Baillie Gifford Emerging Markets Ex China Fund Class K (BGEZX)

Overview

The fund is designed to provide investors with exposure to equity securities in emerging and frontier markets, excluding China. It aims to achieve its investment objective by primarily investing in a mix of common stocks and other equity securities such as preferred stocks, convertible securities, and warrants. The strategic focus is on countries included in the MSCI Emerging Markets ex China Index, ensuring at least 80% of its net assets are invested in the markets of these countries. This portfolio composition positions the fund to leverage the growth potential of emerging and frontier markets while excluding investments in China. Being non-diversified, the fund may invest more heavily in fewer issues, which can increase the potential for higher returns but also higher volatility and risk.

Products and Services

The fund offers a range of investment products targeted at leveraging the growth potential of emerging and frontier markets. Here are its primary offerings:

• Common Stocks: Shares of ownership in companies located within emerging and frontier market countries, providing direct exposure to the equity markets of these regions. This enables investors to benefit from the growth potential of these economies.
• Preferred Stocks: A type of stock that provides dividends before any dividends are paid to common stockholders and typically has priority over common stock in the event of a liquidation. This offers investors a potentially steadier source of income compared to common stocks.
• Convertible Securities: These are bonds or preferred stocks that can be converted into a predetermined number of common stock or equity shares. Convertible securities combine the investment characteristics of bonds and common stocks, offering the potential for income and capital appreciation while also providing a level of downside protection.
• Warrants: These securities provide the holder the right to purchase the issuer's stock at a predetermined price until the expiry date. Warrants can offer investors a leveraged opportunity to profit from the appreciation of the underlying stock, though they come with higher risk.