Baillie Gifford Emerging Markets Growth Fund B Accumulation

Emerging Markets

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
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
0.77 %
Risk Rating
5
3 Year Sharpe
0.35
3 Year Alpha
3.97
Yield
2.2 %
Benchmark
MSCI EM NR GBP
The Fund aims to outperform (after deduction of costs) the MSCI Emerging Markets Index, as stated in Sterling, by at least 2% per annum over rolling five-year periods. The Fund will invest at least 90% in shares of emerging market companies being those which are listed, incorporated, domiciled or conducting a significant portion of their business in emerging markets. Emerging markets will be determined by the investment manager at its sole discretion. The Fund will be actively managed and will invest in companies of any size and in any sector.
Holding %
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 %
Region %
Asia - Emerging 56.39 %
Asia - Developed 20.76 %
Latin America 10.87 %
Europe - Emerging 8.67 %
Sector %
Financial Services 26.24 %
Technology 21.47 %
Consumer Cyclical 17.15 %
Communication Services 11.03 %
Basic materials 9.33 %
Energy 8.67 %
Name
Baillie Gifford & Co Limited.
Address
EH1 3AN, Edinburgh, United Kingdom
UCITS
Yes
Legal Structure
Open Ended Investment Company

Managers

Ewan Markson-Brown
Joined 11/30/2019

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 11/30/2019

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 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.

Data provided by Morningstar.

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