Baillie Gifford Emerging Markets ex China Fund Institutional Class (BGEWX)

Overview

The fund operates with a clear focus on investing in a range of equity securities, primarily targeting the emerging and frontier markets. It stakes its strategy on harnessing the growth potential of companies located in regions represented in the MSCI Emerging Markets ex China Index. By allocating at least 80% of its net assets to such companies, the fund is dedicated to capturing the dynamism inherent in these markets. It emphasizes a less diversified investment approach, allowing for a targeted selection of stocks and other equity securities that promise substantial growth prospects. This strategy reflects a deep understanding of the unique opportunities and challenges present in emerging and frontier markets, positioning the fund to potentially offer attractive returns to its investors.

Products and Services

• Common Stocks

  These represent shares of ownership in public companies located in emerging and frontier markets. This fundamental asset class forms the backbone of the fund's investment strategy, positioned to leverage the growth potential in these dynamic regions.

• Preferred Stocks

  As part of its portfolio, the fund may include preferred stocks, which offer investors a potentially higher yield compared to common stocks. Preferred stocks combine features of both equity and fixed income securities, providing a blend of income generation and growth potential.

• Convertible Securities

  Convertible securities are bonds or preferred shares that can be converted into a predetermined amount of the company's common stock at the discretion of the investor. This flexibility allows the fund to participate in the equity appreciation of the issuing companies while also enjoying the yield and security of fixed income investments.

• Warrants

  Warrants are derivatives that give the holder the right, but not the obligation, to buy or sell a security—most commonly equity—at a certain price before expiration. The inclusion of warrants in the fund's portfolio offers a leveraged opportunity to profit from equity movements without the need to invest directly in the stock.