Baillie Gifford Emerging Markets Equities Fund (BGEPX)

Overview

The company operates an investment fund that focuses principally on equity securities of businesses situated within emerging market countries as delineated by the MSCI Emerging Markets Index. By dedicating at least 80% of its net assets, alongside any borrowed funds intended for investment purposes, to these securities, the fund aims to harness the growth potential of emerging markets. This investment scope encompasses direct investments and indirect ones, such as depositary receipts or participatory notes, underlining a versatile strategy. Additionally, the fund embraces opportunities across various market capitalizations, indicating no bias toward the size of an investee company. It is also proactive in engaging with initial public offerings (IPOs) and securities not registered in the U.S., suggesting an open approach to diverse investment avenues.

Products and Services

• Equity Securities of Emerging Market Companies

  The fund centers its investment strategy on equity securities of firms located in MSCI Emerging Markets Index countries. This includes both direct investments in shares and indirect participation through instruments like depositary receipts or participatory notes, thereby providing a broad exposure to emerging markets.

• Preferred Stocks, Convertible Securities, and Warrants

  Apart from common stocks, the fund also allocates assets to preferred stocks, convertible securities, and warrants. This varied investment approach allows for potential income through dividends, interest, and capital appreciation, thereby diversifying the investment risk and potential return profile.

• Market Capitalization Agnosticism

  The fund’s investment philosophy does not discriminate based on the market capitalization of companies. This agnostic stance towards company size allows for flexibility in investment selections, ranging from small-cap growth companies to large, well-established firms in the emerging markets.

• Initial Public Offerings (IPOs) and Non-Registered Securities Offerings

  Active participation in IPOs and investments in securities not registered in the U.S. represents a unique facet of the fund’s strategy. This not only enables the fund to access potentially lucrative early-stage opportunities but also to invest in a wider array of securities that may offer attractive returns.