Baillie Gifford Emerging Markets Growth Fund B Accumulation
New for 2019. Backs technology for growth
Baillie Gifford is a long-term, growth oriented investment group and this fund is no exception. Its managers, Richard Sneller and Mike Gush, invest on a five-year perspective and have a strong preference for growth. the fund has produced middling performance over the past year, but is among the leaders over three and five years – gaining it a place in our Rated Funds this year.
Its managers look for significant upside in each stock that they invest in. Their process is driven by rigorous, fundamental, bottom-up analysis undertaken by Baillie Gifford’s emerging markets equity team, which Sneller heads.
Drawing on this analysis, as well as insights gleaned from discussions with Baillie Gifford’s global investors, they produce a portfolio that typically holds 60 to 100 stocks. That makes it more diversified than a lot of Baillie Gifford’s other funds, but the top 10 holdings account for almost half of its £710 million assets.
China is the largest weighting at almost 30%, followed by India, South Korea and Brazil, all of which account for a double-digit percentage of assets. Smaller proportions are allocated to Taiwan, Russia, Mexico and Thailand.
In keeping with other Baillie Gifford funds, technology is at the forefront of the portfolio. Samsung Electronics, Taiwan Semiconductor Manufacturing, Tencent and Alibaba are all in the top five. The managers say these companies are in the midst of transforming lives, businesses and probably societies. In spite of strong long-term performances, they remain compellingly attractive investments.
They have also recently returned to some “old favourites” in the energy sector, such as CNOOC in China and Petrobras in Brazil. They stand to benefit from the “relentless” pace of global economic growth, particularly in China.
Narrative and ratings content all as of January 2019.See all Money Observer rated funds
|Tencent Holdings Ltd||6.33 %|
|Alibaba Group Holding Ltd ADR||5.61 %|
|Taiwan Semiconductor Manufacturing Co Ltd||5.19 %|
|CNOOC Ltd||4.81 %|
|Ping An Insurance (Group) Co. of China Ltd Class H||4.31 %|
|Samsung Electronics Co Ltd||4.19 %|
|Reliance Industries Ltd||3.86 %|
|Mining and Metallurgical Company NORILSK NICKEL PJSC ADR||3.53 %|
|Sberbank of Russia PJSC ADR||3.41 %|
|Petroleo Brasileiro SA Petrobras ADR||2.92 %|
|Asia - Emerging||50.25 %|
|Asia - Developed||20.29 %|
|Latin America||16.31 %|
|Europe - Emerging||9.21 %|
|Financial Services||29.70 %|
|Consumer Cyclical||13.43 %|
|Basic materials||9.08 %|
Mike graduated MEng in Mechanical Engineering from Durham University in 2003. He joined Baillie Gifford in the same year and worked in the UK and Japanese Equity Teams before moving to the Emerging Markets Equity Team in 2005, where he is an Investment Manager. Mike is CFA Charter holder.
Richard graduated BSc (Econ) in Statistics from London School of Economics in 1993 and an MSc in Investment Analysis in 1994 from Stirling University. He joined Baillie Gifford in 1994 and became a Partner in 2004. With the exception of a year researching UK Smaller Companies, Richard has spent his career at Baillie Gifford covering the Emerging Markets and is Head of our Emerging Markets Equity Team. Richard is a member of the firm-wide Investment Advisory Group, Emerging Markets Investment Advisory Group and the Emerging Markets Product Group.
Data provided by Morningstar.
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