Baillie Gifford Emerging Markets Growth Fund B Accumulation
Rated Fund 2019-20. Backs transformative technology firms for capital growth
Sector-leading performance saw Baillie Gifford Emerging Markets Growth make its debut in both our Rated Funds and the fund awards for 2019. Named Best Global Emerging Markets Fund, it is firmly among the leaders in its sector over one, three and five years. Its strong performance and growing following drove the value of its assets up through the £1 billion mark last year.
Managers Richard Sneller and Mike Gush are staunch growth investors who look for a significant upside in each stock they buy. Their process is driven by rigorous, fundamental, bottom-up analysis undertaken by Baillie Gifford’s emerging markets equity team, which Sneller heads. He believes the next decade will prove the “most exciting growth stage” in emerging markets.
Drawing on this analysis and insights gleaned from discussions with Baillie Gifford’s global investors, they produce a portfolio of 60-100 stocks. That makes the fund more diversified than a lot of Baillie Gifford’s other funds, but the top 10 holdings account for almost half of its assets.
China is the largest country weighting at 30%, followed by India, Brazil and South Korea, all of which account for double-digit percentages of assets. Smaller proportions are allocated to Taiwan, Russia, Mexico and Thailand among others.
In keeping with other Baillie Gifford funds, technology is at the forefront of the portfolio. Taiwan Semiconductor Manufacturing, Samsung Electronics, Tencent and Alibaba are among the top five holdings. The managers say these companies are transforming lives, businesses and probably societies. In spite of their strong long-term performance, they remain compellingly attractive investments. That said, the managers have recently returned to some “old favourites” in the energy sector, such as CNOOC in China and Petrobras in Brazil.
Narrative and ratings content all as of January 2020.See all Money Observer rated funds
|Tencent Holdings Ltd||9.00 %|
|Alibaba Group Holding Ltd ADR||8.33 %|
|Taiwan Semiconductor Manufacturing Co Ltd||7.03 %|
|Ping An Insurance (Group) Co. of China Ltd Class H||5.97 %|
|Samsung Electronics Co Ltd||4.83 %|
|Mining and Metallurgical Company NORILSK NICKEL PJSC ADR||4.02 %|
|Sberbank of Russia PJSC ADR||3.34 %|
|China Merchants Bank Co Ltd Class H||3.31 %|
|CNOOC Ltd||3.03 %|
|Reliance Industries Ltd||2.82 %|
|Asia - Emerging||56.39 %|
|Asia - Developed||20.76 %|
|Latin America||10.87 %|
|Europe - Emerging||8.67 %|
|Financial Services||26.24 %|
|Consumer Cyclical||17.15 %|
|Communication Services||11.03 %|
|Basic materials||9.33 %|
Ewan graduated MA in Politics, Philosophy and Economics from Oxford University in 2000. He previously worked at Merrill Lynch and Newton as an Asia Pacific portfolio manager. Prior to joining Baillie Gifford in 2013, he was a Senior Vice President in Emerging Markets at PIMCO. Ewan is an Investment Manager in the Emerging Markets Equity Team.
Andrew Stobart joined Baillie Gifford in 1991. He has worked in the Japanese, North American and UK Equity Teams. Prior to joining Baillie Gifford, Mr. Stobart worked for three years in investment banking in London.
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.
Data provided by Morningstar.
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