54,869 | ||||||
Administration & Supervisory fee payable | 488 | ||||||
Trustee fee payable | 7 | ||||||
Accrued expenses | 64,828 | ||||||
Total Liabilities | 121,771 | ||||||
NET ASSETS | $ | 1,378,208 | |||||
COMPOSITION OF NET ASSETS | |||||||
Paid-in capital | $ | 999,736 | |||||
Total distributable earnings | 378,472 | ||||||
$ | 1,378,208 | ||||||
NET ASSET VALUE, PER SHARE | |||||||
Class K ( $689,104 / 50,000 shares outstanding), unlimited authorized, no par value | $ | 13.78 | |||||
Institutional Class ( $689,104 / 50,000 shares outstanding), unlimited authorized, no par value | $ | 13.78 |
The accompanying notes are an integral part of the financial statements.
11
Statement of Operations
Semi-Annual Report June 30, 2020
For the Six Months Ended June 30, 2020 (unaudited)
Baillie Gifford China A Shares Fund
INVESTMENT INCOME | |||||||
Dividends (net of foreign withholding taxes of $840) | $ | 7,429 | |||||
Interest | 15 | ||||||
Total Investment Income | 7,444 | ||||||
EXPENSES | |||||||
Advisory fee (Note B) | 3,019 | ||||||
Administration & Supervisory fee — Class K shares (Note B) | 467 | ||||||
Administration & Supervisory fee — Institutional Class shares (Note B) | 467 | ||||||
Transfer agency | 17,704 | ||||||
Fund accounting | 35,175 | ||||||
Professional fees | 13,234 | ||||||
Custody | 8,029 | ||||||
Legal | 94 | ||||||
Registration fees | 33 | ||||||
Trustees' fees | 24 | ||||||
Commitment fees | 4 | ||||||
Miscellaneous | 3,506 | ||||||
Total Expenses | 81,756 | ||||||
Fees waived | (76,991 | ) | |||||
Net Expenses | 4,765 | ||||||
Net Investment Income | 2,679 | ||||||
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS AND FOREIGN CURRENCY TRANSACTIONS | |||||||
Net realized gain (loss) from: | |||||||
Investments | (2,100 | ) | |||||
Foreign currency transactions | 24 | ||||||
(2,076 | ) | ||||||
Net change in unrealized appreciation on: | |||||||
Investments | 348,999 | ||||||
Translation of net assets and liabilities denominated in foreign currencies | 2 | ||||||
349,001 | |||||||
Net realized and unrealized gain | 346,925 | ||||||
NET INCREASE IN NET ASSETS FROM OPERATIONS | $ | 349,604 |
The accompanying notes are an integral part of the financial statements.
12
Statements of Changes in Net Assets
Semi-Annual Report June 30, 2020
Baillie Gifford China A Shares Fund
For the Six Months Ended June 30, 2020 (unaudited) | For the Period December 19, 2019(a) through December 31, 2019 | ||||||||||
INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS | |||||||||||
Net investment income (loss) | $ | 2,679 | $ | (264 | ) | ||||||
Net realized loss | (2,076 | ) | (1,436 | ) | |||||||
Net change in unrealized appreciation | 349,001 | 30,304 | |||||||||
Net increase in net assets from operations | 349,604 | 28,604 | |||||||||
TRANSACTIONS IN SHARES OF BENEFICIAL INTEREST | |||||||||||
Net proceeds from shares subscribed: | |||||||||||
Class K | — | 500,000 | |||||||||
Institutional Class | — | 500,000 | |||||||||
Increase in Net Assets from Transactions in Shares of Beneficial Interest | — | 1,000,000 | |||||||||
Total Increase in Net Assets | 349,604 | 1,028,604 | |||||||||
NET ASSETS | |||||||||||
Beginning of period | 1,028,604 | — | |||||||||
End of period | $ | 1,378,208 | $ | 1,028,604 |
(a) Commencement of investment operations.
The accompanying notes are an integral part of the financial statements.
13
Financial Highlights
Semi-Annual Report June 30, 2020
Baillie Gifford China A Shares Fund
Selected data for a Class K share outstanding throughout each period:
For the Six Months Ended June 30, 2020 (unaudited) | For the Period December 19, 2019(a) through December 31, 2019 | ||||||||||
Net asset value, beginning of period | $ | 10.29 | $ | 10.00 | |||||||
From Investment Operations | |||||||||||
Net investment income (loss)(b) | 0.03 | (0.00 | )(c) | ||||||||
Net realized and unrealized gain on investments and foreign currency | 3.46 | 0.29 | |||||||||
Net increase in net asset value from investment operations | 3.49 | 0.29 | |||||||||
Net asset value, end of period | $ | 13.78 | $ | 10.29 | |||||||
Total Return | |||||||||||
Total return based on net asset value(d) | 33.92 | % | 2.90 | % | |||||||
Ratios/Supplemental Data | |||||||||||
Net assets, end of period (000's omitted) | $ | 689 | $ | 514 | |||||||
Ratio of net expenses to average net assets, before waiver | 14.90 | %* | 90.51 | %* | |||||||
Ratio of net expenses to average net assets, after waiver | 0.87 | %* | 0.87 | %* | |||||||
Ratio of net investment income (loss) to average net assets | 0.49 | %* | (0.80 | )%* | |||||||
Portfolio turnover rate(e) | 8 | % | 0 | % |
* Annualized.
(a) Commencement of investment operations.
(b) Calculated based upon average shares outstanding during the period.
(c) Amount is less than $0.005 per share.
(d) Total investment return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all dividends and distributions, if any, at net asset value during the period, and redemption on the last day of the period. Total return is not annualized for periods less than one year.
(e) Portfolio turnover rate calculated at Fund level.
The accompanying notes are an integral part of the financial statements.
14
Financial Highlights
Semi-Annual Report June 30, 2020
Baillie Gifford China A Shares Fund
Selected data for an Institutional Class share outstanding throughout each period:
For the Six Months Ended June 30, 2020 (unaudited) | For the Period December 19, 2019(a) through December 31, 2019 | ||||||||||
Net asset value, beginning of period | $ | 10.29 | $ | 10.00 | |||||||
From Investment Operations | |||||||||||
Net investment income (loss)(b) | 0.03 | (0.00 | )(c) | ||||||||
Net realized and unrealized gain on investments and foreign currency | 3.46 | 0.29 | |||||||||
Net increase in net asset value from investment operations | 3.49 | 0.29 | |||||||||
Net asset value, end of period | $ | 13.78 | $ | 10.29 | |||||||
Total Return | |||||||||||
Total return based on net asset value(d) | 33.92 | % | 2.90 | % | |||||||
Ratios/Supplemental Data | |||||||||||
Net assets, end of period (000's omitted) | $ | 689 | $ | 514 | |||||||
Ratio of net expenses to average net assets, before waiver | 14.90 | %* | 90.51 | %* | |||||||
Ratio of net expenses to average net assets, after waiver | 0.87 | %* | 0.87 | %* | |||||||
Ratio of net investment income (loss) to average net assets | 0.49 | %* | (0.80 | )%* | |||||||
Portfolio turnover rate(e) | 8 | % | 0 | % |
* Annualized.
(a) Commencement of investment operations.
(b) Calculated based upon average shares outstanding during the period.
(c) Amount is less than $0.005 per share.
(d) Total investment return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all dividends and distributions, if any, at net asset value during the period, and redemption on the last day of the period. Total return is not annualized for periods less than one year.
(e) Portfolio turnover rate calculated at Fund level.
The accompanying notes are an integral part of the financial statements.
15
Industry Diversification Table
Semi-Annual Report June 30, 2020
June 30, 2020 (unaudited)
Baillie Gifford Developed EAFE All Cap Fund
Value | % of Total Net Assets | ||||||||||
Apparel | $ | 27,392,692 | 5.1 | % | |||||||
Auto Manufacturers | 6,064,349 | 1.1 | |||||||||
Auto Parts & Equipment | 5,694,316 | 1.1 | |||||||||
Banks | 8,446,960 | 1.6 | |||||||||
Beverages | 9,752,269 | 1.9 | |||||||||
Building Materials | 20,051,606 | 3.8 | |||||||||
Chemicals | 5,807,932 | 1.1 | |||||||||
Commercial Services | 6,453,624 | 1.2 | |||||||||
Computers | 12,131,904 | 2.3 | |||||||||
Cosmetics/Personal Care | 24,382,173 | 4.5 | |||||||||
Diversified Financial Services | 22,869,589 | 4.3 | |||||||||
Electrical Components & Equipment | 10,383,945 | 1.9 | |||||||||
Electronics | 40,657,049 | 7.5 | |||||||||
Engineering & Construction | 7,197,723 | 1.3 | |||||||||
Food | 12,541,813 | 2.3 | |||||||||
Hand/Machine Tools | 8,336,163 | 1.6 | |||||||||
Healthcare — Products | 33,661,568 | 6.3 | |||||||||
Healthcare — Services | 5,129,846 | 1.0 | |||||||||
Holding Companies — Diversified | 2,784,602 | 0.5 | |||||||||
Insurance | 24,853,915 | 4.7 | |||||||||
Internet | 67,100,158 | 12.5 | |||||||||
Investment Companies | 7,621,923 | 1.4 | |||||||||
Leisure Time | 13,729,419 | 2.6 | |||||||||
Machinery — Construction & Mining | 8,942,195 | 1.6 | |||||||||
Machinery — Diversified | 45,525,657 | 8.5 | |||||||||
Oil & Gas Services | 1,897,190 | 0.4 | |||||||||
Retail | 37,951,436 | 7.0 | |||||||||
Semiconductors | 17,621,501 | 3.3 | |||||||||
Software | 20,590,074 | 3.8 | |||||||||
Telecommunications | 7,861,674 | 1.5 | |||||||||
Total Value of Investments | 523,435,265 | 97.7 | |||||||||
Other assets less liabilities | 12,248,095 | 2.3 | |||||||||
Net Assets | $ | 535,683,360 | 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, 2020
June 30, 2020 (unaudited)
Baillie Gifford Developed EAFE All Cap Fund
Shares | Value | ||||||||||
COMMON STOCKS — 95.8% | |||||||||||
AUSTRALIA — 4.2% | |||||||||||
Cochlear Ltd. | 80,965 | $ | 10,629,782 | ||||||||
SEEK Ltd. | 438,816 | 6,713,370 | |||||||||
Treasury Wine Estates Ltd. | 631,089 | 4,591,709 | |||||||||
21,934,861 | |||||||||||
CHINA — 1.2% | |||||||||||
Prosus NV * | 69,454 | 6,456,301 | |||||||||
FINLAND — 1.7% | |||||||||||
Kone Oyj, B Shares | 134,954 | 9,307,655 | |||||||||
FRANCE — 7.5% | |||||||||||
Kering | 13,964 | 7,634,351 | |||||||||
Legrand SA | 136,663 | 10,383,945 | |||||||||
LVMH Moet Hennessy Louis Vuitton SE | 17,954 | 7,926,568 | |||||||||
Remy Cointreau SA | 37,827 | 5,160,560 | |||||||||
Ubisoft Entertainment SA * | 112,335 | 9,302,472 | |||||||||
40,407,896 | |||||||||||
GERMANY — 7.4% | |||||||||||
adidas AG * | 25,839 | 6,812,466 | |||||||||
Bechtle AG | 68,449 | 12,131,904 | |||||||||
Nemetschek SE | 67,386 | 4,630,223 | |||||||||
Zalando SE * | 218,526 | 15,502,278 | |||||||||
39,076,871 | |||||||||||
HONG KONG — 5.4% | |||||||||||
AIA Group Ltd. | 1,584,200 | 14,824,318 | |||||||||
Jardine Matheson Holdings Ltd. | 66,600 | 2,784,602 | |||||||||
Jardine Strategic Holdings Ltd. | 129,500 | 2,793,457 | |||||||||
Techtronic Industries Co., Ltd. | 842,500 | 8,336,163 | |||||||||
28,738,540 | |||||||||||
IRELAND — 1.9% | |||||||||||
Kingspan Group PLC | 154,081 | 9,946,855 |
The accompanying notes are an integral part of the financial statements.
17
Portfolio of Investments
Semi-Annual Report June 30, 2020
June 30, 2020 (unaudited)
Baillie Gifford Developed EAFE All Cap Fund
Shares | Value | ||||||||||
JAPAN — 25.8% | |||||||||||
Denso Corp. | 145,200 | $ | 5,694,316 | ||||||||
Kakaku.com, Inc. | 299,600 | 7,632,083 | |||||||||
Kao Corp. | 116,400 | 9,237,250 | |||||||||
Keyence Corp. | 17,000 | 7,124,046 | |||||||||
MS&AD Insurance Group Holdings, Inc. | 364,200 | 10,029,597 | |||||||||
Murata Manufacturing Co., Ltd. | 127,100 | 7,492,355 | |||||||||
Nidec Corp. | 107,000 | 7,208,460 | |||||||||
Olympus Corp. | 794,800 | 15,301,884 | |||||||||
Pigeon Corp. | 123,600 | 4,783,948 | |||||||||
Shimano, Inc. | 71,400 | 13,729,419 | |||||||||
Shiseido Co., Ltd. | 162,600 | 10,360,975 | |||||||||
SMC Corp. | 27,600 | 14,184,221 | |||||||||
SoftBank Group Corp. | 155,900 | 7,861,674 | |||||||||
Sugi Holdings Co., Ltd. | 55,700 | 3,777,250 | |||||||||
Suzuki Motor Corp. | 177,600 | 6,064,349 | |||||||||
Sysmex Corp. | 100,700 | 7,729,902 | |||||||||
138,211,729 | |||||||||||
NETHERLANDS — 3.3% | |||||||||||
ASML Holding NV | 48,012 | 17,563,338 | |||||||||
NEW ZEALAND — 2.2% | |||||||||||
Ryman Healthcare Ltd. | 604,653 | 5,129,846 | |||||||||
Xero Ltd. * | 105,984 | 6,657,379 | |||||||||
11,787,225 | |||||||||||
PORTUGAL — 1.8% | |||||||||||
Jeronimo Martins SGPS SA * | 557,053 | 9,748,356 | |||||||||
SINGAPORE — 1.6% | |||||||||||
United Overseas Bank Ltd. | 578,089 | 8,446,960 | |||||||||
SPAIN — 1.8% | |||||||||||
Industria de Diseno Textil SA | 373,954 | 9,922,246 |
The accompanying notes are an integral part of the financial statements.
18
Portfolio of Investments
Semi-Annual Report June 30, 2020
June 30, 2020 (unaudited)
Baillie Gifford Developed EAFE All Cap Fund
Shares | Value | ||||||||||
SWEDEN — 9.0% | |||||||||||
Atlas Copco AB, A Shares | 327,256 | $ | 13,936,343 | ||||||||
Atlas Copco AB, B Shares | 26,196 | 973,392 | |||||||||
Avanza Bank Holding AB | 626,528 | 8,926,877 | |||||||||
Epiroc AB, A Shares | 221,518 | 2,775,710 | |||||||||
Epiroc AB, B Shares | 314,555 | 3,863,092 | |||||||||
Investor AB, B Shares | 143,680 | 7,621,923 | |||||||||
Nibe Industrier AB, B Shares * | 455,583 | 10,104,751 | |||||||||
48,202,088 | |||||||||||
SWITZERLAND — 1.6% | |||||||||||
Compagnie Financiere Richemont SA | 135,653 | 8,749,662 | |||||||||
u-blox Holding AG * | 848 | 58,163 | |||||||||
8,807,825 | |||||||||||
UNITED KINGDOM — 14.1% | |||||||||||
ASOS PLC * | 150,898 | 6,413,510 | |||||||||
Auto Trader Group PLC | 1,643,083 | 10,697,677 | |||||||||
Burberry Group PLC | 254,013 | 5,019,307 | |||||||||
Hargreaves Lansdown PLC | 604,775 | 12,195,919 | |||||||||
HomeServe PLC | 445,213 | 7,197,723 | |||||||||
Intertek Group PLC | 95,821 | 6,453,624 | |||||||||
John Wood Group PLC | 791,229 | 1,897,190 | |||||||||
Johnson Matthey PLC | 223,006 | 5,807,932 | |||||||||
Jupiter Fund Management PLC | 550,898 | 1,746,793 | |||||||||
Rightmove PLC | 1,462,526 | 9,885,970 | |||||||||
Trainline PLC * | 1,148,091 | 6,187,519 | |||||||||
Weir Group PLC (The) | 175,280 | 2,303,393 | |||||||||
75,806,557 | |||||||||||
UNITED STATES — 5.3% | |||||||||||
Mettler-Toledo International, Inc. * | 19,210 | 15,474,616 | |||||||||
Spotify Technology SA * | 50,791 | 13,113,728 | |||||||||
28,588,344 | |||||||||||
Total Common Stocks | |||||||||||
(cost $422,165,534) | 512,953,647 |
The accompanying notes are an integral part of the financial statements.
19
Portfolio of Investments
Semi-Annual Report June 30, 2020
June 30, 2020 (unaudited)
Baillie Gifford Developed EAFE All Cap Fund
Shares | Value | ||||||||||
PREFERRED STOCKS — 1.9% | |||||||||||
GERMANY — 1.9% | |||||||||||
Sartorius AG 0.12% (cost $4,194,244) | 31,758 | $ | 10,481,618 | ||||||||
TOTAL INVESTMENTS — 97.7% | |||||||||||
(cost $426,359,778) | $ | 523,435,265 | |||||||||
Other assets less liabilities — 2.3% | 12,248,095 | ||||||||||
NET ASSETS — 100.0% | $ | 535,683,360 |
* 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, 2020 in valuing the Fund's investments carried at fair value:
Investments in Securities | Level 1 | Level 2 | Level 3 | Total | |||||||||||||||
Common Stocks ** | $ | 35,044,645 | $ | 477,909,002 | $ | — | $ | 512,953,647 | |||||||||||
Preferred Stocks ** | — | 10,481,618 | — | 10,481,618 | |||||||||||||||
Total | $ | 35,044,645 | $ | 488,390,620 | $ | — | $ | 523,435,265 |
** Refer to Portfolio of Investments for further detail.
The accompanying notes are an integral part of the financial statements.
20
Statement of Assets and Liabilities
Semi-Annual Report June 30, 2020
June 30, 2020 (unaudited)
Baillie Gifford Developed EAFE All Cap Fund
ASSETS | |||||||
Investments, at value (cost $426,359,778) | $ | 523,435,265 | |||||
Cash | 12,107,728 | ||||||
Foreign cash, at value (cost 310,826) | 309,719 | ||||||
Tax reclaims receivable | 525,240 | ||||||
Dividends receivable | 434,858 | ||||||
Receivable for investments sold | 125,291 | ||||||
Prepaid assets | 41,306 | ||||||
Total Assets | 536,979,407 | ||||||
LIABILITIES | |||||||
Advisory fee payable | 429,780 | ||||||
Capital shares purchased payable | 499,440 | ||||||
Servicing fee payable | 106,355 | ||||||
Administration & Supervisory fee payable | 89,779 | ||||||
Trustee fee payable | 4,693 | ||||||
Commitment fee payable | 1,343 | ||||||
Accrued expenses | 164,657 | ||||||
Total Liabilities | 1,296,047 | ||||||
NET ASSETS | $ | 535,683,360 | |||||
COMPOSITION OF NET ASSETS | |||||||
Paid-in capital | $ | 450,825,698 | |||||
Total distributable earnings | 84,857,662 | ||||||
$ | 535,683,360 | ||||||
NET ASSET VALUE, PER SHARE | |||||||
Class 2 ( $228,056,111 / 17,504,483 shares outstanding), unlimited authorized, no par value | $ | 13.03 | |||||
Class 3 ( $84,272,686 / 6,402,287 shares outstanding), unlimited authorized, no par value | $ | 13.16 | |||||
Class K ( $206,310,102 / 15,858,493 shares outstanding), unlimited authorized, no par value | $ | 13.01 | |||||
Institutional Class ( $17,044,461 / 1,312,415 shares outstanding), unlimited authorized, no par value | $ | 12.99 |
The accompanying notes are an integral part of the financial statements.
21
Statement of Operations
Semi-Annual Report June 30, 2020
For the Six Months Ended June 30, 2020 (unaudited)
Baillie Gifford Developed EAFE All Cap Fund
INVESTMENT INCOME | |||||||
Dividends (net of foreign withholding taxes of $379,504) | $ | 3,560,965 | |||||
Interest | 5,640 | ||||||
Total Investment Income | 3,566,605 | ||||||
EXPENSES | |||||||
Advisory fee (Note B) | 892,103 | ||||||
Shareholder Servicing fees — Class 2 shares (Note B) | 177,482 | ||||||
Shareholder Servicing fees — Class 3 shares (Note B) | 38,572 | ||||||
Administration & Supervisory fee — Class K shares (Note B) | 182,132 | ||||||
Administration & Supervisory fee — Institutional Class shares (Note B) | 8,119 | ||||||
Transfer agency | 39,938 | ||||||
Fund accounting | 99,874 | ||||||
Registration fees | 48,050 | ||||||
Legal | 44,224 | ||||||
Custody | 37,001 | ||||||
Professional fees | 20,410 | ||||||
Trustees' fees | 9,669 | ||||||
Line of credit | 1,619 | ||||||
Miscellaneous | 16,811 | ||||||
Total Expenses | 1,616,004 | ||||||
Fees waived | (1,393 | ) | |||||
Net Expenses | 1,614,611 | ||||||
Net Investment Income | 1,951,994 | ||||||
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS AND FOREIGN CURRENCY TRANSACTIONS | |||||||
Net realized loss from: | |||||||
Investments | (2,832,118 | ) | |||||
Foreign currency transactions | (64,966 | ) | |||||
(2,897,084 | ) | ||||||
Net change in unrealized appreciation (depreciation) on: | |||||||
Investments | (6,971,919 | ) | |||||
Translation of net assets and liabilities denominated in foreign currencies | 222 | ||||||
(6,971,697 | ) | ||||||
Net realized and unrealized loss | (9,868,781 | ) | |||||
NET DECREASE IN NET ASSETS FROM OPERATIONS | $ | (7,916,787 | ) |
The accompanying notes are an integral part of the financial statements.
22
Statements of Changes in Net Assets
Semi-Annual Report June 30, 2020
Baillie Gifford Developed EAFE All Cap Fund
For the Six Months Ended June 30, 2020 (unaudited) | For the Year Ended December 31, 2019 | ||||||||||
INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS | |||||||||||
Net investment income | $ | 1,951,994 | $ | 4,989,369 | |||||||
Net realized loss | (2,897,084 | ) | (2,107,688 | ) | |||||||
Net change in unrealized appreciation (depreciation) | (6,971,697 | ) | 127,381,767 | ||||||||
Net increase (decrease) in net assets from operations | (7,916,787 | ) | 130,263,448 | ||||||||
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS FROM: | |||||||||||
Distributable earnings | |||||||||||
Class 2 | — | (2,596,461 | ) | ||||||||
Class 3 | — | (1,002,546 | ) | ||||||||
Class K | — | (2,874,994 | ) | ||||||||
Institutional Class | — | (107,514 | ) | ||||||||
Total Distributions to Shareholders | — | (6,581,515 | ) | ||||||||
TRANSACTIONS IN SHARES OF BENEFICIAL INTEREST | |||||||||||
Net proceeds from shares subscribed: | |||||||||||
Class 2 | 3,000 | 6,000 | |||||||||
Class K | 7,750,837 | 73,243,343 | |||||||||
Institutional Class | 14,582,091 | 7,084,206 | |||||||||
Dividends reinvested: | |||||||||||
Class 2 | — | 2,596,461 | |||||||||
Class 3 | — | 1,002,546 | |||||||||
Class K | — | 2,624,780 | |||||||||
Institutional Class | — | 107,514 | |||||||||
Cost of shares redeemed: | |||||||||||
Class 2 | — | (9,000,000 | ) | ||||||||
Class K | (43,878,232 | ) | (29,311,402 | ) | |||||||
Institutional Class | (5,964,094 | ) | (990,117 | ) | |||||||
Increase (Decrease) in Net Assets from Transactions in Shares of Beneficial Interest | (27,506,398 | ) | 47,363,331 | ||||||||
Total Increase (Decrease) in Net Assets | (35,423,185 | ) | 171,045,264 | ||||||||
NET ASSETS | |||||||||||
Beginning of period | 571,106,545 | 400,061,281 | |||||||||
End of period | $ | 535,683,360 | $ | 571,106,545 |
The accompanying notes are an integral part of the financial statements.
23
Financial Highlights
Semi-Annual Report June 30, 2020
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, 2020 (unaudited) | For the Year Ended December 31, 2019 | For the Year Ended December 31, 2018 | For the Year Ended December 31, 2017 | For the Year Ended December 31, 2016 | For the Year Ended December 31, 2015 | ||||||||||||||||||||||
Net asset value, beginning of period | $ | 13.13 | $ | 10.04 | $ | 12.06 | $ | 9.55 | $ | 9.70 | $ | 9.36 | |||||||||||||||
From Investment Operations | |||||||||||||||||||||||||||
Net investment income(a) | 0.05 | 0.13 | 0.15 | 0.14 | 0.17 | 0.13 | |||||||||||||||||||||
Net realized and unrealized gain (loss) | (0.15 | ) | 3.11 | (2.08 | ) | 2.58 | (0.18 | ) | 0.27 | (b) | |||||||||||||||||
Net increase (decrease) in net asset value from investment operations | (0.10 | ) | 3.24 | (1.93 | ) | 2.72 | (0.01 | ) | 0.40 | ||||||||||||||||||
Dividends and Distributions to Shareholders | |||||||||||||||||||||||||||
From net investment income | — | (0.15 | ) | (0.03 | ) | (0.22 | ) | (0.14 | ) | (0.09 | ) | ||||||||||||||||
From net realized gain on investments | — | — | (0.06 | ) | — | — | — | ||||||||||||||||||||
Total Dividends and Distributions | — | (0.15 | ) | (0.09 | ) | (0.22 | ) | (0.14 | ) | (0.09 | ) | ||||||||||||||||
Proceeds from Purchase Fees and Redemption Fees(a) | — | — | — | 0.01 | (0.00 | )(c) | 0.03 | ||||||||||||||||||||
Net asset value, end of period | $ | 13.03 | $ | 13.13 | $ | 10.04 | $ | 12.06 | $ | 9.55 | $ | 9.70 | |||||||||||||||
Total Return | |||||||||||||||||||||||||||
Total return based on net asset value(d) | (0.79 | )% | 32.33 | % | (16.05 | )% | 28.59 | % | (0.20 | )% | 4.61 | % | |||||||||||||||
Ratios/Supplemental Data | |||||||||||||||||||||||||||
Net assets, end of period (000's omitted) | $ | 228,056 | $ | 229,861 | $ | 181,679 | $ | 221,316 | $ | 172,316 | $ | 172,659 | |||||||||||||||
Ratio of net expenses to average net assets | 0.64 | %* | 0.66 | % | 0.67 | % | 0.66 | % | 0.66 | % | 0.66 | % | |||||||||||||||
Ratio of net investment income to average net assets | 0.76 | %* | 1.08 | % | 1.23 | % | 1.22 | % | 1.73 | % | 1.36 | % | |||||||||||||||
Portfolio turnover rate(e) | 8 | % | 19 | % | 14 | % | 21 | % | 13 | % | 18 | % |
* Annualized.
(a) Calculated based upon average shares outstanding during the period.
(b) Calculation of the net gain or loss per share (both realized and unrealized) may not correlate to the aggregate realized and unrealized losses presented in the Statement of Operations due to the timing of sales and repurchases of Class shares in relation to fluctuating market values of the investments of the Fund.
(c) Amount is less than $0.005 per share.
(d) Total investment return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all dividends and distributions, if any, at net asset value during the period, and redemption on the last day of the period. Total return is not annualized for periods less than one year.
(e) Portfolio turnover rate calculated at Fund level.
The accompanying notes are an integral part of the financial statements.
24
Financial Highlights
Semi-Annual Report June 30, 2020
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, 2020 (unaudited) | For the Year Ended December 31, 2019 | For the Year Ended December 31, 2018 | For the Period March 24, 2017(a) through December 31, 2017 | ||||||||||||||||
Net asset value, beginning of period | $ | 13.26 | $ | 10.13 | $ | 12.17 | $ | 10.49 | |||||||||||
From Investment Operations | |||||||||||||||||||
Net investment income(b) | 0.05 | 0.14 | 0.16 | 0.12 | |||||||||||||||
Net realized and unrealized gain (loss) | (0.15 | ) | 3.15 | (2.11 | ) | 1.79 | |||||||||||||
Net increase (decrease) in net asset value from investment operations | (0.10 | ) | 3.29 | (1.95 | ) | 1.91 | |||||||||||||
Dividends and Distributions to Shareholders | |||||||||||||||||||
From net investment income | — | (0.16 | ) | (0.03 | ) | (0.23 | ) | ||||||||||||
From net realized gain on investments | — | — | (0.06 | ) | — | ||||||||||||||
Total Dividends and Distributions | — | (0.16 | ) | (0.09 | ) | (0.23 | ) | ||||||||||||
Proceeds from Purchase Fees and Redemption Fees(b) | — | — | — | 0.00 | (c) | ||||||||||||||
Net asset value, end of period | $ | 13.16 | $ | 13.26 | $ | 10.13 | $ | 12.17 | |||||||||||
Total Return | |||||||||||||||||||
Total return based on net asset value(d) | (0.75 | )% | 32.42 | % | (15.99 | )% | 18.25 | % | |||||||||||
Ratios/Supplemental Data | |||||||||||||||||||
Net assets, end of period (000's omitted) | $ | 84,273 | $ | 84,911 | $ | 64,123 | $ | 82,523 | |||||||||||
Ratio of net expenses to average net assets | 0.57 | %* | 0.59 | % | 0.60 | % | 0.58 | %* | |||||||||||
Ratio of net investment income to average net assets | 0.83 | %* | 1.16 | % | 1.31 | % | 1.32 | %* | |||||||||||
Portfolio turnover rate(e) | 8 | % | 19 | % | 14 | % | 21 | % |
* Annualized.
(a) Commencement of investment operations.
(b) Calculated based upon average shares outstanding during the period.
(c) Amount is less than $0.005 per share.
(d) Total investment return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all dividends and distributions, if any, at net asset value during the period, and redemption on the last day of the period. Total return is not annualized for periods less than one year.
(e) Portfolio turnover rate calculated at Fund level.
The accompanying notes are an integral part of the financial statements.
25
Financial Highlights
Semi-Annual Report June 30, 2020
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, 2020 (unaudited) | For the Year Ended December 31, 2019 | For the Year Ended December 31, 2018 | For the Period April 28, 2017(a) through December 31, 2017 | ||||||||||||||||
Net asset value, beginning of period | $ | 13.11 | $ | 10.03 | $ | 12.06 | $ | 10.74 | |||||||||||
From Investment Operations | |||||||||||||||||||
Net investment income(b) | 0.04 | 0.12 | 0.11 | 0.07 | |||||||||||||||
Net realized and unrealized gain (loss) | (0.14 | ) | 3.11 | (2.04 | ) | 1.47 | |||||||||||||
Net increase (decrease) in net asset value from investment operations | (0.10 | ) | 3.23 | (1.93 | ) | 1.54 | |||||||||||||
Dividends and Distributions to Shareholders | |||||||||||||||||||
From net investment income | — | (0.15 | ) | (0.04 | ) | (0.22 | ) | ||||||||||||
From net realized gain on investments | — | — | (0.06 | ) | — | ||||||||||||||
Total Dividends and Distributions | — | (0.15 | ) | (0.10 | ) | (0.22 | ) | ||||||||||||
Net asset value, end of period | $ | 13.01 | $ | 13.11 | $ | 10.03 | $ | 12.06 | |||||||||||
Total Return | |||||||||||||||||||
Total return based on net asset value(c) | (0.76 | )% | 32.24 | % | (16.05 | )% | 14.39 | % | |||||||||||
Ratios/Supplemental Data | |||||||||||||||||||
Net assets, end of period (000's omitted) | $ | 206,310 | $ | 247,155 | $ | 152,397 | $ | 6 | |||||||||||
Ratio of net expenses to average net assets | 0.64 | %* | 0.66 | % | 0.67 | % | 0.66 | %* | |||||||||||
Ratio of net investment income to average net assets | 0.74 | %* | 1.04 | % | 0.99 | % | 0.87 | %* | |||||||||||
Portfolio turnover rate(d) | 8 | % | 19 | % | 14 | % | 21 | % |
* Annualized.
(a) Commencement of investment operations.
(b) Calculated based upon average shares outstanding during the period.
(c) Total investment return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all dividends and distributions, if any, at net asset value during the period, and redemption on the last day of the period. Total return is not annualized for periods less than one year.
(d) Portfolio turnover rate calculated at Fund level.
The accompanying notes are an integral part of the financial statements.
26
Financial Highlights
Semi-Annual Report June 30, 2020
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, 2020 (unaudited) | For the Year Ended December 31, 2019 | For the Year Ended December 31, 2018 | For the Period April 28, 2017(a) through December 31, 2017 | ||||||||||||||||
Net asset value, beginning of period | $ | 13.10 | $ | 10.02 | $ | 12.06 | $ | 10.74 | |||||||||||
From Investment Operations | |||||||||||||||||||
Net investment income(b) | 0.05 | 0.11 | 0.06 | 0.07 | |||||||||||||||
Net realized and unrealized gain (loss) | (0.16 | ) | 3.13 | (2.00 | ) | 1.47 | |||||||||||||
Net increase (decrease) in net asset value from investment operations | (0.11 | ) | 3.24 | (1.94 | ) | 1.54 | |||||||||||||
Dividends and Distributions to Shareholders | |||||||||||||||||||
From net investment income | — | (0.16 | ) | (0.04 | ) | (0.22 | ) | ||||||||||||
From net realized gain on investments | — | — | (0.06 | ) | — | ||||||||||||||
Total Dividends and Distributions | — | (0.16 | ) | (0.10 | ) | (0.22 | ) | ||||||||||||
Net asset value, end of period | $ | 12.99 | $ | 13.10 | $ | 10.02 | $ | 12.06 | |||||||||||
Total Return | |||||||||||||||||||
Total return based on net asset value(c) | (0.84 | )% | 32.28 | % | (16.13 | )% | 14.39 | % | |||||||||||
Ratios/Supplemental Data | |||||||||||||||||||
Net assets, end of period (000's omitted) | $ | 17,044 | $ | 9,179 | $ | 1,862 | $ | 6 | |||||||||||
Ratio of net expenses to average net assets | 0.75 | %* | 0.73 | % | 0.77 | % | 0.66 | %* | |||||||||||
Ratio of net investment income to average net assets | 0.91 | %* | 0.89 | % | 0.59 | % | 0.87 | %* | |||||||||||
Portfolio turnover rate(d) | 8 | % | 19 | % | 14 | % | 21 | % |
* Annualized.
(a) Commencement of investment operations.
(b) Calculated based upon average shares outstanding during the period.
(c) Total investment return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all dividends and distributions, if any, at net asset value during the period, and redemption on the last day of the period. Total return is not annualized for periods less than one year.
(d) Portfolio turnover rate calculated at Fund level.
The accompanying notes are an integral part of the financial statements.
27
Industry Diversification Table
Semi-Annual Report June 30, 2020
June 30, 2020 (unaudited)
Baillie Gifford EAFE Plus All Cap Fund
Value | % of Total Net Assets | ||||||||||
Apparel | $ | 18,102,397 | 4.0 | % | |||||||
Auto Manufacturers | 4,343,385 | 1.0 | |||||||||
Auto Parts & Equipment | 4,474,666 | 1.0 | |||||||||
Banks | 6,339,695 | 1.4 | |||||||||
Beverages | 11,648,421 | 2.6 | |||||||||
Building Materials | 14,532,344 | 3.2 | |||||||||
Chemicals | 3,915,925 | 0.9 | |||||||||
Commercial Services | 6,376,373 | 1.4 | |||||||||
Computers | 10,607,817 | 2.4 | |||||||||
Cosmetics/Personal Care | 20,278,095 | 4.5 | |||||||||
Diversified Financial Services | 9,347,552 | 2.1 | |||||||||
Electrical Components & Equipment | 9,341,698 | 2.1 | |||||||||
Electronics | 37,431,242 | 8.4 | |||||||||
Engineering & Construction | 5,645,472 | 1.3 | |||||||||
Food | 10,112,495 | 2.3 | |||||||||
Hand/Machine Tools | 5,902,103 | 1.3 | |||||||||
Healthcare — Products | 25,683,712 | 5.8 | |||||||||
Holding Companies — Diversified | 1,496,828 | 0.3 | |||||||||
Insurance | 25,024,746 | 5.6 | |||||||||
Internet | 77,334,805 | 17.3 | |||||||||
Investment Companies | 6,256,576 | 1.4 | |||||||||
Leisure Time | 7,768,467 | 1.7 | |||||||||
Machinery — Construction & Mining | 7,248,520 | 1.7 | |||||||||
Machinery — Diversified | 36,262,100 | 8.2 | |||||||||
Oil & Gas Services | 1,491,601 | 0.3 | |||||||||
Retail | 32,165,678 | 7.1 | |||||||||
Semiconductors | 19,664,935 | 4.4 | |||||||||
Software | 16,424,460 | 3.7 | |||||||||
Telecommunications | 5,894,995 | 1.3 | |||||||||
Total Value of Investments | 441,117,103 | 98.7 | |||||||||
Other assets less liabilities | 5,635,462 | 1.3 | |||||||||
Net Assets | $ | 446,752,565 | 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.
28
Portfolio of Investments
Semi-Annual Report June 30, 2020
June 30, 2020 (unaudited)
Baillie Gifford EAFE Plus All Cap Fund
Shares | Value | ||||||||||
COMMON STOCKS — 96.4% | |||||||||||
ARGENTINA — 0.6% | |||||||||||
MercadoLibre, Inc. * | 2,850 | $ | 2,809,445 | ||||||||
AUSTRALIA — 3.7% | |||||||||||
Cochlear Ltd. | 59,891 | 7,863,006 | |||||||||
SEEK Ltd. | 351,453 | 5,376,819 | |||||||||
Treasury Wine Estates Ltd. | 433,142 | 3,151,476 | |||||||||
16,391,301 | |||||||||||
BRAZIL — 0.7% | |||||||||||
Raia Drogasil SA | 156,600 | 3,215,453 | |||||||||
CHINA — 7.2% | |||||||||||
Alibaba Group Holding Ltd. ADR * | 38,747 | 8,357,728 | |||||||||
Baidu, Inc. ADR * | 17,201 | 2,062,228 | |||||||||
Meituan Dianping, Class B * | 286,900 | 6,411,175 | |||||||||
Ping An Insurance Group Co. of China Ltd., Class H | 453,000 | 4,515,953 | |||||||||
Prosus NV* | 33,775 | 3,139,654 | |||||||||
Trip.com Group Ltd. ADR * | 86,867 | 2,251,593 | |||||||||
Tsingtao Brewery Co., Ltd., Class H | 715,943 | 5,343,201 | |||||||||
32,081,532 | |||||||||||
FINLAND — 1.7% | |||||||||||
Kone Oyj, B Shares | 107,523 | 7,415,764 | |||||||||
FRANCE — 5.9% | |||||||||||
Kering | 6,955 | 3,802,414 | |||||||||
Legrand SA | 122,946 | 9,341,698 | |||||||||
LVMH Moet Hennessy Louis Vuitton SE | 8,101 | 3,576,536 | |||||||||
Remy Cointreau SA | 23,117 | 3,153,744 | |||||||||
Ubisoft Entertainment SA * | 81,933 | 6,784,880 | |||||||||
26,659,272 | |||||||||||
GERMANY — 7.6% | |||||||||||
adidas AG * | 27,461 | 7,240,108 | |||||||||
Bechtle AG | 59,850 | 10,607,817 | |||||||||
Nemetschek SE | 57,904 | 3,978,697 | |||||||||
Zalando SE * | 168,405 | 11,946,685 | |||||||||
33,773,307 |
The accompanying notes are an integral part of the financial statements.
29
Portfolio of Investments
Semi-Annual Report June 30, 2020
June 30, 2020 (unaudited)
Baillie Gifford EAFE Plus All Cap Fund
Shares | Value | ||||||||||
HONG KONG — 5.2% | |||||||||||
AIA Group Ltd. | 1,437,400 | $ | 13,450,622 | ||||||||
Jardine Matheson Holdings Ltd. | 35,800 | 1,496,828 | |||||||||
Jardine Strategic Holdings Ltd. | 116,200 | 2,506,561 | |||||||||
Techtronic Industries Co., Ltd. | 596,500 | 5,902,103 | |||||||||
23,356,114 | |||||||||||
INDIA — 0.2% | |||||||||||
MakeMyTrip Ltd. * | 71,341 | 1,092,944 | |||||||||
IRELAND — 1.6% | |||||||||||
Kingspan Group PLC | 112,701 | 7,275,527 | |||||||||
JAPAN — 23.8% | |||||||||||
Denso Corp. | 114,100 | 4,474,666 | |||||||||
Kakaku.com, Inc. | 171,700 | 4,373,927 | |||||||||
Kao Corp. | 78,000 | 6,189,909 | |||||||||
Keyence Corp. | 14,900 | 6,244,017 | |||||||||
MS&AD Insurance Group Holdings, Inc. | 256,300 | 7,058,171 | |||||||||
Murata Manufacturing Co., Ltd. | 117,500 | 6,926,450 | |||||||||
Nidec Corp. | 88,100 | 5,935,190 | |||||||||
Olympus Corp. | 533,300 | 10,267,356 | |||||||||
Pigeon Corp. | 104,200 | 4,033,070 | |||||||||
Shimano, Inc. | 40,400 | 7,768,467 | |||||||||
Shiseido Co., Ltd. | 157,800 | 10,055,116 | |||||||||
SMC Corp. | 23,200 | 11,922,968 | |||||||||
SoftBank Group Corp. | 116,900 | 5,894,995 | |||||||||
Sugi Holdings Co., Ltd. | 48,600 | 3,295,769 | |||||||||
Suzuki Motor Corp. | 127,200 | 4,343,385 | |||||||||
Sysmex Corp. | 98,400 | 7,553,350 | |||||||||
106,336,806 | |||||||||||
NETHERLANDS — 2.4% | |||||||||||
ASML Holding NV | 29,173 | 10,671,816 | |||||||||
NEW ZEALAND — 1.3% | |||||||||||
Xero Ltd. * | 90,120 | 5,660,883 | |||||||||
PORTUGAL — 1.7% | |||||||||||
Jeronimo Martins SGPS SA * | 434,628 | 7,605,934 |
The accompanying notes are an integral part of the financial statements.
30
Portfolio of Investments
Semi-Annual Report June 30, 2020
June 30, 2020 (unaudited)
Baillie Gifford EAFE Plus All Cap Fund
Shares | Value | ||||||||||
SINGAPORE — 1.4% | |||||||||||
United Overseas Bank Ltd. | 433,873 | $ | 6,339,695 | ||||||||
SOUTH AFRICA — 1.4% | |||||||||||
Naspers Ltd., N Shares | 33,363 | 6,131,465 | |||||||||
SPAIN — 1.6% | |||||||||||
Industria de Diseno Textil SA | 272,208 | 7,222,586 | |||||||||
SWEDEN — 6.6% | |||||||||||
Atlas Copco AB, A Shares | 100,159 | 4,265,315 | |||||||||
Atlas Copco AB, B Shares | 172,615 | 6,414,036 | |||||||||
Epiroc AB, A Shares | 2,797 | 35,047 | |||||||||
Epiroc AB, B Shares | 418,987 | 5,145,636 | |||||||||
Investor AB, B Shares | 117,942 | 6,256,576 | |||||||||
Nibe Industrier AB, B Shares * | 327,181 | 7,256,817 | |||||||||
29,373,427 | |||||||||||
SWITZERLAND — 1.4% | |||||||||||
Compagnie Financiere Richemont SA | 100,545 | 6,485,185 | |||||||||
u-blox Holding AG * | 592 | 40,604 | |||||||||
6,525,789 | |||||||||||
TAIWAN — 2.0% | |||||||||||
Taiwan Semiconductor Manufacturing Co., Ltd. ADR | 157,698 | 8,952,515 | |||||||||
UNITED KINGDOM — 13.0% | |||||||||||
ASOS PLC * | 101,619 | 4,319,040 | |||||||||
Auto Trader Group PLC | 1,255,964 | 8,177,248 | |||||||||
Burberry Group PLC | 176,282 | 3,483,339 | |||||||||
Hargreaves Lansdown PLC | 404,296 | 8,153,051 | |||||||||
HomeServe PLC | 349,199 | 5,645,472 | |||||||||
Intertek Group PLC | 94,674 | 6,376,373 | |||||||||
John Wood Group PLC | 622,077 | 1,491,601 | |||||||||
Johnson Matthey PLC | 150,359 | 3,915,925 | |||||||||
Jupiter Fund Management PLC | 376,718 | 1,194,501 | |||||||||
Rightmove PLC | 1,116,727 | 7,548,536 | |||||||||
Trainline PLC * | 994,926 | 5,362,052 | |||||||||
Weir Group PLC (The) | 157,355 | 2,067,837 | |||||||||
57,734,975 |
The accompanying notes are an integral part of the financial statements.
31
Portfolio of Investments
Semi-Annual Report June 30, 2020
June 30, 2020 (unaudited)
Baillie Gifford EAFE Plus All Cap Fund
Shares | Value | ||||||||||
UNITED STATES — 5.4% | |||||||||||
Mettler-Toledo International, Inc. * | 17,537 | $ | 14,126,930 | ||||||||
Spotify Technology SA * | 38,425 | 9,920,951 | |||||||||
24,047,881 | |||||||||||
Total Common Stocks | |||||||||||
(cost $325,884,830) | 430,674,431 | ||||||||||
PREFERRED STOCKS — 2.3% | |||||||||||
GERMANY — 2.3% | |||||||||||
Sartorius AG 0.12% (cost $4,362,775) | 31,640 | 10,442,672 | |||||||||
TOTAL INVESTMENTS — 98.7% | |||||||||||
(cost $330,247,605) | $ | 441,117,103 | |||||||||
Other assets less liabilities — 1.3% | 5,635,462 | ||||||||||
NET ASSETS — 100.0% | $ | 446,752,565 |
(a) 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, 2020 in valuing the Fund's investments carried at fair value:
Investments in Securities | Level 1 | Level 2 | Level 3 | Total | |||||||||||||||
Common Stocks ** | $ | 55,929,441 | $ | 374,744,990 | $ | — | $ | 430,674,431 | |||||||||||
Preferred Stocks ** | — | 10,442,672 | — | 10,442,672 | |||||||||||||||
Total | $ | 55,929,441 | $ | 385,187,662 | $ | — | $ | 441,117,103 |
** Refer to Portfolio of Investments for further detail.
The accompanying notes are an integral part of the financial statements.
32
Statement of Assets and Liabilities
Semi-Annual Report June 30, 2020
June 30, 2020 (unaudited)
Baillie Gifford EAFE Plus All Cap Fund
ASSETS | |||||||
Investments, at value (cost $330,247,605) | $ | 441,117,103 | |||||
Cash | 145,779 | ||||||
Foreign cash, at value (cost $221,481) | 221,584 | ||||||
Capital shares sold receivable | 3,454,675 | ||||||
Receivable for investments sold | 2,936,323 | ||||||
Tax reclaims receivable | 492,450 | ||||||
Dividends receivable | 370,923 | ||||||
Prepaid assets | 14,631 | ||||||
Total Assets | 448,753,468 | ||||||
LIABILITIES | |||||||
Advisory fee payable | 343,630 | ||||||
Servicing fee payable | 112,272 | ||||||
Administration & Supervisory fee payable | 54,634 | ||||||
Trustee fee payable | 3,769 | ||||||
Commitment fee payable | 869 | ||||||
Line of credit payable | 1,350,000 | ||||||
Accrued expenses | 135,729 | ||||||
Total Liabilities | 2,000,903 | ||||||
NET ASSETS | $ | 446,752,565 | |||||
COMPOSITION OF NET ASSETS | |||||||
Paid-in capital | $ | 336,256,009 | |||||
Total distributable earnings | 110,496,556 | ||||||
$ | 446,752,565 | ||||||
NET ASSET VALUE, PER SHARE | |||||||
Class 2 ( $288,350,206 / 17,448,569 shares outstanding), unlimited authorized, no par value | $ | 16.53 | |||||
Class K ( $130,595,114 / 7,923,548 shares outstanding), unlimited authorized, no par value | $ | 16.48 | |||||
Institutional Class ( $27,807,245 / 1,691,094 shares outstanding), unlimited authorized, no par value | $ | 16.44 |
The accompanying notes are an integral part of the financial statements.
33
Statement of Operations
Semi-Annual Report June 30, 2020
For the Six Months Ended June 30, 2020 (unaudited)
Baillie Gifford EAFE Plus All Cap Fund
INVESTMENT INCOME | |||||||
Dividends (net of foreign withholding taxes of $299,769) | $ | 2,651,051 | |||||
Interest | 7,132 | ||||||
Total Investment Income | 2,658,183 | ||||||
EXPENSES | |||||||
Advisory fee (Note B) | 704,818 | ||||||
Shareholder Servicing fees — Class 2 shares (Note B) | 233,033 | ||||||
Administration & Supervisory fee — Class K shares (Note B) | 90,501 | ||||||
Administration & Supervisory fee — Institutional Class shares (Note B) | 18,807 | ||||||
Transfer agency | 26,844 | ||||||
Sub-transfer agency — Institutional Class shares | 11,025 | ||||||
Fund accounting | 79,764 | ||||||
Legal | 34,772 | ||||||
Custody | 30,020 | ||||||
Registration fees | 24,532 | ||||||
Professional fees | 20,257 | ||||||
Trustees' fees | 7,575 | ||||||
Commitment fees | 1,797 | ||||||
Miscellaneous | 11,407 | ||||||
Total Expenses | 1,295,152 | ||||||
Net Investment Income | 1,363,031 | ||||||
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS AND FOREIGN CURRENCY TRANSACTIONS | |||||||
Net realized gain (loss) from: | |||||||
Investments | 844,713 | ||||||
Foreign currency transactions | (1,456 | ) | |||||
843,257 | |||||||
Net change in unrealized depreciation on: | |||||||
Investments | (8,098,292 | ) | |||||
Translation of net assets and liabilities denominated in foreign currencies | (742 | ) | |||||
(8,099,034 | ) | ||||||
Net realized and unrealized loss | (7,255,777 | ) | |||||
NET DECREASE IN NET ASSETS FROM OPERATIONS | $ | (5,892,746 | ) |
The accompanying notes are an integral part of the financial statements.
34
Statements of Changes in Net Assets
Semi-Annual Report June 30, 2020
Baillie Gifford EAFE Plus All Cap Fund
For the Six Months Ended June 30, 2020 (unaudited) | For the Year Ended December 31, 2019 | ||||||||||
INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS | |||||||||||
Net investment income | $ | 1,363,031 | $ | 6,597,705 | |||||||
Net realized gain | 843,257 | 8,530,839 | |||||||||
Net change in unrealized appreciation (depreciation) | (8,099,034 | ) | 87,029,751 | ||||||||
Net increase (decrease) in net assets from operations | (5,892,746 | ) | 102,158,295 | ||||||||
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS FROM: | |||||||||||
Distributable earnings | |||||||||||
Class 2 | — | (11,089,493 | ) | ||||||||
Class K | — | (4,158,396 | ) | ||||||||
Institutional Class | — | (833,239 | ) | ||||||||
Total Distributions to Shareholders | — | (16,081,128 | ) | ||||||||
TRANSACTIONS IN SHARES OF BENEFICIAL INTEREST | |||||||||||
Net proceeds from shares subscribed: | |||||||||||
Class 2 | 783,000 | 2,723,300 | |||||||||
Class K | 26,400,640 | 27,900,000 | |||||||||
Institutional Class | 5,531,671 | 9,046,949 | |||||||||
Dividends reinvested: | |||||||||||
Class 2 | — | 11,089,493 | |||||||||
Class K | — | 4,146,582 | |||||||||
Institutional Class | — | 828,614 | |||||||||
Cost of shares redeemed: | |||||||||||
Class 2 | (17,025,465 | ) | (528,300 | ) | |||||||
Class K | (9,950,000 | ) | (1,375,000 | ) | |||||||
Institutional Class | (729,465 | ) | (805,468 | ) | |||||||
Increase in Net Assets from Transactions in Shares of Beneficial Interest | 5,010,381 | 53,026,170 | |||||||||
Total Increase (Decrease) in Net Assets | (882,365 | ) | 139,103,337 | ||||||||
NET ASSETS | |||||||||||
Beginning of period | 447,634,930 | 308,531,593 | |||||||||
End of period | $ | 446,752,565 | $ | 447,634,930 |
The accompanying notes are an integral part of the financial statements.
35
Financial Highlights
Semi-Annual Report June 30, 2020
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, 2020 (unaudited) | For the Year Ended December 31, 2019 | For the Year Ended December 31, 2018 | For the Year Ended December 31, 2017 | For the Year Ended December 31, 2016 | For the Year Ended December 31, 2015 | ||||||||||||||||||||||
Net asset value, beginning of period | $ | 16.71 | $ | 13.15 | $ | 16.11 | $ | 12.46 | $ | 12.55 | $ | 12.43 | |||||||||||||||
From Investment Operations | |||||||||||||||||||||||||||
Net investment income(a) | 0.05 | 0.27 | 0.17 | 0.16 | 0.19 | 0.17 | |||||||||||||||||||||
Net realized and unrealized gain (loss) | (0.23 | ) | 3.91 | (2.81 | ) | 3.74 | (0.13 | ) | 0.09 | (b) | |||||||||||||||||
Net increase (decrease) in net asset value from investment operations | (0.18 | ) | 4.18 | (2.64 | ) | 3.90 | 0.06 | 0.26 | |||||||||||||||||||
Dividends and Distributions to Shareholders | |||||||||||||||||||||||||||
From net investment income | — | (0.33 | ) | (0.09 | ) | (0.25 | ) | (0.16 | ) | (0.15 | ) | ||||||||||||||||
From net realized gain on investments | — | (0.29 | ) | (0.23 | ) | — | — | — | |||||||||||||||||||
Total Dividends and Distributions | — | (0.62 | ) | (0.32 | ) | (0.25 | ) | (0.16 | ) | (0.15 | ) | ||||||||||||||||
Proceeds from Purchase Fees and Redemption Fees(a) | — | — | — | 0.00 | (c) | 0.01 | 0.01 | ||||||||||||||||||||
Net asset value, end of period | $ | 16.53 | $ | 16.71 | $ | 13.15 | $ | 16.11 | $ | 12.46 | $ | 12.55 | |||||||||||||||
Total Return | |||||||||||||||||||||||||||
Total return based on net asset value(d) | (1.08 | )% | 31.73 | % | (16.39 | )% | 31.28 | % | 0.59 | % | 2.16 | % | |||||||||||||||
Ratios/Supplemental Data | |||||||||||||||||||||||||||
Net assets, end of period (000's omitted) | $ | 288,350 | $ | 309,335 | $ | 232,937 | $ | 280,488 | $ | 272,338 | $ | 229,032 | |||||||||||||||
Ratio of net expenses to average net assets | 0.64 | %* | 0.65 | % | 0.68 | % | 0.67 | % | 0.65 | % | 0.65 | % | |||||||||||||||
Ratio of net investment income to average net assets | 0.67 | %* | 1.76 | % | 1.06 | % | 1.06 | % | 1.46 | % | 1.29 | % | |||||||||||||||
Portfolio turnover rate(e) | 10 | % | 11 | % | 26 | % | 12 | % | 23 | % | 16 | % |
* Annualized.
(a) Calculated based upon average shares outstanding during the period.
(b) Calculation of the net gain or loss per share (both realized and unrealized) may not correlate to the aggregate realized and unrealized losses presented in the Statement of Operations due to the timing of sales and repurchases of Class shares in relation to fluctuating market values of the investments of the Fund.
(c) Amount is less than $0.005 per share.
(d) Total investment return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all dividends and distributions, if any, at net asset value during the period, and redemption on the last day of the period. Total return is not annualized for periods less than one year.
(e) Portfolio turnover rate calculated at Fund level.
The accompanying notes are an integral part of the financial statements.
36
Financial Highlights
Semi-Annual Report June 30, 2020
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, 2020 (unaudited) | For the Year Ended December 31, 2019 | For the Year Ended December 31, 2018 | For the Period April 28, 2017(a) through December 31, 2017 | ||||||||||||||||
Net asset value, beginning of period | $ | 16.66 | $ | 13.12 | $ | 16.10 | $ | 14.15 | |||||||||||
From Investment Operations | |||||||||||||||||||
Net investment income(b) | 0.05 | 0.26 | 0.04 | 0.08 | |||||||||||||||
Net realized and unrealized gain (loss) | (0.23 | ) | 3.91 | (2.68 | ) | 2.13 | |||||||||||||
Net increase (decrease) in net asset value from investment operations | (0.18 | ) | 4.17 | (2.64 | ) | 2.21 | |||||||||||||
Dividends and Distributions to Shareholders | |||||||||||||||||||
From net investment income | — | (0.34 | ) | (0.11 | ) | (0.26 | ) | ||||||||||||
From net realized gain on investments | — | (0.29 | ) | (0.23 | ) | — | |||||||||||||
Total Dividends and Distributions | — | (0.63 | ) | (0.34 | ) | (0.26 | ) | ||||||||||||
Net asset value, end of period | $ | 16.48 | $ | 16.66 | $ | 13.12 | $ | 16.10 | |||||||||||
Total Return | |||||||||||||||||||
Total return based on net asset value(c) | (1.08 | )% | 31.72 | % | (16.36 | )% | 15.63 | % | |||||||||||
Ratios/Supplemental Data | |||||||||||||||||||
Net assets, end of period (000's omitted) | $ | 130,595 | $ | 114,922 | $ | 64,827 | $ | 6 | |||||||||||
Ratio of net expenses to average net assets | 0.64 | %* | 0.65 | % | 0.68 | % | 0.68 | %* | |||||||||||
Ratio of net investment income to average net assets | 0.71 | %* | 1.73 | % | 0.42 | % | 0.73 | %* | |||||||||||
Portfolio turnover rate(d) | 10 | % | 11 | % | 26 | % | 12 | % |
* Annualized.
(a) Commencement of investment operations.
(b) Calculated based upon average shares outstanding during the period.
(c) Total investment return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all dividends and distributions, if any, at net asset value during the period, and redemption on the last day of the period. Total return is not annualized for periods less than one year.
(d) Portfolio turnover rate calculated at Fund level.
The accompanying notes are an integral part of the financial statements.
37
Financial Highlights
Semi-Annual Report June 30, 2020
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, 2020 (unaudited) | For the Year Ended December 31, 2019 | For the Year Ended December 31, 2018 | For the Period April 28, 2017(a) through December 31, 2017 | ||||||||||||||||
Net asset value, beginning of period | $ | 16.63 | $ | 13.10 | $ | 16.09 | $ | 14.15 | |||||||||||
From Investment Operations | |||||||||||||||||||
Net investment income(b) | 0.04 | 0.26 | 0.07 | 0.01 | |||||||||||||||
Net realized and unrealized gain (loss) | (0.23 | ) | 3.88 | (2.73 | ) | 2.21 | |||||||||||||
Net increase (decrease) in net asset value from investment operations | (0.19 | ) | 4.14 | (2.66 | ) | 2.22 | |||||||||||||
Dividends and Distributions to Shareholders | |||||||||||||||||||
From net investment income | — | (0.32 | ) | (0.10 | ) | (0.28 | ) | ||||||||||||
From net realized gain on investments | — | (0.29 | ) | (0.23 | ) | — | |||||||||||||
Total Dividends and Distributions | — | (0.61 | ) | (0.33 | ) | (0.28 | ) | ||||||||||||
Net asset value, end of period | $ | 16.44 | $ | 16.63 | $ | 13.10 | $ | 16.09 | |||||||||||
Total Return | |||||||||||||||||||
Total return based on net asset value(c) | (1.14 | )% | 31.60 | % | (16.50 | )% | 15.68 | % | |||||||||||
Ratios/Supplemental Data | |||||||||||||||||||
Net assets, end of period (000's omitted) | $ | 27,808 | $ | 23,378 | $ | 10,768 | $ | 201 | |||||||||||
Ratio of net expenses to average net assets | 0.74 | %* | 0.75 | % | 0.78 | % | 0.68 | %* | |||||||||||
Ratio of net investment income to average net assets | 0.59 | %* | 1.72 | % | 0.47 | % | 0.14 | %* | |||||||||||
Portfolio turnover rate(d) | 10 | % | 11 | % | 26 | % | 12 | % |
* Annualized.
(a) Commencement of investment operations.
(b) Calculated based upon average shares outstanding during the period.
(c) Total investment return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all dividends and distributions, if any, at net asset value during the period, and redemption on the last day of the period. Total return is not annualized for periods less than one year.
(d) Portfolio turnover rate calculated at Fund level.
The accompanying notes are an integral part of the financial statements.
38
Industry Diversification Table
Semi-Annual Report June 30, 2020
June 30, 2020 (unaudited)
Baillie Gifford Emerging Markets Equities Fund
Value | % of Total Net Assets | ||||||||||
Airlines | $ | 18,036,825 | 0.4 | % | |||||||
Apparel | 41,421,397 | 1.0 | |||||||||
Auto Manufacturers | 102,299,921 | 2.4 | |||||||||
Auto Parts & Equipment | 17,527,291 | 0.4 | |||||||||
Banks | 516,731,882 | 12.5 | |||||||||
Biotechnology | 66,115,911 | 1.6 | |||||||||
Building Materials | 40,057,537 | 1.0 | |||||||||
Chemicals | 60,445,898 | 1.5 | |||||||||
Commercial Services | 9,014,849 | 0.2 | |||||||||
Computers | 41,333,545 | 1.0 | |||||||||
Diversified Financial Services | 165,542,681 | 4.0 | |||||||||
Food | 51,836,604 | 1.2 | |||||||||
Gas | 17,418,900 | 0.4 | |||||||||
Home Furnishings | 49,377,074 | 1.2 | |||||||||
Insurance | 236,955,524 | 5.7 | |||||||||
Internet | 1,055,576,458 | 25.5 | |||||||||
Iron/Steel | 101,713,635 | 2.5 | |||||||||
Machinery — Construction & Mining | 16,671,287 | 0.4 | |||||||||
Mining | 222,261,843 | 5.4 | |||||||||
Oil & Gas | 359,558,305 | 8.7 | |||||||||
Pharmaceuticals | 24,185,863 | 0.6 | |||||||||
Real Estate | 28,256,056 | 0.7 | |||||||||
Retail | 39,762,439 | 0.9 | |||||||||
Semiconductors | 663,286,329 | 16.0 | |||||||||
Software | 82,646,744 | 2.0 | |||||||||
Telecommunications | 35,397,718 | 0.9 | |||||||||
Total Value of Investments | 4,063,432,516 | 98.1 | |||||||||
Other assets less liabilities | 79,200,798 | 1.9 | |||||||||
Net Assets | $ | 4,142,633,314 | 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.
39
Portfolio of Investments
Semi-Annual Report June 30, 2020
June 30, 2020 (unaudited)
Baillie Gifford Emerging Markets Equities Fund
Shares | Value | ||||||||||
COMMON STOCKS — 95.8% | |||||||||||
ARGENTINA — 2.3% | |||||||||||
MercadoLibre, Inc. * | 98,570 | $ | 97,167,349 | ||||||||
BRAZIL — 7.1% | |||||||||||
B3 SA — Brasil Bolsa Balcao | 6,799,300 | 69,629,653 | |||||||||
Banco Bradesco SA ADR | 10,585,863 | 40,332,138 | |||||||||
Cogna Educacao | 7,327,900 | 9,014,849 | |||||||||
Petroleo Brasileiro SA ADR * | 8,672,452 | 71,721,178 | |||||||||
Vale SA ADR | 9,865,532 | 101,713,635 | |||||||||
292,411,453 | |||||||||||
CANADA — 0.0%(1) | |||||||||||
Valeura Energy, Inc. * | 4,672,400 | 1,084,123 | |||||||||
CHILE — 1.0% | |||||||||||
Lundin Mining Corp. | 7,413,400 | 39,753,648 | |||||||||
CHINA — 36.3% | |||||||||||
Alibaba Group Holding Ltd. * | 7,319,160 | 197,498,765 | |||||||||
Alibaba Group Holding Ltd. ADR * | 688,520 | 148,513,764 | |||||||||
BeiGene Ltd. ADR * | 111,911 | 21,084,032 | |||||||||
Brilliance China Automotive Holdings Ltd. | 33,792,000 | 30,584,662 | |||||||||
China Merchants Bank Co., Ltd., Class H | 23,781,500 | 110,206,883 | |||||||||
China Vanke Co., Ltd., Class H | 8,853,100 | 28,256,056 | |||||||||
CNOOC Ltd. | 91,706,000 | 102,924,222 | |||||||||
Geely Automobile Holdings Ltd. | 15,390,000 | 24,450,922 | |||||||||
Haier Electronics Group Co., Ltd. | 9,062,300 | 27,590,144 | |||||||||
JD.com, Inc. ADR * | 626,251 | 37,687,785 | |||||||||
Jiangsu Hengrui Medicine Co., Ltd., Class A | 1,850,623 | 24,185,863 | |||||||||
Kingdee International Software Group Co., Ltd. * | 11,834,000 | 27,690,181 | |||||||||
Kingsoft Cloud Holdings Ltd. ADR * | 830,231 | 26,168,881 | |||||||||
Li Ning Co., Ltd. | 5,669,500 | 18,156,236 | |||||||||
Meituan Dianping, Class B * | 5,723,700 | 127,903,956 | |||||||||
Midea Group Co., Ltd., Class A | 2,569,932 | 21,786,930 | |||||||||
Minth Group Ltd. | 6,106,000 | 17,527,291 | |||||||||
Ping An Bank Co., Ltd., Class A | 37,909,746 | 68,864,888 | |||||||||
Ping An Insurance Group Co. of China Ltd., Class H | 15,853,000 | 158,038,427 | |||||||||
Shenzhou International Group Holdings Ltd. | 2,233,000 | 27,147,059 | |||||||||
Tencent Holdings Ltd. | 3,064,900 | 196,392,396 |
The accompanying notes are an integral part of the financial statements.
40
Portfolio of Investments
Semi-Annual Report June 30, 2020
June 30, 2020 (unaudited)
Baillie Gifford Emerging Markets Equities Fund
Shares | Value | ||||||||||
Tencent Music Entertainment Group ADR * | 1,263,602 | $ | 17,008,083 | ||||||||
Zai Lab Ltd. ADR * | 548,300 | 45,031,879 | |||||||||
1,504,699,305 | |||||||||||
INDIA — 11.2% | |||||||||||
Asian Paints Ltd. | 653,723 | 14,615,408 | |||||||||
HDFC Life Insurance Co., Ltd. * | 3,612,973 | 26,389,699 | |||||||||
Housing Development Finance Corp., Ltd. | 4,124,915 | 95,913,028 | |||||||||
ICICI Lombard General Insurance Co., Ltd. | 1,251,948 | 21,030,415 | |||||||||
ICICI Prudential Life Insurance Co., Ltd. | 3,295,016 | 18,627,782 | |||||||||
Indraprastha Gas Ltd. | 2,962,144 | 17,418,900 | |||||||||
Mahindra & Mahindra Ltd. | 3,195,699 | 21,691,493 | |||||||||
Maruti Suzuki India Ltd. | 330,347 | 25,572,844 | |||||||||
Reliance Industries Ltd. | 5,769,109 | 131,226,578 | |||||||||
Tata Consultancy Services Ltd. | 1,501,535 | 41,333,545 | |||||||||
Tech Mahindra Ltd. | 4,000,988 | 28,787,682 | |||||||||
UltraTech Cement Ltd. | 373,973 | 19,333,342 | |||||||||
461,940,716 | |||||||||||
INDONESIA — 1.3% | |||||||||||
Bank Mandiri Persero Tbk PT | 52,360,600 | 18,181,173 | |||||||||
Bank Rakyat Indonesia Persero Tbk PT | 170,045,600 | 36,295,065 | |||||||||
54,476,238 | |||||||||||
MEXICO — 1.6% | |||||||||||
Cemex SAB de CV, Participating Certificates ADR | 7,195,901 | 20,724,195 | |||||||||
Grupo Financiero Banorte SAB de CV, Class O * | 6,878,700 | 23,801,388 | |||||||||
Wal-Mart de Mexico SAB de CV | 9,034,160 | 21,606,203 | |||||||||
66,131,786 | |||||||||||
PANAMA — 0.4% | |||||||||||
Copa Holdings SA, Class A | 356,741 | 18,036,825 | |||||||||
PERU — 0.5% | |||||||||||
Credicorp Ltd. | 143,401 | 19,168,412 | |||||||||
POLAND — 0.4% | |||||||||||
KGHM Polska Miedz SA * | 747,736 | 17,373,947 | |||||||||
RUSSIA — 7.3% | |||||||||||
Magnit PJSC GDR Reg S | 1,978,530 | 25,729,006 |
The accompanying notes are an integral part of the financial statements.
41
Portfolio of Investments
Semi-Annual Report June 30, 2020
June 30, 2020 (unaudited)
Baillie Gifford Emerging Markets Equities Fund
Shares | Value | ||||||||||
MMC Norilsk Nickel PJSC ADR | 5,239,328 | $ | 136,948,531 | ||||||||
Sberbank of Russia PJSC ADR * | 12,381,446 | 140,749,158 | |||||||||
303,426,695 | |||||||||||
SOUTH AFRICA — 4.8% | |||||||||||
Naspers Ltd., N Shares | 1,074,106 | 197,399,611 | |||||||||
SOUTH KOREA — 9.5% | |||||||||||
Doosan Bobcat, Inc. | 749,531 | 16,671,287 | |||||||||
LG Chem Ltd. | 111,056 | 45,830,490 | |||||||||
NAVER Corp. | 160,033 | 36,004,749 | |||||||||
Orion Corp. | 233,208 | 26,107,598 | |||||||||
Samsung Electronics Co., Ltd. | 3,748,579 | 165,940,717 | |||||||||
Samsung Fire & Marine Insurance Co., Ltd. | 87,531 | 12,869,201 | |||||||||
Samsung SDI Co., Ltd. | 115,769 | 35,397,718 | |||||||||
SK Hynix, Inc. | 761,272 | 54,353,690 | |||||||||
393,175,450 | |||||||||||
TAIWAN — 9.5% | |||||||||||
Eclat Textile Co., Ltd. | 1,225,360 | 14,274,338 | |||||||||
MediaTek, Inc. | 5,769,000 | 114,056,759 | |||||||||
Taiwan Semiconductor Manufacturing Co., Ltd. | 25,070,310 | 267,738,885 | |||||||||
396,069,982 | |||||||||||
THAILAND — 0.8% | |||||||||||
Siam Commercial Bank PCL NVDR | 13,896,100 | 32,752,284 | |||||||||
TURKEY — 0.4% | |||||||||||
Turkiye Garanti Bankasi AS * | 14,252,052 | 17,572,848 | |||||||||
UNITED KINGDOM — 0.7% | |||||||||||
Premier Oil PLC * | 41,999,392 | 27,564,027 | |||||||||
ZAMBIA — 0.7% | |||||||||||
First Quantum Minerals Ltd. | 3,536,500 | 28,185,717 | |||||||||
Total Common Stocks | |||||||||||
(cost $3,374,662,331) | 3,968,390,416 |
The accompanying notes are an integral part of the financial statements.
42
Portfolio of Investments
Semi-Annual Report June 30, 2020
June 30, 2020 (unaudited)
Baillie Gifford Emerging Markets Equities Fund
Shares | Value | ||||||||||
PREFERRED STOCKS — 2.3% | |||||||||||
BRAZIL — 0.8% | |||||||||||
Banco Bradesco SA 7.88% | 2,286,246 | $ | 8,807,645 | ||||||||
Petroleo Brasileiro SA ADR 4.62% | 3,141,553 | 25,038,177 | |||||||||
33,845,822 | |||||||||||
SOUTH KOREA — 1.5% | |||||||||||
Samsung Electronics Co., Ltd. 2.23% | 1,570,976 | 61,196,278 | |||||||||
Total Preferred Stocks | |||||||||||
(cost $75,168,606) | 95,042,100 | ||||||||||
TOTAL INVESTMENTS — 98.1% | |||||||||||
(cost $3,449,830,937) | $ | 4,063,432,516 | |||||||||
Other assets less liabilities — 1.9% | 79,200,798 | ||||||||||
NET ASSETS — 100.0% | $ | 4,142,633,314 |
(1) Amount rounds to less than 0.1%.
* Non-income producing security.
ADR — American Depositary Receipt
GDR — Global Depositary Receipt
NVDR — Non-Voting Depositary Receipt
Reg S — Regulation S ("Reg S") under the Securities Act of 1933, as amended ("1933 Act") is a safe harbor that defines when an offering of securities will be deemed to come to rest abroad and therefore is not subject to the registration obligations imposed under Section 5 of the 1933 Act. The regulation includes two safe harbor provisions: an issuer safe harbor and a resale safe harbor. In each case, the regulation demands that offers and sales of the securities be made outside the United States and that no offering participant (which includes the issuer, the banks assisting with the offer and their respective affiliates) engage in "directed" selling efforts. In the case of issuers for whose securities there is substantial U.S. market interest, the regulation also requires that no offers and sales be made to U.S. persons (including U.S. persons physically located outside the United States). At June 30, 2020, the net value of these securities was $25,729,006 representing 0.6% 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, 2020 in valuing the Fund's investments carried at fair value:
Investments in Securities | Level 1 | Level 2 | Level 3 | Total | |||||||||||||||
Common Stocks ** | $ | 857,433,737 | $ | 3,110,956,679 | $ | — | $ | 3,968,390,416 | |||||||||||
Preferred Stocks ** | 33,845,822 | 61,196,278 | — | 95,042,100 | |||||||||||||||
Total | $ | 891,279,559 | $ | 3,172,152,957 | $ | — | $ | 4,063,432,516 |
** Refer to Portfolio of Investments for further detail.
The accompanying notes are an integral part of the financial statements.
43
Statement of Assets and Liabilities
Semi-Annual Report June 30, 2020
June 30, 2020 (unaudited)
Baillie Gifford Emerging Markets Equities Fund
ASSETS | |||||||
Investments, at value (cost $3,449,830,937) | $ | 4,063,432,516 | |||||
Cash | 95,337,982 | ||||||
Foreign cash, at value (cost 7,555,319) | 7,544,503 | ||||||
Dividends receivable | 11,577,246 | ||||||
Capital shares sold receivable | 2,988,004 | ||||||
Receivable for Indian capital gains tax refunds (Note A) | 1,347,063 | ||||||
Tax reclaims receivable | 206,929 | ||||||
Prepaid assets | 39,716 | ||||||
Total Assets | 4,182,473,959 | ||||||
LIABILITIES | |||||||
Advisory fee payable | 4,775,276 | ||||||
Payable for investment purchased | 31,166,894 | ||||||
Capital shares purchased payable | 1,827,843 | ||||||
Administration & Supervisory fee payable | 837,502 | ||||||
Servicing fee payable | 158,983 | ||||||
Trustee fee payable | 32,558 | ||||||
Commitment fee payable | 9,204 | ||||||
Accrued expenses | 1,032,385 | ||||||
Total Liabilities | 39,840,645 | ||||||
NET ASSETS | $ | 4,142,633,314 | |||||
COMPOSITION OF NET ASSETS | |||||||
Paid-in capital | $ | 3,637,874,683 | |||||
Total distributable earnings | 504,758,631 | ||||||
$ | 4,142,633,314 | ||||||
NET ASSET VALUE, PER SHARE | |||||||
Class 2 ( $94,075,189 / 4,738,267 shares outstanding), unlimited authorized, no par value | $ | 19.85 | |||||
Class 3 ( $119,320,678 / 5,954,508 shares outstanding), unlimited authorized, no par value | $ | 20.04 | |||||
Class 4 ( $196,022,392 / 9,649,345 shares outstanding), unlimited authorized, no par value | $ | 20.31 | |||||
Class 5 ( $1,451,122,325 / 70,468,718 shares outstanding), unlimited authorized, no par value | $ | 20.59 | |||||
Class K ( $1,514,743,952 / 76,549,959 shares outstanding), unlimited authorized, no par value | $ | 19.79 | |||||
Institutional Class ( $767,348,778 / 38,801,841 shares outstanding), unlimited authorized, no par value | $ | 19.78 |
The accompanying notes are an integral part of the financial statements.
44
Statement of Operations
Semi-Annual Report June 30, 2020
For the Six Months Ended June 30, 2020 (unaudited)
Baillie Gifford Emerging Markets Equities Fund
INVESTMENT INCOME | |||||||
Dividends (net of foreign withholding taxes of $3,947,545) | $ | 30,880,531 | |||||
Interest | 33,431 | ||||||
Total Investment Income | 30,913,962 | ||||||
Expenses | |||||||
Advisory fee (Note B) | 9,599,043 | ||||||
Shareholder Servicing fees — Class 2 shares (Note B) | 85,724 | ||||||
Shareholder Servicing fees — Class 3 shares (Note B) | 62,758 | ||||||
Shareholder Servicing fees — Class 4 shares (Note B) | 61,231 | ||||||
Shareholder Servicing fees — Class 5 shares (Note B) | 124,699 | ||||||
Administration & Supervisory fee — Class K shares (Note B) | 1,102,862 | ||||||
Administration & Supervisory fee — Institutional Class shares (Note B) | 563,154 | ||||||
Transfer agency | 66,242 | ||||||
Sub-transfer agency — Institutional Class shares | 303,746 | ||||||
Fund accounting | 643,464 | ||||||
Custody | 627,676 | ||||||
Legal | 301,357 | ||||||
Registration fees | 106,116 | ||||||
Trustees' fees | 66,705 | ||||||
Commitment fees | 23,423 | ||||||
Professional fees | 22,510 | ||||||
Miscellaneous | 78,312 | ||||||
Total Expenses | 13,839,022 | ||||||
Net Investment Income | 17,074,940 | ||||||
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS AND FOREIGN CURRENCY TRANSACTIONS | |||||||
Net realized loss from: | |||||||
Investments (net of Indian capital gains tax benefit of $31,369) | (93,740,277 | ) | |||||
Foreign currency transactions | (1,217,706 | ) | |||||
(94,957,983 | ) | ||||||
Net change in unrealized depreciation on: | |||||||
Investments (net of Indian capital gains tax benefit of $11,408,772) (Note A) | (196,647,710 | ) | |||||
Translation of net assets and liabilities denominated in foreign currencies | (21,313 | ) | |||||
(196,669,023 | ) | ||||||
Net realized and unrealized loss | (291,627,006 | ) | |||||
NET DECREASE IN NET ASSETS FROM OPERATIONS | $ | (274,552,066 | ) |
The accompanying notes are an integral part of the financial statements.
45
Statements of Changes in Net Assets
Semi-Annual Report June 30, 2020
Baillie Gifford Emerging Markets Equities Fund
For the Six Months Ended June 30, 2020 (unaudited) | For the Year Ended December 31, 2019 | ||||||||||
INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS | |||||||||||
Net investment income | $ | 17,074,940 | $ | 103,248,934 | |||||||
Net realized gain (loss) | (94,957,983 | ) | 13,920,823 | ||||||||
Net change in unrealized appreciation (depreciation) | (196,669,023 | ) | 603,118,873 | ||||||||
Net increase (decrease) in net assets from operations | (274,552,066 | ) | 720,288,630 | ||||||||
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS FROM: | |||||||||||
Distributable earnings | |||||||||||
Class 2 | — | (4,430,516 | ) | ||||||||
Class 3 | — | (12,961,322 | ) | ||||||||
Class 4 | — | — | |||||||||
Class 5 | — | (49,677,405 | ) | ||||||||
Class K | — | (50,357,207 | ) | ||||||||
Institutional Class | — | (24,586,085 | ) | ||||||||
Total Distributions to Shareholders | — | (142,012,535 | ) | ||||||||
TRANSACTIONS IN SHARES OF BENEFICIAL INTEREST | |||||||||||
Net proceeds from shares subscribed: | |||||||||||
Class 2 | 3,000 | 7,306,000 | |||||||||
Class 3 | — | 106,960,476 | * | ||||||||
Class 4 | 218,894,438 | * | — | ||||||||
Class 5 | 212,200,000 | 7,000,000 | |||||||||
Class K | 454,779,383 | 797,388,161 | * | ||||||||
Institutional Class | 253,492,330 | 498,938,452 | |||||||||
Dividends reinvested: | |||||||||||
Class 2 | — | 4,430,516 | |||||||||
Class 3 | — | 12,961,322 | |||||||||
Class 4 | — | — | |||||||||
Class 5 | — | 49,677,405 | |||||||||
Class K | — | 40,228,644 | |||||||||
Institutional Class | 7,580 | 24,574,424 | |||||||||
Cost of shares redeemed: | |||||||||||
Class 2 | (13,000,000 | ) | (109,960,476 | )* | |||||||
Class 3 | (218,894,438 | )* | — | ||||||||
Class 4 | — | — | |||||||||
Class 5 | (2,060,000 | ) | (34,320,000 | ) | |||||||
Class K | (172,025,892 | ) | (158,716,823 | ) | |||||||
Institutional Class | (103,843,398 | ) | (213,958,164 | )* | |||||||
Increase in Net Assets from Transactions in Shares of Beneficial Interest | 629,553,003 | 1,032,509,937 | |||||||||
Total Increase in Net Assets | 355,000,937 | 1,610,786,032 | |||||||||
NET ASSETS | |||||||||||
Beginning of period | 3,787,632,377 | 2,176,846,345 | |||||||||
End of period | $ | 4,142,633,314 | $ | 3,787,632,377 |
* See Note D for details of share class conversions.
The accompanying notes are an integral part of the financial statements.
46
Financial Highlights
Semi-Annual Report June 30, 2020
Baillie Gifford Emerging Markets Equities Fund
Selected data for a Class 2 share outstanding throughout each period:
For the Six Months Ended June 30, 2020 (unaudited) | For the Year Ended December 31, 2019 | For the Year Ended December 31, 2018 | For the Year Ended December 31, 2017 | For the Year Ended December 31, 2016 | For the Period March 3, 2015(a) through December 31, 2015 | ||||||||||||||||||||||
Net asset value, beginning of period | $ | 21.71 | $ | 17.62 | $ | 22.82 | $ | 15.20 | $ | 14.88 | $ | 17.24 | |||||||||||||||
From Investment Operations | |||||||||||||||||||||||||||
Net investment income(b) | 0.08 | 0.63 | 0.28 | 0.16 | 0.07 | 0.13 | |||||||||||||||||||||
Net realized and unrealized gain (loss) on investments and foreign currency | (1.94 | ) | 4.30 | (3.70 | ) | 7.89 | 0.38 | (2.38 | ) | ||||||||||||||||||
Net increase (decrease) in net asset value from investment operations | (1.86 | ) | 4.93 | (3.42 | ) | 8.05 | 0.45 | (2.25 | ) | ||||||||||||||||||
Dividends and Distributions to Shareholders | |||||||||||||||||||||||||||
From net investment income | — | (0.65 | ) | (0.23 | ) | (0.25 | ) | (0.14 | ) | (0.17 | ) | ||||||||||||||||
From net realized gain on investments | — | (0.19 | ) | (1.55 | ) | (0.18 | ) | — | (0.00 | )(c) | |||||||||||||||||
Total Dividends and Distributions | — | (0.84 | ) | (1.78 | ) | (0.43 | ) | (0.14 | ) | (0.17 | ) | ||||||||||||||||
Proceeds from Purchase Fees and Redemption Fees(b) | — | — | — | (0.00 | )(c) | 0.01 | 0.06 | ||||||||||||||||||||
Net asset value, end of period | $ | 19.85 | $ | 21.71 | $ | 17.62 | $ | 22.82 | $ | 15.20 | $ | 14.88 | |||||||||||||||
Total Return | |||||||||||||||||||||||||||
Total return based on net asset value(d) | (8.56 | )% | 28.00 | % | (14.92 | )% | 53.02 | % | 3.10 | % | (12.68 | )% | |||||||||||||||
Ratios/Supplemental Data | |||||||||||||||||||||||||||
Net assets, end of period (000's omitted) | $ | 94,075 | $ | 118,856 | $ | 191,177 | $ | 203,830 | $ | 121,739 | $ | 69,091 | |||||||||||||||
Ratio of net expenses to average net assets | 0.81 | %* | 0.83 | % | 0.84 | % | 0.85 | % | 0.87 | % | 0.87 | %* | |||||||||||||||
Ratio of net investment income to average net assets | 0.81 | %* | 3.29 | %(e) | 1.31 | % | 0.82 | % | 0.52 | % | 0.95 | %* | |||||||||||||||
Portfolio turnover rate(f) | 12 | % | 15 | % | 22 | % | 33 | % | 24 | % | 46 | % |
* Annualized.
(a) Recommencement of investment operations. Class had no shareholders from June 10, 2014 to March 2, 2015. All shares of this class were redeemed at $17.85 on June 9, 2014. New shares were issued at $17.24 on March 3, 2015.
(b) Calculated based upon average shares outstanding during the period.
(c) Amount is less than $0.005 per share.
(d) Total investment return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all dividends and distributions, if any, at net asset value during the period, and redemption on the last day of the period. Total return is not annualized for periods less than one year.
(e) Large increase due to one-off taxable stock dividends that were treating as income.
(f) Portfolio turnover rate calculated at Fund level.
The accompanying notes are an integral part of the financial statements.
47
Financial Highlights
Semi-Annual Report June 30, 2020
Baillie Gifford Emerging Markets Equities Fund
Selected data for a Class 3 share outstanding throughout each period:
For the Six Months Ended June 30, 2020 (unaudited) | For the Year Ended December 31, 2019 | For the Year Ended December 31, 2018 | For the Year Ended December 31, 2017 | For the Period April 1, 2016(a) through December 31, 2016 | For the Year Ended December 31, 2014 | ||||||||||||||||||||||
Net asset value, beginning of year | $ | 21.91 | $ | 17.77 | $ | 23.00 | $ | 15.32 | $ | 14.72 | $ | 16.74 | |||||||||||||||
From Investment Operations | |||||||||||||||||||||||||||
Net investment income(b) | 0.08 | 0.71 | 0.29 | 0.17 | 0.12 | 0.17 | |||||||||||||||||||||
Net realized and unrealized gain (loss) on investments and foreign currency | (1.95 | ) | 4.29 | (3.72 | ) | 7.96 | 0.62 | (0.15 | ) | ||||||||||||||||||
Net increase (decrease) in net asset value from investment operations | (1.87 | ) | 5.00 | (3.43 | ) | 8.13 | 0.74 | 0.02 | |||||||||||||||||||
Dividends and Distributions to Shareholders | |||||||||||||||||||||||||||
From net investment income | — | (0.67 | ) | (0.25 | ) | (0.27 | ) | (0.14 | ) | (0.02 | ) | ||||||||||||||||
From net realized gain on investments | — | (0.19 | ) | (1.55 | ) | (0.18 | ) | — | — | ||||||||||||||||||
Total Dividends and Distributions | — | (0.86 | ) | (1.80 | ) | (0.45 | ) | (0.14 | ) | (0.02 | ) | ||||||||||||||||
Proceeds from Purchase Fees and Redemption Fees(b) | — | — | — | 0.00 | (c) | 0.00 | (c) | 0.02 | |||||||||||||||||||
Net asset value, end of year | $ | 20.04 | $ | 21.91 | $ | 17.77 | $ | 23.00 | $ | 15.32 | $ | 16.76 | |||||||||||||||
Total Return | |||||||||||||||||||||||||||
Total return based on net asset value(d) | (8.53 | )% | 28.09 | % | (14.86 | )% | 53.13 | % | 5.05 | % | 0.26 | % | |||||||||||||||
Ratios/Supplemental Data | |||||||||||||||||||||||||||
Net assets, end of each year (000's omitted) | $ | 119,321 | $ | 344,702 | $ | 167,268 | $ | 196,468 | $ | 128,303 | $ | 485,066 | |||||||||||||||
Ratio of net expenses to average net assets | 0.74 | %* | 0.76 | % | 0.77 | % | 0.78 | % | 0.80 | %* | 0.75 | % | |||||||||||||||
Ratio of net investment income to average net assets | 0.85 | %* | 3.45 | %(e) | 1.33 | % | 0.84 | % | 1.09 | %* | 1.00 | % | |||||||||||||||
Portfolio turnover rate(e) | 12 | % | 15 | % | 22 | % | 33 | % | 24 | % | 26 | % |
* Annualized.
(a) Recommencement of investment operations. Class had no shareholders from December 31, 2014 to March 31, 2016. All shares of this class were redeemed on December 31, 2014 at $16.76. New shares were issued at $14.72 on April 01, 2016.
(b) Calculated based upon average shares outstanding during the period.
(c) Amount is less than $0.005 per share.
(d) Total investment return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all dividends and distributions, if any, at net asset value during the period, and redemption on the last day of the period. Total return is not annualized for periods less than one year.
(e) Large increase due to one-off taxable stock dividends that were treating as income.
(f) Portfolio turnover rate calculated at Fund level.
The accompanying notes are an integral part of the financial statements.
48
Financial Highlights
Semi-Annual Report June 30, 2020
Baillie Gifford Emerging Markets Equities Fund
Selected data for a Class 4 share outstanding throughout each period:
For the Period January 10, 2020(b) through June 30, 2020 (unaudited) | For the Period January 1, 2016(b) through October 10, 2016 | For the Period November 2, 2015(a) through December 31, 2015 | |||||||||||||
Net asset value, beginning of year | $ | 22.69 | $ | 15.12 | $ | 15.40 | |||||||||
From Investment Operations | |||||||||||||||
Net investment income(c) | 0.09 | 0.11 | 0.02 | ||||||||||||
Net realized and unrealized gain (loss) on investments and foreign currency | (2.47 | ) | 1.69 | (0.28 | ) | ||||||||||
Net increase (decrease) in net asset value from investment operations | (2.38 | ) | 1.80 | (0.26 | ) | ||||||||||
Dividends and Distributions to Shareholders | |||||||||||||||
From net investment income | — | — | (0.06 | ) | |||||||||||
From net realized gain on investments | — | — | (0.00 | )(d) | |||||||||||
Total Dividends and Distributions | — | — | (0.06 | ) | |||||||||||
Proceeds from Purchase Fees and Redemption Fees(c) | — | 0.01 | 0.04 | ||||||||||||
Net asset value, end of year | $ | 20.31 | $ | 16.93 | $ | 15.12 | |||||||||
Total Return | |||||||||||||||
Total return based on net asset value(e) | (10.45 | )% | 12.04 | % | (1.40 | )% | |||||||||
Ratios/Supplemental Data | |||||||||||||||
Net assets, end of each year (000's omitted) | $ | 196,022 | $ | 110,086 | $ | 98,273 | |||||||||
Ratio of net expenses to average net assets | 0.71 | %* | 0.73 | %* | 0.76 | %* | |||||||||
Ratio of net investment income to average net assets | 1.06 | %* | 1.29 | %* | 0.88 | %* | |||||||||
Portfolio turnover rate(f) | 12 | % | 24 | % | 46 | % |
* Annualized.
(a) Commencement of investment operations.
(b) Recommencement of investment operations. Class had no shareholders from October 10, 2016 to January 09, 2020. All shares of this class were redeemed on October 10, 2016 at $16.93. New shares were issued at $22.69 on January 10, 2020.
(c) Calculated based upon average shares outstanding during the period.
(d) Amount is less than $0.005 per share.
(e) Total investment return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all dividends and distributions, if any, at net asset value during the period, and redemption on the last day of the period. Total return is not annualized for periods less than one year.
(f) Portfolio turnover rate calculated at Fund level.
The accompanying notes are an integral part of the financial statements.
49
Financial Highlights
Semi-Annual Report June 30, 2020
Baillie Gifford Emerging Markets Equities Fund
Selected data for a Class 5 share outstanding throughout each period:
For the Six Months Ended June 30, 2020 (unaudited) | For the Year Ended December 31, 2019 | For the Year Ended December 31, 2018 | For the Year Ended December 31, 2017 | For the Year Ended December 31, 2016 | For the Year Ended December 31, 2015 | ||||||||||||||||||||||
Net asset value, beginning of year | $ | 22.50 | $ | 18.23 | $ | 23.55 | $ | 15.67 | $ | 15.33 | $ | 16.93 | |||||||||||||||
From Investment Operations | |||||||||||||||||||||||||||
Net investment income(a) | 0.10 | 0.72 | 0.31 | 0.19 | 0.13 | 0.14 | |||||||||||||||||||||
Net realized and unrealized gain (loss) on investmentsand foreign currency | (2.01 | ) | 4.42 | (3.81 | ) | 8.15 | 0.35 | (1.60 | ) | ||||||||||||||||||
Net increase (decrease) in net asset value from investment operations | (1.91 | ) | 5.14 | (3.50 | ) | 8.34 | 0.48 | (1.46 | ) | ||||||||||||||||||
Dividends and Distributions to Shareholders | |||||||||||||||||||||||||||
From net investment income | — | (0.68 | ) | (0.27 | ) | (0.28 | ) | (0.15 | ) | (0.19 | ) | ||||||||||||||||
From net realized gain on investments | — | (0.19 | ) | (1.55 | ) | (0.18 | ) | — | (0.00 | )(b) | |||||||||||||||||
Total Dividends and Distributions | — | (0.87 | ) | (1.82 | ) | (0.46 | ) | (0.15 | ) | (0.19 | ) | ||||||||||||||||
Proceeds from Purchase Fees and Redemption Fees(a) | — | — | — | 0.00 | (b) | 0.01 | 0.05 | ||||||||||||||||||||
Net asset value, end of year | $ | 20.59 | $ | 22.50 | $ | 18.23 | $ | 23.55 | $ | 15.67 | $ | 15.33 | �� | ||||||||||||||
Total Return | |||||||||||||||||||||||||||
Total return based on net asset value(c) | (8.49 | )% | 28.19 | % | (14.80 | )% | 53.25 | % | 3.24 | % | (8.24 | )% | |||||||||||||||
Ratios/Supplemental Data | |||||||||||||||||||||||||||
Net assets, end of year (000's omitted) | $ | 1,451,122 | $ | 1,331,946 | $ | 1,063,434 | $ | 1,232,137 | $ | 1,075,176 | $ | 935,177 | |||||||||||||||
Ratio of net expenses to average net assets | 0.66 | %* | 0.68 | % | 0.69 | % | 0.70 | % | 0.71 | % | 0.71 | % | |||||||||||||||
Ratio of net investment income to average net assets | 1.05 | %* | 3.47 | %(d) | 1.41 | % | 0.91 | % | 0.83 | % | 0.89 | % | |||||||||||||||
Portfolio turnover rate(e) | 12 | % | 15 | % | 22 | % | 33 | % | 24 | % | 46 | % |
* Annualized.
(a) Calculated based upon average shares outstanding during the period.
(b) Amount is less than $0.005 per share.
(c) Total investment return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all dividends and distributions, if any, at net asset value during the period, and redemption on the last day of the period. Total return is not annualized for periods less than one year.
(d) Large increase due to one-off taxable stock dividends that were treating as income.
(e) Portfolio turnover rate calculated at Fund level.
The accompanying notes are an integral part of the financial statements.
50
Financial Highlights
Semi-Annual Report June 30, 2020
Baillie Gifford Emerging Markets Equities Fund
Selected data for a Class K share outstanding throughout each period:
For the Six Months Ended June 30, 2020 (unaudited) | For the Year Ended December 31, 2019 | For the Year Ended December 31, 2018 | For the Period April 28, 2017(a) through December 31, 2017 | ||||||||||||||||
Net asset value, beginning of period | $ | 21.64 | $ | 17.57 | $ | 22.79 | $ | 18.22 | |||||||||||
From Investment Operations | |||||||||||||||||||
Net investment income(b) | 0.09 | 0.71 | 0.34 | 0.02 | |||||||||||||||
Net realized and unrealized gain (loss) on investments and foreign currency | (1.94 | ) | 4.21 | (3.75 | ) | 5.00 | |||||||||||||
Net increase (decrease) in net asset value from investment operations | (1.85 | ) | 4.92 | (3.41 | ) | 5.02 | |||||||||||||
Dividends and Distributions to Shareholders | |||||||||||||||||||
From net investment income | — | (0.66 | ) | (0.26 | ) | (0.27 | ) | ||||||||||||
From net realized gain on investments | — | (0.19 | ) | (1.55 | ) | (0.18 | ) | ||||||||||||
Total Dividends and Distributions | — | (0.85 | ) | (1.81 | ) | (0.45 | ) | ||||||||||||
Net asset value, end of period | $ | 19.79 | $ | 21.64 | $ | 17.57 | $ | 22.79 | |||||||||||
Total Return | |||||||||||||||||||
Total return based on net asset value(c) | (8.55 | )% | 28.00 | % | (14.91 | )% | 27.57 | % | |||||||||||
Ratios/Supplemental Data | |||||||||||||||||||
Net assets, end of period (000's omitted) | $ | 1,514,744 | $ | 1,328,535 | $ | 499,172 | $ | 73,349 | |||||||||||
Ratio of net expenses to average net assets | 0.81 | %* | 0.83 | % | 0.84 | % | 0.85 | %* | |||||||||||
Ratio of net investment income to average net assets | 0.92 | %* | 3.55 | %(d) | 1.65 | % | 0.18 | %* | |||||||||||
Portfolio turnover rate(e) | 12 | % | 15 | % | 22 | % | 33 | % |
* Annualized.
(a) Commencement of investment operations.
(b) Calculated based upon average shares outstanding during the period.
(c) Total investment return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all dividends and distributions, if any, at net asset value during the period, and redemption on the last day of the period. Total return is not annualized for periods less than one year.
(d) Large increase due to one-off taxable stock dividends that were treating as income.
(e) Portfolio turnover rate calculated at Fund level.
The accompanying notes are an integral part of the financial statements.
51
Financial Highlights
Semi-Annual Report June 30, 2020
Baillie Gifford Emerging Markets Equities Fund
Selected data for an Institutional Class share outstanding throughout each period:
For the Six Months Ended June 30, 2020 (unaudited) | For the Year Ended December 31, 2019 | For the Year Ended December 31, 2018 | For the Period April 28, 2017(a) through December 31, 2017 | ||||||||||||||||
Net asset value, beginning of period | $ | 21.64 | $ | 17.56 | $ | 22.80 | $ | 18.22 | |||||||||||
From Investment Operations | |||||||||||||||||||
Net investment income(b) | 0.08 | 0.79 | 0.11 | 0.16 | |||||||||||||||
Net realized and unrealized gain (loss) on investments and foreign currency | (1.94 | ) | 4.12 | (3.54 | ) | 4.86 | |||||||||||||
Net increase (decrease) in net asset value from investment operations | (1.86 | ) | 4.91 | (3.43 | ) | 5.02 | |||||||||||||
Dividends and Distributions to Shareholders | |||||||||||||||||||
From net investment income | — | (0.64 | ) | (0.26 | ) | (0.26 | ) | ||||||||||||
From net realized gain on investments | — | (0.19 | ) | (1.55 | ) | (0.18 | ) | ||||||||||||
Total Dividends and Distributions | — | (0.83 | ) | (1.81 | ) | (0.44 | ) | ||||||||||||
Net asset value, end of period | $ | 19.78 | $ | 21.64 | $ | 17.56 | $ | 22.80 | |||||||||||
Total Return | |||||||||||||||||||
Total return based on net asset value(c) | (8.60 | )% | 27.94 | % | (14.98 | )% | 27.61 | % | |||||||||||
Ratios/Supplemental Data | |||||||||||||||||||
Net assets, end of period (000's omitted) | $ | 767,349 | $ | 663,593 | $ | 255,795 | $ | 6 | |||||||||||
Ratio of net expenses to average net assets | 0.90 | %* | 0.92 | % | 0.95 | % | 0.85 | %* | |||||||||||
Ratio of net investment income to average net assets | 0.84 | %* | 3.81 | %(d) | 0.68 | % | 1.13 | %* | |||||||||||
Portfolio turnover rate(e) | 12 | % | 15 | % | 22 | % | 33 | % |
* Annualized.
(a) Commencement of investment operations.
(b) Calculated based upon average shares outstanding during the period.
(c) Total investment return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all dividends and distributions, if any, at net asset value during the period, and redemption on the last day of the period. Total return is not annualized for periods less than one year.
(d) Large increase due to one-off taxable stock dividends that were treating as income.
(e) Portfolio turnover rate calculated at Fund level.
The accompanying notes are an integral part of the financial statements.
52
Industry Diversification Table
Semi-Annual Report June 30, 2020
June 30, 2020 (unaudited)
Baillie Gifford Global Alpha Equities Fund
Value | % of Total Net Assets | ||||||||||
Advertising | $ | 9,478,767 | 0.8 | % | |||||||
Airlines | 7,588,235 | 0.7 | |||||||||
Apparel | 11,280,025 | 1.0 | |||||||||
Auto Manufacturers | 24,881,973 | 2.2 | |||||||||
Banks | 10,987,974 | 1.0 | |||||||||
Beverages | 18,708,494 | 1.7 | |||||||||
Biotechnology | 42,389,820 | 3.8 | |||||||||
Building Materials | 25,532,704 | 2.3 | |||||||||
Chemicals | 6,556,442 | 0.6 | |||||||||
Commercial Services | 61,111,979 | 5.5 | |||||||||
Cosmetics/Personal Care | 5,057,567 | 0.5 | |||||||||
Distribution/Wholesale | 8,892,395 | 0.8 | |||||||||
Diversified Financial Services | 77,477,741 | 7.0 | |||||||||
Electronics | 5,157,456 | 0.5 | |||||||||
Environmental Control | 5,196,287 | 0.5 | |||||||||
Food | 5,392,211 | 0.5 | |||||||||
Healthcare — Products | 77,583,035 | 7.0 | |||||||||
Healthcare — Services | 43,762,558 | 4.0 | |||||||||
Home Furnishings | 4,448,384 | 0.4 | |||||||||
Insurance | 101,809,703 | 9.2 | |||||||||
Internet | 288,422,527 | 25.9 | |||||||||
Lodging | 2,580,989 | 0.2 | |||||||||
Machinery — Construction & Mining | 6,391,066 | 0.6 | |||||||||
Machinery — Diversified | 26,625,479 | 2.3 | |||||||||
Media | 6,630,826 | 0.6 | |||||||||
Mining | 8,381,194 | 0.7 | |||||||||
Miscellaneous Manufacturing | 11,226,535 | 1.0 | |||||||||
Oil & Gas | 19,779,936 | 1.8 | |||||||||
Oil & Gas Services | 1,574,768 | 0.1 | |||||||||
Real Estate | 8,879,785 | 0.8 | |||||||||
Retail | 6,645,017 | 0.6 | |||||||||
Semiconductors | 38,029,952 | 3.4 | |||||||||
Software | 86,335,548 | 7.8 | |||||||||
Telecommunications | 20,024,828 | 1.8 | |||||||||
Transportation | 7,889,870 | 0.7 | |||||||||
Total Value of Investments | 1,092,712,070 | 98.3 | |||||||||
Other assets less liabilities | 19,281,355 | 1.7 | |||||||||
Net Assets | $ | 1,111,993,425 | 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.
53
Portfolio of Investments
Semi-Annual Report June 30, 2020
June 30, 2020 (unaudited)
Baillie Gifford Global Alpha Equities Fund
Shares | Value | ||||||||||
COMMON STOCKS — 98.3% | |||||||||||
AUSTRALIA — 1.0% | |||||||||||
BHP Group PLC | 409,578 | $ | 8,381,194 | ||||||||
Orica Ltd. | 318,624 | 3,684,754 | |||||||||
12,065,948 | |||||||||||
BRAZIL — 0.7% | |||||||||||
B3 SA — Brasil Bolsa Balcao | 748,500 | 7,665,171 | |||||||||
CANADA — 3.3% | |||||||||||
Fairfax Financial Holdings Ltd. | 17,992 | 5,558,621 | |||||||||
Ritchie Bros. Auctioneers, Inc. | 131,272 | 5,362,461 | |||||||||
Shopify, Inc., Class A * | 26,481 | 25,135,765 | |||||||||
36,056,847 | |||||||||||
CHINA — 8.5% | |||||||||||
58.com, Inc. ADR * | 26,737 | 1,442,194 | |||||||||
Alibaba Group Holding Ltd. ADR * | 118,400 | 25,538,880 | |||||||||
Autohome, Inc. ADR | 60,906 | 4,598,403 | |||||||||
Brilliance China Automotive Holdings Ltd. | 6,366,000 | 5,761,777 | |||||||||
Meituan Dianping, Class B * | 703,300 | 15,716,207 | |||||||||
Ping An Healthcare and Technology Co., Ltd. * | 479,600 | 7,353,004 | |||||||||
Ping An Insurance Group Co. of China Ltd., Class H | 1,659,000 | 16,538,557 | |||||||||
Prosus NV * | 143,343 | 13,324,869 | |||||||||
Trip.com Group Ltd. ADR * | 156,414 | 4,054,251 | |||||||||
94,328,142 | |||||||||||
DENMARK — 0.6% | |||||||||||
Genmab A/S * | 21,498 | 7,248,978 | |||||||||
FRANCE — 2.4% | |||||||||||
Adevinta ASA * | 250,481 | 2,535,227 | |||||||||
Pernod Ricard SA | 118,810 | 18,708,494 | |||||||||
Ubisoft Entertainment SA * | 69,550 | 5,759,442 | |||||||||
27,003,163 |
The accompanying notes are an integral part of the financial statements.
54
Portfolio of Investments
Semi-Annual Report June 30, 2020
June 30, 2020 (unaudited)
Baillie Gifford Global Alpha Equities Fund
Shares | Value | ||||||||||
GERMANY — 3.7% | |||||||||||
adidas AG * | 42,784 | $ | 11,280,025 | ||||||||
Deutsche Boerse AG | 52,714 | 9,539,964 | |||||||||
SAP SE | 140,244 | 19,604,546 | |||||||||
40,424,535 | |||||||||||
HONG KONG — 1.8% | |||||||||||
AIA Group Ltd. | 2,194,000 | 20,530,585 | |||||||||
INDIA — 2.4% | |||||||||||
Housing Development Finance Corp., Ltd. | 445,641 | 10,362,099 | |||||||||
ICICI Bank Ltd. ADR | 495,044 | 4,598,959 | |||||||||
Reliance Industries Ltd. GDR | 258,564 | 11,951,294 | |||||||||
26,912,352 | |||||||||||
IRELAND — 2.0% | |||||||||||
CRH PLC | 407,407 | 13,981,103 | |||||||||
Ryanair Holdings PLC ADR * | 114,384 | 7,588,235 | |||||||||
21,569,338 | |||||||||||
JAPAN — 9.0% | |||||||||||
Advantest Corp. | 208,700 | 11,910,610 | |||||||||
CyberAgent, Inc. | 172,400 | 8,474,092 | |||||||||
Hoshizaki Corp. | 51,900 | 4,448,384 | |||||||||
MS&AD Insurance Group Holdings, Inc. | 394,200 | 10,855,758 | |||||||||
Olympus Corp. | 1,096,500 | 21,110,362 | |||||||||
SMC Corp. | 22,800 | 11,717,400 | |||||||||
SoftBank Group Corp. | 397,100 | 20,024,828 | |||||||||
Sysmex Corp. | 142,800 | 10,961,569 | |||||||||
99,503,003 | |||||||||||
MACAU — 0.2% | |||||||||||
Sands China Ltd. | 655,200 | 2,580,989 | |||||||||
NETHERLANDS — 0.5% | |||||||||||
Just Eat Takeaway * | 51,588 | 5,392,211 |
The accompanying notes are an integral part of the financial statements.
55
Portfolio of Investments
Semi-Annual Report June 30, 2020
June 30, 2020 (unaudited)
Baillie Gifford Global Alpha Equities Fund
Shares | Value | ||||||||||
NORWAY — 0.6% | |||||||||||
Schibsted ASA, Class A * | 224,374 | $ | 5,875,958 | ||||||||
Schibsted ASA, Class B * | 31,958 | 754,868 | |||||||||
6,630,826 | |||||||||||
RUSSIA — 0.9% | |||||||||||
Mail.Ru Group Ltd. GDR Reg S * | 127,433 | 2,874,442 | |||||||||
Sberbank of Russia PJSC ADR * | 562,030 | 6,389,015 | |||||||||
9,263,457 | |||||||||||
SOUTH AFRICA — 3.6% | |||||||||||
Naspers Ltd., N Shares | 219,646 | 40,366,626 | |||||||||
SWEDEN — 1.5% | |||||||||||
Atlas Copco AB, B Shares | 283,006 | 10,515,949 | |||||||||
Epiroc AB, B Shares | 520,397 | 6,391,066 | |||||||||
16,907,015 | |||||||||||
SWITZERLAND — 0.6% | |||||||||||
Compagnie Financiere Richemont SA | 103,023 | 6,645,017 | |||||||||
TAIWAN — 2.6% | |||||||||||
Sea Ltd. ADR * | 133,731 | 14,341,312 | |||||||||
Taiwan Semiconductor Manufacturing Co., Ltd. ADR | 259,306 | 14,720,802 | |||||||||
29,062,114 | |||||||||||
UNITED KINGDOM — 2.5% | |||||||||||
Hays PLC | 1,947,643 | 2,884,046 | |||||||||
Prudential PLC | 1,610,977 | 24,274,228 | |||||||||
27,158,274 | |||||||||||
UNITED STATES — 49.9% | |||||||||||
ABIOMED, Inc. * | 26,909 | 6,500,138 | |||||||||
Albemarle Corp. | 84,917 | 6,556,442 | |||||||||
Alnylam Pharmaceuticals, Inc. * | 93,552 | 13,855,987 | |||||||||
Alphabet, Inc., Class C * | 22,115 | 31,261,985 | |||||||||
Amazon.com, Inc. * | 17,509 | 48,304,179 | |||||||||
Anthem, Inc. | 85,216 | 22,410,104 | |||||||||
Arthur J Gallagher & Co. | 165,067 | 16,092,382 | |||||||||
Axon Enterprise, Inc. * | 76,855 | 7,541,781 |
The accompanying notes are an integral part of the financial statements.
56
Portfolio of Investments
Semi-Annual Report June 30, 2020
June 30, 2020 (unaudited)
Baillie Gifford Global Alpha Equities Fund
Shares | Value | ||||||||||
Booking Holdings, Inc. * | 3,345 | $ | 5,326,377 | ||||||||
Broadridge Financial Solutions, Inc. | 82,602 | 10,423,546 | |||||||||
CBRE Group, Inc., Class A * | 112,928 | 5,106,604 | |||||||||
Chegg, Inc. * | 105,283 | 7,081,334 | |||||||||
EOG Resources, Inc. | 154,533 | 7,828,642 | |||||||||
Estee Lauder Cos., Inc. (The), Class A | 26,805 | 5,057,567 | |||||||||
Facebook, Inc., Class A * | 85,992 | 19,526,204 | |||||||||
Grubhub, Inc. * | 85,115 | 5,983,585 | |||||||||
Howard Hughes Corp. (The) * | 72,631 | 3,773,181 | |||||||||
Illumina, Inc. * | 28,771 | 10,655,340 | |||||||||
Interactive Brokers Group, Inc., Class A | 79,044 | 3,301,668 | |||||||||
Jefferies Financial Group, Inc. | 237,117 | 3,687,169 | |||||||||
Kirby Corp. * | 147,309 | 7,889,870 | |||||||||
LendingTree, Inc. * | 15,185 | 4,396,513 | |||||||||
Lyft, Inc., Class A * | 156,302 | 5,159,529 | |||||||||
Markel Corp. * | 8,622 | 7,959,572 | |||||||||
Martin Marietta Materials, Inc. | 55,921 | 11,551,601 | |||||||||
Mastercard, Inc., Class A | 88,187 | 26,076,896 | |||||||||
Microsoft Corp. | 137,158 | 27,913,025 | |||||||||
Moody's Corp. | 116,252 | 31,937,912 | |||||||||
Netflix, Inc. * | 18,607 | 8,466,929 | |||||||||
Novocure Ltd. * | 73,693 | 4,369,995 | |||||||||
NOW, Inc. * | 182,476 | 1,574,768 | |||||||||
ResMed, Inc. | 93,847 | 18,018,624 | |||||||||
S&P Global, Inc. | 15,623 | 5,147,466 | |||||||||
Seattle Genetics, Inc. * | 62,556 | 10,629,515 | |||||||||
Service Corp. International | 223,676 | 8,698,760 | |||||||||
SiteOne Landscape Supply, Inc. * | 78,024 | 8,892,395 | |||||||||
Spotify Technology SA * | 25,095 | 6,479,278 | |||||||||
Stericycle, Inc. * | 92,824 | 5,196,287 | |||||||||
TD Ameritrade Holding Corp. | 143,883 | 5,234,464 | |||||||||
Teladoc Health, Inc. * | 73,357 | 13,999,450 | |||||||||
Teradyne, Inc. | 134,878 | 11,398,540 | |||||||||
Tesla, Inc. * | 17,707 | 19,120,196 | |||||||||
Thermo Fisher Scientific, Inc. | 45,875 | 16,622,347 | |||||||||
Trade Desk, Inc. (The), Class A * | 23,318 | 9,478,767 | |||||||||
Twilio, Inc., Class A * | 24,698 | 5,419,235 | |||||||||
Visa, Inc., Class A | 64,442 | 12,448,261 |
The accompanying notes are an integral part of the financial statements.
57
Portfolio of Investments
Semi-Annual Report June 30, 2020
June 30, 2020 (unaudited)
Baillie Gifford Global Alpha Equities Fund
Shares | Value | ||||||||||
Waters Corp. * | 28,589 | $ | 5,157,456 | ||||||||
Westinghouse Air Brake Technologies Corp. | 76,292 | 4,392,130 | |||||||||
Zillow Group, Inc., Class C * | 199,505 | 11,493,483 | |||||||||
555,397,479 | |||||||||||
TOTAL INVESTMENTS — 98.3% | |||||||||||
(cost $717,903,762) | $ | 1,092,712,070 | |||||||||
Other assets less liabilities — 1.7% | 19,281,355 | ||||||||||
NET ASSETS — 100.0% | $ | 1,111,993,425 |
* 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). At June 30, 2020, the net value of these securities was $2,874,442 representing 0.3% of net assets.
This report classifies issuers geographically by their country of risk. For compliance monitoring purposes, the Manager retains discretion to consider a number of factors in determining where a particular issuer is located, as described in further detail in each Fund's prospectus.
Fair Value Measurement
The following is a summary of the inputs used as of June 30, 2020 in valuing the Fund's investments carried at fair value:
Investments in Securities | Level 1 | Level 2 | Level 3 | Total | |||||||||||||||
Common Stocks ** | $ | 689,327,402 | $ | 403,384,668 | $ | — | $ | 1,092,712,070 | |||||||||||
Total | $ | 689,327,402 | $ | 403,384,668 | $ | — | $ | 1,092,712,070 |
** Refer to Portfolio of Investments for further detail.
The accompanying notes are an integral part of the financial statements.
58
Statement of Assets and Liabilities
Semi-Annual Report June 30, 2020
June 30, 2020 (unaudited)
Baillie Gifford Global Alpha Equities Fund
ASSETS | |||||||
Investments, at value (cost $717,903,762) | $ | 1,092,712,070 | |||||
Cash | 18,502,310 | ||||||
Receivable for investments sold | 1,350,350 | ||||||
Tax reclaims receivable | 474,080 | ||||||
Dividends receivable | 310,060 | ||||||
Receivable for Indian capital gains tax refunds (Note A) | 76,898 | ||||||
Capital shares sold receivable | 69,676 | ||||||
Prepaid assets | 9,456 | ||||||
Total Assets | 1,113,504,900 | ||||||
LIABILITIES | |||||||
Advisory fee payable | 939,402 | ||||||
Servicing fee payable | 228,185 | ||||||
Administration & Supervisory fee payable | 46,575 | ||||||
Capital shares purchased payable | 25,975 | ||||||
Trustee fee payable | 8,568 | ||||||
Commitment fee payable | 1,847 | ||||||
Accrued expenses | 260,923 | ||||||
Total Liabilities | 1,511,475 | ||||||
NET ASSETS | $ | 1,111,993,425 | |||||
COMPOSITION OF NET ASSETS | |||||||
Paid-in capital | $ | 732,179,765 | |||||
Total distributable earnings | 379,813,660 | ||||||
$ | 1,111,993,425 | ||||||
NET ASSET VALUE, PER SHARE | |||||||
Class 2 ( $194,179,660 / 11,356,157 shares outstanding), unlimited authorized, no par value | $ | 17.10 | |||||
Class 3 ( $590,760,286 / 33,647,562 shares outstanding), unlimited authorized, no par value | $ | 17.56 | |||||
Class 4 ( $150,043,636 / 8,325,869 shares outstanding), unlimited authorized, no par value | $ | 18.02 | |||||
Class K ( $161,326,758 / 9,457,399 shares outstanding), unlimited authorized, no par value | $ | 17.06 | |||||
Institutional Class ( $15,683,085 / 918,137 shares outstanding), unlimited authorized, no par value | $ | 17.08 |
The accompanying notes are an integral part of the financial statements.
59
Statement of Operations
Semi-Annual Report June 30, 2020
For the Six Months Ended June 30, 2020 (unaudited)
Baillie Gifford Global Alpha Equities Fund
INVESTMENT INCOME | |||||||
Dividends (net of foreign withholding taxes of $327,970) | $ | 5,095,938 | |||||
Interest | 8,535 | ||||||
Total Investment Income | 5,104,473 | ||||||
EXPENSES | |||||||
Advisory fee (Note B) | 1,854,078 | ||||||
Shareholder Servicing fees — Class 2 shares (Note B) | 145,133 | ||||||
Shareholder Servicing fees — Class 3 shares (Note B) | 267,706 | ||||||
Shareholder Servicing fees — Class 4 shares (Note B) | 43,590 | ||||||
Administration & Supervisory fee — Class K shares (Note B) | 74,477 | ||||||
Administration & Supervisory fee — Institutional Class shares (Note B) | 7,412 | ||||||
Fund accounting | 167,890 | ||||||
Legal | 78,498 | ||||||
Custody | 48,026 | ||||||
Transfer agency | 40,967 | ||||||
Sub-transfer agency — Institutional Class shares | 1,413 | ||||||
Professional fees | 24,834 | ||||||
Registration fees | 22,948 | ||||||
Trustees' fees | 16,702 | ||||||
Commitment fees | 2,455 | ||||||
Miscellaneous | 19,133 | ||||||
Total Expenses | 2,815,262 | ||||||
Net Investment Income | 2,289,211 | ||||||
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS AND FOREIGN CURRENCY TRANSACTIONS | |||||||
Net realized gain (loss) from: | |||||||
Investments (net of Indian capital gains tax benefit of $12,134) | 4,477,702 | ||||||
Foreign currency transactions | (106,602 | ) | |||||
4,371,100 | |||||||
Net change in unrealized appreciation (depreciation) on: | |||||||
Investments (net of Indian capital gains tax benefit of $333,788) (Note A) | 39,736,465 | ||||||
Translation of net assets and liabilities denominated in foreign currencies | (3,896 | ) | |||||
39,732,569 | |||||||
Net realized and unrealized gain | 44,103,669 | ||||||
NET INCREASE IN NET ASSETS FROM OPERATIONS | $ | 46,392,880 |
The accompanying notes are an integral part of the financial statements.
60
Statements of Changes in Net Assets
Semi-Annual Report June 30, 2020
Baillie Gifford Global Alpha Equities Fund
For the Six Months Ended June 30, 2020 (unaudited) | For the Year Ended December 31, 2019 | ||||||||||
INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS | |||||||||||
Net investment income | $ | 2,289,211 | $ | 22,201,828 | |||||||
Net realized gain | 4,371,100 | 29,442,328 | |||||||||
Net change in unrealized appreciation | 39,732,569 | 188,564,183 | |||||||||
Net increase in net assets from operations | 46,392,880 | 240,208,339 | |||||||||
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS FROM: | |||||||||||
Distributable earnings | |||||||||||
Class 2 | — | (9,449,544 | ) | ||||||||
Class 3 | — | (30,477,830 | ) | ||||||||
Class 4 | — | (7,732,134 | ) | ||||||||
Class K | — | (4,458,584 | ) | ||||||||
Institutional Class | — | (386 | ) | ||||||||
Total Distributions to Shareholders | — | (52,118,478 | ) | ||||||||
TRANSACTIONS IN SHARES OF BENEFICIAL INTEREST | |||||||||||
Net proceeds from shares subscribed: | |||||||||||
Class 2 | 16,403,000 | 5,506,000 | |||||||||
Class 3 | — | 8,000,000 | |||||||||
Class 4 | 20,000,000 | — | |||||||||
Class K | 77,193,652 | 34,752,614 | |||||||||
Institutional Class | 14,809,627 | — | |||||||||
Dividends reinvested: | |||||||||||
Class 2 | — | 9,449,544 | |||||||||
Class 3 | — | 30,477,830 | |||||||||
Class 4 | — | 7,732,135 | |||||||||
Class K | — | 4,458,584 | |||||||||
Institutional Class | — | 386 | |||||||||
Cost of shares redeemed: | |||||||||||
Class 2 | (4,200,000 | ) | (4,000,000 | ) | |||||||
Class 3 | — | (33,788,000 | ) | ||||||||
Class 4 | (25,000,000 | ) | — | ||||||||
Class K | (4,121,138 | ) | (11,265,988 | ) | |||||||
Institutional Class | (50,468 | ) | — | ||||||||
Increase in Net Assets from Transactions in Shares of Beneficial Interest | 95,034,673 | 51,323,105 | |||||||||
Total Increase in Net Assets | 141,427,553 | 239,412,966 | |||||||||
NET ASSETS | |||||||||||
Beginning of period | 970,565,872 | 731,152,906 | |||||||||
End of period | $ | 1,111,993,425 | $ | 970,565,872 |
The accompanying notes are an integral part of the financial statements.
61
Financial Highlights
Semi-Annual Report June 30, 2020
Baillie Gifford Global Alpha Equities Fund
Selected data for a Class 2 share outstanding throughout each period:
For the Six Months Ended June 30, 2020 (unaudited) | For the Year Ended December 31, 2019 | For the Year Ended December 31, 2018 | For the Year Ended December 31, 2017 | For the Year Ended December 31, 2016 | For the Year Ended December 31, 2015 | ||||||||||||||||||||||
Net asset value, beginning of period | $ | 16.46 | $ | 13.13 | $ | 18.85 | $ | 14.52 | $ | 13.96 | $ | 14.00 | |||||||||||||||
From Investment Operations | |||||||||||||||||||||||||||
Net investment income(a) | 0.04 | 0.39 | 0.11 | 0.10 | 0.10 | 0.12 | |||||||||||||||||||||
Net realized and unrealized gain (loss) on investments and foreign currency | 0.60 | 3.89 | (1.93 | ) | 4.91 | 0.59 | 0.11 | (b) | |||||||||||||||||||
Net increase (decrease) in net asset value from investment operations | 0.64 | 4.28 | (1.82 | ) | 5.01 | 0.69 | 0.23 | ||||||||||||||||||||
Dividends and Distributions to Shareholders | |||||||||||||||||||||||||||
From net investment income | — | (0.57 | ) | (0.13 | ) | (0.11 | ) | (0.08 | ) | (0.11 | ) | ||||||||||||||||
From net realized gain on investments | — | (0.38 | ) | (3.77 | ) | (0.57 | ) | (0.05 | ) | (0.17 | ) | ||||||||||||||||
Total Dividends and Distributions | — | (0.95 | ) | (3.90 | ) | (0.68 | ) | (0.13 | ) | (0.28 | ) | ||||||||||||||||
Proceeds from Purchase Fees and Redemption Fees(a) | — | — | — | 0.00 | (c) | 0.00 | (c) | 0.01 | |||||||||||||||||||
Net asset value, end of period | $ | 17.10 | $ | 16.46 | $ | 13.13 | $ | 18.85 | $ | 14.52 | $ | 13.96 | |||||||||||||||
Total Return | |||||||||||||||||||||||||||
Total return based on net asset value(d) | 3.86 | % | 32.56 | % | (9.44 | )% | 34.56 | % | 4.95 | % | 1.75 | % | |||||||||||||||
Ratios/Supplemental Data | |||||||||||||||||||||||||||
Net assets, end of period (000's omitted) | $ | 194,180 | $ | 173,625 | $ | 129,690 | $ | 154,523 | $ | 225,095 | $ | 210,890 | |||||||||||||||
Ratio of net expenses to average net assets | 0.66 | %* | 0.67 | % | 0.68 | % | 0.67 | % | 0.67 | % | 0.66 | % | |||||||||||||||
Ratio of net investment income to average net assets | 0.45 | %* | 2.52 | %(e) | 0.59 | % | 0.59 | % | 0.69 | % | 0.83 | % | |||||||||||||||
Portfolio turnover rate(f) | 13 | % | 17 | % | 18 | % | 27 | % | 20 | % | 16 | % |
* Annualized.
(a) Calculated based upon average shares outstanding during the period.
(b) Calculation of the net gain or loss per share (both realized and unrealized) may not correlate to the aggregate realized and unrealized losses presented in the Statement of Operations due to the timing of sales and repurchases of Class shares in relation to fluctuating market values of the investments of the Fund.
(c) Amount is less than $0.005 per share.
(d) Total investment return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all dividends and distributions, if any, at net asset value during the period, and redemption on the last day of the period. Total return is not annualized for periods less than one year.
(e) Large increase due to one-off taxable stock dividends that were treating as income.
(f) Portfolio turnover rate calculated at Fund level and excludes the value of portfolio securities received in-kind in connection with Fund capital shares sold.
The accompanying notes are an integral part of the financial statements.
62
Financial Highlights
Semi-Annual Report June 30, 2020
Baillie Gifford Global Alpha Equities Fund
Selected data for a Class 3 share outstanding throughout each period:
For the Six Months Ended June 30, 2020 (unaudited) | For the Year Ended December 31, 2019 | For the Year Ended December 31, 2018 | For the Year Ended December 31, 2017 | For the Year Ended December 31, 2016 | For the Year Ended December 31, 2015 | ||||||||||||||||||||||
Net asset value, beginning of period | $ | 16.90 | $ | 13.46 | $ | 19.22 | $ | 14.79 | $ | 14.23 | $ | 14.26 | |||||||||||||||
From Investment Operations | |||||||||||||||||||||||||||
Net investment income(a) | 0.04 | 0.41 | 0.13 | 0.10 | 0.10 | 0.13 | |||||||||||||||||||||
Net realized and unrealized gain (loss) on investments and foreign currency | 0.62 | 3.99 | (1.97 | ) | 5.04 | 0.61 | 0.12 | (b) | |||||||||||||||||||
Net increase (decrease) in net asset value from investment operations | 0.66 | 4.40 | (1.84 | ) | 5.14 | 0.71 | 0.25 | ||||||||||||||||||||
Dividends and Distributions to Shareholders | |||||||||||||||||||||||||||
From net investment income | — | (0.58 | ) | (0.15 | ) | (0.14 | ) | (0.10 | ) | (0.12 | ) | ||||||||||||||||
From net realized gain on investments | — | (0.38 | ) | (3.77 | ) | (0.57 | ) | (0.05 | ) | (0.17 | ) | ||||||||||||||||
Total Dividends and Distributions | — | (0.96 | ) | (3.92 | ) | (0.71 | ) | (0.15 | ) | (0.29 | ) | ||||||||||||||||
Proceeds from Purchase Fees and Redemption Fees(a) | — | — | — | 0.00 | (c) | 0.00 | (c) | 0.01 | |||||||||||||||||||
Net asset value, end of period | $ | 17.56 | $ | 16.90 | $ | 13.46 | $ | 19.22 | $ | 14.79 | $ | 14.23 | |||||||||||||||
Total Return | |||||||||||||||||||||||||||
Total return based on net asset value(d) | 3.89 | % | 32.65 | % | (9.37 | )% | 34.65 | % | 5.02 | % | 1.84 | % | |||||||||||||||
Ratios/Supplemental Data | |||||||||||||||||||||||||||
Net assets, end of period (000's omitted) | $ | 590,760 | $ | 568,608 | $ | 449,177 | $ | 564,714 | $ | 593,513 | $ | 500,983 | |||||||||||||||
Ratio of net expenses to average net assets | 0.59 | %* | 0.60 | % | 0.61 | % | 0.60 | % | 0.60 | % | 0.59 | % | |||||||||||||||
Ratio of net investment income to average net assets | 0.51 | %* | 2.61 | %(e) | 0.67 | % | 0.60 | % | 0.75 | % | 0.85 | % | |||||||||||||||
Portfolio turnover rate(f) | 13 | % | 17 | % | 18 | % | 27 | % | 20 | % | 16 | % |
* Annualized.
(a) Calculated based upon average shares outstanding during the period.
(b) Calculation of the net gain or loss per share (both realized and unrealized) may not correlate to the aggregate realized and unrealized losses presented in the Statement of Operations due to the timing of sales and repurchases of Class shares in relation to fluctuating market values of the investments of the Fund.
(c) Amount is less than $0.005 per share.
(d) Total investment return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all dividends and distributions, if any, at net asset value during the period, and redemption on the last day of the period. Total return is not annualized for periods less than one year.
(e) Large increase due to one-off taxable stock dividends that were treating as income.
(f) Portfolio turnover rate calculated at Fund level and excludes the value of portfolio securities received in-kind in connection with Fund capital shares sold.
The accompanying notes are an integral part of the financial statements.
63
Financial Highlights
Semi-Annual Report June 30, 2020
Baillie Gifford Global Alpha Equities Fund
Selected data for a Class 4 share outstanding throughout each period:
For the Six Months Ended June 30, 2020 (unaudited) | For the Year Ended December 31, 2019 | For the Year Ended December 31, 2018 | For the Period July 10, 2017(a) through December 31, 2017 | ||||||||||||||||
Net asset value, beginning of period | $ | 17.34 | $ | 13.79 | $ | 19.58 | $ | 17.99 | |||||||||||
From Investment Operations | |||||||||||||||||||
Net investment income(b) | 0.04 | 0.42 | 0.11 | 0.01 | |||||||||||||||
Net realized and unrealized gain (loss) on investments and foreign currency | 0.64 | 4.10 | (1.98 | ) | 2.31 | ||||||||||||||
Net increase (decrease) in net asset value from investment operations | 0.68 | 4.52 | (1.87 | ) | 2.32 | ||||||||||||||
Dividends and Distributions to Shareholders | |||||||||||||||||||
From net investment income | — | (0.59 | ) | (0.15 | ) | (0.16 | ) | ||||||||||||
From net realized gain on investments | — | (0.38 | ) | (3.77 | ) | (0.57 | ) | ||||||||||||
Total Dividends and Distributions | — | (0.97 | ) | (3.92 | ) | (0.73 | ) | ||||||||||||
Net asset value, end of period | $ | 18.02 | $ | 17.34 | $ | 13.79 | $ | 19.58 | |||||||||||
Total Return | |||||||||||||||||||
Total return based on net asset value(c) | 3.91 | % | 32.69 | % | (9.35 | )% | 12.87 | % | |||||||||||
Ratios/Supplemental Data | |||||||||||||||||||
Net assets, end of period (000's omitted) | $ | 150,044 | $ | 147,092 | $ | 110,854 | $ | 367,908 | |||||||||||
Ratio of net expenses to average net assets | 0.56 | %* | 0.57 | % | 0.58 | % | 0.58 | %* | |||||||||||
Ratio of net investment income to average net assets | 0.53 | %* | 2.62 | %(d) | 0.57 | % | 0.15 | %* | |||||||||||
Portfolio turnover rate(e) | 13 | % | 17 | % | 18 | % | 27 | % |
* Annualized.
(a) Commencement of investment operations.
(b) Calculated based upon average shares outstanding during the period.
(c) Total investment return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all dividends and distributions, if any, at net asset value during the period, and redemption on the last day of the period. Total return is not annualized for periods less than one year.
(d) Large increase due to one-off taxable stock dividends that were treating as income.
(e) Portfolio turnover rate calculated at Fund level and excludes the value of portfolio securities received in-kind in connection with Fund capital shares sold.
The accompanying notes are an integral part of the financial statements.
64
Financial Highlights
Semi-Annual Report June 30, 2020
Baillie Gifford Global Alpha Equities Fund
Selected data for a Class K share outstanding throughout each period:
For the Six Months Ended June 30, 2020 (unaudited) | For the Year Ended December 31, 2019 | For the Year Ended December 31, 2018 | For the Period April 28, 2017(a) through December 31, 2017 | ||||||||||||||||
Net asset value, beginning of period | $ | 16.42 | $ | 13.11 | $ | 18.82 | $ | 16.56 | |||||||||||
From Investment Operations | |||||||||||||||||||
Net investment income(b) | 0.03 | 0.35 | 0.11 | 0.02 | |||||||||||||||
Net realized and unrealized gain (loss) on investments and foreign currency | 0.61 | 3.92 | (1.92 | ) | 2.96 | ||||||||||||||
Net increase (decrease) in net asset value from investment operations | 0.64 | 4.27 | (1.81 | ) | 2.98 | ||||||||||||||
Dividends and Distributions to Shareholders | |||||||||||||||||||
From net investment income | — | (0.58 | ) | (0.13 | ) | (0.15 | ) | ||||||||||||
From net realized gain on investments | — | (0.38 | ) | (3.77 | ) | (0.57 | ) | ||||||||||||
Total Dividends and Distributions | — | (0.96 | ) | (3.90 | ) | (0.72 | ) | ||||||||||||
Net asset value, end of period | $ | 17.06 | $ | 16.42 | $ | 13.11 | $ | 18.82 | |||||||||||
Total Return | |||||||||||||||||||
Total return based on net asset value(c) | 3.90 | % | 32.48 | % | (9.38 | )% | 17.97 | % | |||||||||||
Ratios/Supplemental Data | |||||||||||||||||||
Net assets, end of period (000's omitted) | $ | 161,327 | $ | 81,234 | $ | 41,427 | $ | 56,163 | |||||||||||
Ratio of net expenses to average net assets | 0.66 | %* | 0.67 | % | 0.68 | % | 0.68 | %* | |||||||||||
Ratio of net investment income to average net assets | 0.41 | %* | 2.22 | %(d) | 0.56 | % | 0.17 | %* | |||||||||||
Portfolio turnover rate(e) | 13 | % | 17 | % | 18 | % | 27 | % |
* Annualized.
(a) Commencement of investment operations.
(b) Calculated based upon average shares outstanding during the period.
(c) Total investment return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all dividends and distributions, if any, at net asset value during the period, and redemption on the last day of the period. Total return is not annualized for periods less than one year.
(d) Large increase due to one-off taxable stock dividends that were treating as income.
(e) Portfolio turnover rate calculated at Fund level and excludes the value of portfolio securities received in-kind in connection with Fund capital shares sold.
The accompanying notes are an integral part of the financial statements.
65
Financial Highlights
Semi-Annual Report June 30, 2020
Baillie Gifford Global Alpha Equities Fund
Selected data for an Institutional Class share outstanding throughout each period:
For the Six Months Ended June 30, 2020 (unaudited) | For the Year Ended December 31, 2019 | For the Year Ended December 31, 2018 | For the Period April 28, 2017(a) through December 31, 2017 | ||||||||||||||||
Net asset value, beginning of period | $ | 16.45 | $ | 13.12 | $ | 18.84 | $ | 16.56 | |||||||||||
From Investment Operations | |||||||||||||||||||
Net investment income(b) | 0.03 | 0.39 | 0.12 | 0.04 | |||||||||||||||
Net realized and unrealized gain (loss) on investments and foreign currency | 0.60 | 3.89 | (1.94 | ) | 2.95 | ||||||||||||||
Net increase (decrease) in net asset value from investment operations | 0.63 | 4.28 | (1.82 | ) | 2.99 | ||||||||||||||
Dividends and Distributions to Shareholders | |||||||||||||||||||
From net investment income | — | (0.57 | ) | (0.13 | ) | (0.14 | ) | ||||||||||||
From net realized gain on investments | — | (0.38 | ) | (3.77 | ) | (0.57 | ) | ||||||||||||
Total Dividends and Distributions | — | (0.95 | ) | (3.90 | ) | (0.71 | ) | ||||||||||||
Net asset value, end of period | $ | 17.08 | $ | 16.45 | $ | 13.12 | $ | 18.84 | |||||||||||
Total Return | |||||||||||||||||||
Total return based on net asset value(c) | 3.83 | % | 32.56 | % | (9.42 | )% | 18.03 | % | |||||||||||
Ratios/Supplemental Data | |||||||||||||||||||
Net assets, end of period (000's omitted) | $ | 15,683 | $ | 7 | $ | 5 | $ | 6 | |||||||||||
Ratio of net expenses to average net assets | 0.69 | %* | 0.67 | % | 0.68 | % | 0.67 | %* | |||||||||||
Ratio of net investment income to average net assets | 0.42 | %* | 2.56 | %(d) | 0.62 | % | 0.35 | %* | |||||||||||
Portfolio turnover rate(e) | 13 | % | 17 | % | 18 | % | 27 | % |
* Annualized.
(a) Commencement of investment operations.
(b) Calculated based upon average shares outstanding during the period.
(c) Total investment return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all dividends and distributions, if any, at net asset value during the period, and redemption on the last day of the period. Total return is not annualized for periods less than one year.
(d) Large increase due to one-off taxable stock dividends that were treating as income.
(e) Portfolio turnover rate calculated at Fund level and excludes the value of portfolio securities received in-kind in connection with Fund capital shares sold.
The accompanying notes are an integral part of the financial statements.
66
Industry Diversification Table
Semi-Annual Report June 30, 2020
June 30, 2020 (unaudited)
Baillie Gifford Global Stewardship Equities Fund
Value | % of Total Net Assets | ||||||||||
Advertising | $ | 62,195 | 1.4 | % | |||||||
Apparel | 58,794 | 1.3 | |||||||||
Auto Manufacturers | 204,084 | 4.6 | |||||||||
Auto Parts & Equipment | 23,530 | 0.5 | |||||||||
Banks | 118,882 | 2.6 | |||||||||
Biotechnology | 148,119 | 3.3 | |||||||||
Building Materials | 43,251 | 1.0 | |||||||||
Chemicals | 92,589 | 2.1 | |||||||||
Commercial Services | 342,166 | 7.7 | |||||||||
Distribution/Wholesale | 96,777 | 2.2 | |||||||||
Diversified Financial Services | 287,900 | 6.5 | |||||||||
Electronics | 25,617 | 0.6 | |||||||||
Food | 27,668 | 0.6 | |||||||||
Hand/Machine Tools | 55,561 | 1.3 | |||||||||
Healthcare — Products | 206,385 | 4.6 | |||||||||
Home Furnishings | 39,433 | 0.9 | |||||||||
Insurance | 173,798 | 3.9 | |||||||||
Internet | 1,267,291 | 28.2 | |||||||||
Machinery — Diversified | 176,592 | 4.0 | |||||||||
Metal Fabricate/Hardware | 32,641 | 0.7 | |||||||||
Pharmaceuticals | 82,174 | 1.8 | |||||||||
Real Estate | 75,648 | 1.7 | |||||||||
Retail | 55,269 | 1.2 | |||||||||
Semiconductors | 154,580 | 3.5 | |||||||||
Software | 289,003 | 6.4 | |||||||||
Telecommunications | 212,581 | 4.7 | |||||||||
Toys/Games/Hobbies | 28,788 | 0.6 | |||||||||
Total Value of Investments | 4,381,316 | 97.9 | |||||||||
Other assets less liabilities | 93,453 | 2.1 | |||||||||
Net Assets | $ | 4,474,769 | 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.
67
Portfolio of Investments
Semi-Annual Report June 30, 2020
June 30, 2020 (unaudited)
Baillie Gifford Global Stewardship Equities Fund
Shares | Value | ||||||||||
COMMON STOCKS — 97.9% | |||||||||||
CANADA — 5.6% | |||||||||||
Shopify, Inc., Class A * | 266 | $ | 252,487 | ||||||||
CHINA — 7.8% | |||||||||||
Alibaba Group Holding Ltd. * | 1,616 | 43,606 | |||||||||
Alibaba Group Holding Ltd. ADR * | 202 | 43,572 | |||||||||
Baidu, Inc. ADR * | 125 | 14,986 | |||||||||
JD.com, Inc. ADR * | 1,401 | 84,312 | |||||||||
Meituan Dianping, Class B * | 2,700 | 60,335 | |||||||||
Tencent Holdings Ltd. | 1,600 | 102,525 | |||||||||
349,336 | |||||||||||
DENMARK — 0.7% | |||||||||||
Novozymes A/S, B Shares | 517 | 29,974 | |||||||||
FRANCE — 1.5% | |||||||||||
Sartorius Stedim Biotech | 267 | 67,694 | |||||||||
GERMANY — 2.2% | |||||||||||
adidas AG * | 223 | 58,794 | |||||||||
Zalando SE * | 566 | 40,152 | |||||||||
98,946 | |||||||||||
HONG KONG — 2.3% | |||||||||||
AIA Group Ltd. | 6,800 | 63,632 | |||||||||
Hong Kong Exchanges & Clearing Ltd. | 900 | 38,333 | |||||||||
101,965 | |||||||||||
IRELAND — 0.8% | |||||||||||
COSMO Pharmaceuticals NV * | 400 | 36,630 | |||||||||
JAPAN — 10.2% | |||||||||||
CyberAgent, Inc. | 400 | 19,661 | |||||||||
Denso Corp. | 600 | 23,530 | |||||||||
DMG Mori Seiki Co., Ltd. | 1,700 | 20,772 | |||||||||
FANUC Corp. | 200 | 35,854 | |||||||||
FANUC Corp. ADR | 1,840 | 32,789 | |||||||||
Gree, Inc. | 6,400 | 27,510 |
The accompanying notes are an integral part of the financial statements.
68
Portfolio of Investments
Semi-Annual Report June 30, 2020
June 30, 2020 (unaudited)
Baillie Gifford Global Stewardship Equities Fund
Shares | Value | ||||||||||
Kubota Corp. | 2,500 | $ | 37,397 | ||||||||
MISUMI Group, Inc. | 1,300 | 32,641 | |||||||||
Nintendo Co., Ltd. ADR | 515 | 28,788 | |||||||||
SoftBank Group Corp. | 3,300 | 166,411 | |||||||||
Sumitomo Mitsui Trust Holdings, Inc. | 1,300 | 36,634 | |||||||||
461,987 | |||||||||||
NETHERLANDS — 1.4% | |||||||||||
IMCD NV * | 664 | 62,615 | |||||||||
SOUTH KOREA — 1.0% | |||||||||||
Samsung SDI Co., Ltd. | 151 | 46,170 | |||||||||
SWEDEN — 2.6% | |||||||||||
Atlas Copco AB, B Shares | 1,085 | 40,317 | |||||||||
Beijer Ref AB | 997 | 30,235 | |||||||||
Nibe Industrier AB, B Shares * | 1,950 | 43,251 | |||||||||
113,803 | |||||||||||
SWITZERLAND — 0.8% | |||||||||||
Schindler Holding AG, Participating Certificates | 147 | 34,789 | |||||||||
TAIWAN — 1.9% | |||||||||||
Taiwan Semiconductor Manufacturing Co., Ltd. | 8,000 | 85,436 | |||||||||
UNITED KINGDOM — 4.2% | |||||||||||
Hargreaves Lansdown PLC | 1,800 | 36,299 | |||||||||
Just Group PLC * | 36,025 | 23,494 | |||||||||
Ocado Group PLC * | 1,101 | 27,668 | |||||||||
Prudential PLC | 3,669 | 55,284 | |||||||||
St James's Place PLC | 3,811 | 44,811 | |||||||||
187,556 | |||||||||||
UNITED STATES — 54.9% | |||||||||||
ABIOMED, Inc. * | 240 | 57,974 | |||||||||
Alphabet, Inc., Class A * | 64 | 90,755 | |||||||||
Amazon.com, Inc. * | 83 | 228,982 | |||||||||
Chegg, Inc. * | 2,138 | 143,802 | |||||||||
Denali Therapeutics, Inc. * | 1,217 | 29,427 | |||||||||
Exact Sciences Corp. * | 296 | 25,734 |
The accompanying notes are an integral part of the financial statements.
69
Portfolio of Investments
Semi-Annual Report June 30, 2020
June 30, 2020 (unaudited)
Baillie Gifford Global Stewardship Equities Fund
Shares | Value | ||||||||||
Fastenal Co. | 1,193 | $ | 51,108 | ||||||||
First Republic Bank | 776 | 82,248 | |||||||||
Glaukos Corp. * | 387 | 14,869 | |||||||||
Illumina, Inc. * | 251 | 92,958 | |||||||||
Interactive Brokers Group, Inc., Class A | 1,004 | 41,937 | |||||||||
iRobot Corp. * | 470 | 39,433 | |||||||||
LendingTree, Inc. * | 246 | 71,224 | |||||||||
Lyft, Inc., Class A * | 509 | 16,802 | |||||||||
Markel Corp. * | 34 | 31,388 | |||||||||
MarketAxess Holdings, Inc. | 396 | 198,364 | |||||||||
Mastercard, Inc., Class A | 187 | 55,296 | |||||||||
Netflix, Inc. * | 292 | 132,872 | |||||||||
NVIDIA Corp. | 182 | 69,144 | |||||||||
Pacira BioSciences, Inc. * | 868 | 45,544 | |||||||||
Redfin Corp. * | 1,805 | 75,648 | |||||||||
Slack Technologies, Inc., Class A * | 1,253 | 38,956 | |||||||||
Spotify Technology SA * | 312 | 80,555 | |||||||||
STAAR Surgical Co. * | 1,070 | 65,848 | |||||||||
Tesla, Inc. * | 189 | 204,084 | |||||||||
TJX Cos, Inc. (The) | 299 | 15,117 | |||||||||
Trade Desk, Inc. (The), Class A * | 153 | 62,195 | |||||||||
Twilio, Inc., Class A * | 138 | 30,280 | |||||||||
Waters Corp.* | 142 | 25,617 | |||||||||
Watsco, Inc. | 257 | 45,669 | |||||||||
Wayfair, Inc., Class A * | 485 | 95,841 | |||||||||
Workday, Inc., Class A * | 490 | 91,806 | |||||||||
Yext, Inc. * | 1,102 | 18,304 | |||||||||
Zoom Video Communications, Inc., Class A * | 324 | 82,147 | |||||||||
2,451,928 | |||||||||||
TOTAL INVESTMENTS — 97.9% | |||||||||||
(cost $3,012,443) | $ | 4,381,316 | |||||||||
Other assets less liabilities — 2.1% | 93,453 | ||||||||||
NET ASSETS — 100.0% | $ | 4,474,769 |
* 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.
70
Portfolio of Investments
Semi-Annual Report June 30, 2020
Fair Value Measurement
The following is a summary of the inputs used as of June 30, 2020 in valuing the Fund's investments carried at fair value:
Investments in Securities | Level 1 | Level 2 | Level 3 | Total | |||||||||||||||
Common Stocks ** | $ | 2,908,862 | $ | 1,472,454 | $ | — | $ | 4,381,316 | |||||||||||
Total | $ | 2,908,862 | $ | 1,472,454 | $ | — | $ | 4,381,316 |
** Refer to Portfolio of Investments for further detail.
The accompanying notes are an integral part of the financial statements.
71
Statement of Assets and Liabilities
Semi-Annual Report June 30, 2020
June 30, 2020 (unaudited)
Baillie Gifford Global Stewardship Equities Fund
ASSETS | |||||||
Investments, at value (cost $3,012,443) | $ | 4,381,316 | |||||
Cash | 100,207 | ||||||
Receivable for investments sold | 44,715 | ||||||
Due from Investment Advisor | 35,043 | ||||||
Dividends receivable | 1,977 | ||||||
Tax reclaims receivable | 882 | ||||||
Prepaid assets | 17,384 | ||||||
Total Assets | 4,581,524 | ||||||
LIABILITIES | |||||||
Advisory fee payable | 3,145 | ||||||
Payable for investment purchased | 41,876 | ||||||
Administration & Supervisory fee payable | 1,620 | ||||||
Trustee fee payable | 31 | ||||||
Commitment fee payable | 14 | ||||||
Accrued expenses | 60,069 | ||||||
Total Liabilities | 106,755 | ||||||
NET ASSETS | $ | 4,474,769 | |||||
COMPOSITION OF NET ASSETS | |||||||
Paid-in capital | $ | 3,073,049 | |||||
Total distributable earnings | 1,401,720 | ||||||
$ | 4,474,769 | ||||||
NET ASSET VALUE, PER SHARE | |||||||
Class K ( $2,237,384 / 153,535 shares outstanding), unlimited authorized, no par value | $ | 14.57 | |||||
Institutional Class ( $2,237,385 / 153,535 shares outstanding), unlimited authorized, no par value | $ | 14.57 |
The accompanying notes are an integral part of the financial statements.
72
Statement of Operations
Semi-Annual Report June 30, 2020
For the Six Months Ended June 30, 2020 (unaudited)
Baillie Gifford Global Stewardship Equities Fund
INVESTMENT INCOME | |||||||
Dividends (net of foreign withholding taxes of $915) | $ | 12,407 | |||||
Interest | 27 | ||||||
Total Investment Income | 12,434 | ||||||
EXPENSES | |||||||
Advisory fee (Note B) | 6,029 | ||||||
Administration & Supervisory fee — Class K shares (Note B) | 1,553 | ||||||
Administration & Supervisory fee — Institutional Class shares (Note B) | 1,553 | ||||||
Transfer agency | 15,728 | ||||||
Fund accounting | 47,198 | ||||||
Registration fees | 20,329 | ||||||
Professional fees | 13,301 | ||||||
Custody | 1,312 | ||||||
Legal | 350 | ||||||
Trustees' fees | 64 | ||||||
Commitment fees | 39 | ||||||
Miscellaneous | 3,557 | ||||||
Total Expenses | 111,013 | ||||||
Fees waived | (99,137 | ) | |||||
Net Expenses | 11,876 | ||||||
Net Investment Income | 558 | ||||||
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS AND FOREIGN CURRENCY TRANSACTIONS | |||||||
Net realized gain (loss) from: | |||||||
Investments | 34,676 | ||||||
Foreign currency transactions | 174 | ||||||
34,850 | |||||||
Net change in unrealized appreciation (depreciation) on: | |||||||
Investments | 872,353 | ||||||
Translation of net assets and liabilities denominated in foreign currencies | (28 | ) | |||||
872,325 | |||||||
Net realized and unrealized gain | 907,175 | ||||||
NET INCREASE IN NET ASSETS FROM OPERATIONS | $ | 907,733 |
The accompanying notes are an integral part of the financial statements.
73
Statements of Changes in Net Assets
Semi-Annual Report June 30, 2020
Baillie Gifford Global Stewardship Equities Fund
For the Six Months Ended June 30, 2020 (unaudited) | For the Year Ended December 31, 2019 | ||||||||||
INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS | |||||||||||
Net investment income | $ | 558 | $ | 7,931 | |||||||
Net realized gain | 34,850 | 61,120 | |||||||||
Net change in unrealized appreciation | 872,325 | 741,025 | |||||||||
Net increase in net assets from operations | 907,733 | 810,076 | |||||||||
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS FROM: | |||||||||||
Distributable earnings | |||||||||||
Class K | — | (21,386 | ) | ||||||||
Institutional Class | — | (21,386 | ) | ||||||||
Total Distributions to Shareholders | — | (42,772 | ) | ||||||||
TRANSACTIONS IN SHARES OF BENEFICIAL INTEREST | |||||||||||
Dividends reinvested: | |||||||||||
Class K | — | 21,386 | |||||||||
Institutional Class | — | 21,386 | |||||||||
Increase in Net Assets from Transactions in Shares of Beneficial Interest | — | 42,772 | |||||||||
Total Increase in Net Assets | 907,733 | 810,076 | |||||||||
NET ASSETS | |||||||||||
Beginning of period | 3,567,036 | 2,756,960 | |||||||||
End of period | $ | 4,474,769 | $ | 3,567,036 |
The accompanying notes are an integral part of the financial statements.
74
Financial Highlights
Semi-Annual Report June 30, 2020
Baillie Gifford Global Stewardship Equities Fund
Selected data for a Class K share outstanding throughout each period:
For the Six Months Ended June 30, 2020 (unaudited) | For the Year Ended December 31, 2019 | For the Year Ended December 31, 2018 | For the Period December 14, 2017(a) through December 31, 2017 | ||||||||||||||||
Net asset value, beginning of period | $ | 11.62 | $ | 9.09 | $ | 10.15 | $ | 10.00 | |||||||||||
From Investment Operations | |||||||||||||||||||
Net investment income(b) | 0.00 | (c)ˇ | 0.03 | 0.03 | (0.00 | )(c) | |||||||||||||
Net realized and unrealized gain (loss) on investments and foreign currency | 2.95 | 2.64 | (0.99 | ) | 0.15 | ||||||||||||||
Net increase (decrease) in net asset value from investment operations | 2.95 | 2.67 | (0.96 | ) | 0.15 | ||||||||||||||
Dividends and Distributions to Shareholders | |||||||||||||||||||
From net investment income | — | (0.03 | ) | (0.02 | ) | — | |||||||||||||
From net realized gain on investments | — | (0.11 | ) | (0.08 | ) | — | |||||||||||||
Total Dividends and Distributions | — | (0.14 | ) | (0.10 | ) | — | |||||||||||||
Net asset value, end of period | $ | 14.57 | $ | 11.62 | $ | 9.09 | $ | 10.15 | |||||||||||
Total Return | |||||||||||||||||||
Total return based on net asset value(d) | 25.39 | % | 29.37 | % | (9.43 | )% | 1.50 | % | |||||||||||
Ratios/Supplemental Data | |||||||||||||||||||
Net assets, end of period (000's omitted) | $ | 2,237 | $ | 1,784 | $ | 1,378 | $ | 1,523 | |||||||||||
Ratio of net expenses to average net assets, before waiver | 6.08 | %* | 6.60 | % | 5.53 | % | 18.55 | %* | |||||||||||
Ratio of net expenses to average net assets, after waiver | 0.65 | %* | 0.65 | % | 0.65 | % | 0.65 | %* | |||||||||||
Ratio of net investment income (loss) to average net assets | 0.03 | %* | 0.24 | % | 0.25 | % | (0.31 | )%* | |||||||||||
Portfolio turnover rate(e) | 8 | % | 21 | % | 14 | % | 0 | % |
* Annualized.
(a) Commencement of investment operations.
(b) Calculated based upon average shares outstanding during the period.
(c) Amount is less than $0.005 per share.
(d) Total investment return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all dividends and distributions, if any, at net asset value during the period, and redemption on the last day of the period. Total return is not annualized for periods less than one year.
(e) Portfolio turnover rate calculated at Fund level.
The accompanying notes are an integral part of the financial statements.
75
Financial Highlights
Semi-Annual Report June 30, 2020
Baillie Gifford Global Stewardship Equities Fund
Selected data for an Institutional Class share outstanding throughout each period:
For the Six Months Ended June 30, 2020 (unaudited) | For the Year Ended December 31, 2019 | For the Year Ended December 31, 2018 | For the Period December 14, 2017(a) through December 31, 2017 | ||||||||||||||||
Net asset value, beginning of period | $ | 11.62 | $ | 9.09 | $ | 10.15 | $ | 10.00 | |||||||||||
From Investment Operations | |||||||||||||||||||
Net investment income(b) | 0.00 | (c) | 0.03 | 0.03 | (0.00 | )(c) | |||||||||||||
Net realized and unrealized gain (loss) on investments and foreign currency | 2.95 | 2.64 | (0.99 | ) | 0.15 | ||||||||||||||
Net increase (decrease) in net asset value from investment operations | 2.95 | 2.67 | (0.96 | ) | 0.15 | ||||||||||||||
Dividends and Distributions to Shareholders | |||||||||||||||||||
From net investment income | — | (0.03 | ) | (0.02 | ) | — | |||||||||||||
From net realized gain on investments | — | (0.11 | ) | (0.08 | ) | — | |||||||||||||
Total Dividends and Distributions | — | (0.14 | ) | (0.10 | ) | — | |||||||||||||
Net asset value, end of period | $ | 14.57 | $ | 11.62 | $ | 9.09 | $ | 10.15 | |||||||||||
Total Return | |||||||||||||||||||
Total return based on net asset value(d) | 25.39 | % | 29.37 | % | (9.43 | )% | 1.50 | % | |||||||||||
Ratios/Supplemental Data | |||||||||||||||||||
Net assets, end of period (000's omitted) | $ | 2,238 | $ | 1,784 | $ | 1,379 | $ | 1,523 | |||||||||||
Ratio of net expenses to average net assets, before waiver | 6.08 | %* | 6.60 | % | 5.53 | % | 18.55 | %* | |||||||||||
Ratio of net expenses to average net assets, after waiver | 0.65 | %* | 0.65 | % | 0.65 | % | 0.80 | %* | |||||||||||
Ratio of net investment income (loss) to average net assets | 0.03 | %* | 0.24 | % | 0.25 | % | (0.31 | )%* | |||||||||||
Portfolio turnover rate(e) | 8 | % | 21 | % | 14 | % | 0 | % |
* Annualized.
(a) Commencement of investment operations.
(b) Calculated based upon average shares outstanding during the period.
(c) Amount is less than $0.005 per share.
(d) Total investment return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all dividends and distributions, if any, at net asset value during the period, and redemption on the last day of the period. Total return is not annualized for periods less than one year.
(e) Portfolio turnover rate calculated at Fund level.
The accompanying notes are an integral part of the financial statements.
76
Industry Diversification Table
Semi-Annual Report June 30, 2020
June 30, 2020 (unaudited)
Baillie Gifford International Alpha Fund
Value | % of Total Net Assets | ||||||||||
Airlines | $ | 64,488,166 | 2.1 | % | |||||||
Apparel | 50,136,630 | 1.7 | |||||||||
Auto Parts & Equipment | 30,028,496 | 1.0 | |||||||||
Banks | 70,495,356 | 2.3 | |||||||||
Beverages | 32,160,220 | 1.1 | |||||||||
Biotechnology | 44,195,178 | 1.5 | |||||||||
Building Materials | 79,767,063 | 2.6 | |||||||||
Chemicals | 125,437,831 | 4.2 | |||||||||
Commercial Services | 163,652,795 | 5.3 | |||||||||
Distribution/Wholesale | 25,289,669 | 0.8 | |||||||||
Diversified Financial Services | 303,425,402 | 10.1 | |||||||||
Electrical Components & Equipment | 27,316,866 | 0.9 | |||||||||
Electronics | 51,840,283 | 1.7 | |||||||||
Food | 165,086,868 | 5.5 | |||||||||
Healthcare — Products | 27,162,301 | 0.9 | |||||||||
Healthcare — Services | 43,421,972 | 1.4 | |||||||||
Home Furnishings | 38,237,354 | 1.2 | |||||||||
Insurance | 152,854,406 | 5.1 | |||||||||
Internet | 594,525,589 | 19.7 | |||||||||
Leisure Time | 46,091,622 | 1.5 | |||||||||
Machinery — Construction & Mining | 34,629,055 | 1.1 | |||||||||
Machinery — Diversified | 194,459,505 | 6.4 | |||||||||
Mining | 70,452,223 | 2.4 | |||||||||
Pharmaceuticals | 35,255,515 | 1.1 | |||||||||
Retail | 56,121,695 | 1.9 | |||||||||
Semiconductors | 202,074,543 | 6.7 | |||||||||
Software | 131,045,044 | 4.3 | |||||||||
Toys/Games/Hobbies | 31,563,061 | 1.0 | |||||||||
Transportation | 71,032,196 | 2.3 | |||||||||
Total Value of Investments | 2,962,246,904 | 97.8 | |||||||||
Other assets less liabilities | 66,208,324 | 2.2 | |||||||||
Net Assets | $ | 3,028,455,228 | 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.
77
Portfolio of Investments
Semi-Annual Report June 30, 2020
June 30, 2020 (unaudited)
Baillie Gifford International Alpha Fund
Shares | Value | ||||||||||
COMMON STOCKS — 97.2% | |||||||||||
ARGENTINA — 4.7% | |||||||||||
MercadoLibre, Inc. * | 142,893 | $ | 140,859,633 | ||||||||
AUSTRALIA — 4.0% | |||||||||||
Cochlear Ltd. | 206,890 | 27,162,301 | |||||||||
CSL Ltd. | 222,211 | 44,195,178 | |||||||||
Rio Tinto PLC | 895,908 | 50,418,448 | |||||||||
121,775,927 | |||||||||||
BELGIUM — 0.9% | |||||||||||
Umicore SA | 561,033 | 26,482,930 | |||||||||
CANADA — 1.7% | |||||||||||
Constellation Software, Inc. | 27,659 | 31,230,263 | |||||||||
Ritchie Bros. Auctioneers, Inc. | 502,998 | 20,547,468 | |||||||||
51,777,731 | |||||||||||
CHINA — 10.1% | |||||||||||
Alibaba Group Holding Ltd. * | 1,790,104 | 48,303,812 | |||||||||
Alibaba Group Holding Ltd. ADR * | 159,398 | 34,382,149 | |||||||||
Meituan Dianping, Class B * | 1,511,600 | 33,778,783 | |||||||||
Ping An Healthcare and Technology Co., Ltd. * | 2,832,200 | 43,421,972 | |||||||||
Ping An Insurance Group Co. of China Ltd., Class H | 3,258,500 | 32,483,960 | |||||||||
Prosus NV * | 188,783 | 17,548,878 | |||||||||
Tencent Holdings Ltd. | 993,900 | 63,687,038 | |||||||||
Tencent Music Entertainment Group ADR * | 2,322,309 | 31,258,279 | |||||||||
304,864,871 | |||||||||||
DENMARK — 3.6% | |||||||||||
Chr. Hansen Holding A/S | 266,091 | 27,446,080 | |||||||||
DSV Panalpina A/S | 326,958 | 40,161,876 | |||||||||
Novozymes A/S, B Shares | 722,577 | 41,892,058 | |||||||||
109,500,014 | |||||||||||
FINLAND — 1.7% | |||||||||||
Kone Oyj, B Shares | 754,072 | 52,007,663 |
The accompanying notes are an integral part of the financial statements.
78
Portfolio of Investments
Semi-Annual Report June 30, 2020
June 30, 2020 (unaudited)
Baillie Gifford International Alpha Fund
Shares | Value | ||||||||||
FRANCE — 3.2% | |||||||||||
Danone SA * | 439,520 | $ | 30,508,339 | ||||||||
Edenred | 923,228 | 40,490,888 | |||||||||
Legrand SA | 359,517 | 27,316,866 | |||||||||
98,316,093 | |||||||||||
GERMANY — 8.0% | |||||||||||
Deutsche Boerse AG | 449,760 | 81,395,722 | |||||||||
Rational AG | 2,257 | 1,264,790 | |||||||||
SAP SE | 517,137 | 72,289,980 | |||||||||
Scout24 AG | 1,126,266 | 87,136,250 | |||||||||
242,086,742 | |||||||||||
HONG KONG — 4.0% | |||||||||||
AIA Group Ltd. | 7,132,600 | 66,744,054 | |||||||||
Hong Kong Exchanges & Clearing Ltd. | 1,264,100 | 53,840,208 | |||||||||
120,584,262 | |||||||||||
INDIA — 1.7% | |||||||||||
Housing Development Finance Corp., Ltd. | 2,254,995 | 52,433,419 | |||||||||
IRELAND — 4.2% | |||||||||||
CRH PLC | 1,015,537 | 34,850,475 | |||||||||
Kingspan Group PLC | 695,777 | 44,916,588 | |||||||||
Ryanair Holdings PLC ADR * | 719,759 | 47,748,812 | |||||||||
127,515,875 | |||||||||||
JAPAN — 12.3% | |||||||||||
Denso Corp. | 765,700 | 30,028,496 | |||||||||
FANUC Corp. | 190,800 | 34,204,715 | |||||||||
Japan Exchange Group, Inc. | 2,573,700 | 59,606,733 | |||||||||
Nidec Corp. | 769,500 | 51,840,283 | |||||||||
Nintendo Co., Ltd. | 70,600 | 31,563,061 | |||||||||
Shimano, Inc. | 239,700 | 46,091,622 | |||||||||
SMC Corp. | 109,600 | 56,325,746 | |||||||||
Sony Corp. | 535,600 | 36,972,564 | |||||||||
Toyota Tsusho Corp. | 991,700 | 25,289,669 | |||||||||
371,922,889 |
The accompanying notes are an integral part of the financial statements.
79
Portfolio of Investments
Semi-Annual Report June 30, 2020
June 30, 2020 (unaudited)
Baillie Gifford International Alpha Fund
Shares | Value | ||||||||||
NETHERLANDS — 5.7% | |||||||||||
Adyen NV * | 11,329 | $ | 16,489,214 | ||||||||
ASML Holding NV | 104,067 | 38,068,896 | |||||||||
Heineken Holding NV | 392,933 | 32,160,220 | |||||||||
IMCD NV * | 314,073 | 29,616,763 | |||||||||
Just Eat Takeaway * | 426,199 | 44,548,249 | |||||||||
Just Eat Takeaway * | 101,626 | 10,597,074 | |||||||||
171,480,416 | |||||||||||
PANAMA — 0.6% | |||||||||||
Copa Holdings SA, Class A | 331,079 | 16,739,354 | |||||||||
PERU — 0.6% | |||||||||||
Credicorp Ltd. | 140,128 | 18,730,910 | |||||||||
RUSSIA — 1.2% | |||||||||||
Magnit PJSC GDR Reg S | 1,309,809 | 17,032,890 | |||||||||
MMC Norilsk Nickel PJSC ADR | 766,445 | 20,033,775 | |||||||||
37,066,665 | |||||||||||
SINGAPORE — 0.7% | |||||||||||
United Overseas Bank Ltd. | 1,458,872 | 21,316,845 | |||||||||
SOUTH AFRICA — 1.9% | |||||||||||
Discovery Ltd. | 3,902,497 | 23,574,695 | |||||||||
Naspers Ltd., N Shares | 190,498 | 35,009,795 | |||||||||
58,584,490 | |||||||||||
SOUTH KOREA — 3.3% | |||||||||||
NAVER Corp. | 171,097 | 38,493,964 | |||||||||
Samsung Electronics Co., Ltd. | 1,389,841 | 61,524,970 | |||||||||
100,018,934 | |||||||||||
SPAIN — 3.6% | |||||||||||
Amadeus IT Group SA | 644,177 | 33,820,521 | |||||||||
Bankinter SA | 3,843,909 | 18,424,251 | |||||||||
Grifols SA | 640,970 | 19,490,550 | |||||||||
Grifols SA ADR | 464,903 | 8,479,831 | |||||||||
Industria de Diseno Textil SA | 1,090,909 | 28,945,452 | |||||||||
109,160,605 |
The accompanying notes are an integral part of the financial statements.
80
Portfolio of Investments
Semi-Annual Report June 30, 2020
June 30, 2020 (unaudited)
Baillie Gifford International Alpha Fund
Shares | Value | ||||||||||
SWEDEN — 2.9% | |||||||||||
Atlas Copco AB, B Shares | 1,397,312 | $ | 51,921,381 | ||||||||
Epiroc AB, B Shares | 2,819,695 | 34,629,055 | |||||||||
86,550,436 | |||||||||||
SWITZERLAND — 4.9% | |||||||||||
Compagnie Financiere Richemont SA | 421,335 | 27,176,243 | |||||||||
Kuehne + Nagel International AG * | 185,331 | 30,870,320 | |||||||||
Nestle SA | 562,821 | 62,400,316 | |||||||||
Temenos AG | 177,095 | 27,524,801 | |||||||||
147,971,680 | |||||||||||
TAIWAN — 3.4% | |||||||||||
Taiwan Semiconductor Manufacturing Co., Ltd. | 9,596,000 | 102,480,677 | |||||||||
UNITED KINGDOM — 6.2% | |||||||||||
boohoo Group PLC * | 5,112,036 | 26,178,256 | |||||||||
Burberry Group PLC | 1,212,466 | 23,958,374 | |||||||||
Experian PLC | 1,490,216 | 52,304,704 | |||||||||
Hargreaves Lansdown PLC | 1,920,265 | 38,724,148 | |||||||||
Prudential PLC | 1,994,403 | 30,051,697 | |||||||||
St James's Place PLC | 1,481,931 | 17,425,172 | |||||||||
188,642,351 | |||||||||||
UNITED STATES — 2.1% | |||||||||||
Spotify Technology SA * | 248,139 | 64,067,008 | |||||||||
Total Common Stocks | |||||||||||
(cost $2,045,637,497) | 2,942,938,420 | ||||||||||
PREFERRED STOCKS — 0.6% | |||||||||||
BRAZIL — 0.4% | |||||||||||
Itau Unibanco Holding SA ADR 9.21% | 2,563,614 | 12,023,350 | |||||||||
SPAIN — 0.2% | |||||||||||
Grifols SA, B Shares 2.04% | 397,170 | 7,285,134 | |||||||||
Total Preferred Stocks | |||||||||||
(cost $28,350,402) | 19,308,484 |
The accompanying notes are an integral part of the financial statements.
81
Portfolio of Investments
Semi-Annual Report June 30, 2020
June 30, 2020 (unaudited)
Baillie Gifford International Alpha Fund
Value | |||||||
TOTAL INVESTMENTS — 97.8% | |||||||
(cost $2,073,987,899) | $ | 2,962,246,904 | |||||
Other assets less liabilities — 2.2% | 66,208,324 | ||||||
NET ASSETS — 100.0% | $ | 3,028,455,228 |
* 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). At June 30, 2020, the net value of these securities was $17,032,890 representing 0.6% 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, 2020 in valuing the Fund's investments carried at fair value:
Investments in Securities | Level 1 | Level 2 | Level 3 | Total | |||||||||||||||
Common Stocks ** | $ | 480,242,019 | $ | 2,462,696,401 | $ | — | $ | 2,942,938,420 | |||||||||||
Preferred Stocks ** | 12,023,350 | 7,285,134 | — | 19,308,484 | |||||||||||||||
Total | $ | 492,265,369 | $ | 2,469,981,535 | $ | — | $ | 2,962,246,904 |
** Refer to Portfolio of Investments for further detail.
The accompanying notes are an integral part of the financial statements.
82
Statement of Assets and Liabilities
Semi-Annual Report June 30, 2020
June 30, 2020 (unaudited)
Baillie Gifford International Alpha Fund
ASSETS | |||||||
Investments, at value (cost $2,073,987,899) | $ | 2,962,246,904 | |||||
Cash | 59,375,147 | ||||||
Foreign Cash, at value (cost $784,762) | 785,127 | ||||||
Capital shares sold receivable | 4,872,894 | ||||||
Receivable for investments sold | 3,083,503 | ||||||
Dividends receivable | 2,168,610 | ||||||
Tax reclaims receivable | 1,446,498 | ||||||
Prepaid assets | 3,397 | ||||||
Total Assets | 3,033,982,080 | ||||||
LIABILITIES | |||||||
Advisory fee payable | 2,181,016 | ||||||
Payable for investment purchased | 1,267,096 | ||||||
Servicing fee payable | 436,953 | ||||||
Capital shares purchased payable | 615,407 | ||||||
Administration & Supervisory fee | 333,699 | ||||||
Trustee fee payable | 23,165 | ||||||
Commitment fee payable | 5,389 | ||||||
Accrued expenses | 664,127 | ||||||
Total Liabilities | 5,526,852 | ||||||
NET ASSETS | $ | 3,028,455,228 | |||||
COMPOSITION OF NET ASSETS | |||||||
Paid-in capital | $ | 2,129,810,484 | |||||
Total distributable earnings | 898,644,744 | ||||||
$ | 3,028,455,228 | ||||||
NET ASSET VALUE, PER SHARE | |||||||
Class 2 ( $311,486,511 / 23,075,824 shares outstanding), unlimited authorized, no par value | $ | 13.50 | |||||
Class 3 ( $980,341,271 / 71,582,497 shares outstanding), unlimited authorized, no par value | $ | 13.70 | |||||
Class 4 ( $577,324,188 / 41,436,719 shares outstanding), unlimited authorized, no par value | $ | 13.93 | |||||
Class 5 ( $117,701,978 / 8,293,932 shares outstanding), unlimited authorized, no par value | $ | 14.19 | |||||
Class K ( $647,702,978 / 48,136,807 shares outstanding), unlimited authorized, no par value | $ | 13.46 | |||||
Institutional Class ( $393,898,302 / 29,182,353 shares outstanding), unlimited authorized, no par value | $ | 13.50 |
The accompanying notes are an integral part of the financial statements.
83
Statement of Operations
Semi-Annual Report June 30, 2020
For the Six Months Ended June 30, 2020 (unaudited)
Baillie Gifford International Alpha Fund
INVESTMENT INCOME | |||||||
Dividends (net of foreign withholding taxes of $2,733,151) | $ | 24,368,057 | |||||
Interest | 17,279 | ||||||
Total Investment Income | 24,385,336 | ||||||
Expenses | |||||||
Advisory fee (Note B) | 4,283,550 | ||||||
Shareholder Servicing fees — Class 2 shares (Note B) | 302,470 | ||||||
Shareholder Servicing fees — Class 3 shares (Note B) | 390,429 | ||||||
Shareholder Servicing fees — Class 4 shares (Note B) | 185,608 | ||||||
Shareholder Servicing fees — Class 5 shares (Note B) | 10,056 | ||||||
Administration & Supervisory fee — Class K shares (Note B) | 487,418 | ||||||
Administration & Supervisory fee — Institutional Class shares (Note B) | 141,339 | ||||||
Transfer agency | 59,927 | ||||||
Sub-transfer agency — Institutional Class shares | 42,122 | ||||||
Fund accounting | 437,747 | ||||||
Custody | 214,310 | ||||||
Legal | 212,454 | ||||||
Trustees' fees | 45,484 | ||||||
Registration fees | 39,733 | ||||||
Professional fees | 34,829 | ||||||
Commitment fees | 10,395 | ||||||
Insurance | 9,261 | ||||||
Miscellaneous | 36,074 | ||||||
Total Expenses | 6,943,206 | ||||||
Net Investment Income | 17,442,130 | ||||||
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS AND FOREIGN CURRENCY TRANSACTIONS | |||||||
Net realized gain (loss) from: | |||||||
Investments (net of Indian capital gains tax benefit of $3,289) | 13,931,010 | ||||||
Forward foreign currency contracts | (293,039 | ) | |||||
13,637,971 | |||||||
Net change in unrealized appreciation (depreciation) on: | |||||||
Investments (net of Indian capital gains tax benefit of $1,369,366) (Note A) | 8,256,474 | ||||||
Translation of net assets and liabilities denominated in foreign currencies | (6,084 | ) | |||||
8,250,390 | |||||||
Net realized and unrealized gain | 21,888,361 | ||||||
NET INCREASE IN NET ASSETS FROM OPERATIONS | $ | 39,330,491 |
The accompanying notes are an integral part of the financial statements.
84
Statements of Changes in Net Assets
Semi-Annual Report June 30, 2020
Baillie Gifford International Alpha Fund
For the Six Months Ended June 30, 2020 (unaudited) | For the Year Ended December 31, 2019 | ||||||||||
INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS | |||||||||||
Net investment income | $ | 17,442,130 | $ | 47,079,488 | |||||||
Net realized gain | 13,637,971 | 44,312,454 | |||||||||
Net change in unrealized appreciation | 8,250,390 | 513,538,512 | |||||||||
Net increase in net assets from operations | 39,330,491 | 604,930,454 | |||||||||
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS FROM: | |||||||||||
Distributable earnings | |||||||||||
Class 2 | — | (24,482,634 | ) | ||||||||
Class 3 | — | (31,689,022 | ) | ||||||||
Class 4 | — | (27,316,172 | ) | ||||||||
Class 5 | — | (4,893,497 | ) | ||||||||
Class K | — | (27,292,246 | ) | ||||||||
Institutional Class | — | (6,083,997 | ) | ||||||||
Total Distributions to Shareholders | — | (121,757,568 | ) | ||||||||
TRANSACTIONS IN SHARES OF BENEFICIAL INTEREST | |||||||||||
Net proceeds from shares subscribed: | |||||||||||
Class 2 | 72,003,000 | 107,216,862 | * | ||||||||
Class 3 | 287,090,504 | * | 202,113,924 | * | |||||||
Class 4 | — | 204,511,879 | * | ||||||||
Class 5 | 11,000,000 | — | |||||||||
Class K | 122,715,484 | 197,754,517 | |||||||||
Institutional Class | 263,475,534 | * | 100,370,867 | * | |||||||
Dividends reinvested: | |||||||||||
Class 2 | — | 24,482,634 | |||||||||
Class 3 | — | 31,689,022 | |||||||||
Class 4 | — | 27,316,172 | |||||||||
Class 5 | — | 4,893,497 | |||||||||
Class K | — | 24,093,941 | |||||||||
Institutional Class | — | 6,083,367 | |||||||||
Cost of shares redeemed: | |||||||||||
Class 2 | (268,890,504 | )* | (44,700,000 | ) | |||||||
Class 3 | (2,350,000 | ) | (335,095,740 | )* | |||||||
Class 4 | — | (198,213,924 | )* | ||||||||
Class K | (40,479,595 | )* | (36,825,366 | )* | |||||||
Institutional Class | (15,272,059 | ) | (33,820,482 | ) | |||||||
Increase in Net Assets from Transactions in Shares of Beneficial Interest | 429,292,364 | 281,871,170 | |||||||||
Total Increase in Net Assets | 468,622,855 | 765,044,056 | |||||||||
NET ASSETS | |||||||||||
Beginning of period | 2,559,832,373 | 1,794,788,317 | |||||||||
End of period | $ | 3,028,455,228 | $ | 2,559,832,373 |
* See Note D for details of share class coversions.
The accompanying notes are an integral part of the financial statements.
85
Financial Highlights
Semi-Annual Report June 30, 2020
Baillie Gifford International Alpha Fund
Selected data for a Class 2 share outstanding throughout each period:
For the Six Months Ended June 30, 2020 (unaudited) | For the Year Ended December 31, 2019 | For the Year Ended December 31, 2018 | For the Year Ended December 31, 2017 | For the Year Ended December 31, 2016 | For the Year Ended December 31, 2015 | ||||||||||||||||||||||
Net asset value, beginning of period | $ | 13.57 | $ | 10.78 | $ | 14.20 | $ | 10.90 | $ | 10.65 | $ | 11.20 | |||||||||||||||
From Investment Operations | |||||||||||||||||||||||||||
Net investment income(a) | 0.08 | 0.27 | 0.22 | 0.18 | 0.17 | 0.19 | |||||||||||||||||||||
Net realized and unrealized gain (loss) | (0.15 | )(b) | 3.20 | (2.59 | ) | 3.62 | 0.39 | (0.40 | ) | ||||||||||||||||||
Net increase (decrease) in net asset value from investment operations | (0.07 | ) | 3.47 | (2.37 | ) | 3.80 | 0.56 | (0.21 | ) | ||||||||||||||||||
Dividends and Distributions to Shareholders | |||||||||||||||||||||||||||
From net investment income | — | (0.34 | ) | (0.17 | ) | (0.14 | ) | (0.15 | ) | (0.24 | ) | ||||||||||||||||
From net realized gain on investments | — | (0.34 | ) | (0.88 | ) | (0.36 | ) | (0.16 | ) | (0.11 | ) | ||||||||||||||||
Total Dividends and Distributions | — | (0.68 | ) | (1.05 | ) | (0.50 | ) | (0.31 | ) | (0.35 | ) | ||||||||||||||||
Proceeds from Purchase Fees and Redemption Fees(a) | — | — | — | 0.00 | (c) | 0.00 | (c) | 0.01 | |||||||||||||||||||
Net asset value, end of period | $ | 13.50 | $ | 13.57 | $ | 10.78 | $ | 14.20 | $ | 10.90 | $ | 10.65 | |||||||||||||||
Total Return | |||||||||||||||||||||||||||
Total return based on net asset value(d) | (0.54 | )% | 32.14 | % | (16.57 | )% | 34.96 | % | 5.24 | % | (1.89 | )% | |||||||||||||||
Ratios/Supplemental Data | |||||||||||||||||||||||||||
Net assets, end of period (000's omitted) | $ | 311,487 | $ | 513,803 | $ | 335,450 | $ | 478,079 | $ | 578,606 | $ | 708,666 | |||||||||||||||
Ratio of net expenses to average net assets | 0.60 | %* | 0.61 | % | 0.62 | % | 0.61 | % | 0.61 | % | 0.62 | % | |||||||||||||||
Ratio of net investment income to average net assets | 1.31 | %* | 2.11 | %(e) | 1.57 | % | 1.41 | % | 1.53 | % | 1.61 | % | |||||||||||||||
Portfolio turnover rate(f) | 12 | % | 13 | % | 33 | % | 12 | % | 12 | % | 15 | % |
* Annualized.
(a) Calculated based upon average shares outstanding during the period.
(b) Calculation of the net gain per share (both realized and unrealized) does not correlate to the aggregate realized and unrealized gains presented in the Statement of Operations due to the timing of the sales and purchases of Fund shares in relation to fluctuating market values of the investments of the Fund.
(c) Amount is less than $0.005 per share.
(d) Total investment return is calculated assuming an initial investment made at the net asset value at the beginning of the 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 treating as income.
(f) Portfolio turnover rate calculated at Fund level.
The accompanying notes are an integral part of the financial statements.
86
Financial Highlights
Semi-Annual Report June 30, 2020
Baillie Gifford International Alpha Fund
Selected data for a Class 3 share outstanding throughout each period:
For the Six Months Ended June 30, 2020 (unaudited) | For the Year Ended December 31, 2019 | For the Year Ended December 31, 2018 | For the Year Ended December 31, 2017 | For the Year Ended December 31, 2016 | For the Year Ended December 31, 2015 | ||||||||||||||||||||||
Net asset value, beginning of period | $ | 13.76 | $ | 10.92 | $ | 14.37 | $ | 11.03 | $ | 10.79 | $ | 11.34 | |||||||||||||||
From Investment Operations | |||||||||||||||||||||||||||
Net investment income(a) | 0.09 | 0.28 | 0.22 | 0.18 | 0.17 | 0.20 | |||||||||||||||||||||
Net realized and unrealized gain (loss) | (0.15 | )(b) | 3.24 | (2.60 | ) | 3.68 | 0.40 | (0.41 | ) | ||||||||||||||||||
Net increase (decrease) in net asset value from investment operations | (0.06 | ) | 3.52 | (2.38 | ) | 3.86 | 0.57 | (0.21 | ) | ||||||||||||||||||
Dividends and Distributions to Shareholders | |||||||||||||||||||||||||||
From net investment income | — | (0.34 | ) | (0.19 | ) | (0.16 | ) | (0.17 | ) | (0.24 | ) | ||||||||||||||||
From net realized gain on investments | — | (0.34 | ) | (0.88 | ) | (0.36 | ) | (0.16 | ) | (0.11 | ) | ||||||||||||||||
Total Dividends and Distributions | — | (0.68 | ) | (1.07 | ) | (0.52 | ) | (0.33 | ) | (0.35 | ) | ||||||||||||||||
Proceeds from Purchase Fees and Redemption Fees(a) | — | — | — | 0.00 | (c) | 0.00 | (c) | 0.01 | |||||||||||||||||||
Net asset value, end of period | $ | 13.70 | $ | 13.76 | $ | 10.92 | $ | 14.37 | $ | 11.03 | $ | 10.79 | |||||||||||||||
Total Return | |||||||||||||||||||||||||||
Total return based on net asset value(d) | (0.50 | )% | 32.23 | % | (16.51 | )% | 35.05 | % | 5.31 | % | (1.82 | )% | |||||||||||||||
Ratios/Supplemental Data | |||||||||||||||||||||||||||
Net assets, end of period (000's omitted) | $ | 980,341 | $ | 668,206 | $ | 613,224 | $ | 1,119,162 | $ | 915,782 | $ | 776,265 | |||||||||||||||
Ratio of net expenses to average net assets | 0.53 | %* | 0.54 | % | 0.55 | % | 0.55 | % | 0.54 | % | 0.54 | % | |||||||||||||||
Ratio of net investment income to average net assets | 1.43 | %* | 2.18 | %(e) | 1.58 | % | 1.35 | % | 1.54 | % | 1.69 | % | |||||||||||||||
Portfolio turnover rate(f) | 12 | % | 13 | % | 33 | % | 12 | % | 12 | % | 15 | % |
* Annualized.
(a) Calculated based upon average shares outstanding during the period.
(b) Calculation of the net gain per share (both realized and unrealized) does not correlate to the aggregate realized and unrealized gains presented in the Statement of Operations due to the timing of the sales and purchases of Fund shares in relation to fluctuating market values of the investments of the Fund.
(c) Amount is less than $0.005 per share.
(d) Total investment return is calculated assuming an initial investment made at the net asset value at the beginning of the 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 treating as income.
(f) Portfolio turnover rate calculated at Fund level.
The accompanying notes are an integral part of the financial statements.
87
Financial Highlights
Semi-Annual Report June 30, 2020
Baillie Gifford International Alpha Fund
Selected data for a Class 4 share outstanding throughout each period:
For the Six Months Ended June 30, 2020 (unaudited) | For the Year Ended December 31, 2019 | For the Year Ended December 31, 2018 | For the Period July 10, 2017(a) through December 31, 2017 | For the Period January 1, 2015(a) through December 10, 2015 | For the Year Ended December 31, 2014 | ||||||||||||||||||||||
Net asset value, beginning of period | $ | 14.00 | $ | 11.10 | $ | 14.59 | $ | 13.43 | $ | 11.60 | $ | 12.20 | |||||||||||||||
From Investment Operations | |||||||||||||||||||||||||||
Net investment income(b) | 0.09 | 0.28 | 0.23 | 0.05 | 0.19 | 0.22 | |||||||||||||||||||||
Net realized and unrealized gain (loss) | (0.16 | )(c) | 3.31 | (2.65 | ) | 1.64 | (0.33 | ) | (0.57 | ) | |||||||||||||||||
Net increase (decrease) in net asset value from investment operations | (0.07 | ) | 3.59 | (2.42 | ) | 1.69 | (0.14 | ) | (0.35 | ) | |||||||||||||||||
Dividends and Distributions to Shareholders | |||||||||||||||||||||||||||
From net investment income | — | (0.35 | ) | (0.19 | ) | (0.17 | ) | (0.01 | ) | (0.21 | ) | ||||||||||||||||
From net realized gain on investments | — | (0.34 | ) | (0.88 | ) | (0.36 | ) | — | (0.05 | ) | |||||||||||||||||
Total Dividends and Distributions | — | (0.69 | ) | (1.07 | ) | (0.53 | ) | (0.01 | ) | (0.26 | ) | ||||||||||||||||
Proceeds from Purchase Fees and Redemption Fees(b) | — | — | — | — | 0.01 | 0.01 | |||||||||||||||||||||
Net asset value, end of period | $ | 13.93 | $ | 14.00 | $ | 11.10 | $ | 14.59 | $ | 11.46 | $ | 11.60 | |||||||||||||||
Total Return | |||||||||||||||||||||||||||
Total return based on net asset value(d) | (0.49 | )% | 32.27 | % | (16.49 | )% | 12.60 | % | (1.04 | )% | (2.82 | )% | |||||||||||||||
Ratios/Supplemental Data | |||||||||||||||||||||||||||
Net assets, end of period (000's omitted) | $ | 577,324 | $ | 580,146 | $ | 438,616 | $ | 232,741 | $ | 59 | $ | 352,890 | |||||||||||||||
Ratio of net expenses to average net assets | 0.50 | %* | 0.51 | % | 0.52 | % | 0.53 | % | 0.52 | % | 0.51 | % | |||||||||||||||
Ratio of net investment income to average net assets | 1.42 | %* | 2.20 | %(e) | 1.61 | % | 0.77 | % | 1.72 | % | 1.82 | % | |||||||||||||||
Portfolio turnover rate(f) | 12 | % | 13 | % | 33 | % | 12 | % | 15 | % | 11 | % |
* Annualized.
(a) Commencement of investment operations.
(b) Calculation of the net gain per share (both realized and unrealized) does not correlate to the aggregate realized and unrealized gains presented in the Statement of Operations due to the timing of the sales and purchases of Fund shares in relation to fluctuating market values of the investments of the Fund.
(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 treating as income.
(f) Portfolio turnover rate calculated at Fund level.
The accompanying notes are an integral part of the financial statements.
88
Financial Highlights
Semi-Annual Report June 30, 2020
Baillie Gifford International Alpha Fund
Selected data for a Class 5 share outstanding throughout each period:
For the Six Months Ended June 30, 2020 (unaudited) | For the Year Ended December 31, 2019 | For the Year Ended December 31, 2018 | For the Year Ended December 31, 2017 | For the Year Ended December 31, 2016 | For the Year Ended December 31, 2015 | ||||||||||||||||||||||
Net asset value, beginning of period | $ | 14.26 | $ | 11.30 | $ | 14.82 | $ | 11.36 | $ | 11.11 | $ | 11.67 | |||||||||||||||
From Investment Operations | |||||||||||||||||||||||||||
Net investment income(a) | 0.10 | 0.30 | 0.21 | 0.20 | 0.19 | 0.22 | |||||||||||||||||||||
Net realized and unrealized gain (loss) | (0.17 | )(b) | 3.35 | (2.65 | ) | 3.79 | 0.41 | (0.42 | ) | ||||||||||||||||||
Net increase (decrease) in net asset value from investment operations | (0.07 | ) | 3.65 | (2.44 | ) | 3.99 | 0.60 | (0.20 | ) | ||||||||||||||||||
Dividends and Distributions to Shareholders | |||||||||||||||||||||||||||
From net investment income | — | (0.35 | ) | (0.20 | ) | (0.17 | ) | (0.19 | ) | (0.25 | ) | ||||||||||||||||
From net realized gain on investments | — | (0.34 | ) | (0.88 | ) | (0.36 | ) | (0.16 | ) | (0.11 | ) | ||||||||||||||||
Total Dividends and Distributions | — | (0.69 | ) | (1.08 | ) | (0.53 | ) | (0.35 | ) | (0.36 | ) | ||||||||||||||||
Proceeds from Purchase Fees and Redemption Fees(a) | — | — | — | 0.00 | (c) | 0.00 | (c) | 0.00 | (c) | ||||||||||||||||||
Net asset value, end of period | $ | 14.19 | $ | 14.26 | $ | 11.30 | $ | 14.82 | $ | 11.36 | $ | 11.11 | |||||||||||||||
Total Return | |||||||||||||||||||||||||||
Total return based on net asset value(d) | (0.46 | )% | 32.34 | % | (16.44 | )% | 35.16 | % | 5.40 | % | (1.75 | )% | |||||||||||||||
Ratios/Supplemental Data | |||||||||||||||||||||||||||
Net assets, end of period (000's omitted) | $ | 117,702 | $ | 104,935 | $ | 79,293 | $ | 183,384 | $ | 167,297 | $ | 174,577 | |||||||||||||||
Ratio of net expenses to average net assets | 0.45 | %* | 0.46 | % | 0.47 | % | 0.47 | % | 0.46 | % | 0.47 | % | |||||||||||||||
Ratio of net investment income to average net assets | 1.49 | %* | 2.25 | %(e) | 1.55 | % | 1.45 | % | 1.66 | % | 1.83 | % | |||||||||||||||
Portfolio turnover rate(f) | 12 | % | 13 | % | 33 | % | 12 | % | 12 | % | 15 | % |
* Annualized.
(a) Calculated based upon average shares outstanding during the period.
(b) Calculation of the net gain per share (both realized and unrealized) does not correlate to the aggregate realized and unrealized gains presented in the Statement of Operations due to the timing of the sales and purchases of Fund shares in relation to fluctuating market values of the investments of the Fund.
(c) Amount is less than $0.005 per share.
(d) Total investment return is calculated assuming an initial investment made at the net asset value at the beginning of the 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 treating as income.
(f) Portfolio turnover rate calculated at Fund level.
The accompanying notes are an integral part of the financial statements.
89
Financial Highlights
Semi-Annual Report June 30, 2020
Baillie Gifford International Alpha Fund
Selected data for a Class K share outstanding throughout each period:
For the Six Months Ended June 30, 2020 (unaudited) | For the Year Ended December 31, 2019 | For the Year Ended December 31, 2018 | For the Period April 28, 2017(a) through December 31, 2017 | ||||||||||||||||
Net asset value, beginning of period | $ | 13.53 | $ | 10.75 | $ | 14.17 | $ | 12.44 | |||||||||||
From Investment Operations | |||||||||||||||||||
Net investment income(b) | 0.08 | 0.26 | 0.17 | 0.01 | |||||||||||||||
Net realized and unrealized gain (loss) | (0.15 | )(c) | 3.20 | (2.52 | ) | 2.25 | |||||||||||||
Net increase (decrease) in net asset value from investment operations | (0.07 | ) | 3.46 | (2.35 | ) | 2.26 | |||||||||||||
Dividends and Distributions to Shareholders | |||||||||||||||||||
From net investment income | — | (0.34 | ) | (0.19 | ) | (0.17 | ) | ||||||||||||
From net realized gain on investments | — | (0.34 | ) | (0.88 | ) | (0.36 | ) | ||||||||||||
Total Dividends and Distributions | — | (0.68 | ) | (1.07 | ) | (0.53 | ) | ||||||||||||
Net asset value, end of period | $ | 13.46 | $ | 13.53 | $ | 10.75 | $ | 14.17 | |||||||||||
Total Return | |||||||||||||||||||
Total return based on net asset value(d) | (0.52 | )% | 32.16 | % | (16.54 | )% | 18.19 | % | |||||||||||
Ratios/Supplemental Data | |||||||||||||||||||
Net assets, end of period (000's omitted) | $ | 647,703 | $ | 566,554 | $ | 290,186 | $ | 108,728 | |||||||||||
Ratio of net expenses to average net assets | 0.60 | %* | 0.61 | % | 0.62 | % | 0.63 | %* | |||||||||||
Ratio of net investment income to average net assets | 1.35 | %* | 2.09 | %(e) | 1.26 | % | 0.12 | %* | |||||||||||
Portfolio turnover rate(f) | 12 | % | 13 | % | 33 | % | 12 | % |
* Annualized.
(a) Commencement of investment operations.
(b) Calculated based upon average shares outstanding during the period.
(c) Calculation of the net gain per share (both realized and unrealized) does not correlate to the aggregate realized and unrealized gains presented in the Statement of Operations due to the timing of the sales and purchases of Fund shares in relation to fluctuating market values of the investments of the Fund.
(d) Total investment return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all dividends and distributions, if any, at net asset value during the period, and redemption on the last day of the period. Total return is not annualized for periods less than one year.
(e) Large increase due to one-off taxable stock dividends that were treating as income.
(f) Portfolio turnover rate calculated at Fund level.
The accompanying notes are an integral part of the financial statements.
90
Financial Highlights
Semi-Annual Report June 30, 2020
Baillie Gifford International Alpha Fund
Selected data for an Institutional Class share outstanding throughout each period:
For the Six Months Ended June 30, 2020 (unaudited) | For the Year Ended December 31, 2019 | For the Year Ended December 31, 2018 | For the Period April 28, 2017(a) through December 31, 2017 | ||||||||||||||||
Net asset value, beginning of period | $ | 13.58 | $ | 10.79 | $ | 14.19 | $ | 12.44 | |||||||||||
From Investment Operations | |||||||||||||||||||
Net investment income(b) | 0.09 | 0.25 | 0.22 | 0.09 | |||||||||||||||
Net realized and unrealized gain (loss) | (0.17 | )(c) | 3.22 | (2.59 | ) | 2.17 | |||||||||||||
Net increase (decrease) in net asset value from investment operations | (0.08 | ) | 3.47 | (2.37 | ) | 2.26 | |||||||||||||
Dividends and Distributions to Shareholders | |||||||||||||||||||
From net investment income | — | (0.34 | ) | (0.15 | ) | (0.15 | ) | ||||||||||||
From net realized gain on investments | — | (0.34 | ) | (0.88 | ) | (0.36 | ) | ||||||||||||
Total Dividends and Distributions | — | (0.68 | ) | (1.03 | ) | (0.51 | ) | ||||||||||||
Net asset value, end of period | $ | 13.50 | $ | 13.58 | $ | 10.79 | $ | 14.19 | |||||||||||
Total Return | |||||||||||||||||||
Total return based on net asset value(d) | (0.59 | )% | 32.11 | % | (16.68 | )% | 18.25 | % | |||||||||||
Ratios/Supplemental Data | |||||||||||||||||||
Net assets, end of period (000's omitted) | $ | 393,898 | $ | 126,189 | $ | 38,019 | $ | 6 | |||||||||||
Ratio of net expenses to average net assets | 0.65 | %* | 0.67 | % | 0.72 | % | 0.62 | %* | |||||||||||
Ratio of net investment income to average net assets | 1.37 | %* | 1.93 | %(e) | 1.58 | % | 1.01 | %* | |||||||||||
Portfolio turnover rate(f) | 12 | % | 13 | % | 33 | % | 12 | % |
* Annualized.
(a) Commencement of investment operations.
(b) Calculated based upon average shares outstanding during the period.
(c) Calculation of the net gain per share (both realized and unrealized) does not correlate to the aggregate realized and unrealized gains presented in the Statement of Operations due to the timing of the sales and purchases of Fund shares in relation to fluctuating market values of the investments of the Fund.
(d) Total investment return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all dividends and distributions, if any, at net asset value during the period, and redemption on the last day of the period. Total return is not annualized for periods less than one year.
(e) Large increase due to one-off taxable stock dividends that were treating as income.
(f) Portfolio turnover rate calculated at Fund level.
The accompanying notes are an integral part of the financial statements.
91
Industry Diversification Table
Semi-Annual Report June 30, 2020
June 30, 2020 (unaudited)
Baillie Gifford International Concentrated Growth Equities Fund
Value | % of Total Net Assets | ||||||||||
Apparel | $ | 13,257,430 | 8.1 | % | |||||||
Auto Manufacturers | 16,080,502 | 9.8 | |||||||||
Biotechnology | 10,988,840 | 6.8 | |||||||||
Cosmetics/Personal Care | 2,374,436 | 1.5 | |||||||||
Diversified Financial Services | 194,743 | 0.1 | |||||||||
Food | 3,487,831 | 2.1 | |||||||||
Insurance | 6,243,754 | 3.8 | |||||||||
Internet | 83,805,726 | 51.5 | |||||||||
Investment Companies | 2,169,859 | 1.3 | |||||||||
Machinery — Diversified | 1,723,167 | 1.1 | |||||||||
Retail | 10,984,154 | 6.8 | |||||||||
Semiconductors | 19,453,526 | 12.0 | |||||||||
Telecommunications | 4,170,368 | 2.6 | |||||||||
Total Value of Investments | 174,934,336 | 107.5 | |||||||||
Other liabilities less assets | (12,258,823 | ) | (7.5 | ) | |||||||
Net Assets | $ | 162,675,513 | 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.
92
Portfolio of Investments
Semi-Annual Report June 30, 2020
June 30, 2020 (unaudited)
Baillie Gifford International Concentrated Growth Equities Fund
Shares | Value | ||||||||||
COMMON STOCKS — 107.5% | |||||||||||
ARGENTINA — 9.5% | |||||||||||
MercadoLibre, Inc. * | 15,600 | $ | 15,378,012 | ||||||||
CHINA — 25.9% | |||||||||||
Alibaba Group Holding Ltd. ADR * | 53,418 | 11,522,263 | |||||||||
Meituan Dianping, Class B * | 461,200 | 10,306,149 | |||||||||
NIO, Inc. ADR * | 131,567 | 1,015,697 | |||||||||
Ping An Insurance Group Co. of China Ltd., Class H | 472,000 | 4,705,364 | |||||||||
Tencent Holdings Ltd. | 191,400 | 12,264,513 | |||||||||
Trip.com Group Ltd. ADR * | 88,558 | 2,295,423 | |||||||||
42,109,409 | |||||||||||
DENMARK — 2.8% | |||||||||||
Genmab A/S * | 13,465 | 4,540,306 | |||||||||
FRANCE — 9.6% | |||||||||||
Hermes International | 6,220 | 5,222,336 | |||||||||
Kering | 14,697 | 8,035,094 | |||||||||
L'Oreal SA * | 7,357 | 2,374,436 | |||||||||
15,631,866 | |||||||||||
GERMANY — 9.8% | |||||||||||
Delivery Hero SE * | 76,775 | 7,889,921 | |||||||||
Zalando SE * | 114,284 | 8,107,330 | |||||||||
15,997,251 | |||||||||||
HONG KONG — 0.9% | |||||||||||
AIA Group Ltd. | 164,400 | 1,538,390 | |||||||||
ITALY — 3.4% | |||||||||||
Ferrari NV | 32,366 | 5,544,120 | |||||||||
JAPAN — 7.4% | |||||||||||
M3, Inc. | 184,100 | 7,820,777 | |||||||||
SoftBank Group Corp. | 82,700 | 4,170,368 | |||||||||
11,991,145 |
The accompanying notes are an integral part of the financial statements.
93
Portfolio of Investments
Semi-Annual Report June 30, 2020
June 30, 2020 (unaudited)
Baillie Gifford International Concentrated Growth Equities Fund
Shares | Value | ||||||||||
NETHERLANDS — 10.4% | |||||||||||
ASML Holding NV | 46,170 | $ | 16,889,513 | ||||||||
SPAIN — 1.8% | |||||||||||
Industria de Diseno Textil SA | 108,423 | 2,876,824 | |||||||||
SWEDEN — 2.4% | |||||||||||
Atlas Copco AB, B Shares | 46,374 | 1,723,167 | |||||||||
Kinnevik AB, B Shares | 82,200 | 2,169,859 | |||||||||
3,893,026 | |||||||||||
UNITED KINGDOM — 2.2% | |||||||||||
Funding Circle Holdings PLC * | 229,774 | 194,743 | |||||||||
Ocado Group PLC * | 138,790 | 3,487,831 | |||||||||
3,682,574 | |||||||||||
UNITED STATES — 21.4% | |||||||||||
Amazon.com, Inc. * | 2,882 | 7,950,919 | |||||||||
Illumina, Inc. * | 17,412 | 6,448,534 | |||||||||
NVIDIA Corp. | 6,749 | 2,564,013 | |||||||||
Spotify Technology SA * | 32,448 | 8,377,749 | |||||||||
Tesla, Inc. * | 8,817 | 9,520,685 | |||||||||
34,861,900 | |||||||||||
TOTAL INVESTMENTS — 107.5%** | |||||||||||
(cost $123,614,498) | $ | 174,934,336 | |||||||||
Other liabilities less assets — (7.5)% | (12,258,823 | ) | |||||||||
NET ASSETS — 100.0% | $ | 162,675,513 |
* Non-income producing security.
** The Total Investments percentage exceeds 100% due to the timing of settling transactions and not as a result of borrowings for investment purposes.
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, 2020 in valuing the Fund's investments carried at fair value:
Investments in Securities | Level 1 | Level 2 | Level 3 | Total | |||||||||||||||
Common Stocks ** | $ | 65,268,038 | $ | 109,666,298 | $ | — | $ | 174,934,336 | |||||||||||
Total | $ | 65,268,038 | $ | 109,666,298 | $ | — | $ | 174,934,336 |
** Refer to Portfolio of Investments for further detail.
The accompanying notes are an integral part of the financial statements.
94
Statement of Assets and Liabilities
Semi-Annual Report June 30, 2020
June 30, 2020 (unaudited)
Baillie Gifford International Concentrated Growth Equities Fund
ASSETS | |||||||
Investments, at value (cost $123,614,498) | $ | 174,934,336 | |||||
Cash | 3,189,357 | ||||||
Capital shares sold receivable | 298,000 | ||||||
Due from Investment Advisor | 6,255 | ||||||
Tax reclaims receivable | 79 | ||||||
Prepaid assets | 19,139 | ||||||
Total Assets | 178,447,166 | ||||||
LIABILITIES | |||||||
Advisory fee payable | 144,941 | ||||||
Capital shares purchased payable | 15,500,000 | ||||||
Administration & Supervisory fee payable | 61,600 | ||||||
Trustee fee payable | 845 | ||||||
Commitment fee payable | 325 | ||||||
Accrued expenses | 63,942 | ||||||
Total Liabilities | 15,771,653 | ||||||
NET ASSETS | $ | 162,675,513 | |||||
COMPOSITION OF NET ASSETS | |||||||
Paid-in capital | $ | 113,378,981 | |||||
Total distributable earnings | 49,296,532 | ||||||
$ | 162,675,513 | ||||||
NET ASSET VALUE, PER SHARE | |||||||
Class K ( $154,312,682 / 9,398,399 shares outstanding), unlimited authorized, no par value | $ | 16.42 | |||||
Institutional Class ( $8,362,831 / 511,382 shares outstanding), unlimited authorized, no par value | $ | 16.35 |
The accompanying notes are an integral part of the financial statements.
95
Statement of Operations
Semi-Annual Report June 30, 2020
For the Six Months Ended June 30, 2020 (unaudited)
Baillie Gifford International Concentrated Growth Equities Fund
INVESTMENT INCOME | |||||||
Dividends (net of foreign withholding taxes of $10,760) | $ | 394,879 | |||||
Interest | 1,037 | ||||||
Total Investment Income | 395,916 | ||||||
Expenses | |||||||
Advisory fee (Note B) | 251,842 | ||||||
Administration & Supervisory fee — Class K shares (Note B) | 103,388 | ||||||
Administration & Supervisory fee — Institutional Class shares (Note B) | �� | 3,644 | |||||
Transfer agency | 18,274 | ||||||
Sub-transfer agency — Institutional Class shares | 292 | ||||||
Fund accounting | 46,738 | ||||||
Registration fees | 21,439 | ||||||
Professional fees | 13,912 | ||||||
Legal | 10,262 | ||||||
Custody | 8,341 | ||||||
Trustees' fees | 1,986 | ||||||
Commitment fees | 1,077 | ||||||
Miscellaneous | 5,248 | ||||||
Total Expenses | 486,443 | ||||||
Fees waived | (32,839 | ) | |||||
Net Expenses | 453,604 | ||||||
Net Investment Loss | (57,688 | ) | |||||
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS AND FOREIGN CURRENCY TRANSACTIONS | |||||||
Net realized gain from: | |||||||
Investments | 2,448,451 | ||||||
Foreign currency transactions | 701 | ||||||
2,449,152 | |||||||
Net change in unrealized appreciation on: | |||||||
Investments | 38,264,708 | ||||||
Translation of net assets and liabilities denominated in foreign currencies | 4,701 | ||||||
38,269,409 | |||||||
Net realized and unrealized gain | 40,718,561 | ||||||
NET INCREASE IN NET ASSETS FROM OPERATIONS | $ | 40,660,873 |
The accompanying notes are an integral part of the financial statements.
96
Statements of Changes in Net Assets
Semi-Annual Report June 30, 2020
Baillie Gifford International Concentrated Growth Equities Fund
For the Six Months Ended June 30, 2020 (unaudited) | For the Year Ended December 31, 2019 | ||||||||||
INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS | |||||||||||
Net investment income (loss) | $ | (57,688 | ) | $ | 182,073 | ||||||
Net realized gain (loss) | 2,449,152 | (1,827,800 | ) | ||||||||
Net change in unrealized appreciation | 38,269,409 | 27,145,465 | |||||||||
Net increase in net assets from operations | 40,660,873 | 25,499,738 | |||||||||
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS FROM: | |||||||||||
Distributable earnings | |||||||||||
Class K | — | (175,602 | ) | ||||||||
Institutional Class | — | (1,520 | ) | ||||||||
Total Distributions to Shareholders | — | (177,122 | ) | ||||||||
TRANSACTIONS IN SHARES OF BENEFICIAL INTEREST | |||||||||||
Net proceeds from shares subscribed: | |||||||||||
Class K | 31,120,324 | 20,684,000 | |||||||||
Institutional Class | 6,607,033 | 176,417 | |||||||||
Dividends reinvested: | |||||||||||
Class K | — | 175,602 | |||||||||
Institutional Class | — | 1,431 | |||||||||
Cost of shares redeemed: | |||||||||||
Class K | (17,495,041 | ) | — | ||||||||
Institutional Class | (891,185 | ) | (14,572 | ) | |||||||
Increase in Net Assets from Transactions in Shares of Beneficial Interest | 19,341,131 | 21,022,878 | |||||||||
Total Increase in Net Assets | 60,002,004 | 46,345,494 | |||||||||
NET ASSETS | |||||||||||
Beginning of period | 102,673,509 | 56,328,015 | |||||||||
End of period | $ | 162,675,513 | $ | 102,673,509 |
The accompanying notes are an integral part of the financial statements.
97
Financial Highlights
Semi-Annual Report June 30, 2020
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, 2020 (unaudited) | For the Year Ended December 31, 2019 | For the Year Ended December 31, 2018 | For the Period December 14, 2017(a) through December 31, 2017 | ||||||||||||||||
Net asset value, beginning of period | $ | 12.70 | $ | 8.75 | $ | 10.05 | $ | 10.00 | |||||||||||
From Investment Operations | |||||||||||||||||||
Net investment income (loss)(b) | (0.01 | ) | 0.03 | (0.03 | ) | (0.00 | )(c) | ||||||||||||
Net realized and unrealized gain (loss) on investments and foreign currency | 3.73 | 3.94 | (1.27 | ) | 0.05 | ||||||||||||||
Net increase (decrease) in net asset value from investment operations | 3.72 | 3.97 | (1.30 | ) | 0.05 | ||||||||||||||
Dividends and Distributions to Shareholders | |||||||||||||||||||
From net investment income | — | (0.02 | ) | — | — | ||||||||||||||
Total Dividends and Distributions | — | (0.02 | ) | — | — | ||||||||||||||
Net asset value, end of period | $ | 16.42 | $ | 12.70 | $ | 8.75 | $ | 10.05 | |||||||||||
Total Return | |||||||||||||||||||
Total return based on net asset value(d) | 29.29 | % | 45.26 | % | (12.84 | )% | 0.50 | % | |||||||||||
Ratios/Supplemental Data | |||||||||||||||||||
Net assets, end of period (000's omitted) | $ | 154,313 | $ | 101,797 | $ | 55,852 | $ | 502 | |||||||||||
Ratio of net expenses to average net assets, before waiver | 0.77 | %* | 0.90 | % | 1.07 | % | 53.29 | %* | |||||||||||
Ratio of net expenses to average net assets, after waiver | 0.72 | %* | 0.72 | % | 0.72 | % | 0.72 | %* | |||||||||||
Ratio of net investment income (loss) to average net assets | (0.09 | )%* | 0.26 | %(e) | (0.26 | )% | (0.68 | )%* | |||||||||||
Portfolio turnover rate(f) | 7 | % | 4 | % | 32 | % | 0 | % |
* Annualized.
(a) Commencement of investment operations.
(b) Calculated based upon average shares outstanding during the period.
(c) Amount is less than $0.005 per share.
(d) Total investment return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all dividends and distributions, if any, at net asset value during the period, and redemption on the last day of the period. Total return is not annualized for periods less than one year.
(e) Large increase due to one-off taxable stock dividends that were treating as income.
(f) Portfolio turnover rate calculated at Fund level.
The accompanying notes are an integral part of the financial statements.
98
Financial Highlights
Semi-Annual Report June 30, 2020
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, 2020 (unaudited) | For the Year Ended December 31, 2019 | For the Year Ended December 31, 2018 | For the Period December 14, 2017(a) through December 31, 2017 | ||||||||||||||||
Net asset value, beginning of period | $ | 12.65 | $ | 8.72 | $ | 10.05 | $ | 10.00 | |||||||||||
From Investment Operations | |||||||||||||||||||
Net investment income (loss)(b) | (0.00 | )(c) | 0.03 | (0.06 | ) | (0.00 | )(c) | ||||||||||||
Net realized and unrealized gain (loss) on investments and foreign currency | 3.70 | 3.92 | (1.27 | ) | 0.05 | ||||||||||||||
Net increase (decrease) in net asset value from investment operations | 3.70 | 3.95 | (1.33 | ) | 0.05 | ||||||||||||||
Dividends and Distributions to Shareholders | |||||||||||||||||||
From net investment income | — | (0.02 | ) | — | — | ||||||||||||||
Total Dividends and Distributions | — | (0.02 | ) | — | — | ||||||||||||||
Net asset value, end of period | $ | 16.35 | $ | 12.65 | $ | 8.72 | $ | 10.05 | |||||||||||
Total Return | |||||||||||||||||||
Total return based on net asset value(d) | 29.25 | % | 45.32 | % | (13.23 | )% | 0.50 | % | |||||||||||
Ratios/Supplemental Data | |||||||||||||||||||
Net assets, end of period (000's omitted) | $ | 8,363 | $ | 876 | $ | 476 | $ | 502 | |||||||||||
Ratio of net expenses to average net assets, before waiver | 0.78 | %* | 0.91 | % | 1.16 | % | 53.29 | %* | |||||||||||
Ratio of net expenses to average net assets, after waiver | 0.73 | %* | 0.73 | % | 0.81 | % | 0.87 | %* | |||||||||||
Ratio of net investment income (loss) to average net assets | (0.04 | )%* | 0.30 | %(e) | (0.53 | )% | (0.68 | )%* | |||||||||||
Portfolio turnover rate(f) | 7 | % | 4 | % | 32 | % | 0 | % |
* Annualized.
(a) Commencement of investment operations.
(b) Calculated based upon average shares outstanding during the period.
(c) Amount is less than $0.005 per share.
(d) Total investment return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all dividends and distributions, if any, at net asset value during the period, and redemption on the last day of the period. Total return is not annualized for periods less than one year.
(e) Large increase due to one-off taxable stock dividends that were treating as income.
(f) Portfolio turnover rate calculated at Fund level.
The accompanying notes are an integral part of the financial statements.
99
Industry Diversification Table
Semi-Annual Report June 30, 2020
June 30, 2020 (unaudited)
Baillie Gifford International Growth Fund
Value | % of Total Net Assets | ||||||||||
Aerospace/Defense | $ | 21,350,214 | 0.6 | % | |||||||
Apparel | 134,086,622 | 3.7 | |||||||||
Auto Manufacturers | 186,936,450 | 5.2 | |||||||||
Biotechnology | 167,220,339 | 4.7 | |||||||||
Chemicals | 141,595,590 | 3.9 | |||||||||
Commercial Services | 211,191,580 | 5.8 | |||||||||
Cosmetics/Personal Care | 93,736,899 | 2.6 | |||||||||
Diversified Financial Services | 65,447,294 | 1.8 | |||||||||
Electronics | 86,844,418 | 2.4 | |||||||||
Food | 140,857,212 | 3.9 | |||||||||
Healthcare — Products | 53,175,432 | 1.4 | |||||||||
Insurance | 132,794,490 | 3.6 | |||||||||
Internet | 1,306,797,183 | 36.0 | |||||||||
Investment Companies | 67,629,859 | 1.8 | |||||||||
Machinery — Diversified | 136,838,563 | 3.8 | |||||||||
Media | 12,929,372 | 0.4 | |||||||||
Retail | 248,170,384 | 6.8 | |||||||||
Semiconductors | 265,140,879 | 7.3 | |||||||||
Software | 40,564,092 | 1.1 | |||||||||
Telecommunications | 75,883,558 | 2.1 | |||||||||
Total Value of Investments | 3,589,190,430 | 98.9 | |||||||||
Other assets less liabilities | 41,415,323 | 1.1 | |||||||||
Net Assets | $ | 3,630,605,753 | 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.
100
Portfolio of Investments
Semi-Annual Report June 30, 2020
June 30, 2020 (unaudited)
Baillie Gifford International Growth Fund
Shares | Value | ||||||||||
COMMON STOCKS — 97.8% | |||||||||||
ARGENTINA — 5.1% | |||||||||||
MercadoLibre, Inc. * | 188,973 | $ | 186,283,914 | ||||||||
BELGIUM — 1.8% | |||||||||||
Umicore SA | 1,355,836 | 64,000,710 | |||||||||
CHINA — 21.8% | |||||||||||
Alibaba Group Holding Ltd. ADR * | 869,551 | 187,562,151 | |||||||||
Baidu, Inc. ADR * | 286,733 | 34,376,419 | |||||||||
Meituan Dianping, Class B * | 7,121,000 | 159,128,549 | |||||||||
NIO, Inc. ADR * | 2,196,750 | 16,958,910 | |||||||||
Ping An Insurance Group Co. of China Ltd., Class H | 5,603,000 | 55,856,261 | |||||||||
TAL Education Group ADR * | 1,418,110 | 96,970,362 | |||||||||
Tencent Holdings Ltd. | 3,750,300 | 240,311,397 | |||||||||
791,164,049 | |||||||||||
DENMARK — 5.3% | |||||||||||
Ambu A/S, B Shares | 858,881 | 27,151,189 | |||||||||
Chr. Hansen Holding A/S | 308,573 | 31,827,906 | |||||||||
Genmab A/S * | 329,145 | 110,985,439 | |||||||||
Novozymes A/S, B Shares | 394,289 | 22,859,263 | |||||||||
192,823,797 | |||||||||||
FRANCE — 6.3% | |||||||||||
Adevinta ASA * | 703,476 | 7,120,186 | |||||||||
EssilorLuxottica SA * | 88,525 | 11,385,010 | |||||||||
Kering | 245,258 | 134,086,622 | |||||||||
L'Oreal SA * | 233,568 | 75,382,948 | |||||||||
227,974,766 | |||||||||||
GERMANY — 9.8% | |||||||||||
Aixtron SE * | 1,102,052 | 13,289,598 | |||||||||
BASF SE | 407,835 | 22,907,711 | |||||||||
Delivery Hero SE * | 799,971 | 82,210,463 | |||||||||
HelloFresh SE * | 1,325,183 | 70,890,201 |
The accompanying notes are an integral part of the financial statements.
101
Portfolio of Investments
Semi-Annual Report June 30, 2020
June 30, 2020 (unaudited)
Baillie Gifford International Growth Fund
Shares | Value | ||||||||||
MorphoSys AG * | 158,371 | $ | 20,079,309 | ||||||||
Rocket Internet SE * | 708,941 | 15,274,329 | |||||||||
Zalando SE * | 1,811,428 | 128,503,066 | |||||||||
353,154,677 | |||||||||||
HONG KONG — 2.9% | |||||||||||
AIA Group Ltd. | 8,222,000 | 76,938,229 | |||||||||
Hong Kong Exchanges & Clearing Ltd. | 714,201 | 30,419,057 | |||||||||
107,357,286 | |||||||||||
INDIA — 0.5% | |||||||||||
Housing Development Finance Corp., Ltd. | 600,715 | 13,967,899 | |||||||||
MakeMyTrip Ltd. * | 300,389 | 4,601,959 | |||||||||
18,569,858 | |||||||||||
ISRAEL — 2.0% | |||||||||||
Wix.com Ltd. * | 279,293 | 71,560,452 | |||||||||
ITALY — 4.0% | |||||||||||
Ferrari NV | 853,672 | 146,229,380 | |||||||||
JAPAN — 13.4% | |||||||||||
CyberAgent, Inc. | 268,900 | 13,217,421 | |||||||||
GMO Payment Gateway, Inc. | 289,700 | 30,300,740 | |||||||||
M3, Inc. | 3,954,300 | 167,983,149 | |||||||||
Nidec Corp. | 687,000 | 46,282,358 | |||||||||
Pan Pacific International Holdings Corp. | 1,835,200 | 40,405,035 | |||||||||
Pigeon Corp. | 474,200 | 18,353,951 | |||||||||
SBI Holdings, Inc. | 970,500 | 21,060,338 | |||||||||
SMC Corp. | 138,500 | 71,178,065 | |||||||||
SoftBank Group Corp. | 1,504,800 | 75,883,558 | |||||||||
484,664,615 | |||||||||||
NETHERLANDS — 11.0% | |||||||||||
Adyen NV * | 57,658 | 83,920,478 | |||||||||
Argenx SE * | 160,627 | 36,155,591 | |||||||||
ASML Holding NV | 688,473 | 251,851,281 | |||||||||
EXOR NV | 534,238 | 30,663,649 | |||||||||
402,590,999 |
The accompanying notes are an integral part of the financial statements.
102
Portfolio of Investments
Semi-Annual Report June 30, 2020
June 30, 2020 (unaudited)
Baillie Gifford International Growth Fund
Shares | Value | ||||||||||
NORWAY — 0.4% | |||||||||||
Schibsted ASA, Class A * | 226,964 | $ | 5,943,786 | ||||||||
Schibsted ASA, Class B * | 295,741 | 6,985,586 | |||||||||
12,929,372 | |||||||||||
SPAIN — 2.2% | |||||||||||
Industria de Diseno Textil SA | 2,987,272 | 79,262,283 | |||||||||
SWEDEN — 3.2% | |||||||||||
Atlas Copco AB, A Shares | 1,541,853 | 65,660,498 | |||||||||
Elekta AB, B Shares | 1,571,513 | 14,639,233 | |||||||||
Kinnevik AB, B Shares | 1,400,378 | 36,966,210 | |||||||||
117,265,941 | |||||||||||
SWITZERLAND — 1.1% | |||||||||||
Temenos AG | 260,990 | 40,564,092 | |||||||||
UNITED KINGDOM — 3.2% | |||||||||||
Fiat Chrysler Automobiles NV * | 2,347,106 | 23,748,160 | |||||||||
Ocado Group PLC * | 2,784,172 | 69,967,011 | |||||||||
Rolls-Royce Holdings PLC * | 6,047,188 | 21,350,214 | |||||||||
115,065,385 | |||||||||||
UNITED STATES — 3.8% | |||||||||||
Spotify Technology SA * | 531,263 | 137,166,794 | |||||||||
Total Common Stocks | |||||||||||
(cost $1,685,929,920) | 3,548,628,370 | ||||||||||
PREFERRED STOCKS — 1.1% | |||||||||||
GERMANY — 1.1% | |||||||||||
Sartorius AG 0.12% (cost $12,780,773) | 122,898 | 40,562,060 | |||||||||
TOTAL INVESTMENTS — 98.9% | |||||||||||
(cost $1,698,710,693) | $ | 3,589,190,430 | |||||||||
Other assets less liabilities — 1.1% | 41,415,323 | ||||||||||
NET ASSETS — 100.0% | $ | 3,630,605,753 |
* 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.
103
Portfolio of Investments
Semi-Annual Report June 30, 2020
June 30, 2020 (unaudited)
Baillie Gifford International Growth Fund
Fair Value Measurement
The following is a summary of the inputs used as of June 30, 2020 in valuing the Fund's investments carried at fair value:
Investments in Securities | Level 1 | Level 2 | Level 3 | Total | |||||||||||||||
Common Stocks ** | $ | 819,401,439 | $ | 2,729,226,931 | $ | — | $ | 3,548,628,370 | |||||||||||
Preferred Stocks ** | — | 40,562,060 | — | 40,562,060 | |||||||||||||||
Total | $ | 819,401,439 | $ | 2,769,788,991 | $ | — | $ | 3,589,190,430 |
** Refer to Portfolio of Investments for further detail.
The accompanying notes are an integral part of the financial statements.
104
Statement of Assets and Liabilities
Semi-Annual Report June 30, 2020
June 30, 2020 (unaudited)
Baillie Gifford International Growth Fund
ASSETS | |||||||
Investments, at value (cost $1,698,710,693) | $ | 3,589,190,430 | |||||
Cash | 42,013,258 | ||||||
Capital shares sold receivable | 1,886,933 | ||||||
Tax reclaims receivable | 1,312,635 | ||||||
Dividends receivable | 283,931 | ||||||
Prepaid assets | 4,666 | ||||||
Total Assets | 3,634,691,853 | ||||||
LIABILITIES | |||||||
Advisory fee payable | 2,609,921 | ||||||
Servicing fee payable | 583,291 | ||||||
Capital shares purchased payable | 77,088 | ||||||
Administration & Supervisory fee payable | 31,170 | ||||||
Trustee fee payable | 26,471 | ||||||
Commitment fee payable | 6,384 | ||||||
Accrued expenses | 751,775 | ||||||
Total Liabilities | 4,086,100 | ||||||
NET ASSETS | $ | 3,630,605,753 | |||||
COMPOSITION OF NET ASSETS | |||||||
Paid-in capital | $ | 1,623,479,551 | |||||
Total distributable earnings | 2,007,126,202 | ||||||
$ | 3,630,605,753 | ||||||
NET ASSET VALUE, PER SHARE | |||||||
Class 2 ( $818,170,077 / 47,716,936 shares outstanding), unlimited authorized, no par value | $ | 17.15 | |||||
Class 3 ( $584,943,495 / 34,029,564 shares outstanding), unlimited authorized, no par value | $ | 17.19 | |||||
Class 4 ( $582,633,312 / 33,864,074 shares outstanding), unlimited authorized, no par value | $ | 17.21 | |||||
Class 5 ( $1,527,903,481 / 88,609,680 shares outstanding), unlimited authorized, no par value | $ | 17.24 | |||||
Class K ( $405,375 / 23,656 shares outstanding), unlimited authorized, no par value | $ | 17.14 | |||||
Institutional Class ( $116,550,013 / 6,816,704 shares outstanding), unlimited authorized, no par value | $ | 17.10 |
The accompanying notes are an integral part of the financial statements.
105
Statement of Operations
Semi-Annual Report June 30, 2020
For the Six Months Ended June 30, 2020 (unaudited)
Baillie Gifford International Growth Fund
INVESTMENT INCOME | |||||||
Dividends (net of foreign withholding taxes of $281,259) | $ | 11,970,224 | |||||
Interest | 28,853 | ||||||
Total Investment Income | 11,999,077 | ||||||
Expenses | |||||||
Advisory fee (Note B) | 5,038,970 | ||||||
Shareholder Servicing fees — Class 2 shares (Note B) | 576,272 | ||||||
Shareholder Servicing fees — Class 3 shares (Note B) | 260,015 | ||||||
Shareholder Servicing fees — Class 4 shares (Note B) | 164,732 | ||||||
Shareholder Servicing fees — Class 5 shares (Note B) | 127,354 | ||||||
Administration & Supervisory fee — Class K shares (Note B) | 194 | ||||||
Administration & Supervisory fee — Institutional Class shares (Note B) | 44,085 | ||||||
Transfer agency | 52,811 | ||||||
Sub-transfer agency — Institutional Class shares | 7,651 | ||||||
Fund accounting | 504,170 | ||||||
Legal | 249,833 | ||||||
Custody | 175,602 | ||||||
Trustees' fees | 53,365 | ||||||
Professional fees | 51,461 | ||||||
Registration fees | 23,832 | ||||||
Commitment fees | 6,572 | ||||||
Miscellaneous | 50,851 | ||||||
Total Expenses | 7,387,770 | ||||||
Net Investment Income | 4,611,307 | ||||||
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS AND FOREIGN CURRENCY TRANSACTIONS | |||||||
Net realized gain (loss) from: | |||||||
Investments | 95,466,014 | ||||||
Foreign currency transactions | (5,202 | ) | |||||
95,460,812 | |||||||
Net change in unrealized appreciation on: | |||||||
Investments (net of Indian capital gains tax benefit of $366,530) (Note A) | 456,870,835 | ||||||
Translation of net assets and liabilities denominated in foreign currencies | 69,721 | ||||||
456,940,556 | |||||||
Net realized and unrealized gain | 552,401,368 | ||||||
NET INCREASE IN NET ASSETS FROM OPERATIONS | $ | 557,012,675 |
The accompanying notes are an integral part of the financial statements.
106
Statements of Changes in Net Assets
Semi-Annual Report June 30, 2020
Baillie Gifford International Growth Fund
For the Six Months Ended June 30, 2020 (unaudited) | For the Year Ended December 31, 2019 | ||||||||||
INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS | |||||||||||
Net investment income | $ | 4,611,307 | $ | 33,185,824 | |||||||
Net realized gain | 95,460,812 | 25,083,150 | |||||||||
Net change in unrealized appreciation | 456,940,556 | 767,763,729 | |||||||||
Net increase in net assets from operations | 557,012,675 | 826,032,703 | |||||||||
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS FROM: | |||||||||||
Distributable earnings | |||||||||||
Class 2 | — | (9,711,659 | ) | ||||||||
Class 3 | — | (6,398,737 | ) | ||||||||
Class 4 | — | (3,385,754 | ) | ||||||||
Class 5 | — | (16,066,961 | ) | ||||||||
Class K | — | (77 | ) | ||||||||
Institutional Class | — | (285,728 | ) | ||||||||
Total Distributions to Shareholders | — | (35,848,916 | ) | ||||||||
TRANSACTIONS IN SHARES OF BENEFICIAL INTEREST | |||||||||||
Net proceeds from shares subscribed: | |||||||||||
Class 2 | 60,503,000 | 64,526,000 | |||||||||
Class 3 | 226,163,912 | * | 9,300,000 | ||||||||
Class 4 | 218,892,272 | * | — | ||||||||
Class K | 357,069 | — | |||||||||
Institutional Class | 81,474,900 | 21,930,555 | |||||||||
Dividends reinvested: | |||||||||||
Class 2 | — | 9,691,346 | |||||||||
Class 3 | — | 6,398,737 | |||||||||
Class 4 | — | 3,385,754 | |||||||||
Class 5 | — | 16,066,961 | |||||||||
Class K | — | 77 | |||||||||
Institutional Class | — | 285,728 | |||||||||
Cost of shares redeemed: | |||||||||||
Class 2 | (253,163,912 | )* | (63,189,038 | ) | |||||||
Class 3 | (279,567,272 | )* | (5,000,000 | ) | |||||||
Class 4 | (1,000,000 | ) | — | ||||||||
Class K | (34,273 | ) | — | ||||||||
Institutional Class | (9,558,770 | ) | (2,123,738 | ) | |||||||
Increase in Net Assets from Transactions in Shares of Beneficial Interest | 44,066,926 | 61,272,382 | |||||||||
Total Increase in Net Assets | 601,079,601 | 851,456,169 | |||||||||
NET ASSETS | |||||||||||
Beginning of period | 3,029,526,152 | 2,178,069,983 | |||||||||
End of period | $ | 3,630,605,753 | $ | 3,029,526,152 |
* See Note D for details of share class conversions.
The accompanying notes are an integral part of the financial statements.
107
Financial Highlights
Semi-Annual Report June 30, 2020
Baillie Gifford International Growth Fund
Selected data for a Class 2 share outstanding throughout each period:
For the Six Months Ended June 30, 2020 (unaudited) | For the Year Ended December 31, 2019 | For the Year Ended December 31, 2018 | For the Year Ended December 31, 2017 | For the Year Ended December 31, 2016 | For the Year Ended December 31, 2015 | ||||||||||||||||||||||
Net asset value, beginning of period | $ | 14.59 | $ | 10.74 | $ | 14.39 | $ | 10.09 | $ | 10.52 | $ | 11.11 | |||||||||||||||
From Investment Operations | |||||||||||||||||||||||||||
Net investment income(a) | 0.01 | 0.15 | 0.11 | 0.05 | 0.08 | 0.09 | |||||||||||||||||||||
Net realized and unrealized gain (loss) | 2.55 | 3.87 | (2.61 | ) | 4.60 | 0.06 | (0.42 | ) | |||||||||||||||||||
Net increase (decrease) in net asset value from investment operations | 2.56 | 4.02 | (2.50 | ) | 4.65 | 0.14 | (0.33 | ) | |||||||||||||||||||
Dividends and Distributions to Shareholders | |||||||||||||||||||||||||||
From net investment income | — | (0.15 | ) | (0.10 | ) | (0.06 | ) | (0.07 | ) | (0.09 | ) | ||||||||||||||||
From net realized gain on investments | — | (0.02 | ) | (1.03 | ) | (0.29 | ) | (0.50 | ) | (0.17 | ) | ||||||||||||||||
Return of capital | — | — | (0.02 | ) | — | — | — | ||||||||||||||||||||
Total Dividends and Distributions | — | (0.17 | ) | (1.15 | ) | (0.35 | ) | (0.57 | ) | (0.26 | ) | ||||||||||||||||
Proceeds from Purchase Fees and Redemption Fees(a) | — | — | — | 0.00 | (b) | 0.00 | (b) | 0.00 | (b) | ||||||||||||||||||
Net asset value, end of period | $ | 17.15 | $ | 14.59 | $ | 10.74 | $ | 14.39 | $ | 10.09 | $ | 10.52 | |||||||||||||||
Total Return | |||||||||||||||||||||||||||
Total return based on net asset value(c) | 17.54 | % | 37.34 | % | (17.33 | )% | 46.09 | % | 1.34 | % | (3.07 | )% | |||||||||||||||
Ratios/Supplemental Data | |||||||||||||||||||||||||||
Net assets, end of period (000's omitted) | $ | 818,170 | $ | 874,230 | $ | 632,645 | $ | 746,817 | $ | 732,160 | $ | 732,135 | |||||||||||||||
Ratio of net expenses to average net assets | 0.58 | %* | 0.60 | % | 0.60 | % | 0.61 | % | 0.61 | % | 0.62 | % | |||||||||||||||
Ratio of net investment income to average net assets | 0.20 | %* | 1.16 | %(d) | 0.72 | % | 0.42 | % | 0.81 | % | 0.78 | % | |||||||||||||||
Portfolio turnover rate(e) | 13 | % | 6 | % | 14 | % | 9 | % | 18 | % | 17 | % |
* Annualized.
(a) Calculated based upon average shares outstanding during the period.
(b) Amount is less than $0.005 per share.
(c) Total investment return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all dividends and distributions, if any, at net asset value during the period, and redemption on the last day of the period. Total return is not annualized for periods less than one year.
(d) Large increase due to one-off taxable stock dividends that were treating as income.
(e) Portfolio turnover rate calculated at Fund level.
The accompanying notes are an integral part of the financial statements.
108
Financial Highlights
Semi-Annual Report June 30, 2020
Baillie Gifford International Growth Fund
Selected data for a Class 3 share outstanding throughout each period:
For the Six Months Ended June 30, 2020 (unaudited) | For the Year Ended December 31, 2019 | For the Year Ended December 31, 2018 | For the Year Ended December 31, 2017 | For the Year Ended December 31, 2016 | For the Year Ended December 31, 2015 | ||||||||||||||||||||||
Net asset value, beginning of period | $ | 14.62 | $ | 10.76 | $ | 14.42 | $ | 10.11 | $ | 10.54 | $ | 11.13 | |||||||||||||||
From Investment Operations | |||||||||||||||||||||||||||
Net investment income(a) | 0.02 | 0.16 | 0.11 | 0.05 | 0.11 | 0.10 | |||||||||||||||||||||
Net realized and unrealized gain (loss) | 2.55 | 3.88 | (2.61 | ) | 4.62 | 0.03 | (0.43 | ) | |||||||||||||||||||
Net increase (decrease) in net asset value from investment operations | 2.57 | 4.04 | (2.50 | ) | 4.67 | 0.14 | (0.33 | ) | |||||||||||||||||||
Dividends and Distributions to Shareholders | |||||||||||||||||||||||||||
From net investment income | — | (0.16 | ) | (0.11 | ) | (0.07 | ) | (0.07 | ) | (0.09 | ) | ||||||||||||||||
From net realized gain on investments | — | (0.02 | ) | (1.03 | ) | (0.29 | ) | (0.50 | ) | (0.17 | ) | ||||||||||||||||
Return of capital | — | — | (0.02 | ) | — | — | — | ||||||||||||||||||||
Total Dividends and Distributions | — | (0.18 | ) | (1.16 | ) | (0.36 | ) | (0.57 | ) | (0.26 | ) | ||||||||||||||||
Proceeds from Purchase Fees and Redemption Fees(a) | — | — | — | 0.00 | (b) | 0.00 | (b) | 0.00 | (b) | ||||||||||||||||||
Net asset value, end of period | $ | 17.19 | $ | 14.62 | $ | 10.76 | $ | 14.42 | $ | 10.11 | $ | 10.54 | |||||||||||||||
Total Return | |||||||||||||||||||||||||||
Total return based on net asset value(c) | 17.58 | % | 37.44 | % | (17.27 | )% | 46.20 | % | 1.41 | % | (3.02 | )% | |||||||||||||||
Ratios/Supplemental Data | |||||||||||||||||||||||||||
Net assets, end of period (000's omitted) | $ | 584,944 | $ | 546,477 | $ | 393,050 | $ | 601,549 | $ | 433,860 | $ | 490,218 | |||||||||||||||
Ratio of net expenses to average net assets | 0.51 | %* | 0.53 | % | 0.53 | % | 0.54 | % | 0.54 | % | 0.55 | % | |||||||||||||||
Ratio of net investment income to average net assets | 0.27 | %* | 1.22 | %(d) | 0.74 | % | 0.41 | % | 1.04 | % | 0.85 | % | |||||||||||||||
Portfolio turnover rate(e) | 13 | % | 6 | % | 14 | % | 9 | % | 18 | % | 17 | % |
* Annualized.
(a) Calculated based upon average shares outstanding during the period.
(b) Amount is less than $0.005 per share.
(c) Total investment return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all dividends and distributions, if any, at net asset value during the period, and redemption on the last day of the period. Total return is not annualized for periods less than one year.
(d) Large increase due to one-off taxable stock dividends that were treating as income.
(e) Portfolio turnover rate calculated at Fund level.
The accompanying notes are an integral part of the financial statements.
109
Financial Highlights
Semi-Annual Report June 30, 2020
Baillie Gifford International Growth Fund
Selected data for a Class 4 share outstanding throughout each period:
For the Six Months Ended June 30, 2020 (unaudited) | For the Year Ended December 31, 2019 | For the Year Ended December 31, 2018 | For the Year Ended December 31, 2017 | For the Period October 10, 2016(a) through December 31, 2016 | For the Period January 1, 2016(a) through April 11, 2016 | For the Year Ended December 31, 2015 | |||||||||||||||||||||||||
Net asset value, beginning of period | $ | 14.63 | $ | 10.77 | $ | 14.43 | $ | 10.12 | $ | 11.49 | $ | 10.55 | $ | 11.15 | |||||||||||||||||
From Investment Operations | |||||||||||||||||||||||||||||||
Net investment income(b) | 0.02 | 0.16 | 0.12 | 0.06 | 0.00 | (c) | 0.02 | 0.10 | |||||||||||||||||||||||
Net realized and unrealized gain (loss) | 2.56 | 3.88 | (2.61 | ) | 4.62 | (0.81 | ) | (0.41 | ) | (0.43 | ) | ||||||||||||||||||||
Net increase (decrease) in net asset value from investment operations | 2.58 | 4.04 | (2.49 | ) | 4.68 | (0.81 | ) | (0.39 | ) | (0.33 | ) | ||||||||||||||||||||
Dividends and Distributions to Shareholders | |||||||||||||||||||||||||||||||
From net investment income | — | (0.16 | ) | (0.12 | ) | (0.08 | ) | (0.08 | ) | — | (0.10 | ) | |||||||||||||||||||
From net realized gain on investments | — | (0.02 | ) | (1.03 | ) | (0.29 | ) | (0.48 | ) | — | (0.17 | ) | |||||||||||||||||||
Return of capital | — | — | (0.02 | ) | — | — | — | — | |||||||||||||||||||||||
Total Dividends and Distributions | — | (0.18 | ) | (1.17 | ) | (0.37 | ) | (0.56 | ) | — | (0.27 | ) | |||||||||||||||||||
Proceeds from Purchase Fees and Redemption Fees(b) | — | — | — | 0.00 | (c) | 0.00 | (c) | — | 0.00 | (c) | |||||||||||||||||||||
Net asset value, end of period | $ | 17.21 | $ | 14.63 | $ | 10.77 | $ | 14.43 | $ | 10.12 | $ | 10.16 | $ | 10.55 | |||||||||||||||||
Total Return | |||||||||||||||||||||||||||||||
Total return based on net asset value(d) | 17.60 | % | 37.48 | % | (17.24 | )% | 46.24 | % | (6.97 | )% | (3.71 | )% | (2.99 | )% | |||||||||||||||||
Ratios/Supplemental Data | |||||||||||||||||||||||||||||||
Net assets, end of period (000's omitted) | $ | 582,633 | $ | 283,094 | $ | 205,923 | $ | 302,474 | $ | 201,923 | $ | 191,724 | $ | 199,086 | |||||||||||||||||
Ratio of net expenses to average net assets | 0.48 | %* | 0.50 | % | 0.50 | % | 0.51 | % | 0.52 | %* | 0.51 | %* | 0.52 | % | |||||||||||||||||
Ratio of net investment income to average net assets | 0.33 | %* | 1.26 | %(e) | 0.83 | % | 0.45 | % | 0.05 | %* | 0.65 | %* | 0.89 | % | |||||||||||||||||
Portfolio turnover rate(f) | 13 | % | 6 | % | 14 | % | 9 | % | 18 | % | 18 | % | 17 | % |
* Annualized.
(a) Recommencement of investment operations. Class had no shareholders from April 11, 2016 to October 9, 2016. All shares of this class were redeemed on April 11, 2016 at $10.16. New shares were issued at $11.49 on October 10, 2016.
(b) Calculated based upon average shares outstanding during the period.
(c) Amount is less than $0.005 per share.
(d) Total investment return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all dividends and distributions, if any, at net asset value during the period, and redemption on the last day of the period. Total return is not annualized for periods less than one year.
(e) Large increase due to one-off taxable stock dividends that were treating as income.
(f) Portfolio turnover rate calculated at Fund level.
The accompanying notes are an integral part of the financial statements.
110
Financial Highlights
Semi-Annual Report June 30, 2020
Baillie Gifford International Growth Fund
Selected data for a Class 5 share outstanding throughout each period:
For the Six Months Ended June 30, 2020 (unaudited) | For the Year Ended December 31, 2019 | For the Year Ended December 31, 2018 | For the Year Ended December 31, 2017 | For the Year Ended December 31, 2016 | For the Year Ended December 31, 2015 | ||||||||||||||||||||||
Net asset value, beginning of period | $ | 14.66 | $ | 10.79 | $ | 14.46 | $ | 10.14 | $ | 10.56 | $ | 11.16 | |||||||||||||||
From Investment Operations | |||||||||||||||||||||||||||
Net investment income(a) | 0.03 | 0.17 | 0.12 | 0.07 | 0.10 | 0.11 | |||||||||||||||||||||
Net realized and unrealized gain (loss) | 2.55 | 3.89 | (2.61 | ) | 4.62 | 0.06 | (0.44 | ) | |||||||||||||||||||
Net increase (decrease) in net asset value from investment operations | 2.58 | 4.06 | (2.49 | ) | 4.69 | 0.16 | (0.33 | ) | |||||||||||||||||||
Dividends and Distributions to Shareholders | |||||||||||||||||||||||||||
From net investment income | — | (0.17 | ) | (0.13 | ) | (0.08 | ) | (0.08 | ) | (0.10 | ) | ||||||||||||||||
From net realized gain on investments | — | (0.02 | ) | (1.03 | ) | (0.29 | ) | (0.50 | ) | (0.17 | ) | ||||||||||||||||
Return of capital | — | — | (0.02 | ) | — | — | — | ||||||||||||||||||||
Total Dividends and Distributions | — | (0.19 | ) | (1.18 | ) | (0.37 | ) | (0.58 | ) | (0.27 | ) | ||||||||||||||||
Proceeds from Purchase Fees and Redemption Fees(a) | — | — | — | 0.00 | (b) | 0.00 | (b) | 0.00 | (b) | ||||||||||||||||||
Net asset value, end of period | $ | 17.24 | $ | 14.66 | $ | 10.79 | $ | 14.46 | $ | 10.14 | $ | 10.56 | |||||||||||||||
Total Return | |||||||||||||||||||||||||||
Total return based on net asset value(c) | 17.63 | % | 37.55 | % | (17.20 | )% | 46.31 | % | 1.49 | % | (2.94 | )% | |||||||||||||||
Ratios/Supplemental Data | |||||||||||||||||||||||||||
Net assets, end of period (000's omitted) | $ | 1,527,904 | $ | 1,298,918 | $ | 944,366 | $ | 1,139,553 | $ | 778,857 | $ | 767,415 | |||||||||||||||
Ratio of net expenses to average net assets | 0.43 | %* | 0.45 | % | 0.45 | % | 0.46 | % | 0.46 | % | 0.47 | % | |||||||||||||||
Ratio of net investment income to average net assets | 0.36 | %* | 1.31 | %(d) | 0.84 | % | 0.51 | % | 0.98 | % | 0.94 | % | |||||||||||||||
Portfolio turnover rate(e) | 13 | % | 6 | % | 14 | % | 9 | % | 18 | % | 17 | % |
* Annualized.
(a) Calculated based upon average shares outstanding during the period.
(b) Amount is less than $0.005 per share.
(c) Total investment return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all dividends and distributions, if any, at net asset value during the period, and redemption on the last day of the period. Total return is not annualized for periods less than one year.
(d) Large increase due to one-off taxable stock dividends that were treating as income.
(e) Portfolio turnover rate calculated at Fund level.
The accompanying notes are an integral part of the financial statements.
111
Financial Highlights
Semi-Annual Report June 30, 2020
Baillie Gifford International Growth Fund
Selected data for a Class K share outstanding throughout each period:
For the Six Months Ended June 30, 2020 (unaudited) | For the Year Ended December 31, 2019 | For the Year Ended December 31, 2018 | For the Period April 28, 2017(a) through December 31, 2017 | ||||||||||||||||
Net asset value, beginning of period | $ | 14.58 | $ | 10.73 | $ | 14.38 | $ | 12.02 | |||||||||||
From Investment Operations | |||||||||||||||||||
Net investment income(b) | 0.03 | 0.15 | 0.10 | 0.01 | |||||||||||||||
Net realized and unrealized gain (loss) | 2.53 | 3.87 | (2.60 | ) | 2.71 | ||||||||||||||
Net increase (decrease) in net asset value from investment operations | 2.56 | 4.02 | (2.50 | ) | 2.72 | ||||||||||||||
Dividends and Distributions to Shareholders | |||||||||||||||||||
From net investment income | — | (0.15 | ) | (0.10 | ) | (0.07 | ) | ||||||||||||
From net realized gain on investments | — | (0.02 | ) | (1.03 | ) | (0.29 | ) | ||||||||||||
Return of capital | — | — | (0.02 | ) | — | ||||||||||||||
Total Dividends and Distributions | — | (0.17 | ) | (1.15 | ) | (0.36 | ) | ||||||||||||
Net asset value, end of period | $ | 17.14 | $ | 14.58 | $ | 10.73 | $ | 14.38 | |||||||||||
Total Return | |||||||||||||||||||
Total return based on net asset value(c) | 17.56 | % | 37.40 | % | (17.32 | )% | 22.62 | % | |||||||||||
Ratios/Supplemental Data | |||||||||||||||||||
Net assets, end of period (000's omitted) | $ | 405 | $ | 7 | $ | 5 | $ | 6 | |||||||||||
Ratio of net expenses to average net assets | 0.58 | %* | 0.60 | % | 0.60 | % | 0.60 | %* | |||||||||||
Ratio of net investment income to average net assets | 0.41 | %* | 1.17 | %(d) | 0.72 | % | 0.14 | %* | |||||||||||
Portfolio turnover rate(e) | 13 | % | 6 | % | 14 | % | 9 | % |
* Annualized.
(a) Commencement of investment operations.
(b) Calculated based upon average shares outstanding during the period.
(c) Total investment return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all dividends and distributions, if any, at net asset value during the period, and redemption on the last day of the period. Total return is not annualized for periods less than one year.
(d) Large increase due to one-off taxable stock dividends that were treating as income.
(e) Portfolio turnover rate calculated at Fund level.
The accompanying notes are an integral part of the financial statements.
112
Financial Highlights
Semi-Annual Report June 30, 2020
Baillie Gifford International Growth Fund
Selected data for an Institutional Class share outstanding throughout each period:
For the Six Months Ended June 30, 2020 (unaudited) | For the Year Ended December 31, 2019 | For the Year Ended December 31, 2018 | For the Period April 28, 2017(a) through December 31, 2017 | ||||||||||||||||
Net asset value, beginning of period | $ | 14.55 | $ | 10.72 | $ | 14.38 | $ | 12.02 | |||||||||||
From Investment Operations | |||||||||||||||||||
Net investment income (loss)(b) | 0.02 | 0.15 | (0.01 | ) | 0.01 | ||||||||||||||
Net realized and unrealized gain (loss) | 2.53 | 3.85 | (2.49 | )(c) | 2.71 | ||||||||||||||
Net increase (decrease) in net asset value from investment operations | 2.55 | 4.00 | (2.50 | ) | 2.72 | ||||||||||||||
Dividends and Distributions to Shareholders | |||||||||||||||||||
From net investment income | — | (0.15 | ) | (0.11 | ) | (0.07 | ) | ||||||||||||
From net realized gain on investments | — | (0.02 | ) | (1.03 | ) | (0.29 | ) | ||||||||||||
Return of capital | — | — | (0.02 | ) | — | ||||||||||||||
Total Dividends and Distributions | — | (0.17 | ) | (1.16 | ) | (0.36 | ) | ||||||||||||
Net asset value, end of period | $ | 17.10 | $ | 14.55 | $ | 10.72 | $ | 14.38 | |||||||||||
Total Return | |||||||||||||||||||
Total return based on net asset value(d) | 17.53 | % | 37.25 | % | (17.34 | )% | 22.62 | % | |||||||||||
Ratios/Supplemental Data | |||||||||||||||||||
Net assets, end of period (000's omitted) | $ | 116,550 | $ | 26,800 | $ | 2,081 | $ | 6 | |||||||||||
Ratio of net expenses to average net assets | 0.61 | %* | 0.65 | % | 0.69 | % | 0.60 | %* | |||||||||||
Ratio of net investment income (loss) to average net assets | 0.33 | %* | 1.09 | %(e) | (0.23 | )% | 0.14 | %* | |||||||||||
Portfolio turnover rate(f) | 13 | % | 6 | % | 14 | % | 9 | % |
* Annualized.
(a) Commencement of investment operations.
(b) Calculated based upon average shares outstanding during the period.
(c) Calculation of the net gain or loss per share (both realized and unrealized) may not correlate to the aggregate realized and unrealized losses presented in the Statement of Operations due to the timing of sales and repurchases of Class shares in relation to fluctuating market values of the investments of the Fund.
(d) Total investment return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all dividends and distributions, if any, at net asset value during the period, and redemption on the last day of the period. Total return is not annualized for periods less than one year.
(e) Large increase due to one-off taxable stock dividends that were treating as income.
(f) Portfolio turnover rate calculated at Fund level.
The accompanying notes are an integral part of the financial statements.
113
Industry Diversification Table
Semi-Annual Report June 30, 2020
June 30, 2020 (unaudited)
Baillie Gifford International Smaller Companies Fund
Value | % of Total Net Assets | ||||||||||
Apparel | $ | 24,755 | 1.9 | % | |||||||
Auto Parts & Equipment | 4,499 | 0.3 | |||||||||
Biotechnology | 16,995 | 1.3 | |||||||||
Building Materials | 29,824 | 2.2 | |||||||||
Chemicals | 9,475 | 0.7 | |||||||||
Commercial Services | 59,507 | 4.5 | |||||||||
Computers | 47,348 | 3.5 | |||||||||
Distribution/Wholesale | 56,249 | 4.2 | |||||||||
Diversified Financial Services | 127,965 | 9.6 | |||||||||
Electrical Components & Equipment | 5,336 | 0.4 | |||||||||
Electronics | 59,119 | 4.4 | |||||||||
Food | 6,543 | 0.5 | |||||||||
Hand/Machine Tools | 10,997 | 0.8 | |||||||||
Healthcare — Products | 9,989 | 0.7 | |||||||||
Insurance | 8,496 | 0.6 | |||||||||
Internet | 263,129 | 19.7 | |||||||||
Investment Companies | 7,051 | 0.5 | |||||||||
Leisure Time | 33,536 | 2.5 | |||||||||
Machinery — Diversified | 18,970 | 1.5 | |||||||||
Media | 20,566 | 1.6 | |||||||||
Miscellaneous Manufacturing | 35,330 | 2.7 | |||||||||
Office/Business Equipment | 10,873 | 0.8 | |||||||||
Pharmaceuticals | 41,248 | 3.0 | |||||||||
Private Equity | 8,416 | 0.6 | |||||||||
Retail | 68,243 | 5.1 | |||||||||
Semiconductors | 126,372 | 9.5 | |||||||||
Software | 164,383 | 12.4 | |||||||||
Telecommunications | 16,901 | 1.3 | |||||||||
Toys/Games/Hobbies | 21,065 | 1.6 | |||||||||
Total Value of Investments | 1,313,180 | 98.4 | |||||||||
Other assets less liabilities | 20,715 | 1.6 | |||||||||
Net Assets | $ | 1,333,895 | 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.
114
Portfolio of Investments
Semi-Annual Report June 30, 2020
June 30, 2020 (unaudited)
Baillie Gifford International Smaller Companies Fund
Shares | Value | ||||||||||
COMMON STOCKS — 98.4% | |||||||||||
AUSTRALIA — 0.7% | |||||||||||
IRESS Ltd. | 1,257 | $ | 9,608 | ||||||||
BELGIUM — 0.9% | |||||||||||
Biocartis NV * | 862 | 4,499 | |||||||||
Melexis NV | 96 | 7,303 | |||||||||
11,802 | |||||||||||
CANADA — 3.2% | |||||||||||
Kinaxis, Inc. * | 300 | 42,883 | |||||||||
CHINA — 6.6% | |||||||||||
Airtac International Group | 2,000 | 35,331 | |||||||||
Li Ning Co., Ltd. | 16,500 | 52,840 | |||||||||
88,171 | |||||||||||
DENMARK — 1.5% | |||||||||||
ALK-Abello A/S * | 72 | 19,273 | |||||||||
FINLAND — 0.8% | |||||||||||
Enento Group Oyj * | 270 | 11,163 | |||||||||
FRANCE — 1.1% | |||||||||||
Cellectis SA * | 506 | 9,065 | |||||||||
ESI Group * | 135 | 5,226 | |||||||||
14,291 | |||||||||||
GERMANY — 7.5% | |||||||||||
Aumann AG * | 165 | 2,193 | |||||||||
Hypoport AG * | 107 | 47,597 | |||||||||
New Work SE | 80 | 24,674 | |||||||||
zooplus AG * | 151 | 24,802 | |||||||||
99,266 | |||||||||||
HONG KONG — 0.5% | |||||||||||
Hypebeast Ltd. | 15,000 | 1,609 | |||||||||
Johnson Electric Holdings Ltd. | 3,000 | 5,336 | |||||||||
6,945 |
The accompanying notes are an integral part of the financial statements.
115
Portfolio of Investments
Semi-Annual Report June 30, 2020
June 30, 2020 (unaudited)
Baillie Gifford International Smaller Companies Fund
Shares | Value | ||||||||||
IRELAND — 1.0% | |||||||||||
Keywords Studios PLC | 586 | $ | 13,157 | ||||||||
ISRAEL — 1.7% | |||||||||||
Maytronics Ltd. | 2,033 | 23,099 | |||||||||
ITALY — 4.8% | |||||||||||
Brunello Cucinelli SpA * | 831 | 24,755 | |||||||||
Reply SpA | 353 | 28,646 | |||||||||
Technogym SpA * | 1,247 | 10,436 | |||||||||
63,837 | |||||||||||
JAPAN — 30.5% | |||||||||||
Anicom Holdings, Inc. | 200 | 8,496 | |||||||||
Bengo4.com, Inc. * | 700 | 66,919 | |||||||||
COLOPL, Inc. | 1,900 | 17,376 | |||||||||
Daikyonishikawa Corp. | 1,000 | 4,499 | |||||||||
Demae-Can Co., Ltd. | 1,800 | 26,138 | |||||||||
DMG Mori Seiki Co., Ltd. | 900 | 10,997 | |||||||||
eGuarantee, Inc. | 1,000 | 23,734 | |||||||||
Healios K.K. * | 700 | 11,251 | |||||||||
Ichiyoshi Securities Co., Ltd. | 1,700 | 7,202 | |||||||||
Infomart Corp. | 3,300 | 22,839 | |||||||||
Iriso Electronics Co., Ltd. | 300 | 9,872 | |||||||||
Istyle, Inc. * | 2,600 | 6,495 | |||||||||
Katitas Co., Ltd. | 1,000 | 23,265 | |||||||||
KH Neochem Co., Ltd. | 500 | 9,475 | |||||||||
Kitanotatsujin Corp. | 3,600 | 17,260 | |||||||||
Link And Motivation, Inc. | 2,300 | 8,339 | |||||||||
Locondo, Inc. * | 700 | 11,385 | |||||||||
Megachips Corp. | 700 | 13,554 | |||||||||
Noritsu Koki Co., Ltd. | 900 | 12,605 | |||||||||
Open Door, Inc. * | 400 | 4,857 | |||||||||
Optex Group Co., Ltd. | 700 | 7,979 | |||||||||
Outsourcing, Inc. | 3,000 | 19,124 | |||||||||
Raksul, Inc. * | 1,000 | 27,278 | |||||||||
Sato Holdings Corp. | 500 | 10,873 | |||||||||
Tsugami Corp. | 2,000 | 16,777 | |||||||||
Uzabase, Inc. * | 400 | 8,251 | |||||||||
406,840 |
The accompanying notes are an integral part of the financial statements.
116
Portfolio of Investments
Semi-Annual Report June 30, 2020
June 30, 2020 (unaudited)
Baillie Gifford International Smaller Companies Fund
Shares | Value | ||||||||||
SOUTH KOREA — 7.2% | |||||||||||
Cafe24 Corp. * | 217 | $ | 9,647 | ||||||||
Douzone Bizon Co., Ltd. | 622 | 53,144 | |||||||||
Genexine Co., Ltd. * | 100 | 7,930 | |||||||||
Koh Young Technology, Inc. | 308 | 25,742 | |||||||||
96,463 | |||||||||||
SWEDEN — 9.1% | |||||||||||
AddTech AB, B Shares | 773 | 31,264 | |||||||||
Avanza Bank Holding AB | 3,180 | 45,309 | |||||||||
Cellavision AB * | 182 | 5,490 | |||||||||
HMS Networks AB * | 902 | 16,901 | |||||||||
Paradox Interactive AB | 343 | 7,422 | |||||||||
Storytel AB * | 386 | 7,961 | |||||||||
VNV Global AB publ * | 951 | 7,051 | |||||||||
121,398 | |||||||||||
SWITZERLAND — 3.9% | |||||||||||
Bossard Holding AG | 163 | 24,985 | |||||||||
Fenix Outdoor International AG * | 51 | 4,601 | |||||||||
Sensirion Holding AG * | 326 | 15,707 | |||||||||
u-blox Holding AG * | 102 | 6,996 | |||||||||
52,289 | |||||||||||
TAIWAN — 6.4% | |||||||||||
ASPEED Technology, Inc. | 1,000 | 42,345 | |||||||||
Chroma ATE, Inc. | 3,000 | 15,526 | |||||||||
Global Unichip Corp. | 2,000 | 17,246 | |||||||||
TCI Co., Ltd. | 1,148 | 10,724 | |||||||||
85,841 | |||||||||||
UNITED KINGDOM — 11.0% | |||||||||||
Alpha FX Group PLC | 459 | 4,123 | |||||||||
Dialog Semiconductor PLC * | 508 | 23,220 | |||||||||
dotdigital group PLC | 2,785 | 3,479 | |||||||||
Draper Esprit PLC * | 1,506 | 8,416 | |||||||||
FDM Group Holdings PLC | 2,049 | 23,028 | |||||||||
First Derivatives PLC | 720 | 22,783 | |||||||||
Games Workshop Group PLC | 212 | 21,065 | |||||||||
Horizon Discovery Group PLC * | 3,928 | 4,765 |
The accompanying notes are an integral part of the financial statements.
117
Portfolio of Investments
Semi-Annual Report June 30, 2020
June 30, 2020 (unaudited)
Baillie Gifford International Smaller Companies Fund
Shares | Value | ||||||||||
Hotel Chocolat Group PLC | 1,694 | $ | 6,543 | ||||||||
Naked Wines PLC | 1,972 | 10,802 | |||||||||
Team17 Group PLC * | 1,781 | 12,071 | |||||||||
Victoria PLC * | 1,904 | 6,559 | |||||||||
146,854 | |||||||||||
TOTAL INVESTMENTS — 98.4% | |||||||||||
(cost $1,025,721) | $ | 1,313,180 | |||||||||
Other assets less liabilities — 1.6% | 20,715 | ||||||||||
NET ASSETS — 100.0% | $ | 1,333,895 |
* 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, 2020 in valuing the Fund's investments carried at fair value:
Investments in Securities | Level 1 | Level 2 | Level 3 | Total | |||||||||||||||
Common Stocks** | $ | 98,373 | $ | 1,214,807 | $ | — | $ | 1,313,180 | |||||||||||
Total | $ | 98,373 | $ | 1,214,807 | $ | — | $ | 1,313,180 |
** Refer to Portfolio of Investments for further detail.
The accompanying notes are an integral part of the financial statements.
118
Statement of Assets and Liabilities
Semi-Annual Report June 30, 2020
June 30, 2020 (unaudited)
Baillie Gifford International Smaller Companies Fund
ASSETS | |||||||
Investments, at value (cost $1,025,721) | $ | 1,313,180 | |||||
Cash | 25,115 | ||||||
Foreign Cash, at value (cost $1,343) | 1,343 | ||||||
Due from Investment Advisor | 38,089 | ||||||
Dividends receivable | 357 | ||||||
Tax reclaims receivable | 239 | ||||||
Prepaid assets | 25,766 | ||||||
Total Assets | 1,404,089 | ||||||
LIABILITIES | |||||||
Advisory fee payable | 1,721 | ||||||
Administration & Supervisory fee payable | 504 | ||||||
Trustee fee payable | 31 | ||||||
Commitment fee payable | 6 | ||||||
Accrued expenses | 67,932 | ||||||
Total Liabilities | 70,194 | ||||||
NET ASSETS | $ | 1,333,895 | |||||
COMPOSITION OF NET ASSETS | |||||||
Paid-in capital | $ | 1,029,432 | |||||
Total distributable earnings | 304,463 | ||||||
$ | 1,333,895 | ||||||
NET ASSET VALUE, PER SHARE | |||||||
Class K ( $666,947/51,198 shares outstanding), unlimited authorized, no par value | $ | 13.03 | |||||
Institutional Class ($666,948 / 51,198 shares outstanding), unlimited authorized, no par value | $ | 13.03 |
The accompanying notes are an integral part of the financial statements.
119
Statement of Operations
Semi-Annual Report June 30, 2020
For the Six Months Ended June 30, 2020 (unaudited)
Baillie Gifford International Smaller Companies Fund
INVESTMENT INCOME | |||||||
Dividends (net of foreign withholding taxes of $709) | $ | 4,305 | |||||
Interest | 9 | ||||||
Total Investment Income | 4,314 | ||||||
EXPENSES | |||||||
Advisory fee (Note B) | 3,374 | ||||||
Administration & Supervisory fee — Class K shares (Note B) | 494 | ||||||
Administration & Supervisory fee — Institutional Class shares (Note B) | 495 | ||||||
Transfer agency | 15,692 | ||||||
Fund accounting | 48,964 | ||||||
Registration fees | 16,592 | ||||||
Professional fees | 15,686 | ||||||
Custody | 2,877 | ||||||
Legal | 939 | ||||||
Commitment fees | 14 | ||||||
Trustees' fees | 4 | ||||||
Miscellaneous | 3,954 | ||||||
Total Expenses | 109,085 | ||||||
Fees waived | (103,849 | ) | |||||
Net Expenses | 5,236 | ||||||
Net Investment Loss | (922 | ) | |||||
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS AND FOREIGN CURRENCY TRANSACTIONS | |||||||
Net realized gain (loss) from: | |||||||
Investments | 31,318 | ||||||
Foreign currency transactions | (120 | ) | |||||
31,198 | |||||||
Net change in unrealized appreciation (depreciation) on: | |||||||
Investments | 44,232 | ||||||
Translation of net assets and liabilities denominated in foreign currencies | (77 | ) | |||||
44,155 | |||||||
Net realized and unrealized gain | 75,353 | ||||||
NET INCREASE IN NET ASSETS FROM OPERATIONS | $ | 74,431 |
The accompanying notes are an integral part of the financial statements.
120
Statements of Changes in Net Assets
Semi-Annual Report June 30, 2020
Baillie Gifford International Smaller Companies Fund
For the Six Months Ended June 30, 2020 (unaudited) | For the Year Ended December 31, 2019 | ||||||||||
INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS | |||||||||||
Net investment income (loss) | $ | (922 | ) | $ | 1,453 | ||||||
Net realized gain | 31,198 | 20,675 | |||||||||
Net change in unrealized appreciation | 44,155 | 242,653 | |||||||||
Net increase in net assets from operations | 74,431 | 264,781 | |||||||||
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS FROM: | |||||||||||
Distributable earnings | |||||||||||
Class K | — | (14,729 | ) | ||||||||
Institutional Class | — | (14,729 | ) | ||||||||
Total Distributions to Shareholders | — | (29,458 | ) | ||||||||
TRANSACTIONS IN SHARES OF BENEFICIAL INTEREST | |||||||||||
Dividends reinvested: | |||||||||||
Class K | — | 14,729 | |||||||||
Institutional Class | — | 14,729 | |||||||||
Increase in Net Assets from Transactions in Shares of Beneficial Interest | — | 29,458 | |||||||||
Total Increase in Net Assets | 74,431 | 264,781 | |||||||||
NET ASSETS | |||||||||||
Beginning of period | 1,259,464 | 994,683 | |||||||||
End of period | $ | 1,333,895 | $ | 1,259,464 |
The accompanying notes are an integral part of the financial statements.
121
Financial Highlights
Semi-Annual Report June 30, 2020
Baillie Gifford International Smaller Companies Fund
Selected data for a Class K share outstanding throughout each period:
For the Six Months Ended June 30, 2020 (unaudited) | For the Year Ended December 31, 2019 | For the Period December 19, 2018(a) through December 31, 2018 | |||||||||||||
Net asset value, beginning of period | $ | 12.30 | $ | 9.95 | $ | 10.00 | |||||||||
From Investment Operations | |||||||||||||||
Net investment income (loss)(b) | (0.01 | ) | 0.01 | 0.01 | |||||||||||
Net realized and unrealized gain (loss) | 0.74 | 2.64 | (0.06 | ) | |||||||||||
Net increase (decrease) in net asset value from investment operations | 0.73 | 2.65 | (0.05 | ) | |||||||||||
Dividends and Distributions to Shareholders | |||||||||||||||
From net investment income | — | (0.11 | ) | — | |||||||||||
From net realized gain on investments | — | (0.19 | ) | — | |||||||||||
Total Dividends and Distributions | — | (0.30 | ) | — | |||||||||||
Net asset value, end of period | $ | 13.03 | $ | 12.30 | $ | 9.95 | |||||||||
Total Return | |||||||||||||||
Total return based on net asset value(c) | 5.94 | % | 26.58 | % | (0.50 | )% | |||||||||
Ratios/Supplemental Data | |||||||||||||||
Net assets, end of period (000's omitted) | $ | 667 | $ | 630 | $ | 497 | |||||||||
Ratio of net expenses to average net assets, before waiver | 18.75 | %* | 15.15 | % | 95.80 | %* | |||||||||
Ratio of net expenses to average net assets, after waiver | 0.90 | %* | 0.90 | % | 0.90 | %* | |||||||||
Ratio of net investment income (loss) to average net assets | (0.16 | )%* | 0.13 | % | 1.85 | %* | |||||||||
Portfolio turnover rate(d) | 6 | % | 11 | % | 0 | % |
* Annualized.
(a) Commencement of investment operations.
(b) Calculated based upon average shares outstanding during the period.
(c) Total investment return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all dividends and distributions, if any, at net asset value during the period, and redemption on the last day of the period. Total return is not annualized for periods less than one year.
(d) Portfolio turnover rate calculated at Fund level.
The accompanying notes are an integral part of the financial statements.
122
Financial Highlights
Semi-Annual Report June 30, 2020
Baillie Gifford International Smaller Companies Fund
Selected data for an Institutional Class share outstanding throughout each period:
For the Six Months Ended June 30, 2020 (unaudited) | For the Year Ended December 31, 2019 | For the Period December 19, 2018(a) through December 31, 2018 | |||||||||||||
Net asset value, beginning of period | $ | 12.30 | $ | 9.95 | $ | 10.00 | |||||||||
From Investment Operations | |||||||||||||||
Net investment income (loss)(b) | (0.01 | ) | 0.01 | 0.01 | |||||||||||
Net realized and unrealized gain (loss) | 0.74 | 2.64 | (0.06 | ) | |||||||||||
Net increase (decrease) in net asset value from investment operations | 0.73 | 2.65 | (0.05 | ) | |||||||||||
Dividends and Distributions to Shareholders | |||||||||||||||
From net investment income | — | (0.11 | ) | — | |||||||||||
From net realized gain on investments | — | (0.19 | ) | — | |||||||||||
Total Dividends and Distributions | — | (0.30 | ) | — | |||||||||||
Net asset value, end of period | $ | 13.03 | $ | 12.30 | $ | 9.95 | |||||||||
Total Return | |||||||||||||||
Total return based on net asset value(c) | 5.94 | % | 26.58 | % | (0.50 | )% | |||||||||
Ratios/Supplemental Data | |||||||||||||||
Net assets, end of period (000's omitted) | $ | 667 | $ | 630 | $ | 498 | |||||||||
Ratio of net expenses to average net assets, before waiver | 18.75 | %* | 15.15 | % | 95.80 | %* | |||||||||
Ratio of net expenses to average net assets, after waiver | 0.90 | %* | 0.90 | % | 0.90 | %* | |||||||||
Ratio of net investment income (loss) to average net assets | (0.16 | )%* | 0.13 | % | 1.85 | %* | |||||||||
Portfolio turnover rate(d) | 6 | % | 11 | % | 0 | % |
* Annualized.
(a) Commencement of investment operations.
(b) Calculated based upon average shares outstanding during the period.
(c) Total investment return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all dividends and distributions, if any, at net asset value during the period, and redemption on the last day of the period. Total return is not annualized for periods less than one year.
(d) Portfolio turnover rate calculated at Fund level.
The accompanying notes are an integral part of the financial statements.
123
Industry Diversification Table
Semi-Annual Report June 30, 2020
June 30, 2020 (unaudited)
Baillie Gifford Long Term Global Growth Fund
Value | % of Total Net Assets | ||||||||||
Apparel | $ | 24,941,318 | 5.0 | % | |||||||
Auto Manufacturers | 48,850,222 | 9.7 | |||||||||
Biotechnology | 33,328,731 | 6.6 | |||||||||
Commercial Services | 20,584,987 | 4.1 | |||||||||
Cosmetics/Personal Care | 4,208,597 | 0.8 | |||||||||
Healthcare — Products | 9,688,819 | 1.9 | |||||||||
Insurance | 4,916,486 | 1.0 | |||||||||
Internet | 233,860,935 | 46.5 | |||||||||
Leisure Time | 9,385,372 | 1.9 | |||||||||
Pharmaceuticals | 16,078,164 | 3.2 | |||||||||
Retail | 2,974,015 | 0.6 | |||||||||
Semiconductors | 28,208,611 | 5.7 | |||||||||
Software | 53,327,873 | 10.6 | |||||||||
Total Value of Investments | 490,354,130 | 97.6 | |||||||||
Other assets less liabilities | 12,314,046 | 2.4 | |||||||||
Net Assets | $ | 502,668,176 | 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.
124
Portfolio of Investments
Semi-Annual Report June 30, 2020
June 30, 2020 (unaudited)
Baillie Gifford Long Term Global Growth Fund
Shares | Value | ||||||||||
COMMON STOCKS — 97.6% | |||||||||||
CANADA — 3.3% | |||||||||||
Shopify, Inc., Class A * | 17,765 | $ | 16,862,538 | ||||||||
CHINA — 24.7% | |||||||||||
Alibaba Group Holding Ltd. ADR * | 122,924 | 26,514,707 | |||||||||
Meituan Dianping, Class B * | 948,200 | 21,188,834 | |||||||||
NetEase, Inc. ADR | 19,591 | 8,411,984 | |||||||||
NIO, Inc. ADR * | 445,442 | 3,438,812 | |||||||||
Pinduoduo, Inc. ADR * | 227,876 | 19,560,876 | |||||||||
TAL Education Group ADR * | 175,306 | 11,987,424 | |||||||||
Tencent Holdings Ltd. | 512,400 | 32,833,523 | |||||||||
123,936,160 | |||||||||||
FRANCE — 5.8% | |||||||||||
Hermes International | 8,712 | 7,314,628 | |||||||||
Kering | 32,241 | 17,626,690 | |||||||||
L'Oreal SA * | 13,040 | 4,208,597 | |||||||||
29,149,915 | |||||||||||
GERMANY — 2.1% | |||||||||||
Delivery Hero SE * | 104,305 | 10,719,091 | |||||||||
HONG KONG — 1.0% | |||||||||||
AIA Group Ltd. | 525,400 | 4,916,486 | |||||||||
NETHERLANDS — 4.8% | |||||||||||
Adyen NV * | 5,907 | 8,597,563 | |||||||||
ASML Holding NV | 42,016 | 15,369,932 | |||||||||
23,967,495 | |||||||||||
SPAIN — 0.6% | |||||||||||
Industria de Diseno Textil SA | 112,086 | 2,974,015 | |||||||||
UNITED STATES — 55.3% | |||||||||||
Alphabet, Inc., Class C * | 9,717 | 13,736,048 | |||||||||
Amazon.com, Inc. * | 14,908 | 41,128,489 | |||||||||
Atlassian Corp. PLC, Class A * | 67,747 | 12,212,752 | |||||||||
Cloudflare, Inc., Class A * | 106,323 | 3,822,312 |
The accompanying notes are an integral part of the financial statements.
125
Portfolio of Investments
Semi-Annual Report June 30, 2020
June 30, 2020 (unaudited)
Baillie Gifford Long Term Global Growth Fund
Shares | Value | ||||||||||
DexCom, Inc. * | 39,660 | $ | 16,078,164 | ||||||||
Facebook, Inc., Class A * | 85,928 | 19,511,671 | |||||||||
Illumina, Inc. * | 77,508 | 28,705,088 | |||||||||
Intuitive Surgical, Inc. * | 17,003 | 9,688,819 | |||||||||
Ionis Pharmaceuticals, Inc. * | 78,420 | 4,623,643 | |||||||||
Netflix, Inc. * | 39,772 | 18,097,851 | |||||||||
NVIDIA Corp. | 33,794 | 12,838,679 | |||||||||
Peloton Interactive, Inc., Class A * | 162,461 | 9,385,372 | |||||||||
salesforce.com, Inc. * | 47,986 | 8,989,217 | |||||||||
Spotify Technology SA * | 53,090 | 13,707,307 | |||||||||
Tesla, Inc. * | 42,055 | 45,411,410 | |||||||||
Workday, Inc., Class A * | 54,223 | 10,159,221 | |||||||||
Zoom Video Communications, Inc., Class A * | 38,386 | 9,732,387 | |||||||||
277,828,430 | |||||||||||
TOTAL INVESTMENTS — 97.6% | |||||||||||
(cost $245,086,451) | $ | 490,354,130 | |||||||||
Other assets less liabilities — 2.4% | 12,314,046 | ||||||||||
NET ASSETS — 100.0% | $ | 502,668,176 |
* 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, 2020 in valuing the Fund's investments carried at fair value:
Investments in Securities | Level 1 | Level 2 | Level 3 | Total | |||||||||||||||
Common Stocks ** | $ | 373,202,334 | $ | 117,151,796 | $ | — | $ | 490,354,130 | |||||||||||
Total | $ | 373,202,334 | $ | 117,151,796 | $ | — | $ | 490,354,130 |
** Refer to Portfolio of Investments for further detail.
The accompanying notes are an integral part of the financial statements.
126
Statement of Assets and Liabilities
Semi-Annual Report June 30, 2020
June 30, 2020 (unaudited)
Baillie Gifford Long Term Global Growth Fund
ASSETS | |||||||
Investments, at value (cost $245,086,451) | $ | 490,354,130 | |||||
Cash | 12,485,041 | ||||||
Foreign Cash at value (cost $247,373) | 247,131 | ||||||
Receivable for investments sold | 473,162 | ||||||
Capital shares sold receivable | 53,997 | ||||||
Tax reclaims receivable | 9,502 | ||||||
Prepaid assets | 12,090 | ||||||
Total Assets | 503,635,053 | ||||||
LIABILITIES | |||||||
Advisory fee payable | 452,482 | ||||||
Payable for investment purchased | 227,311 | ||||||
Administration & Supervisory fee payable | 98,769 | ||||||
Servicing fee payable | 50,840 | ||||||
Capital shares purchased payable | 24,349 | ||||||
Trustee fee payable | 2,905 | ||||||
Commitment fee payable | 910 | ||||||
Accrued expenses | 109,311 | ||||||
Total Liabilities | 966,877 | ||||||
NET ASSETS | $ | 502,668,176 | |||||
COMPOSITION OF NET ASSETS | |||||||
Paid-in capital | $ | 252,695,847 | |||||
Total distributable earnings | 249,972,329 | ||||||
$ | 502,668,176 | ||||||
NET ASSET VALUE, PER SHARE | |||||||
Class 2 ($100,804,567 / 3,487,950 shares outstanding), unlimited authorized, no par value | $ | 28.90 | |||||
Class 4 ($99,935,439 / 2,948,106 shares outstanding), unlimited authorized, no par value | $ | 33.90 | |||||
Class K ($166,693,675 / 5,765,586 shares outstanding), unlimited authorized, no par value | $ | 28.91 | |||||
Institutional Class ($135,234,495 / 4,684,687 shares outstanding), unlimited authorized, no par value | $ | 28.87 |
The accompanying notes are an integral part of the financial statements.
127
Statement of Operations
Semi-Annual Report June 30, 2020
For the Six Months Ended June 30, 2020 (unaudited)
Baillie Gifford Long Term Global Growth Fund
INVESTMENT INCOME | |||||||
Dividends (net of foreign withholding taxes of $51,431) | $ | 482,304 | |||||
Interest | 3,768 | ||||||
Total Investment Income | 486,072 | ||||||
EXPENSES | |||||||
Advisory fee (Note B) | 827,725 | ||||||
Shareholder Servicing fees — Class 2 shares (Note B) | 67,269 | ||||||
Shareholder Servicing fees — Class 4 shares (Note B) | 28,338 | ||||||
Administration & Supervisory fee — Class K shares (Note B) | 111,682 | ||||||
Administration & Supervisory fee — Institutional Class shares (Note B) | 64,925 | ||||||
Transfer agency | 35,275 | ||||||
Sub-transfer agency — Institutional Class shares | 29,670 | ||||||
Fund accounting | 64,185 | ||||||
Legal | 30,612 | ||||||
Registration fees | 25,585 | ||||||
Custody | 13,920 | ||||||
Professional fees | 13,623 | ||||||
Trustees' fees | 6,294 | ||||||
Commitment fees | 2,221 | ||||||
Miscellaneous | 11,799 | ||||||
Total Expenses | 1,333,123 | ||||||
Net Investment Loss | (847,051 | ) | |||||
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS AND FOREIGN CURRENCY TRANSACTIONS | |||||||
Net realized gain from: | |||||||
Investments | 9,984,761 | ||||||
Foreign currency transactions | 431 | ||||||
9,985,192 | |||||||
Net change in unrealized appreciation (depreciation) on: | |||||||
Investments | 131,239,627 | ||||||
Translation of net assets and liabilities denominated in foreign currencies | (5,924 | ) | |||||
131,233,703 | |||||||
Net realized and unrealized gain | 141,218,895 | ||||||
NET INCREASE IN NET ASSETS FROM OPERATIONS | $ | 140,371,844 |
The accompanying notes are an integral part of the financial statements.
128
Statements of Changes in Net Assets
Semi-Annual Report June 30, 2020
Baillie Gifford Long Term Global Growth Fund
For the Six Months Ended June 30, 2020 (unaudited) | For the Year Ended December 31, 2019 | ||||||||||
INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS | |||||||||||
Net investment loss | $ | (847,051 | ) | $ | (1,011,594 | ) | |||||
Net realized gain (loss) | 9,985,192 | (4,177,007 | ) | ||||||||
Net change in unrealized appreciation | 131,233,703 | 79,757,070 | |||||||||
Net increase in net assets from operations | 140,371,844 | 74,568,469 | |||||||||
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS FROM: | |||||||||||
Distributable earnings | |||||||||||
Class 2 | — | (102,829 | ) | ||||||||
Class 4 | — | (91,124 | ) | ||||||||
Class K | — | (194,232 | ) | ||||||||
Institutional Class | — | (80,814 | ) | ||||||||
Total Distributions to Shareholders | — | (468,999 | ) | ||||||||
TRANSACTIONS IN SHARES OF BENEFICIAL INTEREST | |||||||||||
Net proceeds from shares subscribed: | |||||||||||
Class 2 | 106,250 | 155,750 | |||||||||
Class 4 | — | 67,193,017 | * | ||||||||
Class K | 12,745,587 | 34,246,083 | |||||||||
Institutional Class | 53,015,987 | 50,656,366 | |||||||||
Dividends reinvested: | |||||||||||
Class 2 | — | 102,829 | |||||||||
Class 4 | — | 91,124 | |||||||||
Class K | — | 194,231 | |||||||||
Institutional Class | — | 80,814 | |||||||||
Cost of shares redeemed: | |||||||||||
Class 2 | — | (1,000,000 | ) | ||||||||
Class 4 | (3,850,000 | ) | — | ||||||||
Class 5 | — | (69,693,017 | )* | ||||||||
Class K | (32,627,047 | ) | (1,500,000 | ) | |||||||
Institutional Class | (7,030,368 | ) | (3,117,562 | ) | |||||||
Increase in Net Assets from Transactions in Shares of Beneficial Interest | 22,360,409 | 77,409,635 | |||||||||
Total Increase in Net Assets | 162,732,253 | 151,509,105 | |||||||||
NET ASSETS | |||||||||||
Beginning of period | 339,935,923 | 188,426,818 | |||||||||
End of period | $ | 502,668,176 | $ | 339,935,923 |
* See Note D for details of share class conversions.
The accompanying notes are an integral part of the financial statements.
129
Financial Highlights
Semi-Annual Report June 30, 2020
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, 2020 (unaudited) | For the Year Ended December 31, 2019 | For the Year Ended December 31, 2018 | For the Year Ended December 31, 2017 | For the Year Ended December 31, 2016 | For the Year Ended December 31, 2015 | ||||||||||||||||||||||
Net asset value, beginning of period | $ | 20.68 | $ | 15.51 | $ | 17.33 | $ | 11.25 | $ | 11.76 | $ | 10.43 | |||||||||||||||
From Investment Operations | |||||||||||||||||||||||||||
Net investment loss(a) | (0.05 | ) | (0.07 | ) | (0.04 | ) | (0.08 | ) | (0.05 | ) | (0.04 | ) | |||||||||||||||
Net realized and unrealized gain (loss) on investments | 8.27 | 5.27 | (0.22 | ) | 6.16 | (0.39 | ) | 1.47 | |||||||||||||||||||
Net increase (decrease) in net asset value from investment operations | 8.22 | 5.20 | (0.26 | ) | 6.08 | (0.44 | ) | 1.43 | |||||||||||||||||||
Dividends and Distributions to Shareholders | |||||||||||||||||||||||||||
From net realized gain on investments | — | (0.03 | ) | (1.56 | ) | — | (0.07 | ) | (0.12 | ) | |||||||||||||||||
Total Dividends and Distributions | — | (0.03 | ) | (1.56 | ) | — | (0.07 | ) | (0.12 | ) | |||||||||||||||||
Proceeds from Purchase Fees and Redemption Fees(a) | — | — | — | 0.00 | (b) | 0.00 | (b) | 0.02 | |||||||||||||||||||
Net asset value, end of period | $ | 28.90 | $ | 20.68 | $ | 15.51 | $ | 17.33 | $ | 11.25 | $ | 11.76 | |||||||||||||||
Total Return | |||||||||||||||||||||||||||
Total return based on net asset value(c) | 39.77 | % | 33.49 | % | (1.42 | )% | 54.07 | % | (3.80 | )% | 13.99 | % | |||||||||||||||
Ratios/Supplemental Data | |||||||||||||||||||||||||||
Net assets, end of each period (000's omitted) | $ | 100,805 | $ | 72,023 | $ | 54,661 | $ | 59,870 | $ | 32,434 | $ | 36,177 | |||||||||||||||
Ratio of net expenses to average net assets, before waiver | 0.73 | %* | 0.76 | % | 0.79 | % | 0.82 | % | 0.87 | % | 0.91 | % | |||||||||||||||
Ratio of net expenses to average net assets, after waiver | 0.73 | %* | 0.76 | % | 0.77 | % | 0.77 | % | 0.77 | % | 0.77 | % | |||||||||||||||
Ratio of net investment loss to average net assets | (0.47 | )%* | (0.40 | )% | (0.22 | )% | (0.50 | )% | (0.43 | )% | (0.34 | )% | |||||||||||||||
Portfolio turnover rate(d) | 14 | % | 5 | % | 16 | % | 13 | % | 15 | % | 10 | % |
* Annualized.
(a) Calculated based upon average shares outstanding during the period.
(b) Amount is less than $0.005 per share.
(c) Total investment return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all dividends and distributions, if any, at net asset value during the period, and redemption on the last day of the period. Total return is not annualized for periods less than one year.
(d) Portfolio turnover rate calculated at Fund level.
The accompanying notes are an integral part of the financial statements.
130
Financial Highlights
Semi-Annual Report June 30, 2020
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, 2020 (unaudited) | For the Period April 10, 2019(a) through December 31, 2019 | For the Period January 1, 2018 through April 9, 2018 | For the Year Ended December 31, 2017 | For the Year Ended December 31, 2016 | For the Period October 7, 2015(b) through December 31, 2015 | ||||||||||||||||||||||
Net asset value, beginning of period | $ | 24.24 | $ | 21.80 | $ | 19.99 | $ | 12.96 | $ | 13.53 | $ | 12.22 | |||||||||||||||
From Investment Operations | |||||||||||||||||||||||||||
Net investment loss(c) | (0.05 | ) | (0.04 | ) | (0.03 | ) | (0.07 | ) | (0.04 | ) | (0.01 | ) | |||||||||||||||
Net realized and unrealized gain (loss) on investments | 9.71 | 2.51 | 1.11 | 7.10 | (0.46 | ) | 1.39 | ||||||||||||||||||||
Net increase (decrease) in net asset value from investment operations | 9.66 | 2.47 | 1.08 | 7.03 | (0.50 | ) | 1.38 | ||||||||||||||||||||
Dividends and Distributions to Shareholders | |||||||||||||||||||||||||||
From net realized gain on investments | — | (0.03 | ) | — | — | (0.07 | ) | (0.08 | ) | ||||||||||||||||||
Total Dividends and Distributions | — | (0.03 | ) | — | — | (0.07 | ) | (0.08 | ) | ||||||||||||||||||
Proceeds from Purchase Fees and Redemption Fees(c) | — | — | — | 0.00 | (d) | 0.00 | (d) | 0.01 | |||||||||||||||||||
Net asset value, end of period | $ | 33.90 | $ | 24.24 | $ | 21.07 | $ | 19.99 | $ | 12.96 | $ | 13.53 | |||||||||||||||
Total Return | |||||||||||||||||||||||||||
Total return based on net asset value(e) | 39.84 | % | 11.34 | %(f) | 5.41 | % | 54.22 | % | (3.71 | )% | 11.31 | % | |||||||||||||||
Ratios/Supplemental Data | |||||||||||||||||||||||||||
Net assets, end of period (000's omitted) | $ | 99,935 | $ | 74,808 | $ | — | $ | 58,802 | $ | 28,722 | $ | 43,344 | |||||||||||||||
Ratio of net expenses to average net assets, before waiver | 0.63 | %* | 0.66 | %* | 0.67 | %* | 0.72 | % | 0.76 | % | 0.75 | %* | |||||||||||||||
Ratio of net expenses to average net assets, after waiver | 0.63 | %* | 0.66 | %* | 0.67 | %* | 0.67 | % | 0.67 | % | 0.67 | %* | |||||||||||||||
Ratio of net investment loss to average net assets | (0.38 | )%* | (0.27 | )%* | 0.15 | %* | (0.41 | )% | (0.33 | )% | (0.39 | )%* | |||||||||||||||
Portfolio turnover rate(g) | 14 | % | 5 | % | 16 | % | 13 | % | 15 | % | 10 | % |
* Annualized.
(a) 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.
(b) Commencement of investment operations.
(c) Calculated based upon average shares outstanding during the period.
(d) Amount is less than $0.005 per share.
(e) Total investment return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all dividends and distributions, if any, at net asset value during the period, and redemption on the last day of the period. Total return is not annualized for periods less than one year.
(f) Represents total return for the period April 10, 2019 (commencement of investment operations) through December 31, 2019. For the year ended December 31, 2019, the blended return for shares converted into Class 4 from Class 5 was 33.59.%.
(g) Portfolio turnover rate calculated at Fund level.
The accompanying notes are an integral part of the financial statements.
131
Financial Highlights
Semi-Annual Report June 30, 2020
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, 2020 (unaudited) | For the Year Ended December 31, 2019 | For the Year Ended December 31, 2018 | For the Period April 28, 2017(a) through December 31, 2017 | ||||||||||||||||
Net asset value, beginning of period | $ | 20.69 | $ | 15.52 | $ | 17.34 | $ | 13.96 | |||||||||||
From Investment Operations | |||||||||||||||||||
Net investment loss(b) | (0.05 | ) | (0.07 | ) | (0.04 | ) | (0.07 | ) | |||||||||||
Net realized and unrealized gain (loss) on investments | 8.27 | 5.27 | (0.22 | ) | 3.45 | ||||||||||||||
Net increase (decrease) in net asset value from investment operations | 8.22 | 5.20 | (0.26 | ) | 3.38 | ||||||||||||||
Dividends and Distributions to Shareholders | |||||||||||||||||||
From net realized gain on investments | — | (0.03 | ) | (1.56 | ) | — | |||||||||||||
Total Dividends and Distributions | — | (0.03 | ) | (1.56 | ) | — | |||||||||||||
Net asset value, end of period | $ | 28.91 | $ | 20.69 | $ | 15.52 | $ | 17.34 | |||||||||||
Total Return | |||||||||||||||||||
Total return based on net asset value(c) | 39.73 | % | 33.50 | % | (1.41 | )% | 24.21 | % | |||||||||||
Ratios/Supplemental Data | |||||||||||||||||||
Net assets, end of period (000's omitted) | $ | 166,694 | $ | 136,096 | $ | 75,402 | $ | 70,639 | |||||||||||
Ratio of net expenses to average net assets, before waiver | 0.73 | %* | 0.76 | % | 0.79 | % | 0.80 | %* | |||||||||||
Ratio of net expenses to average net assets, after waiver | 0.73 | %* | 0.76 | % | 0.77 | % | 0.77 | %* | |||||||||||
Ratio of net investment loss to average net assets | (0.47 | )%* | (0.41 | )% | (0.23 | )% | (0.61 | )%* | |||||||||||
Portfolio turnover rate(d) | 14 | % | 5 | % | 16 | % | 13 | % |
* Annualized.
(a) Commencement of investment operations.
(b) Calculated based upon average shares outstanding during the period.
(c) Total investment return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all dividends and distributions, if any, at net asset value during the period, and redemption on the last day of the period. Total return is not annualized for periods less than one year.
(d) Portfolio turnover rate calculated at Fund level.
The accompanying notes are an integral part of the financial statements.
132
Financial Highlights
Semi-Annual Report June 30, 2020
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, 2020 (unaudited) | For the Year Ended December 31, 2019 | For the Year Ended December 31, 2018 | For the Period April 28, 2017(a) through December 31, 2017 | ||||||||||||||||
Net asset value, beginning of period | $ | 20.66 | $ | 15.51 | $ | 17.34 | $ | 13.96 | |||||||||||
From Investment Operations | |||||||||||||||||||
Net investment loss(b) | (0.06 | ) | (0.10 | ) | (0.19 | ) | (0.06 | ) | |||||||||||
Net realized and unrealized gain (loss) on investments | 8.27 | 5.28 | (0.08 | )(c) | 3.44 | ||||||||||||||
Net increase (decrease) in net asset value from investment operations | 8.21 | 5.18 | (0.27 | ) | 3.38 | ||||||||||||||
Dividends and Distributions to Shareholders | |||||||||||||||||||
From net realized gain on investments | — | (0.03 | ) | (1.56 | ) | — | |||||||||||||
Total Dividends and Distributions | — | (0.03 | ) | (1.56 | ) | — | |||||||||||||
Net asset value, end of period | $ | 28.87 | $ | 20.66 | $ | 15.51 | $ | 17.34 | |||||||||||
Total Return | |||||||||||||||||||
Total return based on net asset value(d) | 39.74 | % | 33.40 | % | (1.47 | )% | 24.21 | % | |||||||||||
Ratios/Supplemental Data | |||||||||||||||||||
Net assets, end of period (000's omitted) | $ | 135,234 | $ | 57,009 | $ | 356 | $ | 6 | |||||||||||
Ratio of net expenses to average net assets, before waiver | 0.81 | %* | 0.86 | % | 0.88 | % | 0.80 | %* | |||||||||||
Ratio of net expenses to average net assets, after waiver | 0.81 | %* | 0.86 | % | 0.87 | % | 0.80 | %* | |||||||||||
Ratio of net investment loss to average net assets | (0.52 | )%* | (0.53 | )% | (0.91 | )% | (0.56 | )%* | |||||||||||
Portfolio turnover rate(e) | 14 | % | 5 | % | 16 | % | 13 | % |
* Annualized.
(a) Commencement of investment operations.
(b) Calculated based upon average shares outstanding during the period.
(c) Calculation of the net gain or loss per share (both realized and unrealized) may not correlate to the aggregate realized and unrealized losses presented in the Statement of Operations due to the timing of sales and repurchases of Class shares in relation to fluctuating market values of the investments of the Fund.
(d) Total investment return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all dividends and distributions, if any, at net asset value during the period, and redemption on the last day of the period. Total return is not annualized for periods less than one year.
(e) Portfolio turnover rate calculated at Fund level.
The accompanying notes are an integral part of the financial statements.
133
Industry Diversification Table
Semi-Annual Report June 30, 2020
June 30, 2020 (unaudited)
Baillie Gifford Positive Change Equities Fund
Value | % of Total Net Assets | ||||||||||
Auto Manufacturers | $ | 4,024,452 | 9.5 | % | |||||||
Banks | 886,002 | 2.1 | |||||||||
Biotechnology | 5,076,315 | 12.0 | |||||||||
Building Materials | 3,182,067 | 7.5 | |||||||||
Chemicals | 4,945,529 | 11.7 | |||||||||
Computers | 319,093 | 0.8 | |||||||||
Electric | 867,588 | 2.0 | |||||||||
Electronics | 728,743 | 1.7 | |||||||||
Food | 365,095 | 0.9 | |||||||||
Healthcare — Products | 2,043,466 | 4.8 | |||||||||
Healthcare — Services | 1,179,582 | 2.8 | |||||||||
Insurance | 699,793 | 1.6 | |||||||||
Internet | 7,473,539 | 17.7 | |||||||||
Machinery — Diversified | 1,594,381 | 3.8 | |||||||||
Pharmaceuticals | 2,763,612 | 6.5 | |||||||||
Semiconductors | 4,283,934 | 10.1 | |||||||||
Telecommunications | 302,445 | 0.7 | |||||||||
Total Value of Investments | 40,735,636 | 96.2 | |||||||||
Other assets less liabilities | 1,613,285 | 3.8 | |||||||||
Net Assets | $ | 42,348,921 | 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.
134
Portfolio of Investments
Semi-Annual Report June 30, 2020
June 30, 2020 (unaudited)
Baillie Gifford Positive Change Equities Fund
Shares | Value | ||||||||||
COMMON STOCKS — 94.5% | |||||||||||
ARGENTINA — 4.1% | |||||||||||
MercadoLibre, Inc. * | 1,781 | $ | 1,755,656 | ||||||||
BELGIUM — 4.0% | |||||||||||
Umicore SA | 35,687 | 1,684,565 | |||||||||
CANADA — 2.8% | |||||||||||
Shopify, Inc., Class A * | 1,237 | 1,174,160 | |||||||||
CHINA — 1.9% | |||||||||||
Alibaba Group Holding Ltd. ADR * | 3,725 | 803,482 | |||||||||
DENMARK — 8.0% | |||||||||||
Chr. Hansen Holding A/S | 14,527 | 1,498,394 | |||||||||
Novozymes A/S, B Shares | 17,396 | 1,008,549 | |||||||||
Orsted A/S | 7,518 | 867,588 | |||||||||
3,374,531 | |||||||||||
INDONESIA — 2.1% | |||||||||||
Bank Rakyat Indonesia Persero Tbk PT | 4,151,000 | 886,002 | |||||||||
IRELAND — 3.7% | |||||||||||
Kingspan Group PLC | 24,269 | 1,566,710 | |||||||||
JAPAN — 6.9% | |||||||||||
M3, Inc. | 56,500 | 2,400,184 | |||||||||
Sysmex Corp. | 6,900 | 529,656 | |||||||||
2,929,840 | |||||||||||
KENYA — 0.7% | |||||||||||
Safaricom PLC | 1,123,500 | 302,445 | |||||||||
NETHERLANDS — 5.5% | |||||||||||
ASML Holding NV | 6,342 | 2,319,976 | |||||||||
SOUTH AFRICA — 1.7% | |||||||||||
Discovery Ltd. | 115,842 | 699,793 |
The accompanying notes are an integral part of the financial statements.
135
Portfolio of Investments
Semi-Annual Report June 30, 2020
June 30, 2020 (unaudited)
Baillie Gifford Positive Change Equities Fund
Shares | Value | ||||||||||
SWEDEN — 3.8% | |||||||||||
Nibe Industrier AB, B Shares * | 72,830 | $ | 1,615,357 | ||||||||
TAIWAN — 4.6% | |||||||||||
Taiwan Semiconductor Manufacturing Co., Ltd. ADR | 34,595 | 1,963,958 | |||||||||
UNITED KINGDOM — 0.8% | |||||||||||
FDM Group Holdings PLC | 28,393 | 319,093 | |||||||||
UNITED STATES — 43.9% | |||||||||||
ABIOMED, Inc. * | 4,227 | 1,021,074 | |||||||||
Alnylam Pharmaceuticals, Inc. * | 8,446 | 1,250,937 | |||||||||
Alphabet, Inc., Class A * | 945 | 1,340,057 | |||||||||
Beyond Meat, Inc. * | 2,725 | 365,095 | |||||||||
Deere & Co. | 4,392 | 690,203 | |||||||||
DexCom, Inc. * | 6,817 | 2,763,612 | |||||||||
Ecolab, Inc. | 3,790 | 754,020 | |||||||||
Glaukos Corp. * | 12,825 | 492,737 | |||||||||
Illumina, Inc. * | 6,227 | 2,306,169 | |||||||||
Moderna, Inc. * | 23,660 | 1,519,209 | |||||||||
Teladoc Health, Inc. * | 6,181 | 1,179,582 | |||||||||
Tesla, Inc. * | 3,727 | 4,024,452 | |||||||||
Xylem, Inc. | 13,919 | 904,178 | |||||||||
18,611,325 | |||||||||||
Total Common Stocks | |||||||||||
(cost $28,194,486) | 40,006,893 | ||||||||||
PREFERRED STOCKS — 1.7% | |||||||||||
GERMANY — 1.7% | |||||||||||
Sartorius AG 0.12% (cost $471,749) | 2,208 | 728,743 | |||||||||
TOTAL INVESTMENTS — 96.2% | |||||||||||
(cost $28,666,235) | $ | 40,735,636 | |||||||||
Other assets less liabilities — 3.8% | 1,613,285 | ||||||||||
NET ASSETS — 100.0% | $ | 42,348,921 |
* 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.
136
Portfolio of Investments
Semi-Annual Report June 30, 2020
June 30, 2020 (unaudited)
Baillie Gifford Positive Change Equities Fund
Fair Value Measurement
The following is a summary of the inputs used as of June 30, 2020 in valuing the Fund's investments carried at fair value:
Investments in Securities | Level 1 | Level 2 | Level 3 | Total | |||||||||||||||
Common Stocks ** | $ | 25,176,169 | $ | 14,830,724 | $ | — | $ | 40,006,893 | |||||||||||
Preferred Stocks ** | — | 728,743 | — | 728,743 | |||||||||||||||
Total | $ | 25,176,169 | $ | 15,559,467 | $ | — | $ | 40,735,636 |
** Refer to Portfolio of Investments for further detail.
The accompanying notes are an integral part of the financial statements.
137
Statement of Assets and Liabilities
Semi-Annual Report June 30, 2020
June 30, 2020 (unaudited)
Baillie Gifford Positive Change Equities Fund
ASSETS | |||||||
Investments, at value (cost $28,666,235) | $ | 40,735,636 | |||||
Cash | 1,006,943 | ||||||
Capital shares sold receivable | 632,165 | ||||||
Due from Investment Advisor | 30,368 | ||||||
Dividends receivable | 17,294 | ||||||
Tax reclaims receivable | 11,371 | ||||||
Prepaid assets | 18,682 | ||||||
Total Assets | 42,452,459 | ||||||
LIABILITIES | |||||||
Advisory fee payable | 27,900 | ||||||
Administration & Supervisory fee payable | 14,373 | ||||||
Trustee fee payable | 257 | ||||||
Commitment fee payable | 111 | ||||||
Accrued expenses | 60,897 | ||||||
Total Liabilities | 103,538 | ||||||
NET ASSETS | $ | 42,348,921 | |||||
COMPOSITION OF NET ASSETS | |||||||
Paid-in capital | $ | 29,793,929 | |||||
Total distributable earnings | 12,554,992 | ||||||
$ | 42,348,921 | ||||||
NET ASSET VALUE, PER SHARE | |||||||
Class K ($24,215,320 / 1,435,086 shares outstanding), unlimited authorized, no par value | $ | 16.87 | |||||
Institutional Class ($18,133,601 / 1,075,333 shares outstanding), unlimited authorized, no par value | $ | 16.86 |
The accompanying notes are an integral part of the financial statements.
138
Statement of Operations
Semi-Annual Report June 30, 2020
For the Six Months Ended June 30, 2020 (unaudited)
Baillie Gifford Positive Change Equities Fund
INVESTMENT INCOME | |||||||
Dividends (net of foreign withholding taxes of $19,667) | $ | 106,940 | |||||
Interest | 198 | ||||||
Total Investment Income | 107,138 | ||||||
EXPENSES | |||||||
Advisory fee (Note B) | 50,236 | ||||||
Administration & Supervisory fee — Class K shares (Note B) | 15,595 | ||||||
Administration & Supervisory fee — Institutional Class shares (Note B) | 10,284 | ||||||
Transfer agency | 18,892 | ||||||
Sub-transfer agency — Institutional Class shares | 442 | ||||||
Fund accounting | 43,815 | ||||||
Registration fees | 21,430 | ||||||
Professional fees | 13,912 | ||||||
Custody | 5,682 | ||||||
Legal | 2,235 | ||||||
Trustees' fees | 518 | ||||||
Commitment fees | 312 | ||||||
Line of Credit | 287 | ||||||
Miscellaneous | 4,354 | ||||||
Total Expenses | 187,994 | ||||||
Fees waived | (88,597 | ) | |||||
Net Expenses | 99,397 | ||||||
Net Investment Income | 7,741 | ||||||
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS AND FOREIGN CURRENCY TRANSACTIONS | |||||||
Net realized gain (loss) from: | |||||||
Investments | 539,018 | ||||||
Forward foreign currency contracts | 4,442 | ||||||
Foreign currency transactions | (15,883 | ) | |||||
527,577 | |||||||
Net change in unrealized appreciation on: | |||||||
Investments | 8,457,461 | ||||||
Translation of net assets and liabilities denominated in foreign currencies | 14 | ||||||
8,457,475 | |||||||
Net realized and unrealized gain | 8,985,052 | ||||||
NET INCREASE IN NET ASSETS FROM OPERATIONS | $ | 8,992,793 |
The accompanying notes are an integral part of the financial statements.
139
Statements of Changes in Net Assets
Semi-Annual Report June 30, 2020
Baillie Gifford Positive Change Equities Fund
For the Six Months Ended June 30, 2020 (unaudited) | For the Year Ended December 31, 2019 | ||||||||||
INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS | |||||||||||
Net investment income | $ | 7,741 | $ | 80,352 | |||||||
Net realized gain | 527,577 | 39,972 | |||||||||
Net change in unrealized appreciation | 8,457,475 | 5,080,153 | |||||||||
Net increase in net assets from operations | 8,992,793 | 5,200,477 | |||||||||
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS FROM: | |||||||||||
Distributable earnings | |||||||||||
Class K | — | (65,275 | ) | ||||||||
Institutional Class | — | (40,744 | ) | ||||||||
Total Distributions to Shareholders | — | (106,019 | ) | ||||||||
TRANSACTIONS IN SHARES OF BENEFICIAL INTEREST | |||||||||||
Net proceeds from shares subscribed: | |||||||||||
Class K | 4,247,802 | 8,086,054 | |||||||||
Institutional Class | 4,381,801 | 884,224 | |||||||||
Dividends reinvested: | |||||||||||
Class K | — | 18,677 | |||||||||
Institutional Class | — | 40,744 | |||||||||
Cost of shares redeemed: | |||||||||||
Class K | (1,485,542 | ) | — | ||||||||
Institutional Class | (429,130 | ) | (10,610 | ) | |||||||
Increase in Net Assets from Transactions in Shares of Beneficial Interest | 6,714,931 | 9,019,089 | |||||||||
Total Increase in Net Assets | 15,707,724 | 14,113,547 | |||||||||
NET ASSETS | |||||||||||
Beginning of period | 26,641,197 | 12,527,650 | |||||||||
End of period | $ | 42,348,921 | $ | 26,641,197 |
The accompanying notes are an integral part of the financial statements.
140
Financial Highlights
Semi-Annual Report June 30, 2020
Baillie Gifford Positive Change Equities Fund
Selected data for a Class K share outstanding throughout each period:
For the Six Months Ended June 30, 2020 (unaudited) | For the Year Ended December 31, 2019 | For the Year Ended December 31, 2018 | For the Period December 14, 2017(a) through December 31, 2017 | ||||||||||||||||
Net asset value, beginning of period | $ | 13.13 | $ | 10.10 | $ | 10.16 | $ | 10.00 | |||||||||||
From Investment Operations | |||||||||||||||||||
Net investment income (loss)(b) | 0.00 | (c) | 0.05 | (0.02 | ) | (0.00 | )(c) | ||||||||||||
Net realized and unrealized gain (loss) | 3.74 | 3.04 | (0.04 | )(d) | 0.16 | ||||||||||||||
Net increase (decrease) in net asset value from investment operations | 3.74 | 3.09 | (0.06 | ) | 0.16 | ||||||||||||||
Dividends and Distributions to Shareholders | |||||||||||||||||||
From net investment income | — | (0.04 | ) | — | — | ||||||||||||||
From net realized gain on investments | — | (0.02 | ) | — | — | ||||||||||||||
Total Dividends and Distributions | — | (0.06 | ) | — | — | ||||||||||||||
Net asset value, end of period | $ | 16.87 | $ | 13.13 | $ | 10.10 | $ | 10.16 | |||||||||||
Total Return | |||||||||||||||||||
Total return based on net asset value(e) | 28.48 | % | 30.53 | % | (0.59 | )% | 1.60 | % | |||||||||||
Ratios/Supplemental Data | |||||||||||||||||||
Net assets, end of period (000's omitted) | $ | 24,215 | $ | 15,923 | $ | 5,036 | $ | 508 | |||||||||||
Ratio of net expenses to average net assets, before waiver | 1.23 | %* | 1.63 | % | 3.21 | % | 53.13 | %* | |||||||||||
Ratio of net expenses to average net assets, after waiver | 0.65 | %* | 0.65 | % | 0.65 | % | 0.65 | %* | |||||||||||
Ratio of net investment income (loss) to average net assets | 0.05 | %* | 0.44 | % | (0.14 | )% | (0.47 | )%* | |||||||||||
Portfolio turnover rate(f) | 15 | % | 7 | % | 7 | % | 0 | % |
* Annualized.
(a) Commencement of investment operations.
(b) Calculated based upon average shares outstanding during the period.
(c) Amount is less than $0.005 per share.
(d) Calculation of the net gain or loss per share (both realized and unrealized) may not correlate to the aggregate realized and unrealized losses presented in the Statement of Operations due to the timing of sales and repurchases of Class shares in relation to fluctuating market values of the investments of the Fund.
(e) Total investment return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all dividends and distributions, if any, at net asset value during the period, and redemption on the last day of the period. Total return is not annualized for periods less than one year.
(f) Portfolio turnover rate calculated at Fund level.
The accompanying notes are an integral part of the financial statements.
141
Financial Highlights
Semi-Annual Report June 30, 2020
Baillie Gifford Positive Change Equities Fund
Selected data for an Institutional Class share outstanding throughout each period:
For the Six Months Ended June 30, 2020 (unaudited) | For the Year Ended December 31, 2019 | For the Year Ended December 31, 2018 | For the Period December 14, 2017(a) through December 31, 2017 | ||||||||||||||||
Net asset value, beginning of period | $ | 13.13 | $ | 10.10 | $ | 10.16 | $ | 10.00 | |||||||||||
From Investment Operations | |||||||||||||||||||
Net investment income (loss)(b) | 0.00 | (c) | 0.05 | (0.02 | ) | (0.00 | )(c) | ||||||||||||
Net realized and unrealized gain (loss) | 3.73 | 3.03 | (0.04 | )(d) | 0.16 | ||||||||||||||
Net increase (decrease) in net asset value from investment operations | 3.73 | 3.08 | (0.06 | ) | 0.16 | ||||||||||||||
Dividends and Distributions to Shareholders | |||||||||||||||||||
From net investment income | — | (0.03 | ) | — | — | ||||||||||||||
From net realized gain on investments | — | (0.02 | ) | — | — | ||||||||||||||
Total Dividends and Distributions | — | (0.05 | ) | — | — | ||||||||||||||
Net asset value, end of period | $ | 16.86 | $ | 13.13 | $ | 10.10 | $ | 10.16 | |||||||||||
Total Return | |||||||||||||||||||
Total return based on net asset value(e) | 28.41 | % | 30.49 | % | (0.59 | )% | 1.60 | % | |||||||||||
Ratios/Supplemental Data | |||||||||||||||||||
Net assets, end of period (000's omitted) | $ | 18,134 | $ | 10,718 | $ | 7,492 | $ | 508 | |||||||||||
Ratio of net expenses to average net assets, before waiver | 1.24 | %* | 1.63 | % | 3.21 | % | 53.13 | %* | |||||||||||
Ratio of net expenses to average net assets, after waiver | 0.65 | %* | 0.65 | % | 0.65 | % | 0.80 | %* | |||||||||||
Ratio of net investment income (loss) to average net assets | 0.06 | %* | 0.41 | % | (0.14 | )% | (0.47 | )%* | |||||||||||
Portfolio turnover rate(f) | 15 | % | 7 | % | 7 | % | 0 | % |
* Annualized.
(a) Commencement of investment operations.
(b) Calculated based upon average shares outstanding during the period.
(c) Amount is less than $0.005 per share.
(d) Calculation of the net gain or loss per share (both realized and unrealized) may not correlate to the aggregate realized and unrealized losses presented in the Statement of Operations due to the timing of sales and repurchases of Class shares in relation to fluctuating market values of the investments of the Fund.
(e) Total investment return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all dividends and distributions, if any, at net asset value during the period, and redemption on the last day of the period. Total return is not annualized for periods less than one year.
(f) Portfolio turnover rate calculated at Fund level.
The accompanying notes are an integral part of the financial statements.
142
Industry Diversification Table
Semi-Annual Report June 30, 2020
June 30, 2020 (unaudited)
Baillie Gifford U.S. Equity Growth Fund
Value | % of Total Net Assets | ||||||||||
Advertising | $ | 1,446,327 | 4.1 | % | |||||||
Aerospace/Defense | 236,896 | 0.7 | |||||||||
Auto Manufacturers | 3,374,406 | 9.6 | |||||||||
Banks | 697,202 | 2.0 | |||||||||
Biotechnology | 2,338,095 | 6.7 | |||||||||
Commercial Services | 3,175,314 | 9.1 | |||||||||
Distribution/Wholesale | 486,365 | 1.4 | |||||||||
Diversified Financial Services | 1,209,145 | 3.4 | |||||||||
Healthcare — Products | 1,751,182 | 5.0 | |||||||||
Healthcare — Services | 537,024 | 1.5 | |||||||||
Internet | 14,177,728 | 40.4 | |||||||||
Real Estate | 710,081 | 2.0 | |||||||||
Retail | 139,266 | 0.4 | |||||||||
Semiconductors | 444,875 | 1.3 | |||||||||
Software | 3,429,260 | 9.8 | |||||||||
Total Value of Investments | 34,153,166 | 97.4 | |||||||||
Other assets less liabilities | 914,258 | 2.6 | |||||||||
Net Assets | $ | 35,067,424 | 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.
143
Portfolio of Investments
Semi-Annual Report June 30, 2020
June 30, 2020 (unaudited)
Baillie Gifford U.S. Equity Growth Fund
Shares | Value | ||||||||||
COMMON STOCKS — 97.4% | |||||||||||
CANADA — 9.9% | |||||||||||
Shopify, Inc., Class A * | 3,667 | $ | 3,480,716 | ||||||||
UNITED STATES — 87.5% | |||||||||||
ABIOMED, Inc. * | 2,671 | 645,207 | |||||||||
Activision Blizzard, Inc. | 3,036 | 230,432 | |||||||||
Alnylam Pharmaceuticals, Inc. * | 3,875 | 573,926 | |||||||||
Alphabet, Inc., Class C * | 785 | 1,109,684 | |||||||||
Amazon.com, Inc. * | 1,307 | 3,605,778 | |||||||||
Appian Corp., Class A * | 4,830 | 247,538 | |||||||||
Chegg, Inc. * | 13,694 | 921,059 | |||||||||
Chewy, Inc., Class A * | 11,618 | 519,208 | |||||||||
Cloudflare, Inc., Class A * | 6,157 | 221,344 | |||||||||
CoStar Group, Inc. * | 920 | 653,816 | |||||||||
Denali Therapeutics, Inc. * | 10,588 | 256,018 | |||||||||
Eventbrite, Inc., Class A * | 6,770 | 58,019 | |||||||||
Facebook, Inc., Class A * | 2,988 | 678,485 | |||||||||
First Republic Bank | 6,578 | 697,202 | |||||||||
Glaukos Corp. * | 7,248 | 278,468 | |||||||||
HEICO Corp., Class A | 2,916 | 236,896 | |||||||||
Illumina, Inc. * | 2,925 | 1,083,274 | |||||||||
Interactive Brokers Group, Inc., Class A | 5,749 | 240,136 | |||||||||
Lyft, Inc., Class A * | 3,325 | 109,758 | |||||||||
MarketAxess Holdings, Inc. | 3,195 | 1,600,439 | |||||||||
Mastercard, Inc., Class A | 3,277 | 969,009 | |||||||||
Moderna, Inc. * | 6,617 | 424,877 | |||||||||
Netflix, Inc. * | 3,420 | 1,556,237 | |||||||||
Novocure Ltd. * | 7,233 | 428,917 | |||||||||
NVIDIA Corp. | 1,171 | 444,875 | |||||||||
Penumbra, Inc. * | 2,229 | 398,590 | |||||||||
Redfin Corp. * | 16,943 | 710,081 | |||||||||
Roku, Inc. * | 5,292 | 616,677 | |||||||||
Slack Technologies, Inc., Class A * | 15,001 | 466,381 | |||||||||
Stitch Fix, Inc., Class A * | 10,148 | 253,091 | |||||||||
Teladoc Health, Inc. * | 2,814 | 537,024 | |||||||||
Tesla, Inc. * | 3,125 | 3,374,406 | |||||||||
Trade Desk, Inc. (The), Class A * | 3,558 | 1,446,327 | |||||||||
Twilio, Inc., Class A * | 1,641 | 360,068 |
The accompanying notes are an integral part of the financial statements.
144
Portfolio of Investments
Semi-Annual Report June 30, 2020
June 30, 2020 (unaudited)
Baillie Gifford U.S. Equity Growth Fund
Shares | Value | ||||||||||
Vroom, Inc. * | 2,671 | $ | 139,266 | ||||||||
Watsco, Inc. | 2,737 | 486,365 | |||||||||
Wayfair, Inc., Class A * | 9,604 | 1,897,847 | |||||||||
Workday, Inc., Class A * | 3,924 | 735,201 | |||||||||
Yext, Inc. * | 13,859 | 230,198 | |||||||||
Zillow Group, Inc., Class A * | 5,084 | 292,228 | |||||||||
Zoom Video Communications, Inc., Class A * | 3,700 | 938,098 | |||||||||
30,672,450 | |||||||||||
TOTAL INVESTMENTS — 97.4% | |||||||||||
(cost $22,448,989) | $ | 34,153,166 | |||||||||
Other assets less liabilities — 2.6% | 914,258 | ||||||||||
NET ASSETS — 100.0% | $ | 35,067,424 |
* 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, 2020 in valuing the Fund's investments carried at fair value:
Investments in Securities | Level 1 | Level 2 | Level 3 | Total | |||||||||||||||
Common Stocks ** | $ | 34,153,166 | $ | — | $ | — | $ | 34,153,166 | |||||||||||
Total | $ | 34,153,166 | $ | — | $ | — | $ | 34,153,166 |
** Refer to Portfolio of Investments for further detail.
The accompanying notes are an integral part of the financial statements.
145
Statement of Assets and Liabilities
Semi-Annual Report June 30, 2020
June 30, 2020 (unaudited)
Baillie Gifford U.S. Equity Growth Fund
ASSETS | |||||||
Investments, at value (cost $22,448,989) | $ | 34,153,166 | |||||
Cash | 568,251 | ||||||
Capital shares sold receivable | 401,151 | ||||||
Due from Investment Advisor | 25,968 | ||||||
Dividends receivable | 233 | ||||||
Prepaid assets | 13,210 | ||||||
Total Assets | 35,161,979 | ||||||
LIABILITIES | |||||||
Advisory fee payable | 20,092 | ||||||
Payable for investment purchased | 12,317 | ||||||
Administration & Supervisory fee payable | 10,350 | ||||||
Trustee fee payable | 171 | ||||||
Commitment fee payable | 64 | ||||||
Accrued expenses | 51,561 | ||||||
Total Liabilities | 94,555 | ||||||
NET ASSETS | $ | 35,067,424 | |||||
COMPOSITION OF NET ASSETS | |||||||
Paid-in capital | $ | 23,844,070 | |||||
Total distributable earnings | 11,223,354 | ||||||
$ | 35,067,424 | ||||||
NET ASSET VALUE, PER SHARE | |||||||
Class K ( $21,100,022 / 801,045 shares outstanding), unlimited authorized, no par value | $ | 26.34 | |||||
Institutional Class ( $13,967,402 / 530,887 shares outstanding), unlimited authorized, no par value | $ | 26.31 |
The accompanying notes are an integral part of the financial statements.
146
Statement of Operations
Semi-Annual Report June 30, 2020
For the Six Months Ended June 30, 2020 (unaudited)
Baillie Gifford U.S. Equity Growth Fund
INVESTMENT INCOME | |||||||
Dividends | $ | 16,739 | |||||
Interest | 122 | ||||||
Total Investment Income | 16,861 | ||||||
EXPENSES | |||||||
Advisory fee (Note B) | 35,347 | ||||||
Administration & Supervisory fee — Class K shares (Note B) | 13,372 | ||||||
Administration & Supervisory fee — Institutional Class shares (Note B) | 4,837 | ||||||
Transfer agency | 17,587 | ||||||
Sub-transfer agency — Institutional Class shares | 1,839 | ||||||
Fund accounting | 38,137 | ||||||
Registration fees | 21,316 | ||||||
Professional fees | 12,060 | ||||||
Custody | 1,953 | ||||||
Legal | 1,885 | ||||||
Trustees' fees | 347 | ||||||
Commitment fees | 203 | ||||||
Miscellaneous | 4,107 | ||||||
Total Expenses | 152,990 | ||||||
Fees waived | (81,526 | ) | |||||
Net Expenses | 71,464 | ||||||
Net Investment Loss | (54,603 | ) | |||||
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS | |||||||
Net realized loss from: | |||||||
Investments | (464,938 | ) | |||||
(464,938 | ) | ||||||
Net change in unrealized appreciation on: | |||||||
Investments | 9,266,601 | ||||||
9,266,601 | |||||||
Net realized and unrealized gain | 8,801,663 | ||||||
NET INCREASE IN NET ASSETS FROM OPERATIONS | $ | 8,747,060 |
The accompanying notes are an integral part of the financial statements.
147
Statements of Changes in Net Assets
Semi-Annual Report June 30, 2020
Baillie Gifford U.S. Equity Growth Fund
For the Six Months Ended June 30, 2020 (unaudited) | For the Year Ended December 31, 2019 | ||||||||||
INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS | |||||||||||
Net investment loss | $ | (54,603 | ) | $ | (73,863 | ) | |||||
Net realized gain (loss) | (464,938 | ) | 378,374 | ||||||||
Net change in unrealized appreciation | 9,266,601 | 3,471,672 | |||||||||
Net increase in net assets from operations | 8,747,060 | 3,776,183 | |||||||||
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS FROM: | |||||||||||
Distributable earnings | |||||||||||
Class K | — | (185,245 | ) | ||||||||
Institutional Class | — | (46,343 | ) | ||||||||
Total Distributions to Shareholders | — | (231,588 | ) | ||||||||
TRANSACTIONS IN SHARES OF BENEFICIAL INTEREST | |||||||||||
Net proceeds from shares subscribed: | |||||||||||
Class K | 1,099,365 | 117,664 | |||||||||
Institutional Class | 8,424,737 | 3,569,371 | |||||||||
Dividends reinvested: | |||||||||||
Class K | — | 185,245 | |||||||||
Institutional Class | — | 46,343 | |||||||||
Cost of shares redeemed: | |||||||||||
Class K | (120,690 | ) | — | ||||||||
Institutional Class | (414,398 | ) | (732,087 | ) | |||||||
Increase in Net Assets from Transactions in Shares of Beneficial Interest | 8,989,014 | 3,186,536 | |||||||||
Total Increase in Net Assets | 17,736,074 | 6,731,131 | |||||||||
NET ASSETS | |||||||||||
Beginning of period | 17,331,350 | 10,600,219 | |||||||||
End of period | $ | 35,067,424 | $ | 17,331,350 |
The accompanying notes are an integral part of the financial statements.
148
Financial Highlights
Semi-Annual Report June 30, 2020
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, 2020 (unaudited) | For the Year Ended December 31, 2019 | For the Year Ended December 31, 2018 | For the Period April 28, 2017(a) through December 31, 2017 | ||||||||||||||||
Net asset value, beginning of period | $ | 18.25 | $ | 14.25 | $ | 13.39 | $ | 11.49 | |||||||||||
From Investment Operations | |||||||||||||||||||
Net investment loss(b) | (0.05 | ) | (0.08 | ) | (0.07 | ) | (0.03 | ) | |||||||||||
Net realized and unrealized gain | 8.14 | 4.33 | 1.22 | (c) | 1.98 | ||||||||||||||
Net increase in net asset value from investment operations | 8.09 | 4.25 | 1.15 | 1.95 | |||||||||||||||
Dividends and Distributions to Shareholders | |||||||||||||||||||
From net realized gain on investments | — | (0.25 | ) | (0.29 | ) | (0.05 | ) | ||||||||||||
Total Dividends and Distributions | — | (0.25 | ) | (0.29 | ) | (0.05 | ) | ||||||||||||
Net asset value, end of period | $ | 26.34 | $ | 18.25 | $ | 14.25 | $ | 13.39 | |||||||||||
Total Return | |||||||||||||||||||
Total return based on net asset value(d) | 44.33 | % | 29.78 | % | 8.60 | % | 17.01 | % | |||||||||||
Ratios/Supplemental Data | |||||||||||||||||||
Net assets, end of period (000's omitted) | $ | 21,100 | $ | 13,867 | $ | 10,594 | $ | 1,344 | |||||||||||
Ratio of net expenses to average net assets, before waiver | 1.42 | %* | 1.72 | % | 7.75 | % | 13.11 | %* | |||||||||||
Ratio of net expenses to average net assets, after waiver | 0.65 | %* | 0.65 | % | 0.63 | % | 0.57 | %* | |||||||||||
Ratio of net investment loss to average net assets | (0.49 | )%* | (0.45 | )% | (0.46 | )% | (0.31 | )%* | |||||||||||
Portfolio turnover rate(e) | 6 | % | 18 | % | 107 | % | 15 | % |
* Annualized.
(a) Commencement of investment operations.
(b) Calculated based upon average shares outstanding during the period.
(c) Calculation of the net gain or loss per share (both realized and unrealized) may not correlate to the aggregate realized and unrealized losses presented in the Statement of Operations due to the timing of sales and repurchases of Class shares in relation to fluctuating market values of the investments of the Fund.
(d) Total investment return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all dividends and distributions, if any, at net asset value during the period, and redemption on the last day of the period. Total return is not annualized for periods less than one year.
(e) Portfolio turnover rate calculated at Fund level.
The accompanying notes are an integral part of the financial statements.
149
Financial Highlights
Semi-Annual Report June 30, 2020
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, 2020 (unaudited) | For the Year Ended December 31, 2019 | For the Year Ended December 31, 2018 | For the Period April 28, 2017(a) through December 31, 2017 | ||||||||||||||||
Net asset value, beginning of period | $ | 18.23 | $ | 14.21 | $ | 13.39 | $ | 11.49 | |||||||||||
From Investment Operations | |||||||||||||||||||
Net investment loss(b) | (0.06 | ) | (0.10 | ) | (0.10 | ) | (0.03 | ) | |||||||||||
Net realized and unrealized gain | 8.14 | 4.37 | 1.21 | (c) | 1.98 | ||||||||||||||
Net increase in net asset value from investment operations | 8.08 | 4.27 | 1.11 | 1.95 | |||||||||||||||
Dividends and Distributions to Shareholders | |||||||||||||||||||
From net realized gain on investments | — | (0.25 | ) | (0.29 | ) | (0.05 | ) | ||||||||||||
Total Dividends and Distributions | — | (0.25 | ) | (0.29 | ) | (0.05 | ) | ||||||||||||
Net asset value, end of period | $ | 26.31 | $ | 18.23 | $ | 14.21 | $ | 13.39 | |||||||||||
Total Return | |||||||||||||||||||
Total return based on net asset value(d) | 44.32 | % | 30.01 | %(e) | 8.30 | % | 17.01 | % | |||||||||||
Ratios/Supplemental Data | |||||||||||||||||||
Net assets, end of period (000's omitted) | $ | 13,967 | $ | 3,464 | $ | 6 | $ | 6 | |||||||||||
Ratio of net expenses to average net assets, before waiver | 1.45 | %* | 1.82 | % | 6.69 | % | 13.11 | %* | |||||||||||
Ratio of net expenses to average net assets, after waiver | 0.72 | %* | 0.75 | % | 0.78 | % | 0.72 | %* | |||||||||||
Ratio of net investment loss to average net assets | (0.57 | )%* | (0.56 | )% | (0.53 | )% | (0.31 | )%* | |||||||||||
Portfolio turnover rate(f) | 6 | % | 18 | % | 107 | % | 15 | % |
* Annualized.
(a) Commencement of investment operations.
(b) Calculated based upon average shares outstanding during the period.
(c) Calculation of the net gain or loss per share (both realized and unrealized) may not correlate to the aggregate realized and unrealized losses presented in the Statement of Operations due to the timing of sales and repurchases of Class shares in relation to fluctuating market values of the investments of the Fund.
(d) Total investment return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all dividends and distributions, if any, at net asset value during the period, and redemption on the last day of the period. Total return is not annualized for periods less than one year.
(e) Excluding reimbursement received from the Manager, total return for the period is 29.72%. See Note D.
(f) Portfolio turnover rate calculated at Fund level.
The accompanying notes are an integral part of the financial statements.
150
Notes to Financial Statements (unaudited)
Semi-Annual Report June 30, 2020
Note A — Organization and Accounting Policies
Each fund identified in the table below (each, a "Fund", and collectively, the "Funds") is a series of Baillie Gifford Funds (the "Trust"). The Trust includes two series, Baillie Gifford Multi Asset Fund and Baillie Gifford International All Cap Fund, that are 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.
On November 25, 2019, the Funds changed names as noted below:
Baillie Gifford Developed EAFE All Cap Fund formerly known as The EAFE Pure Fund
Baillie Gifford EAFE Plus All Cap Fund formerly known as The EAFE Choice Fund
Baillie Gifford Emerging Markets Equities Fund formerly known as The Emerging Markets Fund
Baillie Gifford Global Alpha Equities Fund formerly known as The Global Alpha Equity Fund
Baillie Gifford Global Stewardship Equities Fund formerly known as The Global Select Equity Fund
Baillie Gifford International Alpha Fund formerly known as The International Equity Fund
Baillie Gifford International Concentrated Growth Equities Fund formerly known as The International Concentrated Growth Fund
Baillie Gifford International Growth Fund formerly known as The EAFE Fund
Baillie Gifford International Smaller Companies Fund formerly known as The International Smaller Companies Fund
Baillie Gifford Long Term Global Growth Fund formerly known as The Long Term Global Growth Equity Fund
Baillie Gifford Positive Change Equities Fund formerly known as The Positive Change Equity Fund
Baillie Gifford U.S. Equity Growth Fund formerly known as The U.S. Equity Growth Fund
The following table is a summary of classes of the Funds with shares outstanding as of June 30, 2020:
Baillie Gifford China A Shares Fund | Baillie Gifford Developed EAFE All Cap Fund | Baillie Gifford EAFE Plus All Cap Fund | Baillie Gifford Emerging Markets Equities Fund | Baillie Gifford Global Alpha Equities Fund | Baillie Gifford Global Stewardship Equities Fund | Baillie Gifford International Alpha Fund | Baillie Gifford International Concentrated Growth Equities Fund | Baillie Gifford International Growth Fund | Baillie Gifford International Smaller Companies Fund | Baillie Gifford Long Term Global Growth Fund | Baillie Gifford Positive Change Equities Fund | Baillie Gifford U.S. Equity Growth Fund | |||||||||||||||||||||||||||||||||||||||||||
Class 2 | N/A | X | X | X | X | N/A | X | N/A | X | N/A | X | N/A | N/A | ||||||||||||||||||||||||||||||||||||||||||
Class 3 | N/A | X | N/A | X | X | N/A | X | N/A | X | N/A | N/A | N/A | N/A | ||||||||||||||||||||||||||||||||||||||||||
Class 4 | N/A | N/A | N/A | X | X | N/A | X | N/A | X | N/A | X | N/A | N/A | ||||||||||||||||||||||||||||||||||||||||||
Class 5 | N/A | N/A | N/A | X | N/A | N/A | X | N/A | X | N/A | N/A | N/A | N/A | ||||||||||||||||||||||||||||||||||||||||||
Class K | X | X | X | X | X | X | X | X | X | X | X | X | X | ||||||||||||||||||||||||||||||||||||||||||
Institutional Class | X | X | X | X | X | X | X | X | X | X | X | X | X |
The Funds are investment companies that apply the accounting and reporting guidance issued in Topic 946 by the U.S. Financial Accounting Standards Board. The financial statements of the Funds have been prepared in conformity with accounting principles generally accepted
in the United States of America ("GAAP"). Management is required to make certain estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of
151
Notes to Financial Statements (unaudited)
Semi-Annual Report June 30, 2020
increases and decreases in net assets from operations for the Funds during the reporting period. Actual results could differ from those estimates.
The following is a summary of significant accounting policies followed by the Funds:
Valuation of Investments
Equity securities listed on an established securities exchange are normally valued at their last sale price on the exchange where primarily traded. Equity securities listed on the NASDAQ National Market System are valued at the NASDAQ Official Closing Price. Equity securities listed on an established securities exchange for which there is no reported sale during the day (and in the case of over-the-counter securities not so listed) are valued at the mean between the last available bid and ask prices.
Other securities for which current market quotations are not readily available (or for which quotations are not believed to be reliable due to market changes that occur after the most recent available quotations are obtained, or for any other reason), and all other assets, are valued at their fair value as determined in good faith by Baillie Gifford Overseas Limited (the "Manager"), pursuant to procedures approved by the Board of Trustees of the Trust (the "Board"). The actual calculations may be made by persons acting pursuant to the direction of the Board or by pricing services.
Generally, trading in foreign securities markets is substantially completed each day at various times prior to close of regular trading on the New York Stock Exchange and such events may not be reflected in the computation of the Fund's net asset value. Occasionally, events affecting the value of equity securities of non-U.S. issuers not traded on a U.S. exchange may occur between the completion of substantial trading of such securities for the day and the close of regular trading on the New York Stock Exchange and such events may not be reflected in the computation of a Fund's net asset value.
If events materially affecting the value of the Funds' portfolio securities occur during such period, then these securities will be valued at their fair value as determined in good faith by the Manager, pursuant to procedures approved by the Board. The Funds utilize a third party pricing service which for all equity securities, except those traded on Canadian, Latin American or U.S. exchanges, subject to certain minimum confidence levels, applies a fair value adjustment that seeks to reflect changes in such securities' market prices since the close of the market on which they are traded. To the extent that securities are
valued using this service, they will be classified as Level 2 securities in the fair value measurement framework described below.
Fair Value Measurement
GAAP provides guidance on fair value measurements and defines fair value as the price that a Fund would receive to sell an investment or pay to transfer a liability in a timely transaction with an independent buyer in the principal market, or in the absence of a principal market the most advantageous market for the investment or liability. It establishes a single definition of fair value, creates a three-tier hierarchy as a framework for measuring fair value based on inputs used to value the Fund's investments, and requires additional disclosure about fair value. The hierarchy of inputs is summarized below:
Level 1 — unadjusted quoted prices in active markets for identical investments
Level 2 — other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, credit risk, etc.)
Level 3 — significant unobservable inputs (including the Trust's own assumptions in determining the fair value of investments)
For Level 1 inputs, the Funds use unadjusted quoted prices in active markets for assets or liabilities with sufficient frequency and volume to provide pricing information as the most reliable evidence of fair value.
The Funds' Level 2 valuation techniques include inputs other than quoted prices within Level 1 that are observable for an asset or liability, either directly or indirectly. This includes when a fair value adjustment is applied which seeks to reflect changes in foreign securities' market prices since the close of the market on which they are traded. Level 2 observable inputs may include quoted prices for similar assets and liabilities in active markets or quoted prices for identical or similar assets or liabilities in markets that are not active in which there are few transactions, the prices are not current, or price quotations vary substantially over time or among market participants. Inputs that are observable for the asset or liability in Level 2 include such factors as interest rates, yield curves, prepayment speeds, credit risk, and default rates for similar liabilities.
For Level 3 valuation techniques, the Funds use unobservable inputs that reflect assumptions market participants would be expected to use in pricing the asset or liability. Unobservable inputs are used to measure fair value to the extent that observable inputs are not available
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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, 2020 is disclosed at the end of each Fund's Portfolio of Investments.
For the six months ended June 30, 2020, 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 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 and is recorded at the fair market value of securities received.
Investment income, expenses (other than those specific to a particular class of shares), and realized and unrealized gains and losses on investments are allocated to the separate classes of shares based upon their relative net asset value on the date income is earned or expensed and realized and unrealized gains and losses are incurred.
Federal Taxes
Each Fund intends to continue to qualify to be taxed as a "regulated investment company" under the provisions of the U.S. Internal Revenue Code of 1986, as amended (the "Code"), and as such will not be subject to U.S. federal income tax on income (including any net realized capital gains) which is distributed in accordance with the provisions of the Code to the Funds' shareholders. Therefore, no U.S. federal income tax provision is required.
Investment income received from investments in foreign jurisdictions may be subject to foreign withholding tax. Investment income is recorded net of any foreign withholding taxes, less any amounts reclaimable. The Funds may file withholding tax reclaims in certain jurisdictions to recover a portion of amounts previously withheld. Whenever possible, the Funds will attempt to operate so as to qualify for reduced tax rates or tax exemptions in those countries with which the United States has a tax treaty. Foreign taxes, if any, net of any reclaims, are recorded based on the tax regulations and rates that exist in the foreign markets in which the Funds invest.
In addition to the requirements of the Code, the Funds may also be subject to capital gains tax in India and potentially other foreign jurisdictions, on gains realized upon the sale of securities, payable upon repatriation of sales proceeds. Any realized losses in excess of gains in India may be carried forward to offset future gains. Funds with exposure to Indian securities and potentially other foreign jurisdictions accrue a deferred liability for unrealized gains in excess of available loss carryforwards based on existing tax rates and holding periods of the securities. As of June 30, 2020, Baillie Gifford Emerging Markets Equities Fund and Baillie Gifford Global Alpha Equities Fund recorded a receivable for Indian capital gains tax refunds of $1,347,063 and $ 76,898 respectively.
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
153
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Semi-Annual Report June 30, 2020
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, 2019 for federal income tax purposes, the following Funds had capital loss carryforwards available to offset future capital gains through the years indicated. 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 Developed EAFE All Cap Fund | $ | (5,023,594 | ) | $ | (5,128,994 | ) | $ | (10,152,588 | ) | ||||||
Baillie Gifford International Concentrated Growth Equities Fund | (2,534,594 | ) | (1,695,693 | ) | (4,230,287 | ) | |||||||||
Baillie Gifford Long Term Global Growth Fund | (413,582 | ) | (3,823,418 | ) | (4,237,000 | ) |
Realized capital losses, currency losses and passive foreign investment company ("PFIC") losses incurred after October 31 ("post-October losses/Late-Year Specified") within the taxable year are deemed to arise on the first business day of each Fund's next taxable year. During the year or period ended December 31, 2019, the Funds shown below incurred and will elect to defer net post-October or late year losses as indicated.
Fund | Post October Capital/ Late Year Ordinary Losses | ||||||
Baillie Gifford China A Shares Fund | $ | (1,436 | ) | ||||
Baillie Gifford Developed EAFE All Cap Fund | — | ||||||
Baillie Gifford EAFE Plus All Cap Fund | — | ||||||
Baillie Gifford Emerging Markets Equities Fund | (4,358,962 | ) | |||||
Baillie Gifford Global Alpha Equities Fund | — | ||||||
Baillie Gifford Global Stewardship Equities Fund | (583 | ) | |||||
Baillie Gifford International Alpha Fund | (86,772 | ) | |||||
Baillie Gifford International Concentrated Growth Equities Fund | (6,492 | ) | |||||
Baillie Gifford International Growth Fund | (312,432 | ) | |||||
Baillie Gifford International Smaller Companies Fund | (6,265 | ) | |||||
Baillie Gifford Long Term Global Growth Fund | — | ||||||
Baillie Gifford Positive Change Equities Fund | (202 | ) | |||||
Baillie Gifford U.S. Equity Growth Fund | (13,342 | ) |
The differences between the components of distributable earnings on a tax basis and the amounts reflected in the Statements of Assets and Liabilities are primarily due to the differing book/tax treatment of realized losses on wash sales and mark to market income on securities categorized as PFICs.
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.
154
Notes to Financial Statements (unaudited)
Semi-Annual Report June 30, 2020
The Funds' cost of investments and gross unrealized appreciation (depreciation) at June 30, 2020 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 Fund | $ | 979,231 | $ | 397,931 | $ | (18,628 | ) | $ | 379,303 | ||||||||||
Baillie Gifford Developed EAFE All Cap Fund | 430,420,938 | 127,275,987 | (34,261,660 | ) | 93,014,327 | ||||||||||||||
Baillie Gifford EAFE Plus All Cap Fund | 335,560,016 | 129,208,804 | (23,651,717 | ) | 105,557,087 | ||||||||||||||
Baillie Gifford Emerging Markets Equities Fund | 3,481,046,192 | 906,452,543 | (324,066,219 | ) | 582,386,324 | ||||||||||||||
Baillie Gifford Global Alpha Equities Fund | 729,261,742 | 403,372,742 | (39,922,414 | ) | 363,450,328 | ||||||||||||||
Baillie Gifford Global Stewardship Equities Fund | 3,014,371 | 1,569,733 | (202,788 | ) | 1,366,945 | ||||||||||||||
Baillie Gifford International Alpha Fund | 2,102,106,848 | 986,775,005 | (126,634,949 | ) | 860,140,056 | ||||||||||||||
Baillie Gifford International Concentrated Growth Equities Fund | 123,792,877 | 53,811,487 | (2,670,028 | ) | 51,141,459 | ||||||||||||||
Baillie Gifford International Growth Fund | 1,701,571,430 | 1,988,916,161 | (101,297,161 | ) | 1,887,619,000 | ||||||||||||||
Baillie Gifford International Smaller Companies Fund | 1,032,732 | 390,643 | (110,195 | ) | 280,448 | ||||||||||||||
Baillie Gifford Long Term Global Growth Fund | 245,282,291 | 245,670,399 | (598,560 | ) | 245,071,839 | ||||||||||||||
Baillie Gifford Positive Change Equities Fund | 28,715,788 | 13,057,589 | (1,037,741 | ) | 12,019,848 | ||||||||||||||
Baillie Gifford U.S. Equity Growth Fund | 22,483,537 | 12,270,795 | (601,166 | ) | 11,669,629 |
Note B — Investment Management and Other Services
The Funds are advised and managed by the Manager. The Manager, an investment adviser registered with the
Securities and Exchange Commission (the "SEC"), is a wholly owned subsidiary of Baillie Gifford & Co.
Under an investment advisory agreement between the Manager and the Trust on behalf of the Funds (the "Advisory Agreement"), each Fund pays the Manager an investment advisory fee, in arrears.
The advisory fee paid by each Fund under the Advisory Agreement is calculated and accrued daily on the basis of the annual rate noted below and expressed as a percentage of that Fund's average daily net assets.
Fund | Average Daily Net Assets of the Fund (billions) | Annual Rate at Each Asset Level | |||||||||
Baillie Gifford China A Shares 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%% |
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Fund | Average Daily Net Assets of the Fund (billions) | Annual Rate at Each Asset Level | |||||||||
Baillie Gifford Global Alpha Equities Fund | $0 - $2 > $2 - $5 Above $5 | 0.40 0.36% 0.34%% | |||||||||
Baillie Gifford Global Stewardship Equities Fund | $0 - $2 > $2 - $5 Above $5 | 0.33 0.29% 0.27%% | |||||||||
Baillie Gifford International Alpha Fund | $0 - $2 > $2 - $5 Above $5 | 0.35 0.31% 0.29%% | |||||||||
Baillie Gifford International Concentrated Growth | $0 - $2 | 0.40% | |||||||||
Equities Fund | > $2 - $5 | 0.36% | |||||||||
| Above $5 | 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 Positive Change Equities Fund | $0 - $2 > $2 - $5 Above $5 | 0.33 0.29% 0.27%% | |||||||||
Baillie Gifford U.S. Equity Growth Fund | $0 - $2 > $2 - $5 Above $5 | 0.33 0.29% 0.27%% |
The Manager has contractually agreed to waive its fees and/or bear expenses of the following Funds to the extent that such Fund's total annual operating expenses (excluding taxes, sub-accounting expenses and extraordinary expenses) exceed the following amounts:
Fund | Class | Expense Limitation | Expiration Date | ||||||||||||
Baillie Gifford China A Shares Fund | Class K | 0.87 | % | April 30, 2021 | |||||||||||
| Institutional Class | 0.87 | % | April 30, 2021 | |||||||||||
Baillie Gifford Global Stewardship Equities Fund | Class K | 0.65 | % | April 30, 2021 | |||||||||||
| Institutional Class | 0.65 | % | April 30, 2021 | |||||||||||
Baillie Gifford International Concentrated Growth Equities Fund | Class K | 0.72 | % | April 30, 2021 | |||||||||||
| Institutional Class | 0.72 | % | April 30, 2021 | |||||||||||
Baillie Gifford International Smaller Companies Fund | Class K | 0.90 | % | April 30, 2021 | |||||||||||
| Institutional Class | 0.90 | % | April 30, 2021 |
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Fund | Class | Expense Limitation | Expiration Date | ||||||||||||
Baillie Gifford Long Term Global Growth Fund | Class 2 | 0.77 | % | April 30, 2021 | |||||||||||
| Class 3 | 0.70 | % | April 30, 2021 | |||||||||||
| Class 4 | 0.67 | % | April 30, 2021 | |||||||||||
| Class 5 | 0.62 | % | April 30, 2021 | |||||||||||
| Class K | 0.77 | % | April 30, 2021 | |||||||||||
| Institutional Class | 0.77 | % | April 30, 2021 | |||||||||||
Baillie Gifford Positive Change Equities Fund | Class K | 0.65 | % | April 30, 2021 | |||||||||||
| Institutional Class | 0.65 | % | April 30, 2021 | |||||||||||
Baillie Gifford U.S. Equity Growth Fund | Class K | 0.65 | % | April 30, 2021 | |||||||||||
| Institutional Class | 0.65 | % | April 30, 2021 |
Waived fees for all Funds are not subject to recoupment. These contractual agreements may only be terminated by the Board.
Baillie Gifford Funds Services LLC, a wholly-owned subsidiary of the Manager, serves as the sole distributor and principal underwriter of the shares of the Funds.
The Funds mentioned in the following table have adopted a Shareholder Servicing Plan providing that the
Fund may pay the Manager, or any other entity that acts from time to time as the shareholder servicing agent with respect to a class of Fund shares, for services rendered and expenses borne in connection with the provision of services provided to Fund investors and/or the maintenance of shareholder accounts. For these services, the Funds pay the Manager a fee at the annualized rate of the Funds' average daily net assets attributed to each class of shares as follows:
Baillie Gifford Developed EAFE All Cap Fund | Baillie Gifford EAFE Plus All Cap Fund | Baillie Gifford Emerging Markets Equities Fund | Baillie Gifford Global Alpha Equities Fund | Baillie Gifford International Alpha Fund | Baillie Gifford International Growth Fund | Baillie Gifford Long Term Global Growth Fund | |||||||||||||||||||||||||
Class 2 | 0.17 | % | 0.17 | % | 0.17 | % | 0.17 | % | 0.17 | % | 0.17 | % | 0.17 | % | |||||||||||||||||
Class 3 | 0.10 | % | 0.10 | % | 0.10 | % | 0.10 | % | 0.10 | % | 0.10 | % | 0.10 | % | |||||||||||||||||
Class 4 | 0.07 | % | 0.07 | % | 0.07 | % | 0.07 | % | 0.07 | % | 0.07 | % | 0.07 | % | |||||||||||||||||
Class 5 | 0.02 | % | 0.02 | % | 0.02 | % | 0.02 | % | 0.02 | % | 0.02 | % | 0.02 | % |
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.
157
Notes to Financial Statements (unaudited)
Semi-Annual Report June 30, 2020
Note C — Investment Transactions
Purchases and proceeds from sales of securities (excluding short term securities) for the period ended June 30, 2020 were as follows:
Fund | Purchases | Sales | |||||||||
Baillie Gifford China A Shares Fund | $ | 96,585 | $ | 90,978 | |||||||
Baillie Gifford Developed EAFE All Cap Fund | 42,866,810 | 72,033,030 | |||||||||
Baillie Gifford EAFE Plus All Cap Fund | 50,794,222 | 41,567,114 | |||||||||
Baillie Gifford Emerging Markets Equities Fund | 1,075,756,149 | 420,301,119 | |||||||||
Baillie Gifford Global Alpha Equities Fund | 212,989,557 | 122,507,291 | |||||||||
Baillie Gifford Global Stewardship Equities Fund | 310,174 | 363,910 | |||||||||
Baillie Gifford International Alpha Fund | 699,921,911 | 297,386,407 | |||||||||
Baillie Gifford International Concentrated Growth Equities Fund | 51,722,643 | 8,484,162 | |||||||||
Baillie Gifford International Growth Fund | 465,638,066 | 395,043,053 | |||||||||
Baillie Gifford International Smaller Companies Fund | 73,937 | 105,860 | |||||||||
Baillie Gifford Long Term Global Growth Fund | 69,752,083 | 52,422,665 | |||||||||
Baillie Gifford Positive Change Equities Fund | 9,833,101 | 4,467,176 | |||||||||
Baillie Gifford U.S. Equity Growth Fund | 9,622,352 | 1,349,229 |
Note D — Transactions in Shares of Beneficial Interest
Baillie Gifford China A Shares Fund | |||||||||||||||||||
Class K Shares For the Period Ended June 30, 2020 | Institutional Class Shares For the Period Ended June 30, 2020 | ||||||||||||||||||
Shares | Amount | Shares | Amount | ||||||||||||||||
Shares sold | — | $ | — | — | $ | — | |||||||||||||
Shares redeemed | — | — | — | — | |||||||||||||||
Net increase (decrease) | — | $ | — | — | $ | — | |||||||||||||
Baillie Gifford China A Shares Fund | |||||||||||||||||||
Class K Shares For the Period Ended December 31, 2019 | Institutional Class Shares For the Period Ended December 31, 2019 | ||||||||||||||||||
Shares | Amount | Shares | Amount | ||||||||||||||||
Shares sold | 50,000 | $ | 500,000 | 50,000 | $ | 500,000 | |||||||||||||
Shares issued in reinvestment of dividends and distributions | — | — | — | — | |||||||||||||||
Shares redeemed | — | — | — | — | |||||||||||||||
Net increase | 50,000 | $ | 500,000 | 50,000 | $ | 500,000 |
158
Notes to Financial Statements (unaudited)
Semi-Annual Report June 30, 2020
Baillie Gifford Developed EAFE All Cap Fund | |||||||||||||||||||
Class 2 Shares For the Period Ended June 30, 2020 | Class 3 Shares For the Period Ended June 30, 2020 | ||||||||||||||||||
Shares | Amount | Shares | Amount | ||||||||||||||||
Shares sold | 249 | $ | 3,000 | — | $ | — | |||||||||||||
Shares redeemed | — | — | — | — | |||||||||||||||
Net increase | 249 | $ | 3,000 | — | $ | — | |||||||||||||
Baillie Gifford Developed EAFE All Cap Fund | |||||||||||||||||||
Class K Shares For the Period Ended June 30, 2020 | Institutional Class Shares For the Period Ended June 30, 2020 | ||||||||||||||||||
Shares | Amount | Shares | Amount | ||||||||||||||||
Shares sold | 689,058 | $ | 7,750,837 | 1,172,832 | $ | 14,582,091 | |||||||||||||
Shares redeemed | (3,680,034 | ) | (43,878,232 | ) | (561,310 | ) | (5,964,094 | ) | |||||||||||
Net increase (decrease) | (2,990,976 | ) | $ | (36,127,395 | ) | 611,522 | $ | 8,617,997 | |||||||||||
Baillie Gifford Developed EAFE All Cap Fund | |||||||||||||||||||
Class 2 Shares For the Period Ended December 31, 2019 | Class 3 Shares For the Period Ended December 31, 2019 | ||||||||||||||||||
Shares | Amount | Shares | Amount | ||||||||||||||||
Shares sold | 519 | $ | 6,000 | — | $ | — | |||||||||||||
Shares issued in reinvestment of dividends and distributions | 196,688 | 2,596,461 | 75,196 | 1,002,546 | |||||||||||||||
Shares redeemed | (794,863 | ) | (9,000,000 | ) | — | — | |||||||||||||
Net increase (decrease) | (597,656 | ) | $ | (6,397,539 | ) | 75,196 | $ | 1,002,546 | |||||||||||
Baillie Gifford Developed EAFE All Cap Fund | |||||||||||||||||||
Class K Shares For the Year Ended December 31, 2019 | Institutional Class Shares For the Year Ended December 31, 2019 | ||||||||||||||||||
Shares | Amount | Shares | Amount | ||||||||||||||||
Shares sold | 5,978,804 | $ | 73,243,343 | 587,848 | $ | 7,084,206 | |||||||||||||
Shares issued in reinvestment of dividends and distributions | 199,149 | 2,624,780 | 8,164 | 107,514 | |||||||||||||||
Shares redeemed | (2,529,710 | ) | (29,311,401 | ) | (80,919 | ) | (990,117 | ) | |||||||||||
Net increase | 3,648,243 | $ | 46,556,722 | 515,093 | $ | 6,201,603 |
159
Notes to Financial Statements (unaudited)
Semi-Annual Report June 30, 2020
Baillie Gifford EAFE Plus All Cap Fund | |||||||||||||||||||
Class 2 Shares For the Period Ended June 30, 2020 | Class 3 Shares For the Period Ended June 30, 2020 | ||||||||||||||||||
Shares | Amount | Shares | Amount | ||||||||||||||||
Shares sold | 51,517 | $ | 783,000 | — | $ | — | |||||||||||||
Shares redeemed | (1,119,131 | ) | (17,025,465 | ) | — | — | |||||||||||||
Net decrease | (1,067,614 | ) | $ | (16,242,465 | ) | — | $ | — | |||||||||||
Baillie Gifford EAFE Plus All Cap Fund | |||||||||||||||||||
Class K Shares For the Period Ended June 30, 2020 | Institutional Class Shares For the Period Ended June 30, 2020 | ||||||||||||||||||
Shares | Amount | Shares | Amount | ||||||||||||||||
Shares sold | 1,632,391 | $ | 26,400,640 | 333,532 | $ | 5,531,671 | |||||||||||||
Shares redeemed | (605,951 | ) | (9,950,000 | ) | (48,097 | ) | (729,465 | ) | |||||||||||
Net increase | 1,026,440 | $ | 16,450,640 | 285,435 | $ | 4,802,206 | |||||||||||||
Baillie Gifford EAFE Plus All Cap Fund | |||||||||||||||||||
Class 2 Shares For the Year Ended December 31, 2019 | Class 3 Shares For the Year Ended December 31, 2019 | ||||||||||||||||||
Shares | Amount | Shares | Amount | ||||||||||||||||
Shares sold | 178,140 | $ | 2,723,300 | — | $ | — | |||||||||||||
Shares issued in reinvestment of dividends and distributions | 660,317 | 11,089,493 | — | — | |||||||||||||||
Shares redeemed | (35,301 | ) | (528,300 | ) | — | — | |||||||||||||
Net increase | 803,156 | $ | 13,284,493 | — | $ | — | |||||||||||||
Baillie Gifford EAFE Plus All Cap Fund | |||||||||||||||||||
Class K Shares For the Year Ended December 31, 2019 | Institutional Class Shares For the Year Ended December 31, 2019 | ||||||||||||||||||
Shares | Amount | Shares | Amount | ||||||||||||||||
Shares sold | 1,798,306 | $ | 27,900,000 | 585,572 | $ | 9,046,949 | |||||||||||||
Shares issued in reinvestment of dividends and distributions | 247,557 | 4,146,582 | 49,558 | 828,614 | |||||||||||||||
Shares redeemed | (90,034 | ) | (1,375,000 | ) | (51,426 | ) | (805,468 | ) | |||||||||||
Net increase | 1,955,829 | $ | 30,671,582 | 583,704 | $ | 9,070,095 |
160
Notes to Financial Statements (unaudited)
Semi-Annual Report June 30, 2020
Baillie Gifford Emerging Markets Equities Fund | |||||||||||||||||||
Class 2 Shares For the Period Ended June 30, 2020 | Class 3 Shares For the Period Ended June 30, 2020 | ||||||||||||||||||
Shares | Amount | Shares | Amount | ||||||||||||||||
Shares sold | 158 | $ | 3,000 | — | $ | — | |||||||||||||
Shares redeemed | (736,002 | ) | (13,000,000 | ) | (9,780,806 | )* | (218,894,438 | )* | |||||||||||
Net decrease | (735,844 | ) | $ | (12,997,000 | ) | (9,780,806 | ) | $ | (218,894,438 | ) |
* 9,780,806 shares and $218,894,438 converted from Class 3 into Class 4.
Baillie Gifford Emerging Markets Equities Fund | |||||||||||||||||||
Class 4 Shares For the Period Ended June 30, 2020 | Class 5 Shares For the Period Ended June 30, 2020 | ||||||||||||||||||
Shares | Amount | Shares | Amount | ||||||||||||||||
Shares sold | 9,649,345 | ** | $ | 218,894,438 | ** | 11,368,050 | $ | 212,200,000 | |||||||||||
Shares redeemed | — | — | (90,079 | ) | (2,060,000 | ) | |||||||||||||
Net increase | 9,649,345 | $ | 218,894,438 | 11,277,971 | $ | 210,140,000 |
** 9,649,345 shares and $218,894,438 converted into Class 4 from Class 3.
Baillie Gifford Emerging Markets Equities Fund | |||||||||||||||||||
Class K Shares For the Period Ended June 30, 2020 | Institutional Class Shares For the Period Ended June 30, 2020 | ||||||||||||||||||
Shares | Amount | Shares | Amount | ||||||||||||||||
Shares sold | 25,011,964 | $ | 454,779,383 | 13,823,193 | $ | 253,492,330 | |||||||||||||
Shares issued in reinvestment of dividends and distributions | — | — | 349 | 7,580 | |||||||||||||||
Shares redeemed | (9,854,940 | ) | (172,025,892 | ) | (5,692,151 | ) | (103,843,398 | ) | |||||||||||
Net increase | 15,157,024 | $ | 282,753,491 | 8,131,391 | $ | 149,656,512 | |||||||||||||
Baillie Gifford Emerging Markets Equities Fund | |||||||||||||||||||
Class 2 Shares For the Year Ended December 31, 2019 | Class 3 Shares For the Year Ended December 31, 2019 | ||||||||||||||||||
Shares | Amount | Shares | Amount | ||||||||||||||||
Shares sold | 345,334 | $ | 7,306,000 | 5,731,888 | *** | $ | 106,960,476 | *** | |||||||||||
Shares issued in reinvestment of dividends and distributions | 202,888 | 4,430,516 | 588,293 | 12,961,322 | |||||||||||||||
Shares redeemed | (5,927,081 | )**** | (109,960,476 | )**** | — | — | |||||||||||||
Net increase (decrease) | (5,378,859 | ) | $ | (98,223,960 | ) | 6,320,181 | $ | 119,921,798 |
*** 5,731,888 shares and $106,960,476 converted into Class 3 from Class 2.
**** 5,781,084 shares and $106,960,476 converted from Class 2 into Class 3.
161
Notes to Financial Statements (unaudited)
Semi-Annual Report June 30, 2020
Baillie Gifford Emerging Markets Equities Fund | |||||||||||||||||||
Class 5 Shares | Class K Shares For the Year Ended December 31, 2019 | For the Year Ended December 31, 2019 | |||||||||||||||||
Shares | Amount | Shares | Amount | ||||||||||||||||
Shares sold | 339,491 | $ | 7,000,000 | 39,089,342 | * | $ | 797,388,161 | * | |||||||||||
Shares issued in reinvestment of dividends and distributions | 2,195,036 | 49,677,405 | 1,848,743 | 40,228,644 | |||||||||||||||
Shares redeemed | (1,680,402 | ) | (34,320,000 | ) | (7,957,791 | ) | (158,716,823 | ) | |||||||||||
Net increase | 854,125 | $ | 22,357,405 | 32,980,294 | $ | 678,899,982 |
* 6,907,896 shares and $144,490,534 converted into Class K from Institutional Class.
Baillie Gifford Emerging Markets Equities Fund | |||||||||||
Institutional Class Shares For the Year Ended December 31, 2019 | |||||||||||
Shares | Amount | ||||||||||
Shares sold | 25,316,056 | $ | 498,938,452 | ||||||||
Shares issued in reinvestment of dividends and distributions | 1,129,370 | 24,574,424 | |||||||||
Shares redeemed | (10,339,139 | )** | (213,958,164 | )** | |||||||
Net increase | 16,106,287 | $ | 309,554,712 |
** 6,914,479 shares and $144,490,534 converted from Institutional Class into Class K.
Baillie Gifford Global Alpha Equities Fund | |||||||||||||||||||
Class 2 Shares For the Period Ended June 30, 2020 | Class 3 Shares For the Period Ended June 30, 2020 | ||||||||||||||||||
Shares | Amount | Shares | Amount | ||||||||||||||||
Shares sold | 1,121,608 | $ | 16,403,000 | — | $ | — | |||||||||||||
Shares redeemed | (311,452 | ) | (4,200,000 | ) | — | — | |||||||||||||
Net increase | 810,156 | $ | 12,203,000 | — | $ | — |
162
Notes to Financial Statements (unaudited)
Semi-Annual Report June 30, 2020
Baillie Gifford Global Alpha Equities Fund | |||||||||||||||||||
Class 4 Shares For the Period Ended June 30, 2020 | Class K Shares For the Period Ended June 30, 2020 | ||||||||||||||||||
Shares | Amount | Shares | Amount | ||||||||||||||||
Shares sold | 1,243,487 | $ | 20,000,000 | 4,779,998 | $ | 77,193,652 | |||||||||||||
Shares redeemed | (1,398,930 | ) | (25,000,000 | ) | (268,582 | ) | (4,121,138 | ) | |||||||||||
Net increase (decrease) | (155,443 | ) | $ | (5,000,000 | ) | 4,511,416 | $ | 73,072,514 |
Baillie Gifford Global Alpha Equities Fund | |||||||||||
Institutional Class Shares For the Period Ended June 30, 2020 | |||||||||||
Shares | Amount | ||||||||||
Shares sold | 920,789 | $ | 14,809,627 | ||||||||
Shares redeemed | (3,082 | ) | (50,468 | ) | |||||||
Net increase | 917,707 | $ | 14,759,159 |
Baillie Gifford Global Alpha Equities Fund | |||||||||||||||||||
Class 2 Shares For the Year Ended December 31, 2019 | Class 3 Shares For the Year Ended December 31, 2019 | ||||||||||||||||||
Shares | Amount | Shares | Amount | ||||||||||||||||
Shares sold | 352,252 | $ | 5,506,000 | 536,067 | $ | 8,000,000 | |||||||||||||
Shares issued in reinvestment of dividends and distributions | 570,983 | 9,449,544 | 1,794,175 | 30,477,830 | |||||||||||||||
Shares redeemed | (253,860 | ) | (4,000,000 | ) | (2,060,990 | ) | (33,788,000 | ) | |||||||||||
Net increase | 669,375 | $ | 10,955,544 | 269,252 | $ | 4,689,830 | |||||||||||||
Baillie Gifford Global Alpha Equities Fund | |||||||||||||||||||
Class 4 Shares For the Year Ended December 31, 2019 | Class K Shares For the Year Ended December 31, 2019 | ||||||||||||||||||
Shares | Amount | Shares | Amount | ||||||||||||||||
Shares sold | — | $ | — | 2,248,756 | $ | 34,752,614 | |||||||||||||
Shares issued in reinvestment of dividends and distributions | 443,524 | 7,732,135 | 270,053 | 4,458,584 | |||||||||||||||
Shares redeemed | — | — | (733,836 | ) | (11,265,988 | ) | |||||||||||||
Net increase | 443,524 | $ | 7,732,135 | 1,784,973 | $ | 27,945,210 |
163
Notes to Financial Statements (unaudited)
Semi-Annual Report June 30, 2020
Baillie Gifford Global Alpha Equities Fund | |||||||||||
Institutional Class Shares For the Year Ended December 31, 2019 | |||||||||||
Shares | Amount | ||||||||||
Shares sold | — | $ | — | ||||||||
Shares issued in reinvestment of dividends and distributions | 24 | 386 | |||||||||
Shares redeemed | — | — | |||||||||
Net increase | 24 | $ | 386 |
Baillie Gifford Global Stewardship Equities Fund | |||||||||||||||||||
Class K Shares For the Period Ended June 30, 2020 | Institutional Class Shares For the Period Ended June 30, 2020 | ||||||||||||||||||
Shares | Amount | Shares | Amount | ||||||||||||||||
Shares sold | — | $ | — | — | $ | — | |||||||||||||
Shares redeemed | — | — | — | — | |||||||||||||||
Net increase | — | $ | — | — | $ | — | |||||||||||||
Baillie Gifford Global Stewardship Equities Fund | |||||||||||||||||||
Class K Shares For the Year Ended December 31, 2019 | Institutional Class Shares For the Year Ended December 31, 2019 | ||||||||||||||||||
Shares | Amount | Shares | Amount | ||||||||||||||||
Shares sold | — | $ | — | — | $ | — | |||||||||||||
Shares issued in reinvestment of dividends and distributions | 1,828 | 21,386 | 1,828 | 21,386 | |||||||||||||||
Shares redeemed | — | — | — | — | |||||||||||||||
Net increase | 1,828 | $ | 21,386 | 1,828 | $ | 21,386 | |||||||||||||
Baillie Gifford International Alpha Fund | |||||||||||||||||||
Class 2 Shares For the Period Ended June 30, 2020 | Class 3 Shares For the Period Ended June 30, 2020 | ||||||||||||||||||
Shares | Amount | Shares | Amount | ||||||||||||||||
Shares sold | 7,362,106 | $ | 72,003,000 | 23,221,751 | ** | $ | 287,090,504 | ** | |||||||||||
Shares redeemed | (22,145,984 | )* | (268,890,504 | )* | (185,776 | ) | (2,350,000 | ) | |||||||||||
Net increase (decrease) | (14,783,878 | ) | $ | (196,887,504 | ) | 23,035,975 | $ | 284,740,504 |
* 21,633,450 shares and $262,890,504 converted from Class 2 into Class 3.
** 21,327,203 shares and $262,890,504 converted into Class 3 from Class 2.
164
Notes to Financial Statements (unaudited)
Semi-Annual Report June 30, 2020
Baillie Gifford International Alpha Fund | |||||||||||||||||||
Class 4 Shares For the Period Ended June 30, 2020 | Class 5 Shares For the Period Ended June 30, 2020 | ||||||||||||||||||
Shares | Amount | Shares | Amount | ||||||||||||||||
Shares sold | — | $ | — | 933,778 | $ | 11,000,000 | |||||||||||||
Shares redeemed | — | — | — | — | |||||||||||||||
Net Increase | — | $ | — | 933,778 | $ | 11,000,000 | |||||||||||||
Baillie Gifford International Alpha Fund | |||||||||||||||||||
Class K Shares For the Period Ended June 30, 2020 | Institutional Class Shares For the Period Ended June 30, 2020 | ||||||||||||||||||
Shares | Amount | Shares | Amount | ||||||||||||||||
Shares sold | 9,549,923 | $ | 122,715,484 | 21,128,757 | ** | $ | 263,475,534 | ** | |||||||||||
Shares redeemed | (3,293,263 | )* | (40,479,595 | )* | (1,241,309 | ) | (15,272,059 | ) | |||||||||||
Net increase | 6,256,660 | $ | 82,235,889 | 19,887,448 | $ | 248,203,475 |
* 2,449 shares and $33,797 converted from Class K into Institutional Class.
** 2,440 shares and $33,797 converted into Institutional Class from Class K.
Baillie Gifford International Alpha Fund | |||||||||||||||||||
Class 2 Shares For the Year Ended December 31, 2019 | Class 3 Shares For the Year Ended December 31, 2019 | ||||||||||||||||||
Shares | Amount | Shares | Amount | ||||||||||||||||
Shares sold | 8,507,431 | * | $ | 107,216,862 | * | 15,916,592 | *** | $ | 202,113,924 | *** | |||||||||
Shares issued in reinvestment of dividends and distributions | 1,793,560 | 24,482,634 | 2,288,958 | 31,689,022 | |||||||||||||||
Shares redeemed | (3,555,835 | ) | (44,700,000 | ) | (25,793,251 | )** | (335,095,740 | )** | |||||||||||
Net increase (decrease) | 6,745,156 | $ | 86,999,496 | (7,587,701 | ) | $ | (101,292,794 | ) |
* 7,357,093 shares and $92,210,862 converted into Class 2 from Class 3.
** 7,259,326 shares and $92,210,862 converted from Class 3 into Class 2 and 15,604,447 shares and $204,511,879 converted from Class 3 into Class 4.
*** 15,604,447 shares and $198,213,924 converted into Class 3 from Class 4.
165
Notes to Financial Statements (unaudited)
Semi-Annual Report June 30, 2020
Baillie Gifford International Alpha Fund | |||||||||||||||||||
Class 4 Shares For the Year Ended December 31, 2019 | Class 5 Shares For the Year Ended December 31, 2019 | ||||||||||||||||||
Shares | Amount | Shares | Amount | ||||||||||||||||
Shares sold | 15,348,444 | ***** | $ | 204,511,879 | ***** | — | $ | — | |||||||||||
Shares issued in reinvestment of dividends and distributions | 1,939,766 | 27,316,172 | 341,248 | 4,893,497 | |||||||||||||||
Shares redeemed | (15,349,714 | )**** | (198,213,924 | )**** | — | — | |||||||||||||
Net increase | 1,938,496 | $ | 33,614,127 | 341,248 | $ | 4,893,497 |
**** 15,349,714 shares and $198,213,924 converted from Class 4 into Class 3.
***** 15,348,444 shares and $204,511,879 converted into Class 4 from Class 3.
Baillie Gifford International Alpha Fund | |||||||||||||||||||
Class K Shares For the Year Ended December 31, 2019 | Institutional Class Shares For the Year Ended December 31, 2019 | ||||||||||||||||||
Shares | Amount | Shares | Amount | ||||||||||||||||
Shares sold | 15,999,769 | $ | 197,754,519 | 8,054,702 | ** | $ | 100,370,867 | ** | |||||||||||
Shares issued in reinvestment of dividends and distributions | 1,769,959 | 24,087,396 | 445,383 | 6,083,368 | |||||||||||||||
Shares redeemed | (2,884,462 | )* | (36,825,366 | )* | (2,727,853 | ) | (33,820,482 | ) | |||||||||||
Net increase | 14,885,266 | $ | 185,016,549 | 5,772,232 | $ | 72,633,753 |
* 10,676 shares and $141,572 converted from Class K into Institutional Class.
** 10,644 shares and $141,572 converted into Institutional Class from Class K.
Baillie Gifford International Concentrated Growth Equities Fund | |||||||||||||||||||
Class K Shares For the Period Ended June 30, 2020 | Institutional Class Shares For the Period Ended June 30, 2020 | ||||||||||||||||||
Shares | Amount | Shares | Amount | ||||||||||||||||
Shares sold | 2,471,481 | $ | 31,120,324 | 518,479 | $ | 6,607,033 | |||||||||||||
Shares redeemed | (1,088,306 | ) | (17,495,041 | ) | (76,367 | ) | (891,185 | ) | |||||||||||
Net increase | 1,383,175 | $ | 13,625,283 | 442,112 | $ | 5,715,848 |
166
Notes to Financial Statements (unaudited)
Semi-Annual Report June 30, 2020
Baillie Gifford International Concentrated Growth Equities Fund | |||||||||||||||||||
Class K Shares For the Year Ended December 31, 2019 | Institutional Class Shares For the Year Ended December 31, 2019 | ||||||||||||||||||
Shares | Amount | Shares | Amount | ||||||||||||||||
Shares sold | 1,622,013 | $ | 20,684,000 | 16,086 | $ | 176,417 | |||||||||||||
Shares issued in reinvestment of dividends and distributions | 13,687 | 175,602 | 111 | 1,431 | |||||||||||||||
Shares redeemed | — | — | (1,567 | ) | (14,572 | ) | |||||||||||||
Net increase | 1,635,700 | $ | 20,859,602 | 14,630 | $ | 163,276 | |||||||||||||
Baillie Gifford International Growth Fund | |||||||||||||||||||
Class 2 Shares For the Period Ended June 30, 2020 | Class 3 Shares For the Period Ended June 30, 2020 | ||||||||||||||||||
Shares | Amount | Shares | Amount | ||||||||||||||||
Shares sold | 4,651,892 | $ | 60,503,000 | 15,081,214 | ** | $ | 226,163,912 | ** | |||||||||||
Shares redeemed | (16,864,784 | )* | (253,163,912 | )* | (18,433,055 | )*** | (279,567,272 | )*** | |||||||||||
Net decrease | (12,212,892 | ) | $ | (192,660,912 | ) | (3,351,841 | ) | $ | (53,403,360 | ) |
* 15,113,968 shares and $226,163,912 converted from Class 2 into Class 3.
** 15,081,214 shares and $226,163,912 converted into Class 3 from Class 2.
*** 14,596,321 shares and $218,892,272 converted from Class 3 into Class 4.
Baillie Gifford International Growth Fund | |||||||||||||||||||
Class 4 Shares For the Period Ended June 30, 2020 | Class 5 Shares For the Period Ended June 30, 2020 | ||||||||||||||||||
Shares | Amount | Shares | Amount | ||||||||||||||||
Shares sold | 14,585,040 | **** | $ | 218,892,272 | **** | — | $ | — | |||||||||||
Shares redeemed | (71,014 | ) | (1,000,000 | ) | — | — | |||||||||||||
Net increase | 14,514,026 | $ | 217,892,272 | — | $ | — |
**** 14,585,040 shares and $218,892,272 converted into Class 4 from Class 3.
167
Notes to Financial Statements (unaudited)
Semi-Annual Report June 30, 2020
Baillie Gifford International Growth Fund | |||||||||||||||||||
Class K Shares For the Period Ended June 30, 2020 | Institutional Class Shares For the Period Ended June 30, 2020 | ||||||||||||||||||
Shares | Amount | Shares | Amount | ||||||||||||||||
Shares sold | 25,969 | $ | 357,069 | 5,652,977 | $ | 81,474,900 | |||||||||||||
Shares redeemed | (2,791 | ) | (34,273 | ) | (678,547 | ) | (9,558,770 | ) | |||||||||||
Net increase | 23,178 | $ | 322,796 | 4,974,430 | $ | 71,916,130 | |||||||||||||
Baillie Gifford International Growth Fund | |||||||||||||||||||
Class 2 Shares For the Year Ended December 31, 2019 | Class 3 Shares For the Year Ended December 31, 2019 | ||||||||||||||||||
Shares | Amount | Shares | Amount | ||||||||||||||||
Shares sold | 5,107,421 | $ | 64,526,000 | 819,205 | $ | 9,300,000 | |||||||||||||
Shares issued in reinvestment of dividends and distributions | 660,349 | 9,691,346 | 435,063 | 6,398,737 | |||||||||||||||
Shares redeemed | (4,742,078 | ) | (63,189,038 | ) | (393,803 | ) | (5,000,000 | ) | |||||||||||
Net increase | 1,025,692 | $ | 11,028,308 | 860,465 | $ | 10,698,737 | |||||||||||||
Baillie Gifford International Growth Fund | |||||||||||||||||||
Class 4 Shares For the Year Ended December 31, 2019 | Class 5 Shares For the Year Ended December 31, 2019 | ||||||||||||||||||
Shares | Amount | Shares | Amount | ||||||||||||||||
Shares sold | — | $ | — | — | $ | — | |||||||||||||
Shares issued in reinvestment of dividends and distributions | 230,029 | 3,385,754 | 1,089,463 | 16,066,961 | |||||||||||||||
Shares redeemed | — | — | — | — | |||||||||||||||
Net increase | 230,029 | $ | 3,385,754 | 1,089,463 | $ | 16,066,961 | |||||||||||||
Baillie Gifford International Growth Fund | |||||||||||||||||||
Class K Shares For the Year Ended December 31, 2019 | Institutional Class Shares For the Year Ended December 31, 2019 | ||||||||||||||||||
Shares | Amount | Shares | Amount | ||||||||||||||||
Shares sold | — | $ | — | 1,790,773 | $ | 21,930,555 | |||||||||||||
Shares issued in reinvestment of dividends and distributions | 5 | 77 | 19,517 | 285,728 | |||||||||||||||
Shares redeemed | — | — | (162,113 | ) | (2,123,738 | ) | |||||||||||||
Net increase | 5 | $ | 77 | 1,648,177 | $ | 20,092,545 |
168
Notes to Financial Statements (unaudited)
Semi-Annual Report June 30, 2020
Baillie Gifford International Smaller Companies Fund | |||||||||||||||||||
Class K Shares For the Period Ended June 30, 2020 | Institutional Class Shares For the Period Ended June 30, 2020 | ||||||||||||||||||
Shares | Amount | Shares | Amount | ||||||||||||||||
Shares sold | — | $ | — | — | $ | — | |||||||||||||
Shares redeemed | — | — | — | — | |||||||||||||||
Net increase | — | $ | — | — | $ | — | |||||||||||||
Baillie Gifford International Smaller Companies Fund | |||||||||||||||||||
Class K Shares For the Year Ended December 31, 2019 | Institutional Class Shares For the Year Ended December 31, 2019 | ||||||||||||||||||
Shares | Amount | Shares | Amount | ||||||||||||||||
Shares sold | — | $ | — | — | $ | — | |||||||||||||
Shares issued in reinvestment of dividends and distributions | 1,198 | 14,729 | 1,198 | 14,729 | |||||||||||||||
Shares redeemed | — | — | — | — | |||||||||||||||
Net increase | 1,198 | $ | 14,729 | 1,198 | $ | 14,729 | |||||||||||||
Baillie Gifford Long Term Global Growth Fund | |||||||||||||||||||
Class 2 Shares For the Period Ended June 30, 2020 | Class 4 Shares For the Period Ended June 30, 2020 | ||||||||||||||||||
Shares | Amount | Shares | Amount | ||||||||||||||||
Shares sold | 4,831 | $ | 106,250 | — | $ | — | |||||||||||||
Shares redeemed | — | — | (137,868 | ) | (3,850,000 | ) | |||||||||||||
Net increase (decrease) | 4,831 | $ | 106,250 | (137,868 | ) | $ | (3,850,000 | ) | |||||||||||
Baillie Gifford Long Term Global Growth Fund | |||||||||||||||||||
Class 5 Shares For the Period Ended June 30, 2020 | Class K Shares For the Period Ended June 30, 2020 | ||||||||||||||||||
Shares | Amount | Shares | Amount | ||||||||||||||||
Shares sold | — | $ | — | 622,350 | $ | 12,745,587 | |||||||||||||
Shares redeemed | — | — | (1,435,936 | ) | (32,627,047 | ) | |||||||||||||
Net decrease | — | $ | — | (813,586 | ) | $ | (19,881,460 | ) |
169
Notes to Financial Statements (unaudited)
Semi-Annual Report June 30, 2020
Baillie Gifford Long Term Global Growth Fund | |||||||||||
Institutional Class Shares For the Period Ended June 30, 2020 | |||||||||||
Shares | Amount | ||||||||||
Shares sold | 2,233,034 | $ | 53,015,987 | ||||||||
Shares redeemed | (307,412 | ) | (7,030,368 | ) | |||||||
Net increase | 1,925,622 | $ | 45,985,619 |
Baillie Gifford Long Term Global Growth Fund | |||||||||||||||||||
Class 2 Shares For the Year Ended December 31, 2019 | Class 4 Shares For the Year Ended December 31, 2019 | ||||||||||||||||||
Shares | Amount | Shares | Amount | ||||||||||||||||
Shares sold | 8,620 | $ | 155,750 | 3,082,248 | * | $ | 67,193,017 | * | |||||||||||
Shares issued in reinvestment of dividends and distributions | 4,929 | 102,829 | 3,726 | 91,124 | |||||||||||||||
Shares redeemed | (54,170 | ) | (1,000,000 | ) | — | — | |||||||||||||
Net increase (decrease) | (40,621 | ) | $ | (741,421 | ) | 3,085,974 | $ | 67,284,141 |
* 3,082,248 shares and $67,193,017 converted into Class 4 from Class 5.
Baillie Gifford Long Term Global Growth Fund | |||||||||||||||||||
Class 5 Shares For the Year Ended December 31, 2019 | Class K Shares For the Year Ended December 31, 2019 | ||||||||||||||||||
Shares | Amount | Shares | Amount | ||||||||||||||||
Shares sold | — | $ | — | 1,791,287 | $ | 34,246,083 | |||||||||||||
Shares issued in reinvestment of dividends and distributions | — | — | 9,307 | 194,231 | |||||||||||||||
Shares redeemed | (2,981,486 | )* | (69,693,017 | )* | (80,257 | ) | (1,500,000 | ) | |||||||||||
Net increase (decrease) | (2,981,486 | ) | $ | (69,693,017 | ) | 1,720,337 | $ | 32,940,314 |
* 2,872,319 shares and $67,193,017 converted from Class 5 into Class 4.
170
Notes to Financial Statements (unaudited)
Semi-Annual Report June 30, 2020
Baillie Gifford Long Term Global Growth Fund | |||||||||||
Institutional Class Shares For the Year Ended December 31, 2019 | |||||||||||
Shares | Amount | ||||||||||
Shares sold | 2,904,872 | $ | 50,656,366 | ||||||||
Shares issued in reinvestment of dividends and distributions | 3,876 | 80,814 | |||||||||
Shares redeemed | (172,633 | ) | (3,117,562 | ) | |||||||
Net increase | 2,736,115 | $ | 47,619,618 |
Baillie Gifford Positive Change Equities Fund | |||||||||||||||||||
Class K Shares For the Period Ended June 30, 2020 | Institutional Class Shares For the Period Ended June 30, 2020 | ||||||||||||||||||
Shares | Amount | Shares | Amount | ||||||||||||||||
Shares sold | 324,903 | $ | 4,247,802 | 287,371 | $ | 4,381,801 | |||||||||||||
Shares redeemed | (102,182 | ) | (1,485,542 | ) | (28,558 | ) | (429,130 | ) | |||||||||||
Net increase | 222,721 | $ | 2,762,260 | 258,813 | $ | 3,952,671 | |||||||||||||
Baillie Gifford Positive Change Equities Fund | |||||||||||||||||||
Class K Shares For the Year Ended December 31, 2019 | Institutional Class Shares For the Year Ended December 31, 2019 | ||||||||||||||||||
Shares | Amount | Shares | Amount | ||||||||||||||||
Shares sold | 712,396 | $ | 8,086,054 | 72,635 | $ | 884,224 | |||||||||||||
Shares issued in reinvestment of dividends and distributions | 1,416 | 18,677 | 3,087 | 40,744 | |||||||||||||||
Shares redeemed | — | — | (861 | ) | (10,610 | ) | |||||||||||||
Net increase | 713,812 | $ | 8,104,731 | 74,861 | $ | 914,358 | |||||||||||||
Baillie Gifford U.S. Equity Growth Fund | |||||||||||||||||||
Class K Shares For the Period Ended June 30, 2020 | Institutional Class Shares For the Period Ended June 30, 2020 | ||||||||||||||||||
Shares | Amount | Shares | Amount | ||||||||||||||||
Shares sold | 47,992 | $ | 1,099,365 | 362,263 | $ | 8,424,737 | |||||||||||||
Shares redeemed | (6,873 | ) | (120,690 | ) | (21,362 | ) | (414,398 | ) | |||||||||||
Net increase | 41,119 | $ | 978,675 | 340,901 | $ | 8,010,339 |
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Baillie Gifford U.S. Equity Growth Fund | |||||||||||||||||||
Class K Shares For the Year Ended December 31, 2019 | Institutional Class Shares For the Year Ended 12/31/2019* | ||||||||||||||||||
Shares | Amount | Shares | Amount | ||||||||||||||||
Shares sold | 6,450 | $ | 117,664 | 228,252 | $ | 3,569,371 | |||||||||||||
Shares issued in reinvestment of dividends and distributions | 10,024 | 185,245 | 2,510 | 46,343 | |||||||||||||||
Shares redeemed | — | — | (41,228 | ) | (732,087 | ) | |||||||||||||
Net increase | 16,474 | $ | 302,909 | 189,534 | $ | 2,883,627 |
* Includes a reimbursement from the Manager of $8,698 plus interest as a result of errors in the application of contractual expense waivers and subsequent purchase and redemption activity in the period.
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, 2020, the following shareholders beneficially owned 25% or more of a Fund's voting securities:
Fund | Investor | Percentage | |||||||||
Baillie Gifford China A Shares Fund | Baillie Gifford International LLC | 100.00 | % | ||||||||
Baillie Gifford Global Stewardship Equities Fund | Baillie Gifford International LLC | 100.00 | % | ||||||||
Baillie Gifford International Concentrated Growth Equities Fund | The Master Pension Trust of CSX Corporation and Affiliated Companies | 54.48 | % | ||||||||
Baillie Gifford International Growth Fund | Teachers' Retirement System of The State of Kentucky | 42.08 | % | ||||||||
Baillie Gifford International Smaller Companies Fund | Baillie Gifford International LLC | 100.00 | % | ||||||||
Baillie Gifford U.S. Equity Growth Fund | Daytona Beach Police & Fire Retirement System | 47.33 | % |
Purchase and redemption activity of these accounts may have a significant effect on the operation of each Fund.
At June 30, 2020, Baillie Gifford International LLC, a wholly owned subsidiary of the Manager, owned 100% of Baillie Gifford China A Shares Fund, Baillie Gifford Global Stewardship Equities Fund and Baillie Gifford International Smaller Companies Fund and as a result may be deemed to control such Funds.
Note F — Commitments and Contingencies
Each of the Funds indemnifies the Trust's officers and Trustees for certain liabilities that might arise from the performance of their duties to the Fund. Additionally, in the normal course of business, each Fund enters into contracts that contain a variety of representations and warranties and which provide general indemnifications.
The Funds' maximum exposure under these arrangements is unknown, as this would involve future claims that may be made against the Funds that have not yet occurred. However, based on experience, the Funds expect the risk of loss to be remote.
Note G — Line of Credit
The Trust entered into a committed facility with Bank of New York Mellon on May 1, 2017, renewed April 21, 2020, and expiring April 20, 2021 which allows the certain series of the Trust to borrow up to $50 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 at an interest rate of 1.25% per annum plus the greater of the Federal Funds Effective Rate or the one-month USD LIBOR Rate. Prior to April 1, 2020, pursuant to the
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Committed Revolving Credit Facility Procedures adopted by the Board, any expenses associated with the credit facility or borrowings thereunder were borne by the classes borrowing pursuant to the Credit Agreement. Effective April 1, 2020, any expenses associated with the credit facility or borrowings thereunder are payable at a fund level.
Prior to April 1, 2020, the commitment fee associated with the line of credit was payable on a pro-rata basis by Class K and Institutional Class of the series of the Trust that were parties to the agreement. Effective April 1, 2020, the commitment fee is payable as a fund level expense.
The rate payable at June 30, 2020 was 1.41% on any amounts drawn down.
The following borrowings were made against the credit facility during the period:
Fund | Date of | Full | Maximum | Average | Average | ||||||||||||||||||
Baillie Gifford Positive Change Equities Fund | 2/21/2020 | 2/25/2020 | $900,000 | $900,000 | 2.87% | ||||||||||||||||||
Baillie Gifford Developed EAFE All Cap Fund | 4/02/2020 | 4/06/2020 | $10,750,000 | $8,225,000 | 2.23% | ||||||||||||||||||
Baillie Gifford EAFE Plus All Cap Fund | 6/30/2020 | 7/02/2020 | $1,350,000 | $1,350,000 | 1.41% |
Note H — Principal Risks (unaudited)
The below is a selection of the Funds' principal risks, the Fund's full list of principal risks including more commonly known risks are further described within their respective prospectuses.
Market Risk
The value of the Fund's investments will be affected by fluctuations in the stock markets in which the Fund is invested, factors affecting a particular industry or industries, real or perceived adverse economic conditions, changes in interest or currency rates or adverse investor sentiment generally. Declines in securities market prices may reduce the net asset value of the Fund's shares.
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.
Geographic Focus Risk
The Fund expects to focus its investments in a limited number of countries or geographic regions, and as a result may not offer the same level of diversification of risks as a more broadly global fund because the Fund will be exposed to a smaller geographic area. The performance of a fund that is less diversified across countries or geographic regions will be closely tied to market, currency, economic, political, environmental, or regulatory conditions and developments in the countries or regions in which the fund invests, and may be more volatile than the performance of a more geographically-diversified portfolio.
LIBOR Phaseout
The United Kingdom's Financial Conduct Authority, which regulates the London Interbank Offered Rate ("LIBOR"), has announced plans to phase out the use of LIBOR by the end of 2021. There remains uncertainty regarding the future use of LIBOR and the nature of any replacement rate. The transition process away from LIBOR may involve, among other things, increased volatility or illiquidity in markets for instruments that currently rely on LIBOR.
Further, the Funds' Credit Agreement in place with Bank of New York Mellon references LIBOR and as such
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a suitable replacement reference rate will be required ahead of the end of 2021.
The Manager has set up a LIBOR working group to consider and plan for LIBOR's discontinuation including considering the impact on the Funds' Credit Agreement. Actions are being taken to reduce or remove LIBOR references in advance of the December 2021 deadline.
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 Fund, Baillie Gifford International Concentrated Growth Equities Fund, Baillie Gifford Long Term Global Growth Fund, Baillie Gifford Positive Change Equities Fund, and Baillie Gifford U.S. Equity Growth Fund are all non-diversified Funds.
Currency Risk
A Fund that invests in non-U.S. securities could lose value if it invests in foreign currencies or securities denominated in foreign currencies which decline in value relative to the U.S. dollar. A Fund may realize a loss if it has exposure to a non-U.S. currency, and this non-U.S. currency declines in value, relative to the U.S. dollar.
Non-U.S. Investment Risk
Non-U.S. securities and securities denominated in foreign currencies 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 economic conditions, less regulation, fluctuations in foreign exchange rates, inability to convert proceeds into U.S. dollars, application
of foreign tax laws, foreign investment restrictions, less publicly available information about foreign financial instruments, generally less government supervision of foreign securities markets and issuers and possible fluctuation in value due to adverse political conditions. Foreign portfolio transactions generally involve higher commission rates, transfer taxes, and custodial costs than similar transactions in the U.S.
For further information on risk please refer to each Fund's prospectus.
Market Disruption and Geopolitical Risk
Communicable diseases, including those that result in pandemics or epidemics, may pose significant threats to human health, and such diseases, along with any efforts to contain their spread, may be highly disruptive to both global and local economies and markets, with significant negative impact on individual issuers, sectors, industries, and asset classes. Significant public health crises, including those triggered by the transmission of a communicable disease and efforts to contain it may result in, among other things, border closings and other significant travel restrictions and disruptions, significant disruptions to business operations, supply chains and customer activity, lower consumer demand for goods and services, event cancellations and restrictions, service cancellations, reductions and other changes, significant challenges in healthcare service preparation and delivery, and prolonged quarantines, as well as general concern and uncertainty. All of these disruptive effects were present, for example, in the global pandemic linked to the outbreak of respiratory disease caused by a novel coronavirus designated as COVID-19 that was first reported in China in December 2019.
For further information on the risks of investing in each Fund, please refer to each Fund's prospectus.
Note I — Legal Notice (unaudited)
MSCI
The MSCI information may only be used for your internal use, may not be reproduced or re-disseminated in any form
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and may not be used as a basis for or a component of any financial instruments or products or indices. None of the MSCI information is intended to constitute investment advice or a recommendation to make (or refrain from making) any kind of investment decision and may not be relied on as such. Historical data and analysis should not be taken as an indication or guarantee of any future performance analysis, forecast or prediction. The MSCI information is provided on an "as is" basis and the user of this information assumes the entire risk of any use made of this information. MSCI, each of its affiliates and each other person involved in or related to compiling, computing or creating any MSCI information (collectively, the "MSCI Parties") expressly disclaims all warranties (including, without limitation, any warranties of originality, accuracy, completeness, timeliness, non-infringement, merchantability and fitness for a particular purpose) with respect to this information.
Without limiting any of the foregoing, in no event shall any MSCI Party have any liability for any direct, indirect, special, incidental, punitive, consequential (including, without limitation, lost profits) or any other damages. (www.msci.com)
FTSE Russell (U.S. Equity Growth)
FTSE Russell is a trading name of certain of the LSE Group companies. Russell® is a trade mark of the relevant LSE Group companies and is used by any other LSE Group company under license. "TMX®" is a trade mark of TSX, Inc. and used by the LSE Group under license. All rights in the FTSE Russell indexes or data vest in the relevant LSE Group company which owns the index or the data. Neither LSE Group nor its licensors accept any liability for any errors or omissions in the indexes or data and no party may rely on any indexes or data contained in this communication. No further distribution of data from the LSE Group is permitted without the relevant LSE Group company's express written consent. The LSE Group does not promote, sponsor or endorse the content of this communication.
S&P (U.S. Equity Growth)
The S&P 500 and S&P Global Small Cap ("Index") is a product of S&P Dow Jones Indices LLC, a division of S&P Global, or its affiliates ("SPDJI"). Standard & Poor's® and S&P® are registered trademarks of Standard & Poor's
Financial Services LLC, a division of S&P Global ("S&P"); Dow Jones® is a registered trademark of Dow Jones Trademark Holdings LLC ("Dow Jones"). Neither S&P Dow Jones Indices LLC, Dow Jones Trademark Holdings LLC, their affiliates nor their third party licensors make any representation or warranty, express or implied, as to the ability of any index to accurately represent the asset class or market sector that it purports to represent and neither S&P Dow Jones Indices LLC, Dow Jones Trademark Holdings LLC, their affiliates nor their third party licensors shall have any liability for any errors, omissions, or interruptions of any index or the data included therein.
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, 2020 and the issuance of the Financial Statements.
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Management of the Trust
Indepedent Trustees*
Howard W. Chin, Trustee
Pamela M.J. Cox, Trustee
Bruce C. Long, Trustee, Chair of the Nominating and Governance Committee
Robert E. Rigsby, Trustee, Chair of the Audit Oversight Committee
Interested Trustee
David Salter, Trustee, Chairman of the Board, and President
Officers (other than officers who are also Trustees)
Andrew Telfer, Vice President
Michael Stirling-Aird, Vice President
Julie Paul, Vice President
Tim Campbell, Vice President
Lindsay Cockburn, Treasurer
Gareth Griffiths, Secretary and Chief Legal Officer
Graham Laybourn, Vice President
Suzanne Quinn, Chief Compliance Officer and AML Compliance Officer
Evan Delaney, Chief Risk Officer
Lesley-Anne Archibald, Vice President
* Effective July 1, 2020, Donald P. Sullivan Jr. has joined the Board as an Independent Trustee.
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BAILLIE GIFFORD FUNDS
On June 19, 2020, the Board of Trustees (the "Board") of Baillie Gifford Funds (the "Trust"), including those trustees who are not "interested persons" as defined by the Investment Company Act of 1940, as amended (the "Independent Trustees"), approved the renewal of the investment advisory agreement (the "Advisory Agreement") between the Trust, on behalf of the Funds and Baillie Gifford Overseas Limited (the "Manager").
As part of the review process, the Independent Trustees met independently of Trust management and of the interested trustee of the Board to consider the renewal of the Advisory Agreement. During the review process, the Independent Trustees were represented by independent legal counsel. The Independent Trustees reviewed materials received from the Manager, Broadridge, an independent provider of mutual fund data ("Broadridge"), and independent legal counsel. After reviewing the information received, the Independent Trustees requested supplemental information, and the Manager provided materials in response. The Board determined that, given the totality of the information provided with respect to the Advisory Agreement, the Board had received sufficient information to approve the Advisory Agreement.
The Board concluded that it was in the best interests of each Fund to renew the Advisory Agreement. In reaching this conclusion for the Funds, the Board did not identify any single factor as determinative in its analysis, but rather the Board considered a variety of factors, including those discussed below. The Board did not allot a particular weight to any one factor or group of factors.
The Board considered the nature, extent and quality of the services provided by the Manager to each Fund. The Board noted that: (1) pursuant to the Funds' Advisory Agreement, the Manager provides portfolio management services to the Funds and receives an advisory fee; (2) pursuant to a separate Administration, Supervisory and Sub-Accounting Services Plan and Administration and Supervisory Agreement for Institutional Class and Class K 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 fees and expense ratios for certain share classes compared to similar funds, and considered the experience of the Manager in providing services to each Fund. In assessing each Fund's performance, the Board considered that performance is closely evaluated at the quarterly meetings of the Board's Performance Committee, that the Manager employs a long-term investment approach and that the Funds' returns over longer-term periods were generally good. In evaluating the advisory fee paid by each Fund, and in particular when assessing comparative data, the Board considered not only the advisory fee, but also the combination of the advisory fee and the Class specific fees. The Board also considered that the advisory fee schedule for each Fund other than Baillie Gifford International Smaller Companies Fund includes breakpoints. The Board considered other benefits derived by the Manager and its affiliates from the relationship to the Funds, including the Manager's receipt of the Class specific fees. 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 shareholder 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 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, 2020 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 2015 through 2019
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for the Fund compared to the benchmark index and a peer group of funds provided by Broadridge. The Board noted that the Fund's total return was above the benchmark index and the average of the performance universe for the one-year, three-year, five-year and since inception periods. The Board concluded that the Fund's performance was satisfactory.
The Board reviewed the advisory fee (plus the applicable Class specific fee) and net expense ratio for the Fund's Class 2 and Institutional Class, and compared them to the average management fees and expense ratios of an expense peer group and expense universe of funds based on data provided by Broadridge. The comparable fund information showed that the contractual advisory fee (plus the applicable Class specific fee) for the Fund's Institutional Class was below the average management fee of both the expense peer group and the expense universe. The Board also reviewed the fee schedules for separately managed accounts of the Manager with a similar investment mandate. The Board considered whether there were economies of scale with respect to management of the Fund and whether the Fund benefits from economies of scale. The Board considered that the contractual advisory fee (plus the applicable Class specific fee) for the Fund's Institutional Class was on the low end of the spectrum of the expense peer group. On the basis of the information provided, the Board concluded that the advisory fee was reasonable.
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, 2020 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 2010 through 2019 for the Fund compared to the benchmark index and a peer group of funds provided by Broadridge. The Board noted that the Fund's total return was above the benchmark index and the average of the performance universe for the one-year, three-year, five-year, ten-year and since inception periods. The Board concluded that the Fund's performance was satisfactory.
The Board reviewed the advisory fee (plus the applicable Class specific fee) and net expense ratio for the Fund's Class 2 and Institutional Class, and compared them to the average management fees and expense ratios of an expense peer group and expense universe of funds based on data provided by Broadridge. The comparable fund information showed that the contractual advisory fee (plus the applicable Class specific fee) for the Fund's Institutional Class was below the average management fee of both the expense peer group and the expense universe. The Board also reviewed the fee schedules for separately managed accounts of the Manager with a similar investment mandate. The Board considered whether there were economies of scale with respect to management of the Fund and whether the Fund benefits from economies of scale. The Board considered that the contractual advisory fee (plus the applicable Class specific fee) for the Fund's Institutional Class was on the low end of the spectrum of the expense peer group. On the basis of the information provided, the Board concluded that the advisory fee was reasonable.
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, 2020 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 2010 through 2019 for the Fund compared to the benchmark index and a peer group of funds provided by Broadridge. The Board noted that the Fund's total return was above the benchmark index and the average of the performance universe for the one-year, three-year, five-year, ten-year and since inception periods. The Board concluded that the Fund's performance was satisfactory.
The Board reviewed the advisory fee (plus the applicable Class specific fee) and net expense ratio for the Fund's Class 2 and Institutional Class, and compared them to the average management fees and expense ratios of an expense peer group and expense universe of funds based on data provided by Broadridge. The comparable fund information showed that the contractual advisory fee (plus the applicable Class specific fee) for the Fund's Institutional Class was
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below the average management fee of both the expense peer group and the expense universe. The Board also reviewed the fee schedules for separately managed accounts of the Manager with a similar investment mandate. The Board considered 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 contractual advisory fee (plus the applicable Class specific fee) for the Fund's Institutional Class was on the low end of the spectrum of the expense peer group. On the basis of the information provided, the Board concluded that the advisory fee was reasonable.
Baillie Gifford Global Alpha Equities Fund
The Board reviewed total return information for the one-year, three-year, five-year and since inception (November 15, 2011) periods ended March 31, 2020 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 2012 through 2019 for the Fund compared to the benchmark index and a peer group of funds provided by Broadridge. The Board noted that the Fund's total return was above the benchmark index and the average of the performance universe for the one-year, three-year, five-year and since inception periods. The Board concluded that the Fund's performance was satisfactory.
The Board reviewed the advisory fee (plus the applicable Class specific fee) and net expense ratio for the Fund's Class 2 and Institutional Class, and compared them to the average management fees and expense ratios of an expense peer group and expense universe of funds based on data provided by Broadridge. The comparable fund information showed that the contractual advisory fee (plus the applicable Class specific fee) for the Fund's Institutional Class was below the average management fee of both the expense peer group and the expense universe. The Board also reviewed the fee schedules for separately managed accounts of the Manager with a similar investment mandate. The Board considered whether there were economies of scale with respect to management of the Fund and whether the Fund benefits from economies of scale. The Board considered that the contractual advisory fee (plus the applicable Class specific fee) for the Fund's Institutional Class was on the low end of the spectrum of the expense peer group. On the basis of the information provided, the Board concluded that the advisory fee was reasonable.
Baillie Gifford Global Stewardship Equities Fund
The Board reviewed total return information for the one-year and since inception (December 14, 2017) periods ended March 31, 2020 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 2018 and 2019 for the Fund compared to the benchmark index and a peer group of funds provided by Broadridge. The Board noted that the Fund's total return was above the benchmark index and the average of the performance universe for the one-year and since inception periods. The Board concluded that the Fund's performance was satisfactory.
The Board reviewed the advisory fee (plus the applicable Class specific fee) and net expense ratio for the Fund's Class K and Institutional Class, and compared them to the average management fees and expense ratios of an expense peer group and expense universe of funds based on data provided by Broadridge. The comparable fund information showed that the contractual advisory fee (plus the applicable Class specific fee) for the Fund's Institutional Class was below the average management fee of both the expense peer group and the expense universe. The Board also reviewed the fee schedules for separately managed accounts of the Manager with a similar investment mandate. The Board considered whether there were economies of scale with respect to management of the Fund and whether the Fund benefits from economies of scale. The Board considered that the contractual advisory fee (plus the applicable Class specific fee) for the Fund's Institutional Class was on the low end of the spectrum of the expense peer group and also considered the expense limitation in place until April 30, 2021. On the basis of the information provided, the Board concluded that the advisory fee was reasonable.
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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, 2020 for the Fund compared to a benchmark index (MSCI ACWI (ex U.S.) Index) and the average total returns of a performance universe of funds provided by Broadridge, and calendar year returns for 2010 through 2019 for the Fund compared to the benchmark index and a peer group of funds provided by Broadridge. The Board noted that the Fund's total return was above the benchmark index and the average of the performance universe for the one-year, three-year, five-year, ten-year and since inception periods. The Board concluded that the Fund's performance was satisfactory.
The Board reviewed the advisory fee (plus the applicable Class specific fee) and net expense ratio for the Fund's Class 2 and Institutional Class, and compared them to the average management fees and expense ratios of an expense peer group and expense universe of funds based on data provided by Broadridge. The comparable fund information showed that the contractual advisory fee (plus the applicable Class specific fee) for the Fund's Institutional Class was below the average management fee of both the expense peer group and the expense universe. The Board also reviewed the fee schedules for separately managed accounts of the Manager with a similar investment mandate. The Board considered whether there were economies of scale with respect to management of the Fund and whether the Fund benefits from economies of scale. The Board considered that the contractual advisory fee (plus the applicable Class specific fee) for the Fund's Institutional Class was on the low end of the spectrum of the expense peer group. On the basis of the information provided, the Board concluded that the advisory fee was reasonable.
Baillie Gifford International Concentrated Growth Equities Fund
The Board reviewed total return information for the one-year and since inception (December 14, 2017) periods ended March 31, 2020 for the Fund compared to a benchmark index (MSCI ACWI (ex U.S.) Index) and the average total returns of a performance universe of funds provided by Broadridge, and calendar year returns for 2018 and 2019 for the Fund compared to the benchmark index and a peer group of funds provided by Broadridge. The Board noted that the Fund's total return was above the benchmark index and the average of the performance universe for the one-year and since inception periods. The Board concluded that the Fund's performance was satisfactory.
The Board reviewed the advisory fee (plus the applicable Class specific fee) and net expense ratio for the Fund's Class K and Institutional Class, and compared them to the average management fees and expense ratios of an expense peer group and expense universe of funds based on data provided by Broadridge. The comparable fund information showed that the contractual advisory fee (plus the applicable Class specific fee) for the Fund's Institutional Class was below the average management fee of both the expense peer group and the expense universe. The Board also reviewed the fee schedules for separately managed accounts of the Manager with a similar investment mandate. The Board considered whether there were economies of scale with respect to management of the Fund and whether the Fund benefits from economies of scale. The Board considered that the contractual advisory fee (plus the applicable Class specific fee) for the Fund's Institutional Class was on the low end of the spectrum of the expense peer group and also considered the expense limitation in place until April 30, 2021. 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, 2020 for the Fund compared to a benchmark index (MSCI EAFE Index through November 22, 2019; MSCI ACWI (ex U.S.) Index thereafter) and the average total returns of a performance universe of funds provided by Broadridge, and calendar year returns for 2010 through 2019 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
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Semi-Annual Report June 30, 2020
above the benchmark index and the average of the performance universe for the one-year, three-year, five-year, ten-year and since inception periods. The Board concluded that the Fund's performance was satisfactory.
The Board reviewed the advisory fee (plus the applicable Class specific fee) and net expense ratio for the Fund's Class 2 and Institutional Class, and compared them to the average management fees and expense ratios of an expense peer group and expense universe of funds based on data provided by Broadridge. The comparable fund information showed that the contractual advisory fee (plus the applicable Class specific fee) for the Fund's Institutional Class was below the average management fee of both the expense peer group and the expense universe. The Board also reviewed the fee schedules for separately managed accounts of the Manager with a similar investment mandate. The Board considered whether there were economies of scale with respect to management of the Fund and whether the Fund benefits from economies of scale. The Board considered that the contractual advisory fee (plus the applicable Class specific fee) for the Fund's Institutional Class was on the low end of the spectrum of the expense peer group. On the basis of the information provided, the Board concluded that the advisory fee was reasonable.
Baillie Gifford International Smaller Companies Fund
The Board reviewed total return information for the one-year and since inception (December 19, 2018) periods ended March 31, 2020 for the Fund compared to a benchmark index (MSCI ACWI (ex U.S.) Small Cap Index) and the average total returns of a performance universe of funds provided by Broadridge, and calendar year returns for 2019 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, although negative on an absolute return basis, was above the benchmark index and the average of the performance universe for the one-year and since inception periods. The Board concluded that the Fund's performance was satisfactory.
The Board reviewed the advisory fee (plus the applicable Class specific fee) and net expense ratio for the Fund's Class K and Institutional Class, and compared them to the average management fees and expense ratios of an expense peer group and expense universe of funds based on data provided by Broadridge. The comparable fund information showed that the contractual advisory fee (plus the applicable Class specific fee) for the Fund's Institutional Class was below the average management fee of both the expense peer group and the expense universe. The Board also reviewed the fee schedules for separately managed accounts of the Manager with a similar investment mandate. The Board considered whether there were economies of scale with respect to management of the Fund and whether the Fund benefits from economies of scale. The Board considered that the contractual advisory fee (plus the applicable Class specific fee) for the Fund's Institutional Class was on the low end of the spectrum of the expense peer group and also considered the expense limitation in place until April 30, 2021. 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, 2020 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 2015 through 2019 for the Fund compared to the benchmark index and a peer group of funds provided by Broadridge. The Board noted that the Fund's total return was above the benchmark index and the average of the performance universe for the one-year, three-year, five-year and since inception periods. The Board concluded that the Fund's performance was satisfactory.
The Board reviewed the advisory fee (plus the applicable Class specific fee) and net expense ratio for the Fund's Class 2 and Institutional Class, and compared them to the average management fees and expense ratios of an expense peer group and expense universe of funds based on data provided by Broadridge. The comparable fund information showed that the contractual advisory fee (plus the applicable Class specific fee) for the Fund's Institutional Class was below the average management fee of both the expense peer group and the expense universe. The Board also reviewed
181
BOARD CONSIDERATIONS REGARDING
2020 CONTRACT RENEWAL
Semi-Annual Report June 30, 2020
the fee schedules for separately managed accounts of the Manager with a similar investment mandate. The Board considered whether there were economies of scale with respect to management of the Fund and whether the Fund benefits from economies of scale. The Board considered that the contractual advisory fee (plus the applicable Class specific fee) for the Fund's Institutional Class was on the low end of the spectrum of the expense peer group and also considered the expense limitation in place until April 30, 2021. On the basis of the information provided, the Board concluded that the advisory fee was reasonable.
Baillie Gifford Positive Change Equities Fund
The Board reviewed total return information for the one-year and since inception (December 14, 2017) periods ended March 31, 2020 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 2018 and 2019 for the Fund compared to the benchmark index and a peer group of funds provided by Broadridge. The Board noted that the Fund's total return was above the benchmark index and the average of the performance universe for the one-year and since inception periods. The Board concluded that the Fund's performance was satisfactory.
The Board reviewed the advisory fee (plus the applicable Class specific fee) and net expense ratio for the Fund's Class K and Institutional Class, and compared them to the average management fees and expense ratios of an expense peer group and expense universe of funds based on data provided by Broadridge. The comparable fund information showed that the contractual advisory fee (plus the applicable Class specific fee) for the Fund's Institutional Class was below the average management fee of both the expense peer group and the expense universe. The Board also reviewed the fee schedules for separately managed accounts of the Manager with a similar investment mandate. The Board considered whether there were economies of scale with respect to management of the Fund and whether the Fund benefits from economies of scale. The Board considered that the contractual advisory fee (plus the applicable Class specific fee) for the Fund's Institutional Class was on the low end of the spectrum of the expense peer group and also considered the expense limitation in place until April 30, 2021. On the basis of the information provided, the Board concluded that the advisory fee was reasonable.
Baillie Gifford U.S. Equity Growth Fund
The Board reviewed total return information for the one-year, three-year and since inception (December 5, 2016) periods ended March 31, 2020 for the Fund compared to a benchmark index (S&P 500 Index) and the average total returns of a performance universe of funds provided by Broadridge, and calendar year returns for 2017 through 2019 for the Fund compared to the benchmark index and a peer group of funds provided by Broadridge. The Board noted that the Fund's total return was above the benchmark index and the average of the performance universe for the one-year, three-year and since inception periods. The Board concluded that the Fund's performance was satisfactory.
The Board reviewed the advisory fee (plus the applicable Class specific fee) and net expense ratio for the Fund's Class K and Institutional Class, and compared them to the average management fees and expense ratios of an expense peer group and expense universe of funds based on data provided by Broadridge. The comparable fund information showed that the contractual advisory fee (plus the applicable Class specific fee) for the Fund's Institutional Class was below the average management fee of both the expense peer group and the expense universe. The Board also reviewed the fee schedules for separately managed accounts of the Manager with a similar investment mandate. The Board considered whether there were economies of scale with respect to management of the Fund and whether the Fund benefits from economies of scale. The Board considered that the contractual advisory fee (plus the applicable Class specific fee) for the Fund's Institutional Class was on the low end of the spectrum of the expense peer group and also considered the expense limitation in place until April 30, 2021. On the basis of the information provided, the Board concluded that the advisory fee was reasonable.
182
BOARD CONSIDERATIONS REGARDING
2020 CONTRACT RENEWAL
Semi-Annual Report June 30, 2020
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.
183
Supplemental Information (unaudited)
Semi-Annual Report June 30, 2020
Shareholder Meeting Results
The Trust held a special meeting (the "Special Meeting") of shareholders on behalf of all series of the Trust on June 11, 2020. Due to circumstances surrounding the Coronavirus pandemic, the Special Meeting was held in a virtual meeting format, via the internet, with no option of physical in-person presence. The meeting was called solely for the purpose of the election of Trustees, pursuant to notice duly sent, in connection with a proxy statement dated May 19, 2020. The results of voting on the sole proposal were as follows:
Proposal: Election of Trustees
Trustee Nominee | Votes For | Votes Withheld | Percentage of Total Shares Outstanding Voting in Favor | Percentage of Shares Present Voting in Favor | |||||||||||||||
Howard W. Chin | 430,237,081.287 | 268,866.853 | 54.079 | % | 99.938 | % | |||||||||||||
Pamela M. J. Cox | 430,112,662.403 | 393,285.737 | 54.063 | % | 99.909 | % | |||||||||||||
Robert E. Rigsby | 430,246,659.268 | 259,288.872 | 54.080 | % | 99.940 | % | |||||||||||||
David W. Salter | 429,662,293.142 | 843,654.998 | 54.006 | % | 99.805 | % | |||||||||||||
Donald P. Sullivan | 430,253,736.792 | 252,211.348 | 54.081 | % | 99.942 | % |
Accordingly, each trustee nominee was approved by the holders of a plurality of the Trust's shares present, by proxy or otherwise, at the Special Meeting. As disclosed in the proxy statement, the Trustees had separately taken action, effective immediately following the shareholder meeting, to further increase the size of the Board from five to six and to reappoint Bruce C. Long as a Trustee, with the expectation that Mr. Long will continue to serve until his planned retirement date of December 31, 2020.
184
Copyright © Baillie Gifford & Co 2015.
BAILLIE GIFFORD FUNDS
Baillie Gifford International All Cap Fund
Semi-Annual Report
June 30, 2020
(unaudited)
Index
Page Number |
01 | Fund Expenses | ||||||
Baillie Gifford International All Cap Fund | |||||||
03 | Industry Diversification Table | ||||||
04 | Portfolio of Investments | ||||||
09 | Statement of Assets and Liabilities | ||||||
10 | Statement of Operations | ||||||
11 | Statements of Changes in Net Assets | ||||||
Financial Highlights | |||||||
12 | Selected Data for Class 2 | ||||||
13 | Selected Data for Class 3 | ||||||
14 | Selected Data for Class 5 | ||||||
15 | Notes to Financial Statements | ||||||
Supplemental Information | |||||||
22 | Management of the Trust | ||||||
23 | Board Considerations Regarding 2020 Contract Renewal |
Source: © David Robertson / Alamy Stock Photo
This report is intended for shareholders of the fund and may not be used as sales literature unless preceded or accompanied by a current prospectus for the Baillie Gifford International All Cap Fund.
The statements and views expressed in this report are as of this report's period end and are subject to change at any time. All investments entail risk, including the possible loss of principal.
Fund Expenses (unaudited)
Semi-Annual Report June 30, 2020
As a shareholder of Baillie Gifford International All Cap Fund (the "Fund"), you incur two types of costs: (1) transaction costs, which may include purchase fees and redemption fees and (2) ongoing costs, including advisory fees, shareholder servicing 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 the other mutual funds.
The example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period from January 1, 2020 to June 30, 2020.
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, 2020
Beginning Account Value 01/01/20 | Ending Account Value 06/30/20 | Annualized Expense Ratios Based on the Period 01/01/20 to 06/30/20 | Expenses Paid During Period(1) | ||||||||||||||||
Baillie Gifford International All Cap Fund — Class 2 | |||||||||||||||||||
Actual | $ | 1,000 | $ | 1,013.00 | 0.63 | % | $ | 3.15 | |||||||||||
Hypothetical (5% return before expenses) | $ | 1,000 | $ | 1,021.73 | 0.63 | % | $ | 3.17 | |||||||||||
Baillie Gifford International All Cap Fund — Class 3 | |||||||||||||||||||
Actual | $ | 1,000 | $ | 1,013.40 | 0.56 | % | $ | 2.80 | |||||||||||
Hypothetical (5% return before expenses) | $ | 1,000 | $ | 1,022.08 | 0.56 | % | $ | 2.82 | |||||||||||
Baillie Gifford International All Cap Fund — Class 5 | |||||||||||||||||||
Actual | $ | 1,000 | $ | 1,013.80 | 0.48 | % | $ | 2.40 | |||||||||||
Hypothetical (5% return before expenses) | $ | 1,000 | $ | 1,022.48 | 0.48 | % | $ | 2.41 |
(1) Unless otherwise indicated, expenses are calculated using the Fund's annualized expense ratio, multiplied by the average account value for the period, multiplied by 182/366 (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 end June 30, 2020. Expenses are calculated by multiplying the annualized expense ratio by the average account value for the period;
then multiplying the result by the number of days in the most recent fiscal half-year; and then dividing that result by the number of days in the calendar year. Expense ratios for the most recent period may differ from expense ratios based on the data in the financial highlights.
02
Industry Diversification Table
Semi-Annual Report June 30, 2020
June 30, 2020 (unaudited)
Baillie Gifford International All Cap Fund
Value | % of Total Net Assets | ||||||||||
Apparel | $ | 15,354,460 | 3.3 | % | |||||||
Auto Manufacturers | 4,278,508 | 0.9 | |||||||||
Auto Parts & Equipment | 2,839,314 | 0.6 | |||||||||
Banks | 5,751,217 | 1.2 | |||||||||
Beverages | 19,211,619 | 4.1 | |||||||||
Building Materials | 13,880,107 | 2.9 | |||||||||
Chemicals | 10,020,210 | 2.1 | |||||||||
Commercial Services | 5,081,755 | 1.1 | |||||||||
Computers | 10,608,703 | 2.3 | |||||||||
Cosmetics/Personal Care | 16,449,435 | 3.5 | |||||||||
Diversified Financial Services | 15,586,623 | 3.4 | |||||||||
Electrical Components & Equipment | 6,347,623 | 1.3 | |||||||||
Electronics | 32,106,765 | 6.8 | |||||||||
Engineering & Construction | 4,295,987 | 0.9 | |||||||||
Food | 7,765,026 | 1.6 | |||||||||
Hand/Machine Tools | 6,005,995 | 1.3 | |||||||||
Healthcare — Products | 24,762,429 | 5.3 | |||||||||
Holding Companies — Diversified | 2,165,801 | 0.5 | |||||||||
Insurance | 24,409,563 | 5.2 | |||||||||
Internet | 111,528,732 | 23.7 | |||||||||
Investment Companies | 4,480,744 | 1.0 | |||||||||
Leisure Time | 6,403,217 | 1.4 | |||||||||
Machinery — Construction & Mining | 7,374,736 | 1.6 | |||||||||
Machinery — Diversified | 30,277,740 | 6.4 | |||||||||
Oil & Gas Services | 1,134,594 | 0.2 | |||||||||
Retail | 33,929,979 | 7.2 | |||||||||
Semiconductors | 25,242,733 | 5.3 | |||||||||
Software | 15,426,199 | 3.2 | |||||||||
Telecommunications | 4,553,619 | 1.0 | |||||||||
Total Value of Investments | 467,273,433 | 99.3 | |||||||||
Other assets less liabilities | 3,148,578 | 0.7 | |||||||||
Net Assets | $ | 470,422,011 | 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, 2020
June 30, 2020 (unaudited)
Baillie Gifford International All Cap Fund
Shares | Value | ||||||||||
COMMON STOCKS — 97.1% | |||||||||||
ARGENTINA — 0.6% | |||||||||||
MercadoLibre, Inc. * | 2,636 | $ | 2,598,490 | ||||||||
AUSTRALIA — 3.2% | |||||||||||
Cochlear Ltd. | 56,456 | 7,412,030 | |||||||||
SEEK Ltd. | 304,475 | 4,658,110 | |||||||||
Treasury Wine Estates Ltd. | 405,952 | 2,953,646 | |||||||||
15,023,786 | |||||||||||
BRAZIL — 1.2% | |||||||||||
Raia Drogasil SA | 265,000 | 5,441,220 | |||||||||
CANADA — 5.4% | |||||||||||
Fairfax Financial Holdings Ltd. | 8,057 | 2,489,207 | |||||||||
Shopify, Inc., Class A * | 24,339 | 23,102,579 | |||||||||
25,591,786 | |||||||||||
CHINA — 9.3% | |||||||||||
Alibaba Group Holding Ltd. ADR * | 61,281 | 13,218,312 | |||||||||
Baidu, Inc. ADR * | 28,589 | 3,427,535 | |||||||||
Meituan Dianping, Class B * | 307,700 | 6,875,980 | |||||||||
Ping An Insurance Group Co. of China Ltd., Class H | 461,500 | 4,600,690 | |||||||||
Prosus NV * | 45,053 | 4,188,034 | |||||||||
Trip.com Group Ltd. ADR * | 102,908 | 2,667,375 | |||||||||
Tsingtao Brewery Co., Ltd., Class H | 1,130,057 | 8,433,802 | |||||||||
43,411,728 | |||||||||||
FINLAND — 1.3% | |||||||||||
Kone Oyj, B Shares | 91,803 | 6,331,570 | |||||||||
FRANCE — 4.5% | |||||||||||
Kering | 5,557 | 3,038,104 | |||||||||
Legrand SA | 83,541 | 6,347,623 | |||||||||
LVMH Moet Hennessy Louis Vuitton SE | 6,523 | 2,879,860 | |||||||||
Remy Cointreau SA | 22,943 | 3,130,006 | |||||||||
Ubisoft Entertainment SA * | 69,396 | 5,746,690 | |||||||||
21,142,283 |
The accompanying notes are an integral part of the financial statements.
04
Portfolio of Investments
Semi-Annual Report June 30, 2020
June 30, 2020 (unaudited)
Baillie Gifford International All Cap Fund
Shares | Value | ||||||||||
GERMANY — 6.8% | |||||||||||
adidas AG * | 23,188 | $ | 6,113,529 | ||||||||
Bechtle AG | 59,855 | 10,608,703 | |||||||||
Nemetschek SE | 55,802 | 3,834,264 | |||||||||
Zalando SE * | 157,536 | 11,175,635 | |||||||||
31,732,131 | |||||||||||
HONG KONG — 3.9% | |||||||||||
AIA Group Ltd. | 858,600 | 8,034,440 | |||||||||
Jardine Matheson Holdings Ltd. | 51,800 | 2,165,801 | |||||||||
Jardine Strategic Holdings Ltd. | 87,400 | 1,885,314 | |||||||||
Techtronic Industries Co., Ltd. | 607,000 | 6,005,995 | |||||||||
18,091,550 | |||||||||||
INDIA — 4.3% | |||||||||||
Asian Paints Ltd. | 311,666 | 6,967,976 | |||||||||
Housing Development Finance Corp., Ltd. | 274,276 | 6,377,499 | |||||||||
ICICI Lombard General Insurance Co., Ltd. | 155,201 | 2,607,090 | |||||||||
MakeMyTrip Ltd. * | 75,532 | 1,157,150 | |||||||||
United Spirits Ltd. * | 354,908 | 2,784,130 | |||||||||
19,893,845 | |||||||||||
IRELAND — 1.5% | |||||||||||
Kingspan Group PLC | 109,858 | 7,091,994 | |||||||||
JAPAN — 20.2% | |||||||||||
Denso Corp. | 72,400 | 2,839,314 | |||||||||
Kakaku.com, Inc. | 176,900 | 4,506,393 | |||||||||
Kao Corp. | 59,600 | 4,729,726 | |||||||||
Keyence Corp. | 14,800 | 6,202,111 | |||||||||
MS&AD Insurance Group Holdings, Inc. | 242,500 | 6,678,136 | |||||||||
Murata Manufacturing Co., Ltd. | 121,800 | 7,179,928 | |||||||||
Nidec Corp. | 95,500 | 6,433,719 | |||||||||
Olympus Corp. | 500,100 | 9,628,173 | |||||||||
Pigeon Corp. | 97,500 | 3,773,746 | |||||||||
Shimano, Inc. | 33,300 | 6,403,217 | |||||||||
Shiseido Co., Ltd. | 124,700 | 7,945,963 | |||||||||
SMC Corp. | 17,000 | 8,736,658 | |||||||||
SoftBank Group Corp. | 90,300 | 4,553,619 | |||||||||
Sugi Holdings Co., Ltd. | 42,700 | 2,895,665 |
The accompanying notes are an integral part of the financial statements.
05
Portfolio of Investments
Semi-Annual Report June 30, 2020
June 30, 2020 (unaudited)
Baillie Gifford International All Cap Fund
Shares | Value | ||||||||||
Suzuki Motor Corp. | 125,300 | $ | 4,278,508 | ||||||||
Sysmex Corp. | 100,600 | 7,722,226 | |||||||||
94,507,102 | |||||||||||
MEXICO — 0.4% | |||||||||||
Wal-Mart de Mexico SAB de CV | 883,900 | 2,113,946 | |||||||||
NETHERLANDS — 2.4% | |||||||||||
ASML Holding NV | 31,121 | 11,384,417 | |||||||||
NEW ZEALAND — 1.2% | |||||||||||
Xero Ltd. * | 93,055 | 5,845,245 | |||||||||
PORTUGAL — 1.2% | |||||||||||
Jeronimo Martins SGPS SA * | 335,986 | 5,879,712 | |||||||||
SINGAPORE — 1.2% | |||||||||||
United Overseas Bank Ltd. | 393,599 | 5,751,217 | |||||||||
SOUTH AFRICA — 1.8% | |||||||||||
Naspers Ltd., N Shares | 47,193 | 8,673,148 | |||||||||
SOUTH KOREA — 0.9% | |||||||||||
NAVER Corp. | 19,727 | 4,438,245 | |||||||||
SPAIN — 1.4% | |||||||||||
Industria de Diseno Textil SA | 247,108 | 6,556,599 | |||||||||
SWEDEN — 5.5% | |||||||||||
Atlas Copco AB, A Shares | 4,093 | 174,302 | |||||||||
Atlas Copco AB, B Shares | 237,717 | 8,833,099 | |||||||||
Epiroc AB, B Shares | 443,272 | 5,443,883 | |||||||||
Investor AB, B Shares | 84,466 | 4,480,744 | |||||||||
Nibe Industrier AB, B Shares * | 306,049 | 6,788,113 | |||||||||
25,720,141 | |||||||||||
SWITZERLAND — 1.2% | |||||||||||
Compagnie Financiere Richemont SA | 89,099 | 5,746,914 | |||||||||
u-blox Holding AG * | 559 | 38,341 | |||||||||
5,785,255 |
The accompanying notes are an integral part of the financial statements.
06
Portfolio of Investments
Semi-Annual Report June 30, 2020
June 30, 2020 (unaudited)
Baillie Gifford International All Cap Fund
Shares | Value | ||||||||||
TAIWAN — 2.9% | |||||||||||
Taiwan Semiconductor Manufacturing Co., Ltd. ADR | 243,438 | $ | 13,819,975 | ||||||||
THAILAND — 0.4% | |||||||||||
Thai Beverage PCL | 3,912,700 | 1,910,035 | |||||||||
UNITED KINGDOM — 10.9% | |||||||||||
ASOS PLC * | 67,368 | 2,863,294 | |||||||||
Auto Trader Group PLC | 1,077,019 | 7,012,184 | |||||||||
Burberry Group PLC | 168,166 | 3,322,967 | |||||||||
Hargreaves Lansdown PLC | 396,594 | 7,997,732 | |||||||||
HomeServe PLC | 265,727 | 4,295,987 | |||||||||
Intertek Group PLC | 75,452 | 5,081,755 | |||||||||
John Wood Group PLC | 473,186 | 1,134,594 | |||||||||
Johnson Matthey PLC | 117,196 | 3,052,234 | |||||||||
Jupiter Fund Management PLC | 382,045 | 1,211,392 | |||||||||
Rightmove PLC | 1,191,051 | 8,050,930 | |||||||||
Trainline PLC * | 1,016,634 | 5,479,046 | |||||||||
Weir Group PLC (The) | 146,931 | 1,930,853 | |||||||||
51,432,968 | |||||||||||
UNITED STATES — 3.5% | |||||||||||
Mettler-Toledo International, Inc. * | 9,786 | 7,883,112 | |||||||||
Spotify Technology SA * | 33,355 | 8,611,927 | |||||||||
16,495,039 | |||||||||||
Total Common Stocks | |||||||||||
(cost $321,836,065) | 456,663,427 | ||||||||||
PREFERRED STOCKS — 2.2% | |||||||||||
GERMANY — 2.2% | |||||||||||
Sartorius AG 0.12% (cost $3,741,367) | 32,147 | 10,610,006 | |||||||||
TOTAL INVESTMENTS — 99.3% | |||||||||||
(cost $325,577,432) | $ | 467,273,433 | |||||||||
Other assets less liabilities — 0.7% | 3,148,578 | ||||||||||
NET ASSETS — 100.0% | $ | 470,422,011 |
* 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.
07
Portfolio of Investments
Semi-Annual Report June 30, 2020
June 30, 2020 (unaudited)
Baillie Gifford International All Cap Fund
Fair Value Measurement
The following is a summary of the inputs used as of June 30, 2020 in valuing the Fund's investments carried at fair value:
Investments in Securities | Level 1 | Level 2 | Level 3 | Total | |||||||||||||||
Common Stocks ** | $ | 90,718,862 | $ | 365,944,565 | $ | — | $ | 456,663,427 | |||||||||||
Preferred Stocks ** | — | 10,610,006 | — | 10,610,006 | |||||||||||||||
Total | $ | 90,718,862 | $ | 376,554,571 | $ | — | $ | 467,273,433 |
** 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, 2020
June 30, 2020 (unaudited)
Baillie Gifford International All Cap Fund
ASSETS | |||||||
Investments, at value (cost $325,577,432) | $ | 467,273,433 | |||||
Cash | 4,164,999 | ||||||
Foreign cash, at value (cost 211,702) | 208,211 | ||||||
Receivable for investments sold | 3,689,911 | ||||||
Dividends receivable | 405,250 | ||||||
Tax reclaims receivable | 330,610 | ||||||
Total Assets | 476,072,414 | ||||||
LIABILITIES | |||||||
Advisory fee payable | 368,298 | ||||||
Capital shares purchased payable | 5,000,000 | ||||||
Servicing fee payable | 122,124 | ||||||
Trustee fee payable | 3,923 | ||||||
Accrued expenses | 156,058 | ||||||
Total Liabilities | 5,650,403 | ||||||
NET ASSETS | $ | 470,422,011 | |||||
COMPOSITION OF NET ASSETS | |||||||
Paid-in capital | $ | 330,933,063 | |||||
Total distributable earnings | 139,488,948 | ||||||
$ | 470,422,011 | ||||||
NET ASSET VALUE, PER SHARE | |||||||
Class 2 ( $160,184,638 / 9,996,004 shares outstanding), unlimited authorized, no par value | $ | 16.02 | |||||
Class 3 ( $264,434,785 / 16,316,546 shares outstanding), unlimited authorized, no par value | $ | 16.21 | |||||
Class 5 ( $45,802,588 / 2,766,639 shares outstanding), unlimited authorized, no par value | $ | 16.56 |
The accompanying notes are an integral part of the financial statements.
09
Statement of Operations
Semi-Annual Report June 30, 2020
For the Six Months Ended June 30, 2020 (unaudited)
Baillie Gifford International All Cap Fund
INVESTMENT INCOME | |||||||
Dividends (net of foreign withholding taxes of $302,743) | $ | 2,657,077 | |||||
Interest | 9,114 | ||||||
Total Investment Income | 2,666,191 | ||||||
EXPENSES | |||||||
Advisory fee (Note B) | 745,305 | ||||||
Shareholder Servicing fees — Class 2 shares (Note B) | 129,003 | ||||||
Shareholder Servicing fees — Class 3 shares (Note B) | 116,287 | ||||||
Shareholder Servicing fees — Class 5 shares (Note B) | 4,155 | ||||||
Transfer agency | 22,898 | ||||||
Fund accounting | 82,146 | ||||||
Custody | 44,423 | ||||||
Legal | 36,963 | ||||||
Professional fees | 34,500 | ||||||
Trustees' fees | 7,788 | ||||||
Miscellaneous | 9,992 | ||||||
Total Expenses | 1,233,460 | ||||||
Net Investment Income | 1,432,731 | ||||||
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS AND FOREIGN CURRENCY TRANSACTIONS | |||||||
Net realized gain (loss) from: | |||||||
Investments (net of Indian capital gains tax benefit of $3,587) | 3,962,036 | ||||||
Foreign currency transactions | (7,870 | ) | |||||
3,954,166 | |||||||
Net change in unrealized appreciation (depreciation) on: | |||||||
Investments (net of Indian capital gains tax benefit of $591,656) (Note A) | 799,638 | ||||||
Translation of net assets and liabilities denominated in foreign currencies | (5,366 | ) | |||||
794,272 | |||||||
Net realized and unrealized gain | 4,748,438 | ||||||
NET INCREASE IN NET ASSETS FROM OPERATIONS | $ | 6,181,169 |
The accompanying notes are an integral part of the financial statements.
10
Statements of Changes in Net Assets
Semi-Annual Report June 30, 2020
Baillie Gifford International All Cap Fund
For the Six Months Ended June 30, 2020 (unaudited) | For the Year Ended December 31, 2019 | ||||||||||
INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS | |||||||||||
Net investment income | $ | 1,432,731 | $ | 8,320,719 | |||||||
Net realized gain | 3,954,166 | 12,212,397 | |||||||||
Net change in unrealized appreciation | 794,272 | 99,030,743 | |||||||||
Net increase in net assets from operations | 6,181,169 | 119,563,859 | |||||||||
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS FROM: | |||||||||||
Distributable earnings | |||||||||||
Class 2 | — | (7,024,708 | ) | ||||||||
Class 3 | — | (4,352,607 | ) | ||||||||
Class 5 | — | (1,252,272 | ) | ||||||||
Total Distributions to Shareholders | — | (12,629,587 | ) | ||||||||
TRANSACTIONS IN SHARES OF BENEFICIAL INTEREST | |||||||||||
Net proceeds from shares subscribed: | |||||||||||
Class 2 | 7,000,000 | — | |||||||||
Class 3 | 103,690,219 | * | — | ||||||||
Class 4 | — | 39,464,199 | * | ||||||||
Class 5 | — | 40,720,857 | * | ||||||||
Dividends reinvested: | |||||||||||
Class 2 | — | 7,024,708 | |||||||||
Class 3 | — | 4,352,607 | |||||||||
Class 5 | — | 1,252,272 | |||||||||
Cost of shares redeemed: | |||||||||||
Class 2 | (108,690,220 | )* | (52,832,371 | ) | |||||||
Class 4 | — | (40,720,857 | )* | ||||||||
Class 5 | — | (39,464,199 | )* | ||||||||
Increase (Decrease) in Net Assets from Transactions in Shares of Beneficial Interest | 1,999,999 | (40,202,784 | ) | ||||||||
Total Increase in Net Assets | 8,181,168 | 66,731,488 | |||||||||
NET ASSETS | |||||||||||
Beginning of period | 462,240,843 | 395,509,355 | |||||||||
End of period | $ | 470,422,011 | $ | 462,240,843 |
* 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, 2020
Baillie Gifford International All Cap Fund
Selected data for a Class 2 share outstanding throughout each period:
For the Six Months Ended June 30, 2020 (unaudited) | For the Year Ended December 31, 2019 | For the Year Ended December 31, 2018 | For the Year Ended December 31, 2017 | For the Year Ended December 31, 2016 | For the Year Ended December 31, 2015 | ||||||||||||||||||||||
Net asset value, beginning of period | $ | 15.82 | $ | 12.26 | $ | 14.85 | $ | 11.44 | $ | 11.53 | $ | 11.51 | |||||||||||||||
From Investment Operations | |||||||||||||||||||||||||||
Net investment income(a) | 0.04 | 0.27 | 0.15 | 0.14 | 0.17 | 0.16 | |||||||||||||||||||||
Net realized and unrealized gain (loss) on investment and foreign currency | 0.16 | 3.73 | (2.61 | ) | 3.46 | (0.11 | ) | 0.03 | |||||||||||||||||||
Net increase (decrease) in net asset value from investment operations | 0.20 | 4.00 | (2.46 | ) | 3.60 | 0.06 | 0.19 | ||||||||||||||||||||
Dividends and Distributions to Shareholders | |||||||||||||||||||||||||||
From net investment income | — | (0.44 | ) | (0.13 | ) | (0.19 | ) | (0.15 | ) | (0.17 | ) | ||||||||||||||||
Total Dividends and Distributions | — | (0.44 | ) | (0.13 | ) | (0.19 | ) | (0.15 | ) | (0.17 | ) | ||||||||||||||||
Proceeds from Purchase Fees and Redemption Fees(a) | — | — | — | 0.00 | (b) | 0.00 | (b) | 0.00 | (b) | ||||||||||||||||||
Net asset value, end of period | $ | 16.02 | $ | 15.82 | $ | 12.26 | $ | 14.85 | $ | 11.44 | $ | 11.53 | |||||||||||||||
Total Return | |||||||||||||||||||||||||||
Total return based on net asset value(c) | 1.30 | % | 32.65 | % | (16.63 | )% | 31.45 | % | 0.54 | % | 1.56 | % | |||||||||||||||
Ratios/Supplemental Data | |||||||||||||||||||||||||||
Net assets, end of each period (000's omitted) | $ | 160,185 | $ | 258,860 | $ | 242,317 | $ | 324,764 | $ | 219,300 | $ | 217,720 | |||||||||||||||
Ratio of net expenses to average net assets | 0.63 | %* | 0.65 | % | 0.64 | % | 0.65 | % | 0.65 | % | 0.63 | % | |||||||||||||||
Ratio of net investment income to average net assets | 0.58 | %* | 1.92 | %(d) | 1.02 | % | 1.03 | % | 1.48 | % | 1.38 | % | |||||||||||||||
Portfolio turnover rate(e) | 7 | % | 13 | % | 15 | % | 12 | % | 14 | % | 15 | % |
* Annualized.
(a) Calculated based upon average shares outstanding during the period.
(b) Amount is less than $0.005 per share.
(c) Total investment return is calculated assuming an initial investment made at the net asset value at the beginning of the year, reinvestment of all dividends and distributions, if any, at net asset value during the period, and redemption on the last day of the year. Total return is not annualized for periods less than one year.
(d) Large increase due to one-off taxable stock dividends that were treating as income.
(e) Portfolio turnover rate calculated at Fund level.
The accompanying notes are an integral part of the financial statements.
12
Financial Highlights
Semi-Annual Report June 30, 2020
Baillie Gifford International All Cap Fund
Selected data for a Class 3 share outstanding throughout each period:
For the Six Months Ended June 30, 2020 (unaudited) | For the Year Ended December 31, 2019 | For the Year Ended December 31, 2018 | For the Year Ended December 31, 2017 | For the Year Ended December 31, 2016 | For the Year Ended December 31, 2015 | ||||||||||||||||||||||
Net asset value, beginning of period | $ | 15.99 | $ | 12.39 | $ | 15.01 | $ | 11.56 | $ | 11.65 | $ | 11.63 | |||||||||||||||
From Investment Operations | |||||||||||||||||||||||||||
Net investment income(a) | 0.05 | 0.30 | 0.16 | 0.15 | 0.18 | 0.18 | |||||||||||||||||||||
Net realized and unrealized gain (loss) on investment and foreign currency | 0.17 | 3.75 | (2.64 | ) | 3.50 | (0.12 | ) | 0.02 | |||||||||||||||||||
Net increase (decrease) in net asset value from investment operations | 0.22 | 4.05 | (2.48 | ) | 3.65 | 0.06 | 0.20 | ||||||||||||||||||||
Dividends and Distributions to Shareholders | |||||||||||||||||||||||||||
From net investment income | — | (0.45 | ) | (0.14 | ) | (0.20 | ) | (0.15 | ) | (0.18 | ) | ||||||||||||||||
Total Dividends and Distributions | — | (0.45 | ) | (0.14 | ) | (0.20 | ) | (0.15 | ) | (0.18 | ) | ||||||||||||||||
Proceeds from Purchase Fees and Redemption Fees(a) | — | — | — | 0.00 | (b) | 0.00 | (b) | 0.00 | (b) | ||||||||||||||||||
Net asset value, end of period | $ | 16.21 | $ | 15.99 | $ | 12.39 | $ | 15.01 | $ | 11.56 | $ | 11.65 | |||||||||||||||
Total Return | |||||||||||||||||||||||||||
Total return based on net asset value(c) | 1.34 | % | 32.74 | % | (16.57 | )% | 31.54 | % | 0.61 | % | 1.63 | % | |||||||||||||||
Ratios/Supplemental Data | |||||||||||||||||||||||||||
Net assets, end of each year (000's omitted) | $ | 264,435 | $ | 158,198 | $ | 119,176 | $ | 142,844 | $ | 108,594 | $ | 107,936 | |||||||||||||||
Ratio of net expenses to average net assets | 0.56 | %* | 0.58 | % | 0.57 | % | 0.58 | % | 0.58 | % | 0.56 | % | |||||||||||||||
Ratio of net investment income to average net assets | 0.72 | %* | 2.04 | %(d) | 1.09 | % | 1.13 | % | 1.55 | % | 1.45 | % | |||||||||||||||
Portfolio turnover rate(e) | 7 | % | 13 | % | 15 | % | 12 | % | 14 | % | 15 | % |
* Annualized.
(a) Calculated based upon average shares outstanding during the period.
(b) Amount is less than $0.005 per share.
(c) Total investment return is calculated assuming an initial investment made at the net asset value at the beginning of the year, reinvestment of all dividends and distributions, if any, at net asset value during the period, and redemption on the last day of the year. Total return is not annualized for periods less than one year.
(d) Large increase due to one-off taxable stock dividends that were treating as income.
(e) Portfolio turnover rate calculated at Fund level.
The accompanying notes are an integral part of the financial statements.
13
Financial Highlights
Semi-Annual Report June 30, 2020
Baillie Gifford International All Cap Fund
Selected data for a Class 5 share outstanding throughout each period:
For the Six Months Ended June 30, 2020 (unaudited) | For the Period July 10, 2019 through December 31, 2019(b) | For the Period January 1, 2019 through April 10, 2019(b) | For the Period January 10, 2018(a) through December 31, 2018 | ||||||||||||||||
Net asset value, beginning of period | $ | 16.33 | $ | 15.14 | $ | 12.64 | $ | 15.72 | |||||||||||
From Investment Operations | |||||||||||||||||||
Net investment income(c) | 0.06 | 0.20 | 0.06 | 0.18 | |||||||||||||||
Net realized and unrealized gain (loss) on investment and foreign currency | 0.17 | 1.46 | 1.97 | (3.11 | ) | ||||||||||||||
Net increase (decrease) in net asset value from investment operations | 0.23 | 1.66 | 2.03 | (2.93 | ) | ||||||||||||||
Dividends and Distributions to Shareholders | |||||||||||||||||||
From net investment income | — | (0.47 | ) | — | (0.15 | ) | |||||||||||||
Total Dividends and Distributions | — | (0.47 | ) | — | (0.15 | ) | |||||||||||||
Net asset value, end of period | $ | 16.56 | $ | 16.33 | $ | 14.67 | $ | 12.64 | |||||||||||
Total Return | |||||||||||||||||||
Total return based on net asset value(d) | 1.38 | % | 10.95 | % | 16.02 | % | (18.61 | )% | |||||||||||
Ratios/Supplemental Data | |||||||||||||||||||
Net assets, end of period (000's omitted) | $ | 45,802 | $ | 45,183 | $ | 39,464 | $ | 34,016 | |||||||||||
Ratio of net expenses to average net assets | 0.48 | %* | 0.50 | %* | 0.49 | %* | 0.49 | %* | |||||||||||
Ratio of net investment income to average net assets | 0.77 | %* | 2.66 | %(e) | 1.59 | %* | 1.21 | %* | |||||||||||
Portfolio turnover rate(f) | 7 | % | 13 | % | 13 | % | 15 | % |
* Annualized.
(a) Commencement of investment operations.
(b) Recommencement of investment operations. Class had no shareholders from April 11, 2019 to July 10, 2019. All shares of this class were redeemed on April 10, 2019 at $14.67. New shares were issued at $15.14 on July 10, 2019.
(c) Calculated based upon average shares outstanding during the period.
(d) Total investment return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all dividends and distributions, if any, at net asset value during the period, and redemption on the last day of the period. Total return is not annualized for periods less than one year.
(e) Large increase due to one-off taxable stock dividends that were treating as income.
(f) Portfolio turnover rate calculated at Fund level.
The accompanying notes are an integral part of the financial statements.
14
Notes to Financial Statements (unaudited)
Semi-Annual Report June 30, 2020
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 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 is organized as a Massachusetts business trust under the laws of Massachusetts pursuant to the Second Amended and Restated Agreement and Declaration of Trust dated February 27, 2017, as amended from time to time.
The Fund's Class 2, Class 3 and Class 5 share classes had shares outstanding as of June 30, 2020.
The Fund is an investment company that applies the accounting and reporting guidance issued in Topic 946 by the U.S. Financial Accounting Standards Board. The financial statements of the Fund have been prepared in conformity with accounting principles generally accepted in the United States of America ("GAAP"). Management is required to make certain estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of increases and decreases in net assets from operations for the Fund 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
Equity securities listed on an established securities exchange are normally valued at their last sale price on the exchange where primarily traded. Equity securities listed on the NASDAQ National Market System are valued at the NASDAQ Official Closing Price. Equity Securities listed on an established securities exchange for which there is no reported sale during the day (and in the case of over-the-counter securities not so listed) are valued at the mean between the last available bid and ask prices.
Other securities for which current market quotations are not readily available (or for which quotations are not believed to be reliable due to market changes that occur after the most recent available quotations are obtained, or for any other reason), and all other assets, are valued at their fair value as determined in good faith by Baillie Gifford Overseas Limited (the "Manager"), pursuant to procedures approved by the Board of Trustees of the Trust (the "Board"). The actual calculations may be made by persons acting pursuant to the direction of the Board or by pricing services.
Generally, trading in foreign securities markets is substantially completed each day at various times prior to close of regular trading on the New York Stock Exchange and such events may not be reflected in the computation of the Fund's net asset value. Occasionally, events affecting the value of equity securities of non-U.S. issuers not traded on a U.S. exchange may occur between the completion of substantial trading of such securities for the day and the close of regular trading on the New York Stock Exchange, and such events may not be reflected in the computation of the Fund's net asset value.
If events materially affecting the value of the Fund's portfolio securities occur during such period, then these securities will be valued at their fair value as determined in good faith by the Manager, pursuant to procedures approved by the Board. The Fund utilizes a third party pricing service which for all equity securities, except those traded on Canadian, Latin American or U.S. exchanges, subject to certain minimum confidence levels, applies a fair value adjustment that seeks to reflect changes in such securities' market prices since the close of the market on which they are traded. To the extent that securities are valued using this service, they will be classified as Level 2 securities in the fair value measurement framework described below.
Fair Value Measurement
GAAP provides guidance on fair value measurements and defines fair value as the price that the Fund would receive to sell an investment or pay to transfer a liability in a timely transaction with an independent buyer in the principal market, or in the absence of a principal market the most advantageous market for the investment or liability. It establishes a single definition of fair value, creates a three-tier hierarchy as a framework for measuring fair value
15
Notes to Financial Statements (unaudited)
Semi-Annual Report June 30, 2020
based on inputs used to value the Fund's investments, and requires additional disclosure about fair value. The hierarchy of inputs is summarized below:
Level 1 — unadjusted quoted prices in active markets for identical investments
Level 2 — other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, credit risk, etc.)
Level 3 — significant unobservable inputs (including the Trust's own assumptions in determining the fair value of investments)
For Level 1 inputs, the Fund 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, 2020 is disclosed at the end of the Fund's Portfolio of Investments.
For the period ended June 30, 2020, 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.
Investment income, expenses (other than those specific to a particular class of shares), and realized and unrealized gains and losses on investments are allocated to the separate classes of shares based upon their relative net asset value on the date income is earned or expensed and realized and unrealized gains and losses are incurred.
Federal Taxes
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
16
Notes to Financial Statements (unaudited)
Semi-Annual Report June 30, 2020
gains) which is distributed in accordance with the provisions of the Code to the Fund's shareholders. Therefore, no U.S. federal income tax provision is required.
Investment income received from investments in foreign jurisdictions may be subject to foreign withholding tax. Investment income is recorded net of any foreign withholding taxes, less any amounts reclaimable. The Fund may file withholding tax reclaims in certain jurisdictions to recover a portion of amounts previously withheld. Whenever possible, the Fund will attempt to operate so as to qualify for reduced tax rates or tax exemptions in those countries with which the United States has a tax treaty. Foreign taxes, if any, net of any reclaims, are recorded based on the tax regulations and rates that exist in the foreign markets in which the Fund invests.
In addition to the requirements of the Code, the Fund may also be subject to capital gains tax in India and potentially other foreign jurisdictions, on gains realized upon the sale of securities, payable upon repatriation of sales proceeds. Any realized losses in excess of gains in India may be carried forward to offset future gains. Funds with exposure to Indian securities and potentially other foreign jurisdictions accrue a deferred liability for unrealized gains in excess of available loss carryforwards
based on existing tax rates and holding periods of the securities. As of June 30, 2020, the Fund has no receivable or deferred liability for potential future Indian capital gains taxes.
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, 2019 for federal income tax purposes, the Fund had capital loss carryforwards available to offset future capital gains through the years indicated. To the extent that these loss carryforwards are utilized, capital gains so offset will not be distributed to shareholders.
Fund | Short Term Capital Loss No Expiration | Long Term Capital Loss No Expiration | Capital Loss Available Total | ||||||||||||
Baillie Gifford International All Cap Fund | $ | (1,771,239 | ) | $ | — | $ | (1,771,239 | ) |
Realized capital losses, currency losses and passive foreign investment company ("PFIC") losses incurred after October 31 ("post-October losses/Late-Year Specified") within the taxable year are deemed to arise on the first business day of the Fund's next taxable year. During the year ended December 31, 2019, the Fund incurred and will elect to defer net post-October or late-year losses as indicated.
At December 31, 2019, the Fund had no post-October capital/late-year losses.
The differences between the components of distributable earnings on a tax basis and the amounts reflected in the Statement of Assets and Liabilities are primarily due to the differing book/tax treatment of realized losses on wash sales and mark to market income on securities categorized as PFICs.
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, 2020
The Fund's cost of investments and gross unrealized appreciation (depreciation) at June 30, 2020 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 | $ | 332,889,962 | $ | 166,860,040 | $ | (32,476,569 | ) | $ | 134,383,471 |
Note B — Investment Management and Other Services
The Fund is advised and managed by the Manager. The Manager, an investment adviser registered with the
Securities and Exchange Commission (the "SEC"), is a wholly owned subsidiary of Baillie Gifford & Co.
Under an investment advisory agreement between the Manager and the Trust on behalf of the Fund (the "Advisory Agreement"), the Fund pays the Manager an investment advisory fee, in arrears.
The advisory fee paid by the Fund under the Advisory Agreement is calculated and accrued daily on the basis of the annual rate noted below and expressed as a percentage of the Fund's average daily net assets.
Fund | Average Daily Net Assets of the Fund (billions) | Annual Rate at Each Asset Level | |||||||||
Baillie Gifford International All Cap Fund | $0 - $2 >$2 - $5 Above $5 | 0.35% 0.31% 0.29% |
Baillie Gifford Funds Services LLC, a wholly-owned subsidiary of the Manager, serves as the sole distributor and principal underwriter of the shares of the Fund.
The Fund has adopted a Shareholder Servicing Plan providing that the Fund may pay the Manager, or any other entity that acts from time to time as the shareholder servicing agent with respect to a class of Fund shares, for
services rendered and expenses borne in connection with the provision of services provided to Fund investors and/or the maintenance of shareholder accounts. For these services, the Fund pays the Manager a fee at the annualized rate of the Fund's average daily net assets attributed to each class of shares as follows:
Baillie Gifford International All Cap Fund | |||||||
Class 2 | 0.17 | % | |||||
Class 3 | 0.10 | % | |||||
Class 5 | 0.02 | % |
The Bank of New York Mellon serves as the Fund's administrator and custodian. BNY Mellon Investment Servicing (U.S.) Inc. serves as the Trust's transfer agent, registrar and dividend disbursing agent.
18
Notes to Financial Statements (unaudited)
Semi-Annual Report June 30, 2020
Note C — Investment Transactions
Purchases and proceeds from sales of securities (excluding short-term securities) for the six months ended June 30, 2020 were as follows:
Fund | Purchases | Sales | |||||||||
Baillie Gifford International All Cap Fund | $ | 34,694,638 | $ | 29,468,241 |
Note D — Transactions in Shares of Beneficial Interest
Baillie Gifford International All Cap Fund | |||||||||||||||||||
Class 2 Shares For the Period Ended June 30, 2020 | Class 3 Shares For the Period Ended June 30, 2020 | ||||||||||||||||||
Shares | Amount | Shares | Amount | ||||||||||||||||
Shares sold | 440,817 | $ | 7,000,000 | 6,425,102 | ** | $ | 103,690,219 | ** | |||||||||||
Shares redeemed | (6,807,742 | )* | (108,690,220 | )* | — | — | |||||||||||||
Net increase (decrease) | (6,366,925 | ) | $ | (101,690,220 | ) | 6,425,102 | $ | 103,690,219 |
* 6,495,741 shares and $103,690,219 converted from Class 2 into Class 3.
** 6,425,102 shares and $103,690,219 converted into Class 3 from Class 2.
Class 2 Shares For the Year Ended December 31, 2019 | Class 3 Shares For the Year Ended December 31, 2019 | ||||||||||||||||||
Shares | Amount | Shares | Amount | ||||||||||||||||
Shares sold | — | $ | — | — | $ | — | |||||||||||||
Shares issued in reinvestment of dividends and distributions | 441,467 | 7,024,708 | 270,573 | 4,352,607 | |||||||||||||||
Shares redeemed | (3,848,699 | ) | (52,832,371 | ) | — | — | |||||||||||||
Net increase (decrease) | (3,407,232 | ) | $ | (45,807,663 | ) | 270,573 | $ | 4,352,607 | |||||||||||
Class 4 Shares For the Year Ended December 31, 2019 | Class 5 Shares For the Year Ended December 31, 2019 | ||||||||||||||||||
Shares | Amount | Shares | Amount | ||||||||||||||||
Shares sold | 2,718,276 | * | $ | 39,464,199 | * | 2,690,403 | **** | $ | 40,720,857 | **** | |||||||||
Shares issued in reinvestment of dividends and distributions | — | — | 76,236 | 1,252,272 | |||||||||||||||
Shares redeemed | (2,718,276 | )*** | (40,720,857 | )*** | (2,690,460 | )** | (39,464,199 | )** | |||||||||||
Net increase (decrease) | — | $ | (1,256,658 | ) | 76,179 | $ | 2,508,930 |
* 2,718,276 shares and $39,464,199 converted into Class 4 from Class 5.
** 2,690,460 shares and $39,464,199 converted from Class 5 into Class 4.
*** 2,718,276 shares and $40,720,857 converted from Class 4 into Class 5.
**** 2,690,403 shares and $40,720,857 converted into Class 5 from Class 4.
19
Notes to Financial Statements (unaudited)
Semi-Annual Report June 30, 2020
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, 2020, the following shareholder beneficially owned 25% or more of the Fund's voting securities:
Fund | Investor | Percentage | |||||||||
Baillie Gifford International All Cap Fund | The Municipal Fire & Police Retirement System of Iowa | 34.08 | % |
Purchase and redemption activity of these accounts may have a significant effect on the operation of the Fund.
Note F — Commitments and Contingencies
The Fund indemnifies the Trust's officers and Trustees for certain liabilities that might arise from the performance of their duties to the Fund. Additionally, in the normal course of business, the Fund enters into contracts that contain a variety of representations and warranties and which provide general indemnifications.
The Fund's maximum exposure under these arrangements is unknown, as this would involve future claims that may be made against the Fund that have not yet occurred. However, based on experience, the Fund expects the risk of loss to be remote.
Note G — Principal Risks (unaudited)
Market Risk
The value of the Fund's investments will be affected by fluctuations in the stock markets in which the Fund is invested, factors affecting a particular industry or industries, real or perceived adverse economic conditions, changes in interest or currency rates or adverse investor sentiment generally. Declines in securities market prices may reduce the net asset value of the Fund's shares.
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.
Geographic Focus Risk
The Fund expects to focus its investments in a limited number of countries or geographic regions, and as a result may not offer the same level of diversification of risks as a more broadly global fund because the Fund will be exposed to a smaller geographic area. The performance of a fund that is less diversified across countries or geographic regions will be closely tied to market, currency, economic, political, environmental, or regulatory conditions and developments in the countries or regions in which the fund invests, and may be more volatile than the performance of a more geographically-diversified portfolio.
Currency Risk
The Fund could lose value if it invests in foreign currencies or securities denominated in foreign currencies which decline in value relative to the U.S. dollar. The Fund may realize a loss if it has exposure to a non-U.S. currency, and this non-U.S. currency declines in value, relative to the U.S. dollar.
20
Notes to Financial Statements (unaudited)
Semi-Annual Report June 30, 2020
Non-U.S. Investment Risk
Non-U.S. securities and securities denominated in foreign currencies 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 economic conditions, less regulation, fluctuations in foreign exchange rates, inability to convert proceeds into U.S. dollars, application of foreign tax laws, foreign investment restrictions, less publicly available information about foreign financial instruments, generally less government supervision of foreign securities markets and issuers 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.
Market Disruption and Geopolitical Risk
Communicable diseases, including those that result in pandemics or epidemics, may pose significant threats to human health, and such diseases, along with any efforts to contain their spread, may be highly disruptive to both global and local economies and markets, with significant negative impact on individual issuers, sectors, industries, and asset classes. Significant public health crises, including those triggered by the transmission of a communicable disease and efforts to contain it may result in, among other things, border closings and other significant travel restrictions and disruptions, significant disruptions to business operations, supply chains and customer activity, lower consumer demand for goods and services, event cancellations and restrictions, service cancellations, reductions and other changes, significant challenges in healthcare service preparation and delivery, and prolonged quarantines, as well as general concern and uncertainty. All of these disruptive effects were present, for example, in the global pandemic linked to the outbreak of respiratory disease caused by a novel coronavirus designated as COVID-19 that was first reported in China in December 2019. Further details on the impact of this risk can be found in the Fund's Prospectus.
For further information on the risks of investing in each Fund, please refer to the Prospectus.
Note H — Legal Notice (unaudited)
MSCI
The MSCI information may only be used for your internal use, may not be reproduced or re-disseminated in any form and may not be used as a basis for or a component of any financial instruments or products or indices. None of the MSCI information is intended to constitute investment advice or a recommendation to make (or refrain from making) any kind of investment decision and may not be relied on as such. Historical data and analysis should not be taken as an indication or guarantee of any future performance analysis, forecast or prediction. The MSCI information is provided on an "as is" basis and the user of this information assumes the entire risk of any use made of this information. MSCI, each of its affiliates and each other person involved in or related to compiling, computing or creating any MSCI information (collectively, the "MSCI Parties") expressly disclaims all warranties (including, without limitation, any warranties of originality, accuracy, completeness, timeliness, non-infringement, merchantability and fitness for a particular purpose) with respect to this information.
Without limiting any of the foregoing, in no event shall any MSCI Party have any liability for any direct, indirect, special, incidental, punitive, consequential (including, without limitation, lost profits) or any other damages. (www.msci.com)
Note I — 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, 2020 and the issuance of the Financial Statements.
21
Supplemental Information (unaudited)
Semi-Annual Report June 30, 2020
Management of the Trust
Indepedent Trustees* |
Howard W. Chin, Trustee
Pamela M.J. Cox, Trustee
Bruce C. Long, Trustee, Chair of the Nominating and Governance Committee
Robert E. Rigsby, Trustee, Chair of the Audit Oversight Committee
Interested Trustee |
David Salter, Trustee, Chairman of the Board, and President
Officers (other than officers who are also Trustees) |
Andrew Telfer, Vice President
Michael Stirling-Aird, Vice President
Julie Paul, Vice President
Tim Campbell, Vice President
Lindsay Cockburn, Treasurer
Gareth Griffiths, Secretary and Chief Legal Officer
Graham Laybourn, Vice President
Suzanne Quinn, Chief Compliance Officer and AML Compliance Officer
Evan Delaney, Chief Risk Officer
Lesley-Anne Archibald, Vice President
* Effective July 1, 2020, Donald P. Sullivan Jr. has joined the Board as an Independent Trustee.
22
BOARD CONSIDERATIONS REGARDING
2020 CONTRACT RENEWAL
Semi-Annual Report June 30, 2020
On June 19, 2020, the Board of Trustees (the "Board") of Baillie Gifford Funds (the "Trust"), including those trustees who are not "interested persons" as defined by the Investment Company Act of 1940, as amended (the "Independent Trustees"), approved the renewal of the investment advisory agreement (the "Advisory Agreement") between the Trust, on behalf of Baillie Gifford International All Cap Fund (the "Fund"), and Baillie Gifford Overseas Limited (the "Manager"). As part of the review process, the Independent Trustees met independently of Trust management and of the interested trustee of the Board to consider the renewal of the Advisory Agreement. During the review process, the Independent Trustees were represented by independent legal counsel. The Independent Trustees reviewed materials received from the Manager, Broadridge, an independent provider of mutual fund data ("Broadridge"), and independent legal counsel. After reviewing the information received, the Independent Trustees requested supplemental information, and the Manager provided materials in response. The Board determined that, given the totality of the information provided with respect to the Advisory Agreement, the Board had received sufficient information to approve the Advisory Agreement.
The Board concluded that it was in the best interests of the Fund to renew the Advisory Agreement. In reaching this conclusion for the Fund, the Board did not identify any single factor as determinative in its analysis, but rather the Board considered a variety of factors, including those discussed below. The Board did not allot a particular weight to any one factor or group of factors.
The Board considered the nature, extent and quality of the services provided by the Manager to the Fund. The Board noted that: (1) pursuant to the Fund's Advisory Agreement, the Manager provides portfolio management services to the Fund and receives an advisory fee; and (2) pursuant to a separate Shareholder Service Plan and Shareholder Servicing Agreement for Class 2, Class 3, Class 4 and Class 5 shares of the Fund, the Manager receives a "shareholder service fee," the amount of which varies among the share classes. The Board considered the background and qualifications of the investment, compliance and administrative personnel involved in the management and oversight of the Fund, reviewed information regarding the Fund's performance, advisory fee, and the shareholder service fee and expense ratio for Class 2 shares of the Fund compared to similar funds, and considered the experience of the Manager in providing services to the Fund. In assessing the Fund's performance, the Board considered that performance is closely evaluated at the quarterly meetings of the Board's Performance Committee, that the Manager employs a long-term investment approach and that the Fund's returns over longer-term periods were generally good. In evaluating the advisory fee paid by the Fund, and in particular when assessing comparative data, the Board considered not only the advisory fee, but also the combination of the advisory fee and the shareholder service fee. The Board also considered that the advisory fee schedule for the Fund includes breakpoints. The Board considered other benefits derived by the Manager and its affiliates from the relationship to the Fund, including the Manager's receipt of the shareholder service fee. The Board concluded that the nature, extent and quality of the services provided by the Manager to the Fund, pursuant to the Advisory Agreement, were satisfactory.
The Board reviewed the Manager's revenues received with respect to the Fund and the nature of the Manager's resources expended in providing solely advisory services as well as shareholder services to the Fund. The Board considered the Manager's estimated profitability with respect to the Fund and concluded that it was not unreasonable.
The Board reviewed total return information for the one-year, three-year, five-year and since inception (September 24, 2012) periods ended March 31, 2020 for the Fund compared to a benchmark index (MSCI ACWI (ex U.S.) Index) and the average total returns of a performance universe of funds provided by Broadridge, and calendar year returns for 2013 through 2019 for the Fund compared to the benchmark index and a peer group of funds provided by Broadridge. The Board noted that the Fund's total return was above the benchmark index and the average of the performance universe for the one-year, three-year, five-year and since inception periods. The Board concluded that the Fund's performance was satisfactory.
The Board reviewed the advisory fee (plus the shareholder service fee) and net expense ratio for the Fund's Class 2 and compared them to the average management fees and expense ratios of an expense peer group and expense universe of funds based on data provided by Broadridge. The comparable fund information showed that the contractual advisory fee (plus the shareholder service fee) for the Fund's Class 2 was below the average management fee of both the expense peer group and the expense universe. The Board also reviewed the fee schedules for separately managed accounts of the Manager with a similar investment mandate. The Board considered 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
23
BOARD CONSIDERATIONS REGARDING
2020 CONTRACT RENEWAL
Semi-Annual Report June 30, 2020
the contractual advisory fee (plus the shareholder service fee) for the Fund's Class 2 was on the low end of the spectrum of the expense peer group. On the basis of the information provided, the Board concluded that the advisory fee was reasonable.
Conclusion
Based upon all the information considered and the conclusions reached, the Board determined that the terms of the Advisory Agreement for the Fund were reasonable and fair and that the renewal of the Advisory Agreement was in the best interests of the Fund.
Shareholder Meeting Results
The Trust held a special meeting (the "Special Meeting") of shareholders on behalf of all series of the Trust on June 11, 2020. Due to circumstances surrounding the Coronavirus pandemic, the Special Meeting was held in a virtual meeting format, via the internet, with no option of physical in-person presence. The meeting was called solely for the purpose of the election of Trustees, pursuant to notice duly sent, in connection with a proxy statement dated May 19, 2020. The results of voting on the sole proposal were as follows:
Proposal: Election of Trustees
Trustee Nominee | Votes For | Votes Withheld | Percentage of Total Shares Outstanding Voting in Favor | Percentage of Shares Present Voting in Favor | |||||||||||||||
Howard W. Chin | 430,237,081.287 | 268,866.853 | 54.079 | % | 99.938 | % | |||||||||||||
Pamela M. J. Cox | 430,112,662.403 | 393,285.737 | 54.063 | % | 99.909 | % | |||||||||||||
Robert E. Rigsby | 430,246,659.268 | 259,288.872 | 54.080 | % | 99.940 | % | |||||||||||||
David W. Salter | 429,662,293.142 | 843,654.998 | 54.006 | % | 99.805 | % | |||||||||||||
Donald P. Sullivan | 430,253,736.792 | 252,211.348 | 54.081 | % | 99.942 | % |
Accordingly, each trustee nominee was approved by the holders of a plurality of the Trust's shares present, by proxy or otherwise, at the Special Meeting. As disclosed in the proxy statement, the Trustees had separately taken action, effective immediately following the shareholder meeting, to further increase the size of the Board from five to six and to reappoint Bruce C. Long as a Trustee, with the expectation that Mr. Long will continue to serve until his planned retirement date of December 31, 2020.
24
Copyright © Baillie Gifford & Co 2015.
Item 2. Code of Ethics.
Not applicable.
Item 3. Audit Committee Financial Expert.
Not applicable.
Item 4. Principal Accountant Fees and Services.
Not applicable.
Item 5. Audit Committee of Listed Registrants.
Not applicable.
Item 6. Investments.
(a) | Schedule of Investments in securities of unaffiliated issuers as of the close of the reporting period is included as part of the report to shareholders filed under Item 1 of this form. |
(b) | In accordance with Section 13(c) of the Investment Company Act of 1940, the registrant has divested itself of the following securities since the filing of its last report or Form N-CSR. |
Baillie Gifford Developed EAFE All Cap Fund
Name of Issuer | Exchange Ticker Symbol | Security Identifier (CUSIP number/ISIN) | Total Number of Shares Divested | Date Securities were Divested | Amount Held on Filing Date | Statute | ||||||
Atlas Copco AB – A Shares | ATCO A | SE0011166610 | 5,478
4,149
5,549
| 04/02/2020
04/15/2020
06/04/2020
| 336,954
332,805
327,256
| Sudan Accountability and Divestment Act of 2007 |
Baillie Gifford EAFE Plus All Cap Fund
Name of Issuer | Exchange Ticker Symbol | Security Identifier (CUSIP number/ISIN) | Total Number of Shares Divested | Date Securities were Divested | Amount Held on Filing Date | Statute | ||||||
Atlas Copco AB – A Shares | ATCO A | SE0011166610 | 7,018
5,275
| 02/20/2020
04/27/2020
| 92,282
87,007
| Sudan Accountability and Divestment Act of 2007 | ||||||
Atlas Copco AB – B Shares | ATCO B | SE0011166628 | 5,133
| 06/30/2020
| 172,615
| 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 AB – B Shares | ATCO B | SE0011166628 | 17,298
54,621
60,245
20,271 | 01/14/2020
01/15/2020
01/16/2020
01/17/2020 | 1,337,371
1,282,750
1,222,505
1,202,234 | Sudan Accountability and Divestment Act of 2007 |
Baillie Gifford International Growth Fund
Name of Issuer | Exchange Ticker Symbol | Security Identifier (CUSIP number/ISIN) | Total Number of Shares Divested | Date Securities were Divested | Amount Held on Filing Date | Statute | ||||||
Atlas Copco AB – A Shares | ATCO A | SE0011166610 | 52,223 | 02/05/2020
| 1,515,486 | Sudan Accountability and Divestment Act of 2007 |
Item 7. Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies.
Not applicable.
Item 8. Portfolio Managers of Closed-End Management Investment Companies.
Not applicable.
Item 9. Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers.
Not applicable.
Item 10. Submission of Matters to a Vote of Security Holders.
Not applicable.
Item 11. Controls and Procedures.
(a) | The registrant’s principal executive and principal financial officers, or persons performing similar functions, have concluded that the registrant’s disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940, as amended (the “1940 Act”) (17 CFR 270.30a-3(c))) are effective, as of a date within 90 days of the filing date of the report that includes the disclosure required by this paragraph, based on their evaluation of these controls and procedures required by Rule 30a-3(b) under the 1940 Act (17 CFR 270.30a-3(b)) and Rules 13a-15(b) or 15d-15(b) under the Securities Exchange Act of 1934, as amended (17 CFR 240.13a-15(b) or 240.15d-15(b)). |
(b) | There were no changes in the registrant’s internal control over financial reporting (as defined in Rule 30a-3(d) under the 1940 Act (17 CFR 270.30a-3(d))) that occurred during the period covered by this report that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting. |
Item 12. Disclosure of Securities Lending Activities for Closed-End Management Investment Companies.
Not applicable.
Item 13. Exhibits.
(a)(1) | Not applicable. |
(a)(2) | Certifications pursuant to Rule 30a-2(a) under the 1940 Act and Section 302 of the Sarbanes-Oxley Act of 2002 are attached hereto. |
(a)(3) | Not applicable. |
(a)(4) | Not applicable. |
(b) | Certifications pursuant to Rule 30a-2(b) under the 1940 Act and Section 906 of the Sarbanes-Oxley Act of 2002 are attached hereto. |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
(Registrant) Baillie Gifford Funds
By (Signature and Title)* | /s/ David Salter | ||
David Salter, President | |||
(principal executive officer) |
Date | August 28, 2020 |
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 28, 2020 |
By (Signature and Title)* | /s/ Lindsay Cockburn | ||
Lindsay Cockburn, Treasurer | |||
(principal financial officer) |
Date | August 28, 2020 |
* Print the name and title of each signing officer under his or her signature.