Baillie Gifford Emerging Markets Growth Fund B Accumulation

Emerging Markets

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
Name
Baillie Gifford Emerging Markets Growth Fund B Accumulation
Manager
Baillie Gifford & Co Limited.
Type
Open Ended Investment Company
ISIN
GB0006020647
Sector
Global Emerging Markets
Launched
20/12/1999
OCF
0.78 %
Risk Rating
5
3 Year Sharpe
1.28
3 Year Alpha
5.72
Yield
1.1 %
Benchmark
MSCI EM NR USD
The objective is to produce attractive returns over the long term through investment, whether direct or indirect, primarily in emerging markets worldwide and in any economic sectors of such markets. The inclusion of any particular market or geographic area, being an emerging market or area, is solely at the ACD’s discretion.
Holding %
Tencent Holdings Ltd 6.86 %
Alibaba Group Holding Ltd ADR 5.35 %
Taiwan Semiconductor Manufacturing Co Ltd 5.30 %
Ping An Insurance (Group) Co. of China Ltd Class H 5.21 %
CNOOC Ltd 4.74 %
Samsung Electronics Co Ltd 3.89 %
Sberbank of Russia PJSC ADR 3.63 %
Reliance Industries Ltd 3.54 %
Mining and Metallurgical Company NORILSK NICKEL PJSC ADR 3.48 %
Housing Development Finance Corp Ltd 2.94 %
Region %
Asia - Emerging 50.90 %
Asia - Developed 18.15 %
Latin America 16.48 %
Europe - Emerging 9.20 %
Sector %
Financial Services 29.36 %
Technology 27.31 %
Energy 14.25 %
Consumer Cyclical 12.17 %
Basic materials 10.14 %
Name
Baillie Gifford & Co Limited.
Address
EH1 3AN, Edinburgh, United Kingdom
UCITS
Yes
Legal Structure
Open Ended Investment Company

Managers

Mike Gush
Joined 01/31/2015

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 Sneller
Joined 03/01/2005

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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