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Form N-CSR BAILLIE GIFFORD FUNDS For: Apr 30

June 30, 2022 6:17 AM EDT

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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

 

FORM N-CSR

 

CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT INVESTMENT COMPANIES

 

Investment Company Act file number             811-10145             

 

Baillie Gifford Funds 

 

(Exact name of registrant as specified in charter)

 

1 Greenside Row 

Edinburgh, Scotland, UK, EH1 3AN

 

(Address of principal executive offices) (Zip code)

 

Gareth Griffiths 

1 Greenside Row 

Edinburgh, Scotland, UK, EH1 3AN

 

(Name and address of agent for service)

 

Registrant's telephone number, including area code: 011-44-131-275-2000

 

Date of fiscal year end:  April 30

 

Date of reporting period:  April 30, 2022

 

Form N-CSR is to be used by management investment companies to file reports with the Commission not later than 10 days after the transmission to stockholders of any report that is required to be transmitted to stockholders under Rule 30e-1 under the Investment Company Act of 1940 (17 CFR 270.30e-1). The Commission may use the information provided on Form N-CSR in its regulatory, disclosure review, inspection, and policymaking roles.

 

A registrant is required to disclose the information specified by Form N-CSR, and the Commission will make this information public. A registrant is not required to respond to the collection of information contained in Form N-CSR unless the Form displays a currently valid Office of Management and Budget ("OMB") control number. Please direct comments concerning the accuracy of the information collection burden estimate and any suggestions for reducing the burden to Secretary, Securities and Exchange Commission, 450 Fifth Street, NW, Washington, DC 20549-0609. The OMB has reviewed this collection of information under the clearance requirements of 44 U.S.C. § 3507.

 

 

 

 

 

Item 1. Reports to Stockholders.

 

(a)The Report to Shareholders is attached herewith.

 

 

 

 

BAILLIE GIFFORD FUNDS

Baillie Gifford Multi Asset Fund

Annual Report

April 30, 2022


Index

Page Number

     
 

01

   

Management Discussion

 
 

03

   

Fund Expenses

 
 

05

   

Industry Diversification Table

 
 

06

   

Portfolio of Investments

 
 

17

   

Financial Statements

 
 

21

   

Financial Highlights

 
 

23

   

Notes to Financial Statements

 
 

35

   

Report of Independent Registered Public Accounting Firm

 

 

Supplemental Information

 
 

36

   

Federal Income Tax Information

 
 

37

   

Management of the Trust

 

Scenic view of Bostadh Beach and Luskentyre Beach in Summer, Isle of Harris, Scotland

Source: © Markus Keller/Shutterstock

This report is intended for shareholders of Baillie Gifford Multi Asset Fund (the "Fund") and may not be used as sales literature unless preceded or accompanied by a current prospectus for the Fund.

The statements and views expressed in this report are as of this report's period end and are subject to change at any time. All investments entail risk, including the possible loss of principal.


Management Discussion (unaudited)

Annual Report April 30, 2022

Baillie Gifford Multi Asset Fund

Market Conditions and Review of Performance during the 12 months ended April 30, 2022

In the 12 months ended April 30, 2022, Baillie Gifford Multi Asset Fund's performance was negative (-2.71% for Class K shares), meaning it underperformed its benchmark, which returned 0.08% over the same period.

During the spring of 2021, economies continued to reopen as COVID-19 vaccines were rolled out across the world and, reinforced by supportive economic policies and low inflation, the subsequent positive sentiment across investment markets was generally a good thing for most asset classes. However, investment markets have had a much more challenging start to 2022, reacting initially to heightened short-term inflation data and then more recently to the war in Ukraine. The Fund has not been immune from recent volatility and much of the strong growth generated during the 2021 calendar year has been given back.

Across all asset classes in which the Fund invests, listed growth equities was the worst performing asset class over the reporting period, as rising central bank interest rates impacted the outlook for future global growth prospects. In conjunction with this, rising U.S. inflation has contributed to a broad sell off in technology stocks, and continued Chinese lockdowns in response to the COVID-19 pandemic have impacted supply chains. Both of these developments have had negative effects on the Fund and equity markets more generally.

Infrastructure holdings were the single biggest positive contributor to returns during the reporting period, as governments globally pledged to increase their renewable energy commitments. We believe elevated energy prices experienced in many regions globally should serve to increase both the viability of these renewable energy commitments and the push for greater international energy independence in the future.

Another asset class that contributed positively to performance was real estate, with investments in logistics and distribution assets being particularly beneficial. These assets are capitalising on what we believe is the ongoing shift to e-commerce and the need for increased warehousing space to meet the need for rising inventory levels. The portfolio's commodities investments were a

notable performer over the period, as our exposure to rare earth miners contributed positively against a favourable backdrop for their use in renewable technologies.

From a broader investment and outlook perspective, while we remain sensitive to shorter-term swings in market sentiment, our focus remains on taking advantage of what we believe are longer-term trends. The portfolio invests in a number of broader themes — which include the Rise of Asia, the Green Revolution and Technological Innovation — while we also maintain a generally positive view on economies reopening as COVID-19 restrictions are lifted. These themes appear across a broad range of asset classes including listed equities, infrastructure and real estate. Indeed, on a medium-term view, we believe that: the abrupt change in geopolitical relations following Russia's invasion of Ukraine only strengthens the case for Europe seeking energy independence; wage inflation is increasing the attraction and adoption of automation and other disruptive activities; and supply chain disruption only prompts greater inventories and demand for the logistics companies that store them. As a result we believe there remain many interesting growth opportunities for Multi Asset investors.

And while we consistently seek to capture this optimism, the portfolio is designed to protect against potential longer-term downswings via a refined allocation to more defensively orientated investments, alongside the inherent diversification of the portfolio.

Investment Strategies used to manage the Fund

The investment strategy remains largely unchanged from 12 months ago. Baillie Gifford Multi Asset Fund offers actively managed exposure to a broad range of different asset classes through the convenience of a single portfolio. Our investment approach combines a top-down, macroeconomic view with bottom-up research, as described in the Fund's prospectus. The portfolio managers take an active, flexible approach to asset allocation, adjusting the mix of asset classes in response to long- and short-term opportunities in an effort to reduce overall volatility and/or increase returns. The portfolio managers make allocation decisions across asset classes primarily based on an analysis of the long-term expected returns, correlations and risk.


01


Management Discussion (unaudited)

Annual Report April 30, 2022

Fund Performance for periods ended 04/30/22 (Average Annual Total Returns)

   

One Year

  % p.a.
Since Inception
(December 4, 2018)
 

Baillie Gifford Multi Asset Fund Class K

   

-2.71

%

   

5.02

%

 

Baillie Gifford Multi Asset Fund Institutional Class

   

-2.80

%

   

5.01

%

 

ICE BofA Merrill Lynch 3-Month US Treasury Bill Index

   

0.08

%

   

0.94

%

 

The returns are provided for all shares classes that had shares outstanding as of April 30, 2022. Additional year-over-year returns for each class are available in the Financial Highlights section.

Comparison of the change in value of $10,000 investment in the Fund's Class K share and the index

Past performance does not predict future performance. The graph and the table above do not reflect the deduction of taxes that a shareholder would pay on the Fund distributions or redemption of Fund shares.


02


Fund Expenses (unaudited)

Annual Report April 30, 2022

As a shareholder of Baillie Gifford Multi Asset Fund (the "Fund") you incur two types of costs: (1) transactional costs and (2) ongoing costs, including advisory fees, administration and supervisory fees and other Fund expenses. This example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds.

The example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period from November 1, 2021 to April 30, 2022.

Actual Expenses

The first line of each table provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide the account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first line under the heading entitled "Expenses Paid During the Period" to estimate the expenses you paid on your account during this period.

Hypothetical Example for Comparison Purposes

The second line of each table on the following page provides information about hypothetical account values and hypothetical expenses based on the Fund's actual expense ratio and an assumed annual rate of return of 5% before expenses, which is not the Fund's actual return.

The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds by comparing this 5%hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of other funds.

Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs. Therefore, the second line of the table labeled "Hypothetical (5% return before expenses)" is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.


03


Fund Expenses (unaudited)

Annual Report April 30, 2022

  Beginning
Account Value
November 1, 2021
  Ending
Account
Value
April 30, 2022
  Annualized
Expense Ratios
Based on the Period
November 1, 2021 to
April 30, 2022
  Expenses Paid
During Period*
 

Baillie Gifford Multi Asset Fund — Class K

 

Actual

 

$

1,000

   

$

930.80

     

0.32

%

 

$

1.53

   

Hypothetical (5% return before expenses)

 

$

1,000

   

$

1,023.21

     

0.32

%

 

$

1.61

   

Baillie Gifford Multi Asset Fund — Institutional Class

 

Actual

 

$

1,000

   

$

930.70

     

0.35

%

 

$

1.68

   

Hypothetical (5% return before expenses)

 

$

1,000

   

$

1,023.06

     

0.35

%

 

$

1.76

   

*  Unless otherwise indicated, expenses are calculated using the Fund's annualized expense ratio, multiplied by the average account value for the period, multiplied by 181/365 (to reflect the six-month period).

Expenses are calculated using the annualized expense ratio for the Fund, which represents the ongoing expenses as a percentage of net assets for the year ended April 30, 2022. Expenses are calculated by multiplying the annualized expense ratio by the average account value for the period; then multiplying the result by the number of days in the

most recent fiscal half-year; and then dividing that result by the number of days in the calendar year. Expense ratios for the most recent fiscal year may differ from expense ratios based on the one-year data in the financial highlights.


04


Industry Diversification Table (unaudited)

Annual Report April 30, 2022

April 30, 2022
Baillie Gifford Multi Asset Fund

   

Value

  % of Total
Net Assets
 

Advertising

 

$

34,945

     

0.3

%

 

Airlines

   

58,664

     

0.4

   

Asset Backed Securities

   

455,165

     

3.3

   

Auto Parts & Equipment

   

18,576

     

0.1

   

Banks

   

603,303

     

4.4

   

Building Materials

   

82,125

     

0.6

   

Commercial Services

   

51,524

     

0.4

   

Computers

   

19,580

     

0.2

   

Diversified Financial Services

   

618,620

     

4.5

   

Electric

   

1,635,183

     

11.9

   

Electrical Components and Equipment

   

282,954

     

2.1

   

Electronics

   

56,715

     

0.4

   

Energy-Alternate Sources

   

106,215

     

0.8

   

Engineering & Construction

   

38,744

     

0.3

   

Entertainment

   

43,322

     

0.3

   

Food

   

104,513

     

0.8

   

Gas

   

70,412

     

0.5

   

Internet

   

54,645

     

0.4

   

Investment Companies

   

336,389

     

2.5

   

Leisure Time

   

42,985

     

0.3

   

Lodging

   

128,538

     

0.9

   

Media

   

14,226

     

0.1

   

Mining

   

803,883

     

5.8

   

Pooled Investment Vehicles

   

3,956,076

     

28.9

   

Real Estate

   

153,443

     

1.2

   

REITS

   

1,192,524

     

8.7

   

Retail

   

76,288

     

0.6

   

Sovereign

   

1,371,378

     

10.1

   

Telecommunications

   

63,105

     

0.4

   

Toys/Games/Hobbies

   

18,631

     

0.2

   

Total Value of Investments

   

12,492,671

     

91.4

   

Other assets less liabilities

   

1,171,932

     

8.6

   

Net Assets

 

$

13,664,603

     

100.0

%

 

The table above is based on Bloomberg Industry Group classifications. For compliance monitoring purposes, sub-industry classifications are used which results in less concentration across industry sectors.


05


Portfolio of Investments

Annual Report April 30, 2022

April 30, 2022
Baillie Gifford Multi Asset Fund

   

Shares/Principal

 

Value

 

COMMON STOCKS — 30.2%

 

AUSTRALIA — 2.6%

 

BHP Group Ltd.

   

1,089

   

$

36,495

   
Lynas Rare Earths Ltd. *    

25,295

     

158,730

   

Newcrest Mining Ltd.

   

6,510

     

122,254

   

Rio Tinto PLC

   

624

     

44,089

   
         

361,568

   

CANADA — 1.6%

 

First Majestic Silver Corp.

   

6,160

     

63,631

   

Hydro One Ltd.

   

2,647

     

71,561

   

Pan American Silver Corp.

   

3,090

     

76,539

   
         

211,731

   

CHINA — 1.7%

 

China Longyuan Power Group Corp., Ltd., Class H

   

50,000

     

96,441

   

China Yangtze Power Co., Ltd., Class A

   

29,800

     

102,433

   

Xinyi Energy Holdings Ltd.

   

64,000

     

34,234

   
         

233,108

   

DENMARK — 1.4%

 
NKT A/S *    

1,190

     

56,715

   

Orsted AS

   

1,257

     

139,062

   
         

195,777

   

FRANCE — 1.3%

 
JCDecaux SA *    

1,667

     

34,945

   

Nexans SA

   

1,526

     

139,000

   
         

173,945

   

GERMANY — 0.3%

 
Fraport AG Frankfurt Airport Services Worldwide *    

725

     

38,744

   

IRELAND — 0.5%

 

CRH PLC

   

986

     

39,264

   
Ryanair Holdings PLC ADR *    

369

     

32,221

   
         

71,485

   

The accompanying notes are an integral part of the financial statements.
06


Portfolio of Investments

Annual Report April 30, 2022

April 30, 2022
Baillie Gifford Multi Asset Fund

   

Shares/Principal

 

Value

 

ITALY — 3.1%

 

Italgas SpA

   

10,875

   

$

70,412

   

Prysmian SpA

   

4,426

     

143,955

   

Terna — Rete Elettrica Nazionale

   

25,374

     

206,953

   
         

421,320

   

MACAU — 0.6%

 

Galaxy Entertainment Group Ltd.

   

8,000

     

45,649

   
Sands China Ltd. *    

16,400

     

36,149

   
         

81,798

   

NETHERLANDS — 0.4%

 

CTP NV

   

3,483

     

49,315

   

SPAIN — 3.9%

 

EDP Renovaveis SA

   

5,847

     

138,382

   

Iberdrola SA

   

16,157

     

185,657

   

Red Electrica Corp. SA

   

6,965

     

140,235

   
Siemens Gamesa Renewable Energy SA *    

4,519

     

71,981

   
         

536,255

   

SWITZERLAND — 0.4%

 
Dufry AG *    

710

     

28,260

   
Wizz Air Holdings PLC *    

676

     

26,443

   
         

54,703

   

UNITED KINGDOM — 1.9%

 

Ashtead Group PLC

   

332

     

17,167

   

Greggs PLC

   

867

     

25,296

   

Hays PLC

   

22,370

     

34,357

   

Octopus Renewables Infrastructure Trust PLC

   

51,357

     

74,726

   
SSP Group PLC *    

20,148

     

59,469

   
Whitbread PLC *    

1,339

     

46,740

   
         

257,755

   

UNITED STATES — 10.5%

 

Ares Capital Corp.

   

5,875

     

119,086

   

Avangrid, Inc.

   

1,436

     

63,687

   
Booking Holdings, Inc. *    

19

     

41,996

   

Brookfield Renewable Corp., Class A

   

2,799

     

100,484

   

The accompanying notes are an integral part of the financial statements.
07


Portfolio of Investments

Annual Report April 30, 2022

April 30, 2022
Baillie Gifford Multi Asset Fund

   

Shares/Principal

 

Value

 
CBRE Group, Inc., Class A *    

574

   

$

47,665

   

Consolidated Edison, Inc.

   

1,863

     

172,775

   

Eversource Energy

   

1,573

     

137,480

   

FirstCash Holdings, Inc.

   

602

     

48,027

   

Golub Capital BDC, Inc.

   

4,585

     

68,408

   

Hecla Mining Co.

   

12,775

     

66,558

   
Howard Hughes Corp. (The) *    

563

     

56,463

   
Lyft, Inc., Class A *    

388

     

12,649

   

Martin Marietta Materials, Inc.

   

121

     

42,861

   
MP Materials Corp. *    

2,430

     

92,437

   

Newmont Corp.

   

1,965

     

143,150

   

NextEra Energy, Inc.

   

878

     

62,355

   
Royal Caribbean Cruises Ltd. *    

553

     

42,985

   
Six Flags Entertainment Corp. *    

1,132

     

43,322

   

Sixth Street Specialty Lending, Inc.

   

3,320

     

74,169

   
         

1,436,557

   

Total Common Stocks

 

(cost $4,054,444)

       

4,124,061

   

POOLED INVESTMENT VEHICLES — 28.9%

 

GUERNSEY — 3.9%

 

International Public Partnerships Ltd.

   

33,991

     

71,213

   

Pershing Square Holdings Ltd.

   

1,307

     

44,842

   

Renewables Infrastructure Group Ltd. (The)

   

94,226

     

159,954

   

Sequoia Economic Infrastructure Income Fund Ltd.

   

90,580

     

112,087

   

TwentyFour Income Fund Ltd.

   

110,359

     

149,873

   
         

537,969

   

IRELAND — 3.2%

 

Aspect Core Trend Fund, Class A

   

3,484

     

439,391

   

LUXEMBOURG — 0.3%

 

BBGI Global Infrastructure SA

   

19,266

     

41,042

   

UNITED KINGDOM — 2.5%

 

3i Infrastructure PLC

   

15,192

     

66,866

   

Greencoat UK Wind PLC

   

102,076

     

204,720

   

HICL Infrastructure PLC

   

30,427

     

67,493

   
         

339,079

   

The accompanying notes are an integral part of the financial statements.
08


Portfolio of Investments

Annual Report April 30, 2022

April 30, 2022
Baillie Gifford Multi Asset Fund

   

Shares/Principal

 

Value

 

UNITED STATES — 19.0%

 

Baillie Gifford Emerging Markets Equities Fund, Class K (1)

   

22,778

   

$

442,342

   

Baillie Gifford International Alpha Fund, Class K (1)

   

63,332

     

749,848

   

Baillie Gifford U.S. Equity Growth Fund, Class K (1)

   

26,989

     

523,592

   

Credit Suisse Managed Futures Strategy Fund, Class I

   

27,474

     

323,374

   

KraneShares Asia Pacific High Income Bond ETF

   

19,100

     

559,439

   
         

2,598,595

   

Total Pooled Investment Vehicles

 

(cost $3,861,534)

       

3,956,076

   

STRUCTURED NOTES — 8.8%

 

SWITZERLAND — 4.3%

 

Credit Suisse AG, Zero cpn., 10/31/22 (2)

   

737

     

585,403

   

UNITED STATES — 4.5%

 

Goldman Sachs International, Zero cpn., 07/13/51 (3)

   

422

     

351,817

   

Goldman Sachs International, Zero cpn., 08/12/51 (4)

   

263

     

266,803

   
         

618,620

   

Total Structured Notes

 

(cost $1,422,000)

       

1,204,023

   

REAL ESTATE INVESTMENT TRUSTS — 8.7%

 

UNITED KINGDOM — 3.2%

 

LondonMetric Property PLC

   

16,826

     

56,870

   

Segro PLC

   

8,070

     

135,109

   

Target Healthcare REIT PLC

   

24,165

     

33,728

   

Tritax Big Box REIT PLC

   

44,685

     

136,408

   

UK Commercial Property REIT Ltd.

   

72,126

     

79,468

   
         

441,583

   

The accompanying notes are an integral part of the financial statements.
09


Portfolio of Investments

Annual Report April 30, 2022

April 30, 2022
Baillie Gifford Multi Asset Fund

   

Shares/Principal

 

Value

 

UNITED STATES — 5.5%

 

Duke Realty Corp.

   

3,740

   

$

204,765

   

First Industrial Realty Trust, Inc.

   

2,703

     

156,774

   

Prologis, Inc.

   

1,034

     

165,740

   

Rexford Industrial Realty, Inc.

   

2,866

     

223,662

   
         

750,941

   

Total Real Estate Investment Trusts

 

(cost $999,037)

       

1,192,524

   

FOREIGN GOVERNMENT BONDS — 7.8%

 

BRAZIL — 0.2%

 

Brazil Letras do Tesouro Nacional, Series LTN, Zero cpn., 01/01/24

 

BRL

162,000

     

26,871

   

CHILE — 0.3%

 

Bonos de la Tesoreria de la Republica en pesos, 5.00%, 03/01/35

 

CLP

35,000,000

     

35,382

   

CHINA — 1.9%

 

China Government Bond, Series INBK, 3.39%, 03/16/50

 

CNY

1,740,000

     

263,211

   

EGYPT — 0.2%

 

Egypt Government Bond, Series 7YR, 14.41%, 07/07/27

 

EGP

601,000

     

31,630

   

INDONESIA — 0.4%

 

Indonesia Treasury Bond, Series FR58, 8.25%, 06/15/32

 

IDR

769,000,000

     

57,353

   

IVORY COAST (COTE D'IVOIRE) — 0.7%

 

Ivory Coast Government International Bond, 5.25%, 03/22/30

 

EUR

100,000

     

94,321

   

MALAYSIA — 0.2%

 

Malaysia Government Bond, Series 0413, 3.84%, 04/15/33

 

MYR

128,000

     

27,141

   

PERU — 0.3%

 

Peru Government Bond, 6.90%, 08/12/37

 

PEN

97,000

     

22,359

   

Peruvian Government International Bond, 8.75%, 11/21/33

   

14,000

     

18,593

   
         

40,952

   

The accompanying notes are an integral part of the financial statements.
10


Portfolio of Investments

Annual Report April 30, 2022

April 30, 2022
Baillie Gifford Multi Asset Fund

   

Shares/Principal

 

Value

 

ROMANIA — 0.3%

 

Romania Government Bond, Series 15Y, 3.65%, 09/24/31

 

RON

135,000

   

$

21,939

   

Romanian Government International Bond, 1.75%, 07/13/30

 

EUR

20,000

     

16,643

   
         

38,582

   

SOUTH AFRICA — 0.4%

 

Republic of South Africa Government Bond, Series R209, 6.25%, 03/31/36

 

ZAR

1,153,000

     

49,712

   

UKRAINE — 0.5%

 

Ukraine Government Bond, 15.84%, 02/26/25 (5)

 

UAH

1,498,000

     

0

   

Ukraine Government International Bond, Series GDP, 1.26%, 05/31/40 (6)

   

252,000

     

72,369

   
         

72,369

   

UNITED STATES — 2.1%

 

U.S. Treasury Bond, 2.38%, 05/15/51

 

USD

62,000

     

54,584

   

U.S. Treasury Bond, 2.00%, 08/15/51

   

70,000

     

56,558

   

U.S. Treasury Bond, 1.88%, 11/15/51

   

70,000

     

54,907

   

U.S. Treasury Bond, 2.25%, 02/15/52

   

130,000

     

111,617

   
         

277,666

   

URUGUAY — 0.3%

 

Uruguay Government International Bond, 4.38%, 12/15/28

 

UYU

1,570,406

     

45,099

   

Total Foreign Government Bonds

 

(cost $1,373,389)

       

1,060,289

   

COLLATERALIZED LOAN OBLIGATIONS — 3.3%

 

IRELAND — 3.3%

 

Fair Oaks Senior CLO Investments 2021-1 DAC, Zero cpn., 11/30/26 (8)

   

4,347

     

455,165

   

Total Collateralized Loan Obligations

 

(cost $492,158)

       

455,165

   

TREASURY BILLS — 1.6%

 

UNITED STATES — 1.6%

 

U.S. Treasury Bill, 08/25/22 (7)

 

USD

222,000

     

221,261

   

Total Treasury Bills

 

(cost $221,535)

       

221,261

   

The accompanying notes are an integral part of the financial statements.
11


Portfolio of Investments

Annual Report April 30, 2022

April 30, 2022
Baillie Gifford Multi Asset Fund

   

Shares/Principal

 

Value

 

CORPORATE BONDS — 1.4%

 

CANADA — 0.1%

 

Bell Canada, Series MTN, 4.75%, 09/29/44

 

CAD

21,000

   

$

15,245

   

FRANCE — 0.3%

 

Electricite de France SA, 6.95%, 01/26/39

 

USD

15,000

     

17,678

   

Orange SA, 9.00%, 03/01/31

   

13,000

     

17,125

   
         

34,803

   

UNITED KINGDOM — 0.1%

 

Tesco PLC, Series EMTN, 5.50%, 01/13/33

 

GBP

14,000

     

19,748

   

UNITED STATES — 0.9%

 

Aptiv PLC, 4.35%, 03/15/29

 

USD

19,000

     

18,576

   

AT&T, Inc., 3.50%, 09/15/53

   

18,000

     

14,092

   

Citigroup, Inc., 8.13%, 07/15/39

   

13,000

     

17,900

   

Corning, Inc., 5.45%, 11/15/79

   

17,000

     

16,643

   

Dell International LLC / EMC Corp., 5.30%, 10/01/29

   

19,000

     

19,580

   

Hasbro, Inc., 6.35%, 03/15/40

   

17,000

     

18,631

   

Walt Disney Co. (The), 6.15%, 02/15/41

   

12,000

     

14,226

   
         

119,648

   

Total Corporate Bonds

 

(cost $212,681)

       

189,444

   

INFLATION INDEXED BONDS — 0.7%

 

BRAZIL — 0.3%

 

Brazil Notas do Tesouro Nacional Serie B, Series NTNB, 6.00%, 05/15/27

 

BRL

204,313

     

42,427

   

MEXICO — 0.4%

 

Mexican Udibonos, Series S, 4.00%, 11/30/28

 

MXN

969,576

     

47,401

   

Total Inflation Indexed Bonds

 

(cost $95,806)

       

89,828

   

TOTAL INVESTMENTS — 91.4%

 

(cost $12,732,584)

     

$

12,492,671

   

Other assets less liabilities — 8.6%

       

1,171,932

   

NET ASSETS — 100.0%

     

$

13,664,603

   

The accompanying notes are an integral part of the financial statements.
12


Portfolio of Investments

Annual Report April 30, 2022

April 30, 2022
Baillie Gifford Multi Asset Fund

*  Non-income producing security.

(1)  Affiliated Fund.

(2)  ETF-linked certificate which tracks the Xtrackers Harvest CSI 500 China A-Shares Small Cap ETF as the reference price. Value correlates to changes in this reference price.

(3)  Index-linked note which tracks the Volatility Curve US Series 1 Total Return Strategy as the reference price. Value correlates to changes in this reference price.

(4)  Index-linked note which tracks the USD 10-20 Year Long Volatility Index Total Return Strategy as the reference price. Value correlates to changes in this reference price.

(5)  Investment was valued at nil due to a decision made by Baillie Gifford Overseas Limited (the "Manager") based on there being no trading available in this security.

(6)  Adjustable rate security with an interest rate that is not based on a published reference index and spread. The rate is based on the structure of the agreement and current market conditions.

(7)  Security issued on a discount basis with no stated coupon rate. Income is recognized through the accretion of discount.

(8)  Investment was valued using significant unobservable inputs.

This report classifies issuers geographically by their country of risk. For compliance monitoring purposes, the Manager retains discretion to consider a number of factors in determining where a particular issuer is located, as described in further detail in the Fund's prospectus.

A summary of the Fund's investments in affiliated funds during the year ended April 30, 2022 is as follows:

Affiliated Fund Holdings

    Shares
at
April 30,
2021
  Value
at
April 30,
2021
  Purchases
Cost
  Sales
Proceeds
  Net
Realized
Gain/
(Loss)
  Net
Change in
Unrealized
Appreciation/
(Depreciation)
  Shares
at
April 30,
2022
  Value
at
April 30,
2022
  Income
Distributions
  Long Term
Capital
Gain
Distributions
 
Baillie Gifford
Emerging Markets
Equities Fund,
Class K
   

30,265

   

$

864,974

   

$

162,522

   

$

(337,150

)

 

$

26,956

   

$

(274,960

)

   

22,778

   

$

442,342

   

$

10,525

   

$

10,910

   
Baillie Gifford
International Alpha
Fund, Class K
   

109,775

     

1,913,385

     

136,089

     

(736,709

)

   

26,311

     

(589,228

)

   

63,332

     

749,848

     

20,533

     

115,557

   
Baillie Gifford
U.S. Equity
Growth Fund,
Class K
   

37,844

     

1,591,352

     

394,367

     

(680,011

)

   

45,190

     

(827,306

)

   

26,989

     

523,592

     

34,072

     

101,102

   
     

177,884

   

$

4,369,711

   

$

692,978

   

$

(1,753,870

)

 

$

98,457

   

$

(1,691,494

)

   

113,099

   

$

1,715,782

   

$

65,130

   

$

227,569

   

For more information on the affiliated fund holdings, please refer to Note B.

The accompanying notes are an integral part of the financial statements.
13


Portfolio of Investments

Annual Report April 30, 2022

April 30, 2022
Baillie Gifford Multi Asset Fund

Open forward foreign currency contracts outstanding at April 30, 2022:

Counterparty   Settlement
Date
  Currency To
Deliver
  Currency To
Receive
  Unrealized
Appreciation
  Unrealized
Depreciation
 

HSBC Securities (USA) Inc.

 

5/11/2022

 

AUD

476,000

   

USD

353,986

   

$

17,594

   

$

   

HSBC Securities (USA) Inc.

 

5/11/2022

 

CAD

1,076,800

   

USD

852,886

     

14,693

     

   

HSBC Securities (USA) Inc.

 

5/11/2022

 

CHF

727,700

   

USD

780,436

     

31,915

     

   

HSBC Securities (USA) Inc.

 

5/11/2022

 

EUR

556,000

   

USD

602,021

     

15,162

     

   

HSBC Securities (USA) Inc.

 

5/11/2022

 

EUR

2,788,370

   

USD

3,032,076

     

88,951

     

   

HSBC Securities (USA) Inc.

 

5/11/2022

 

GBP

2,086,790

   

USD

2,720,771

     

96,759

     

   

HSBC Securities (USA) Inc.

 

5/11/2022

 

JPY

33,000,000

   

USD

256,980

     

2,593

     

   

HSBC Securities (USA) Inc.

 

5/11/2022

 

NOK

3,750,000

   

USD

428,456

     

28,636

     

   

HSBC Securities (USA) Inc.

 

5/11/2022

 

NZD

513,000

   

USD

350,850

     

19,651

     

   

HSBC Securities (USA) Inc.

 

5/11/2022

 

USD

66,487

   

AUD

91,000

     

     

(2,176

)

 

HSBC Securities (USA) Inc.

 

5/11/2022

 

USD

552,878

   

EUR

509,000

     

     

(15,629

)

 

HSBC Securities (USA) Inc.

 

5/11/2022

 

USD

196,445

   

GBP

153,000

     

     

(4,057

)

 

HSBC Securities (USA) Inc.

 

5/11/2022

 

USD

1,070,166

   

JPY

134,341,200

     

     

(34,573

)

 

HSBC Securities (USA) Inc.

 

5/11/2022

 

USD

140,896

   

NOK

1,260,000

     

     

(6,556

)

 

HSBC Securities (USA) Inc.

 

5/11/2022

 

USD

64,706

   

NZD

97,000

     

     

(2,082

)

 

HSBC Securities (USA) Inc.

 

5/11/2022

 

USD

270,168

   

ZAR

4,195,000

     

     

(4,915

)

 

HSBC Securities (USA) Inc.

 

5/11/2022

 

ZAR

4,195,000

   

USD

286,663

     

21,410

     

   

HSBC Securities (USA) Inc.

 

5/12/2022

 

CNY

840,000

   

USD

132,165

     

5,085

     

   

HSBC Securities (USA) Inc.

 

5/12/2022

 

USD

131,097

   

CNY

840,000

     

     

(4,018

)

 

HSBC Securities (USA) Inc.

 

5/19/2022

 

BRL

1,014,000

   

USD

214,885

     

11,158

     

   

HSBC Securities (USA) Inc.

 

5/19/2022

 

PHP

26,800,000

   

USD

517,175

     

6,455

     

   

HSBC Securities (USA) Inc.

 

5/19/2022

 

USD

384,807

   

BRL

2,020,000

     

21,040

     

   

HSBC Securities (USA) Inc.

 

5/19/2022

 

USD

233,343

   

PHP

12,000,000

     

     

(4,662

)

 

HSBC Securities (USA) Inc.

 

6/9/2022

 

USD

142,476

   

ZAR

2,100,000

     

     

(10,123

)

 

HSBC Securities (USA) Inc.

 

6/9/2022

 

ZAR

5,454,000

   

USD

348,621

     

4,881

     

   

HSBC Securities (USA) Inc.

 

6/16/2022

 

EUR

330,000

   

USD

371,022

     

22,076

     

   

HSBC Securities (USA) Inc.

 

6/16/2022

 

ILS

318,000

   

USD

99,309

     

3,822

     

   

HSBC Securities (USA) Inc.

 

6/16/2022

 

USD

75,589

   

EUR

69,000

     

     

(2,627

)

 

HSBC Securities (USA) Inc.

 

6/16/2022

 

USD

376,141

   

ILS

1,237,600

     

     

(4,521

)

 

HSBC Securities (USA) Inc.

 

7/21/2022

 

EUR

67,000

   

USD

70,829

     

     

(162

)

 

HSBC Securities (USA) Inc.

 

7/21/2022

 

THB

9,560,000

   

USD

285,333

     

5,705

     

   

HSBC Securities (USA) Inc.

 

7/21/2022

 

USD

138,233

   

JPY

17,680,000

     

     

(1,498

)

 

HSBC Securities (USA) Inc.

 

7/21/2022

 

USD

516,182

   

THB

16,760,000

     

     

(25,955

)

 

HSBC Securities (USA) Inc.

 

7/28/2022

 

CAD

462,000

   

USD

370,598

     

11,102

     

   

HSBC Securities (USA) Inc.

 

7/28/2022

 

COP

844,000,000

   

USD

214,569

     

4,559

     

   

HSBC Securities (USA) Inc.

 

7/28/2022

 

EUR

173,760

   

USD

197,986

     

13,788

     

   

HSBC Securities (USA) Inc.

 

7/28/2022

 

INR

16,100,000

   

USD

208,166

     

     

(80

)

 

The accompanying notes are an integral part of the financial statements.
14


Portfolio of Investments

Annual Report April 30, 2022

April 30, 2022
Baillie Gifford Multi Asset Fund

Counterparty

  Settlement
Date
  Currency To
Deliver
  Currency To
Receive
  Unrealized
Appreciation
  Unrealized
Depreciation
 

Barclays Bank PLC

 

7/28/2022

 

TRY

1,100,000

   

USD

69,455

   

$

357

   

$

   

HSBC Securities (USA) Inc.

 

7/28/2022

 

USD

79,626

   

BRL

400,000

     

     

(942

)

 

HSBC Securities (USA) Inc.

 

7/28/2022

 

USD

863,436

   

CAD

1,084,000

     

     

(19,943

)

 

HSBC Securities (USA) Inc.

 

7/28/2022

 

USD

70,513

   

EUR

64,200

     

     

(2,457

)

 

HSBC Securities (USA) Inc.

 

8/18/2022

 

CLP

149,000,000

   

USD

185,115

     

14,058

     

   

HSBC Securities (USA) Inc.

 

8/18/2022

 

USD

468,140

   

CLP

391,000,000

     

     

(19,258

)

 

Total unrealized appreciation (depreciation)

             

$

461,450

   

$

(166,234

)

 

Net unrealized appreciation (depreciation)

                 

$

295,216

   

ADR  —  American Depositary Receipt

CLO  —  Collateralized Loan Obligation

ETF  —  Exchange Traded Fund

FRN  —  Floating Rate Note

MTN  —  Medium Term Note

REIT  —  Real Estate Investment Trust

Currency Abbreviations:

AUD  —  Australian Dollar

BRL  —  Brazilian Real

CAD  —  Canadian Dollar

CHF  —  Swiss Franc

CLP  —  Chilean Peso

CNY  —  Chinese Yuan

COP  —  Colombian Peso

EGP  —  Egyptian Pound

EUR  —  Euro

GBP  —  Great Britain Pound

IDR  —  Indonesian Rupiah

ILS  —  Israeli Shekel

INR  —  Indian Rupee

JPY  —  Japanese Yen

MXN  —  Mexican Peso

MYR  —  Malaysian Ringgit

NOK  —  Norwegian Krone

NZD  —  New Zealand Dollar

PEN  —  Peruvian Nuevo Sol

PHP  —  Philippine Peso

RON  —  Romanian New Leu

THB  —  Thai Baht

UAH  —  Ukrainian hryvnia

UYU  —  Uruguayan peso

ZAR  —  South African Rand

The accompanying notes are an integral part of the financial statements.
15


Portfolio of Investments

Annual Report April 30, 2022

April 30, 2022
Baillie Gifford Multi Asset Fund

Fair Value Measurement

The following is a summary of the inputs used as of April 30, 2022 in valuing the Fund's investments carried at fair value:

Investments in Securities(1)

 

Level 1

 

Level 2

 

Level 3

 

Total

 

Assets:

 

Common Stocks

 

$

1,680,509

   

$

2,443,552

   

$

   

$

4,124,061

   

Pooled Investment Vehicles

   

3,347,813

     

608,263

     

     

3,956,076

   

Structured Notes

   

     

1,204,023

     

     

1,204,023

   

Real Estate Investment Trusts

   

750,941

     

441,583

     

     

1,192,524

   

Foreign Government Bonds

   

     

1,060,289

     

     

1,060,289

   

Collateralized Loan Obligations

   

     

     

455,165

     

455,165

   

Treasury Bills

   

     

221,261

     

     

221,261

   

Corporate Bonds

   

     

189,444

     

     

189,444

   

Inflation Indexed Bonds

   

     

89,828

     

     

89,828

   

Total Investments in Securities

 

$

5,779,263

   

$

6,258,243

   

$

455,165

   

$

12,492,671

   

Other Financial Instruments(2)

 

Forward Foreign Currency Contracts

   

     

461,450

     

     

461,450

   
Total Investments in Securities and Other
Financial Instruments
 

$

5,779,263

   

$

6,719,693

   

$

455,165

   

$

12,954,121

   

Liabilities:

 

Other Financial Instruments(2)

 

Forward Foreign Currency Contracts

   

     

(166,234

)

   

     

(166,234

)

 

Total Other Financial Instruments

 

$

   

$

(166,234

)

 

$

   

$

(166,234

)

 

(1)  A complete listing of investments and additional information regarding the industry classification and geographical location of these investments is disclosed in the Portfolio of Investments.

(2)  Reflects the unrealized appreciation (depreciation) of the instruments.

See Note A for a description of the inputs used in the fair value hierarchy above.

The following is a reconciliation of the Fund's Level 3 investments for which significant unobservable inputs were used in determining value:

Balance at April 30, 2021

 

$

   

Purchases

   

775,208

   

Sales

   

(269,713

)

 

Realized gain (loss)

   

(13,337

)

 

Change in unrealized gain (loss)

   

(36,993

)

 

Transfers into Level 3

   

   

Transfers out of Level 3

   

   

Balance at April 30, 2022

 

$

455,165

*

 

Change in unrealized gain (loss) related to Investments still held at April 30, 2022.

 

$

(36,993

)

 

*  The ongoing conflict in Russia and Ukraine has led to significant disruption and volatility in the global stock market. This led to certain securities held in Russian rubles and Ukrainian hryvnia becoming untradeable, such as the Ukraine Government Bond held by the Fund. As a result of this, the Manager made the decision to value this bond at nil, at which point this was transferred out of Level 2 into Level 3.

  Fair Oaks Senior CLO Investments 2021-1 DAC is a weekly priced instrument held by the Fund for which the trustee-quoted NAV is a significant unobservable input.

The accompanying notes are an integral part of the financial statements.
16


Statement of Assets and Liabilities

Annual Report April 30, 2022

April 30, 2022
Baillie Gifford Multi Asset Fund

ASSETS

 

Investments, at value (cost $11,016,670)

 

$

10,776,889

   

Investments in affiliated funds, at value (cost $1,715,914)

   

1,715,782

   

Cash

   

1,137,183

   

Deposit with broker for futures contracts

   

35,478

   

Foreign cash, at value (cost $4,835)

   

4,900

   

Unrealized appreciation on forward foreign currency contracts

   

461,450

   

Due from Investment Advisor

   

82,494

   

Receivable for investments sold

   

66,211

   

Interest receivable

   

14,395

   

Dividends receivable

   

10,543

   

Tax reclaims receivable

   

3,223

   

Prepaid assets

   

18,500

   

Total Assets

   

14,327,048

   

LIABILITIES

 

Advisory fee payable

   

6,174

   

Deposit from broker for forward foreign currency contracts

   

330,000

   

Unrealized depreciation on forward foreign currency contracts

   

166,234

   

Payable for investment purchased

   

22,632

   

Administration & Supervisory fee payable

   

13,119

   

Accrued expenses

   

124,286

   

Total Liabilities

   

662,445

   

NET ASSETS

 

$

13,664,603

   

COMPOSITION OF NET ASSETS

 

Paid-in capital

 

$

12,310,406

   

Total distributable earnings

   

1,354,197

   
   

$

13,664,603

   

NET ASSET VALUE, PER SHARE

 
Class K ($5,953,885 / 576,785 shares outstanding), unlimited authorized, no par value  

$

10.32

   
Institutional Class ($7,710,718 / 746,965 shares outstanding), unlimited authorized, no par value  

$

10.32

   

The accompanying notes are an integral part of the financial statements.
17


Statement of Operations

Annual Report April 30, 2022

For the Year Ended April 30, 2022
Baillie Gifford Multi Asset Fund

INVESTMENT INCOME

 

Dividends (net of foreign withholding taxes of $26,024)

 

$

416,001

   

Income from affiliated funds

   

65,130

   

Interest

   

159,430

   

Total Investment Income

   

640,561

   

EXPENSES

 

Advisory fee, net of Temporary Advisory Fee Waiver (Note B)

   

20,105

   

Administration & Supervisory fee — Class K shares (Note B)

   

29,782

   

Administration & Supervisory fee — Institutional Class shares (Note B)

   

12,942

   

Transfer agency

   

33,706

   

Sub-transfer agency — Institutional Class shares

   

1,383

   

Legal

   

136,849

   

Fund accounting

   

119,128

   

Clearing fees

   

42,158

   

Professional fees

   

38,642

   

Printing fees

   

29,180

   

Custody

   

21,003

   

Registration fees

   

13,956

   

Trustees' fees

   

666

   

Commitment fees

   

256

   

Miscellaneous

   

5,107

   

Total Expenses

   

504,863

   

Fees waived/expenses reimbursed

   

(402,954

)

 

Affiliated fund fees waived/expenses reimbursed

   

(21,288

)

 

Total Expenses after waiver

   

80,621

   

Net Investment Income

   

559,940

   
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS,
FUTURES, AND FOREIGN CURRENCY TRANSACTIONS
 

Net realized gain (loss) from:

 

Investments

   

1,401,110

   

Investments in affiliated funds

   

98,457

   

Long Term Capital gains distributions from affiliated funds

   

227,569

   

Futures

   

91,789

   

Forward foreign currency contracts

   

624,733

   

Foreign currency transactions

   

(13,914

)

 
     

2,429,744

   

The accompanying notes are an integral part of the financial statements.
18


Statement of Operations

Annual Report April 30, 2022

Net change in unrealized appreciation (depreciation) on:

 

Investments

 

$

(1,950,997

)

 

Investments in affiliated funds

   

(1,691,494

)

 

Futures

   

(8,619

)

 

Forward foreign currency contracts

   

528,420

   

Translation of net assets and liabilities denominated in foreign currencies

   

(645

)

 
     

(3,123,335

)

 

Net realized and unrealized loss

   

(693,591

)

 

NET DECREASE IN NET ASSETS FROM OPERATIONS

 

$

(133,651

)

 

The accompanying notes are an integral part of the financial statements.
19


Statements of Changes in Net Assets

Annual Report April 30, 2022

Baillie Gifford Multi Asset Fund

    For the
Year Ended
April 30,
2022
  For the
Year Ended
April 30,
2021
 

INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS

 

Net investment income

 

$

559,940

   

$

438,684

   

Net realized gain (loss)

   

2,429,744

     

(568,234

)

 

Net change in unrealized appreciation (depreciation)

   

(3,123,335

)

   

3,723,471

   

Net increase (decrease) in net assets from operations

   

(133,651

)

   

3,593,921

   

DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS FROM:

 

Distributable earnings

 

Class K

   

(1,114,541

)

   

(84,965

)

 

Institutional Class

   

(463,476

)

   

(26,961

)

 

Total Distributions to Shareholders

   

(1,578,017

)

   

(111,926

)

 

TRANSACTIONS IN SHARES OF BENEFICIAL INTEREST

 

Net proceeds from shares subscribed:

 

Class K

   

47,669

     

10,000,000

   

Institutional Class

   

1,321,726

     

716,420

   

Dividends reinvested:

 

Class K

   

1,114,541

     

84,965

   

Institutional Class

   

463,476

     

26,961

   

Cost of shares redeemed:

 

Class K

   

(12,076,856

)

   

   

Institutional Class

   

(150,134

)

   

   

Increase (Decrease) in Net Assets from Transactions in Shares of Beneficial Interest

   

(9,279,578

)

   

10,828,346

   

Total Increase (Decrease) in Net Assets

   

(10,991,246

)

   

14,310,341

   

NET ASSETS

 

Beginning of year

   

24,655,849

     

10,345,508

   

End of year

 

$

13,664,603

   

$

24,655,849

   

The accompanying notes are an integral part of the financial statements.
20


Financial Highlights

Annual Report April 30, 2022

Baillie Gifford Multi Asset Fund
Selected data for a Class K share outstanding throughout each period

    For the
Year Ended
April 30,
2022
  For the
Year Ended
April 30,
2021
  For the
Year Ended
April 30,
2020
  For the Period
December 4,
2018(a)
through
April 30, 2019
 

Net asset value, beginning of period

 

$

11.27

   

$

9.65

   

$

10.66

   

$

10.00

   

From Investment Operations

 

Net investment income(b)

   

0.26

     

0.20

     

0.24

     

0.13

   
Net realized and unrealized gain (loss) on investments and
foreign currency
   

(0.51

)

   

1.47

     

(0.54

)

   

0.57

   
Net increase (decrease) in net asset value from
investment operations
   

(0.25

)

   

1.67

     

(0.30

)

   

0.70

   

Dividends and Distributions to Shareholders

 

From net investment income

   

(0.14

)

   

(0.05

)

   

(0.55

)

   

(0.04

)

 

From net realized gain on investments

   

(0.56

)

   

     

(0.16

)

   

   

Total Dividends and Distributions

   

(0.70

)

   

(0.05

)

   

(0.71

)

   

(0.04

)

 

Net asset value, end of period

 

$

10.32

   

$

11.27

   

$

9.65

   

$

10.66

   

Total Return

 

Total return based on net asset value(c)

   

(2.71

)%

   

17.35

%

   

(3.35

)%

   

7.06

%

 

Ratios/Supplemental Data

 

Net assets, end of period (000's omitted)

 

$

5,954

   

$

17,873

   

$

5,173

   

$

5,351

   
Ratio of net expenses to average net assets, after affiliated
fund waiver but before waiver under expense limitation
agreement(d)(e)
   

1.92

%

   

2.14

%

   

4.65

%

   

3.02

%*  
Ratio of net expenses to average net assets, after affiliated
fund waiver and waiver under expense limitation agreement(d)
   

0.32

%

   

0.29

%

   

0.56

%

   

0.55

%*  

Ratio of net investment income to average net assets

   

2.28

%

   

1.91

%

   

2.29

%

   

3.08

%*  

Portfolio turnover rate(f)

   

67

%

   

58

%

   

59

%

   

14

%

 

*  Annualized.

(a)  Commencement of investment operations.

(b)  Calculated based upon average shares outstanding during the period.

(c)  Total investment return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all dividends and distributions, if any, at net asset value during the period, and redemption on the last day of the period. Total return is not annualized for periods less than one year.

(d)  Does not include the expenses of non-affiliated pooled investment vehicles in which the Fund invests.

(e)  This figure represents the gross expenses of the Fund less any waiver in relation to management fees paid on assets invested in affiliated funds (refer to Note B for further details).

(f)  Portfolio turnover rate calculated at the Fund level.

The accompanying notes are an integral part of the financial statements.
21


Financial Highlights

Annual Report April 30, 2022

Baillie Gifford Multi Asset Fund
Selected data for an Institutional Class share outstanding throughout each period

    For the
Year Ended
April 30,
2022
  For the
Year Ended
April 30,
2021
  For the
Year Ended
April 30,
2020
  For the Period
December 4,
2018(a)
through
April 30, 2019
 

Net asset value, beginning of period

 

$

11.28

   

$

9.65

   

$

10.66

   

$

10.00

   

From Investment Operations

 

Net investment income(b)

   

0.24

     

0.21

     

0.24

     

0.13

   
Net realized and unrealized gain (loss) on investments and
foreign currency
   

(0.50

)

   

1.47

     

(0.54

)

   

0.57

   
Net increase (decrease) in net asset value from
investment operations
   

(0.26

)

   

1.68

     

(0.30

)

   

0.70

   

Dividends and Distributions to Shareholders

 

From net investment income

   

(0.14

)

   

(0.05

)

   

(0.55

)

   

(0.04

)

 

From net realized gain on investments

   

(0.56

)

   

     

(0.16

)

   

   

Total Dividends and Distributions

   

(0.70

)

   

(0.05

)

   

(0.71

)

   

(0.04

)

 

Net asset value, end of period

 

$

10.32

   

$

11.28

   

$

9.65

   

$

10.66

   

Total Return

 

Total return based on net asset value(c)

   

(2.80

)%

   

17.42

%

   

(3.35

)%

   

7.06

%

 

Ratios/Supplemental Data

 

Net assets, end of period (000's omitted)

 

$

7,711

   

$

6,783

   

$

5,173

   

$

5,350

   
Ratio of net expenses to average net assets, after affiliated
fund waiver but before waiver under expense limitation
agreement(d)(e)
   

1.94

%

   

2.13

%(f)

   

4.65

%

   

3.02

%*  
Ratio of net expenses to average net assets, after affiliated
fund waiver and waiver under expense limitation agreement(d)
   

0.34

%

   

0.29

%

   

0.56

%

   

0.55

%*  

Ratio of net investment income to average net assets

   

2.10

%

   

1.99

%

   

2.29

%

   

3.08

%*  

Portfolio turnover rate(g)

   

67

%

   

58

%

   

59

%

   

14

%

 

*  Annualized.

(a)  Commencement of investment operations.

(b)  Calculated based upon average shares outstanding during the period.

(c)  Total investment return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all dividends and distributions, if any, at net asset value during the period, and redemption on the last day of the period. Total return is not annualized for periods less than one year.

(d)  Does not include the expenses of non-affiliated pooled investment vehicles in which the Fund invests.

(e)  This figure represents the gross expenses of the Fund less any waiver in relation to management fees paid on assets invested in affiliated funds (refer to Note B for further details).

(f)  Institutional Class had a lower ratio than Class K due to rounding.

(g)  Portfolio turnover rate calculated at the Fund level.

The accompanying notes are an integral part of the financial statements.
22


Notes to Financial Statements

Annual Report April 30, 2022

Note A — Organization and Accounting Policies

The Fund is a diversified series of Baillie Gifford Funds (the "Trust"). The Trust includes other series that are not included in this report. The investment objective of the Fund is to seek long-term capital growth at lower volatility than is typically associated with equity markets. For information on the specific investment strategies of the Fund and a description of each share class, please refer to the Fund's prospectus. The Trust is an open-end management investment company registered under the Investment Company Act of 1940, as amended (the "1940 Act"). The Trust was organized on June 21, 2000 as a Massachusetts business trust under the laws of Massachusetts. The Trust operates pursuant to the Second Amended and Restated Agreement and Declaration of Trust dated February 27, 2017, as amended from time to time.

As of April 30, 2022, the Fund offers Class K and Institutional Class shares.

The Fund is an investment company that applies the accounting and reporting guidance issued in Topic 946 by the U.S. Financial Accounting Standards Board. The financial statements of the Fund have been prepared in conformity with generally accepted accounting principles in the United States of America ("GAAP"). Management is required to make certain estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of increases and decreases in net assets from operations during the reporting period. Actual results could differ from those estimates.

The following is a summary of significant accounting policies followed by the Fund:

Valuation of Investments

Investments for which there are readily available market quotations are valued at market value. Equity securities listed on a securities exchange, market or automated quotation system (including equity securities traded over the counter) for which quotations are readily available, are valued at the last quoted trade price on the primary exchange or market (foreign or domestic) on which they are most actively traded on the date of valuation (or at approximately 4:00 p.m. Eastern Time if a security's primary exchange is normally open at that time), or, if there

is no such reported sale on the date of valuation, at the most recent quoted bid price.

Fixed income securities including corporate bonds, inflation indexed bonds, foreign government bonds and sovereign debts are normally valued on the basis of quotes obtained from brokers and dealers or independent pricing services or sources. Independent pricing services typically use information provided by market makers or estimates of market values obtained from yield data relating to investments or securities with similar characteristics. The service providers' internal models use inputs that are observable such as, among other things, issuer details, interest rates, yield curves, prepayment speeds, credit risks/spreads, default rates and quoted prices for similar assets. Securities that use similar valuation techniques and inputs as described above are categorized as Level 2 within the fair value hierarchy. Certain short-term debt obligations maturing within 60 days or less may be valued at their amortized cost unless Baillie Gifford Overseas Limited (the "Manager") determines that amortized cost does not represent fair value. These securities are classified as Level 2 securities.

Investments in pooled investment vehicles are valued at the most recent published NAV for each investee fund. Where the most recent published NAV for an investee fund was determined at a time, or in the case of a non-daily priced fund, a date, other than the pricing point of the Fund, the price may be subject to fair value adjustment as determined by the Manager. At April 30, 2022, there were no fair value adjustments required on investments in pooled investment vehicles not listed on an exchange.

Investments in structured securities are valued daily from an independent pricing source based on quotes received from the counterparty. Certain derivatives are centrally cleared or trade in the over-the-counter market. The Fund's pricing services use various techniques including industry standard option pricing models and proprietary discounted cash flow models to determine the fair value of those instruments. The Fund's net benefit or obligation under the derivative contract, as measured by the fair value of the contract, is included in net assets.

The Fund invests in futures contracts which are valued at the closing settlement price established each day by the board of the exchange on which they are traded.

The Fund invests in forward foreign exchange contracts which are valued based on closing exchange rates from each respective foreign market.

The Fund may enter into swap agreements which are valued by independent third-party pricing agents based upon the specific terms of each agreement.


23


Notes to Financial Statements

Annual Report April 30, 2022

The Fund may invest in collateralized loan obligations which are normally valued on the basis of quotes obtained from brokers and dealers or independent pricing services.

A collateralized loan obligation ("CLO") is a security backed by a pool of debt, often corporate loans with low credit ratings. The investor receives scheduled debt payments from the underlying loans but assumes most of the risk in the event that borrowers default.

The Fund invests in Structured Notes. These are hybrid instruments which combine both debt and other characteristics into a single note form. Structured Note values are linked to the performance of an underlying index or strategy and are unsecured debt obligations of an issuer which may not be publicly listed or traded on an exchange. Structured Notes are valued daily, based on a price calculated by the issuer. Realized gain and loss and change in unrealized appreciation and depreciation on these notes for the reporting period are included in the Statement of Operations.

Other securities for which current market quotations are not readily available (or for which quotations are not believed to be reliable due to market changes that occur after the most recent available quotations are obtained, or for any other reason) and all other assets are valued at their fair value as determined in good faith by the Manager, pursuant to procedures approved by the Board of Trustees of the Trust (the "Board"). The actual calculations may be made by persons acting pursuant to the direction of the Board or by pricing services.

Generally, trading in foreign securities markets is substantially completed each day at various times prior to close of regular trading on the New York Stock Exchange. Occasionally, events affecting the value of equity securities of non-U.S. issuers not traded on a U.S. exchange may occur between the completion of substantial trading of such securities for the day and the close of regular trading on the New York Stock Exchange, and such events may not be reflected in the computation of the Fund's net asset value. If events materially affecting the value of the Fund's portfolio securities occur during such period, then these securities will be valued at their fair value as determined in good faith by the Manager, pursuant to procedures approved by the Board. The Fund utilizes a third party pricing service for all equity securities, except those traded on Canadian, Latin American, or U.S. exchanges, subject to certain minimum confidence levels, which applies a fair value adjustment that seeks to reflect changes in such securities' market prices since the close of the market on which the securities are traded. To the extent that securities are valued using this service, the securities will be

classified as Level 2 securities in the fair value measurement framework described below.

The Fund may invest in bonds issued by governments of both developed and emerging market economies.

These may be denominated in the currency of the issuing country, or some other currency such as U.S. dollars.

Fair Value Measurement

GAAP provides guidance on fair value measurements and defines fair value as the price that the Fund would receive to sell an investment or pay to transfer a liability in a timely transaction with an independent buyer in the principal market, or in the absence of a principal market, the most advantageous market for the investment or liability. It establishes a single definition of fair value, creates a three- tier hierarchy as a framework for measuring fair value based on inputs used to value the Fund's investments, and requires additional disclosure about fair value. The hierarchy of inputs is summarized below:

Level 1 —  unadjusted quoted prices in active markets for identical investments

Level 2 —  other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, credit risk, etc.)

Level 3 —  significant unobservable inputs (including the Trust's own assumptions in determining the fair value of investments)

For Level 1 inputs, the Fund uses unadjusted quoted prices in active markets for assets or liabilities with sufficient frequency and volume to provide pricing information as the most reliable evidence of fair value.

The Fund's Level 2 valuation techniques include inputs other than quoted prices within Level 1 that are observable for an asset or liability, either directly or indirectly. This includes when a fair value adjustment is applied which seeks to reflect changes in foreign securities' market prices since the close of the market on which they are traded. Level 2 observable inputs may include quoted prices for similar assets and liabilities in active markets or quoted prices for identical or similar assets or liabilities in markets that are not active in which there are few transactions, the prices are not current, or price quotations vary substantially over time or among market participants. Inputs that are observable for the asset or liability in Level 2 include such factors as interest rates, yield curves, prepayment speeds, credit risk, and default rates for similar liabilities.


24


Notes to Financial Statements

Annual Report April 30, 2022

For Level 3 valuation techniques, the Fund uses unobservable inputs that reflect assumptions market participants would be expected to use in pricing the asset or liability. Unobservable inputs are used to measure fair value to the extent that observable inputs are not available and are developed based on the best information available under the circumstances.

In developing unobservable inputs, market participant assumptions are used if they are reasonably available without undue cost and effort.

There were two Level 3 securities held by the Fund as at April 30, 2022:

For the Ukraine Government Bond, while there were prices available independently, there did not seem to be trading evidence and market movements to back these prices. In addition to this the local currency was suspended meaning nothing could be done in the event a market was available at the price from independent sources. It was therefore deemed prudent to value these at nil.

The Fair Oaks Senior CLO Investments 2021-1 DAC is a weekly priced instrument held by the Fund for which the trustee-quoted NAV is a significant unobservable input.

The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities. The hierarchy classification of inputs used to value the Fund's investments at April 30, 2022 is disclosed at the end of the Fund's Portfolio of Investments.

Foreign Currency Translation

The accounting records of the Fund are maintained in U.S. dollars. Foreign currency amounts are translated into U.S. dollars at the applicable rate of exchange to determine the value of investments, assets and liabilities. Purchases and sales of securities, and income and expenses are translated at the prevailing rate of exchange on the respective dates of such transactions. The Fund does not isolate that portion of net realized and unrealized gains and losses on investments resulting from changes in foreign exchange rates from the impact arising from changes in market prices. Such fluctuations are included with net realized and unrealized gain or loss from investments.

Net realized foreign exchange gains and losses arise from sales of foreign currencies, currency gains or losses realized between the trade and settlement dates on securities transactions, and the differences between the amounts of dividends, interest, and foreign withholding taxes recorded on the Fund's books and the U.S. dollar equivalent of the amounts actually received or paid. Net

unrealized foreign exchange gains and losses arise from changes in the value of assets and liabilities, other than investments in securities, resulting from changes in the exchange rates.

Derivatives

The Fund invests in derivative financial instruments in order to manage risk or gain exposure to various other investments or markets. Derivatives are financial contracts whose value depends upon, or is derived from, the value of an underlying asset, reference rate or index, and may relate to, among other things, stocks, bonds, interest rates, currencies or currency exchange rates, commodities, and related indexes. Derivatives contain various risks including the potential inability of the counterparty to fulfill their obligation under the terms of the contract, the potential for an illiquid secondary market, and/or the potential for market movements which expose the Fund to gains or losses in excess of the amounts shown in the Statement of Assets and Liabilities. Realized gain and loss and change in unrealized appreciation and depreciation on these contracts for the reporting period are included in the Statement of Operations.

The Fund invests in forward foreign currency contracts primarily to manage exposure to certain foreign currencies. A forward contract is an agreement between the Fund and a counterparty to buy and sell a foreign currency at a specific exchange rate at a future date, and is subject to foreign exchange rate fluctuations. All contracts are "marked-to-market" daily and any resulting unrealized gains or losses are recorded as unrealized appreciation or depreciation on forward foreign currency contracts on the Statement of Assets and Liabilities. The Fund records realized gains or losses at the time the forward foreign currency contract is settled. These realized and change in unrealized gains and losses are reflected on the Statement of Operations as gain (loss) on forward foreign currency contracts.

The Fund invests in exchange traded futures contracts primarily to manage and/or gain exposure to commodity price, interest rate and equity price risk. A futures contract is an agreement between the Fund and the counterparty to buy or sell an asset at a specific price on a future date. Required initial margins are pledged by the Fund, and the accumulated daily change in the fair value is accounted for as an unrealized appreciation or depreciation on futures in the Statement of Assets and Liabilities.

Swap agreements are privately negotiated agreements between a fund and a counterparty to exchange or swap investment cash flows, assets, foreign currencies or


25


Notes to Financial Statements

Annual Report April 30, 2022

market-linked returns at specified, future intervals. A swap may be entered into in order to, among other things, change the maturity of a fund's portfolio, to protect a fund's value from changes in interest rates, to expose a fund to a different security or market, or to help a fund achieve a strategy relative to an index or other benchmark. By entering into a swap agreement, a fund is exposed to the risk of unanticipated movements in interest rates or in the value of an underlying security or index (or the risk that the counterparty will not fulfil its obligation under the agreement). The Fund did not invest in swap agreements during the year.

At April 30, 2022, the fair value of derivative instruments reflected on the Statement of Assets and Liabilities was as follows:

       

Asset Derivatives

 

Derivative Instrument

 

Risk Exposure

  Statement of Assets and
Liabilities Location
 
Fair Value
 
Forward foreign
currency contracts
 
Currency risk
  Unrealized appreciation on forward
foreign currency contracts
 

$

461,450

   
       

Liability Derivatives

 

Derivative Instrument

 

Risk Exposure

  Statement of Assets and
Liabilities Location
 

Fair Value

 
Forward foreign
currency contracts
 
Currency risk
  Unrealized depreciation on forward
foreign currency contracts
 

$

166,234

   

The transactions in derivative instruments reflected on the Statement of Operations by primary risk exposure during the year ended April 30, 2022 were as follows:

Net Realized Gain (Loss) from:

Currency Risk — Forward
Foreign Currency Contracts
  Interest Rate Risk —
Futures Contracts
 
$

624,733

   

$

91,789

   

Net Change in Unrealized Appreciation (Depreciation) on:

Currency Risk — Forward
Foreign Currency Contracts
  Interest Rate Risk —
Futures Contracts
 
$

528,420

   

$

(8,619

)

 

As of April 30, 2022, the Fund had transactions subject to enforceable master netting agreements which govern the terms of certain transactions, and reduce the counterparty risk associated with such transactions. Master netting agreements allow the Fund to close out and net total exposure to a counterparty in the event of a deterioration in the credit quality or contractual default with respect to all of the transactions with a counterparty. As defined by the master netting agreement, the Fund may have collateral agreements with certain counterparties to mitigate risk. Interest expense from collateral received, if any, is included on the Statement of Operations. For financial reporting purposes the Statement of Assets and Liabilities generally shows derivatives assets and liabilities on a gross basis, which reflects the full risks


26


Notes to Financial Statements

Annual Report April 30, 2022

and exposures prior to netting. A reconciliation of the gross amounts on the Statement of Assets and Liabilities to the net amounts, including any collateral exposure, is included in the following table:

Assets

              Gross Amounts Not Offset
in the Statement of
Assets & Liabilities
     

Description

  Gross Amount
of Recognized
Assets
  Gross Amounts
Offset in
the Statement
of Assets &
Liabilities
  Net Amounts
of Assets
Presented in
the Statement
of Assets &
Liabilities
  Financial
Instruments
  Cash
Collateral
Received
*
 

Net Amount

 

Forward Foreign Currency Contracts

 

$

461,450

   

$

   

$

461,450

   

$

(166,234

)

 

$

(295,216

)

 

$

   

Total

 

$

461,450

   

$

   

$

461,450

   

$

(166,234

)

 

$

(295,216

)

 

$

   

Liabilities

              Gross Amounts Not Offset
in the Statement of
Assets & Liabilities
     

Description

  Gross Amount
of Recognized
Liabilities
  Gross Amounts
Offset in
the Statement
of Assets &
Liabilities
  Net Amounts
of Liabilities
Presented in
the Statement
of Assets &
Liabilities
  Financial
Instruments
  Cash
Collateral
Pledged
*
 

Net Amount

 

Forward Foreign Currency Contracts

 

$

(166,234

)

 

$

   

$

(166,234

)

 

$

166,234

   

$

   

$

   

Total

 

$

(166,234

)

 

$

   

$

(166,234

)

 

$

166,234

   

$

   

$

   

*  Collateral pledged is limited to the net outstanding amount due to/from one individual counterparty. The actual collateral amounts pledged may exceed these amounts and fluctuate with value.

For the year ended April 30, 2022 the average monthly volume of derivatives held by the Fund was as follows:

   

Longs

 

Shorts

 

Forward foreign currency contracts (contract value)

 

$

6,719,541

   

$

(20,246,973

)

 

Futures (notional value)

   

     

(933,041

)

 

Securities Transactions and Investment Income

The Fund's securities transactions are recorded on the trade date. Realized gains or losses on sales of investments are determined on the basis of identified cost. Dividend income is recorded on the ex-dividend date. Non-cash income, if any, is included in investment income, with any non-cash income exceeding 5% of the Fund's total income stated separately on the Statement of Operations, and is recorded at the fair market value of securities received.

Interest income is recorded on an accrual basis. Purchase discounts and premiums on fixed-income securities are accreted and amortized to maturity using the

effective interest method and reflected within interest income on the Statement of Operations.

Inflation-indexed bonds are fixed-income securities whose principal value is periodically adjusted to the rate of inflation. The interest rate on these bonds is generally fixed at issuance at a rate lower than typical bonds.

Over the life of an inflation-indexed bond, however, interest will be paid based on a principal value, which is adjusted for inflation. Any increase or decrease in the principal amount of an inflation-indexed bond will be included as interest income on the Statement of Operations, even though investors do not receive their principal until maturity.


27


Notes to Financial Statements

Annual Report April 30, 2022

Investment income, expenses (other than those specific to a particular class of shares), and realized and unrealized gains and losses on investments are allocated to the separate classes of shares based upon their relative net asset value on the date income is earned or expensed and realized and unrealized gains and losses are incurred.

U.S. Federal and Other Taxes

The Fund intends to continue to qualify to be taxed as a "regulated investment company" under the provisions of the U.S. Internal Revenue Code of 1986, as amended (the "Code"), and as such will not be subject to U.S. federal income tax on income (including any net realized capital gains) which is distributed in accordance with the provisions of the Code to the Fund's shareholders. Therefore, no U.S. federal income tax provision is required.

Investment income received from investments in foreign jurisdictions may be subject to foreign withholding tax. Investment income is recorded net of any foreign withholding taxes, less any amounts reclaimable. The Fund may file withholding tax reclaims in certain jurisdictions to recover a portion of amounts previously withheld. Whenever possible, the Fund will attempt to operate so as to qualify for reduced tax rates or tax exemptions in those countries with which the United States has a tax treaty. Foreign taxes, if any, net of any reclaims, are recorded based on the tax regulations and rates that exist in the foreign markets in which the Fund invests.

In addition to the requirements of the Code, the Fund may also be subject to capital gains tax in foreign

jurisdictions on gains realized upon the sale of securities. If the Fund had exposure to capital gains taxes, it would accrue a deferred liability for unrealized gains in excess of available loss carryforwards based on existing tax rates and holding periods of the securities. The Fund did not have material exposure to foreign capital gains taxes in the current period.

The Fund is subject to tax accounting standards that provide guidance for how certain and uncertain tax positions should be recognized, measured, presented and disclosed in the financial statements. These standards require the evaluation of tax positions taken, or expected to be taken, in the course of preparing the Fund's tax returns to determine whether the tax positions are "more-likely-than-not" of being sustained by the applicable tax authority. Tax positions not deemed to meet the "more-likely-than-not" threshold would be recorded as a reduction in a tax benefit or expense in the current year. Management has evaluated the application of these standards and has determined no liabilities for income tax related expenses are required in the financial statements of the Fund. The tax periods since inception through present remain subject to examination.

At April 30, 2022 for federal income tax purposes, the Fund had no capital loss carryforwards.

Realized capital losses, currency losses and passive foreign investment company ("PFIC") losses incurred after October 31 ("post-October capital/late year ordinary losses") within the taxable year are deemed to arise on the first business day of the Fund's next taxable year.

At April 30, 2022, the components of accumulated earnings on a tax basis were as follows:

Fund

  Undistributed
Net Ordinary
Income
*
  Long Term
Capital
Gains
  Capital
Loss
Carryforwards
  Post October
Capital/Late Year
Ordinary Losses
  Net Unrealized
Appreciation/
Depreciation on
Investments
and Foreign
Currencies
  Total
Accumulated
Earnings/Deficit
 

Baillie Gifford Multi Asset Fund

 

$

867,806

   

$

1,085,029

   

$

   

$

   

$

(598,638

)

 

$

1,354,197

   

*  Includes $37,623 of currency straddle losses.


28


Notes to Financial Statements

Annual Report April 30, 2022

Dividends and Distributions to Shareholders

The Fund intends to distribute each year, as dividends, substantially all net investment income and net capital gains realized. All such dividends or distributions are credited in the form of additional shares of the Fund at net asset value on the ex-dividend date unless the shareholder

elects to receive dividends and distributions in cash. Currently, the Fund's policy is to distribute net investment income and net capital gains on an annual basis. Such distributions are determined in conformity with U.S. federal income tax regulations, which may differ from GAAP.

For the years ended April 30, 2022 and April 30, 2021, the tax characters of the dividends paid were:

Fund

  Ordinary
Income
2022
  Long Term
Capital Gains
2022
  Return of
Capital
2022
  Ordinary
Income
2021
  Long Term
Capital Gains
2021
  Return of
Capital
2021
 

Baillie Gifford Multi Asset Fund

 

$

580,100

   

$

997,917

   

$

   

$

111,924

   

$

2

   

$

   

For tax purposes, distributions from short-term capital gains, if any, are considered ordinary income distributions.

The Fund's cost of investments and gross unrealized appreciation (depreciation) at April 30, 2022 for U.S. federal income tax purposes were as follows:

Fund

  Cost of
Investments
  Gross
Appreciation
  Gross
Depreciation
  Net
Depreciation
 

Baillie Gifford Multi Asset Fund

 

$

13,071,286

   

$

910,904

   

$

(1,489,519

)

 

$

(578,615

)

 

The difference between GAAP-basis and tax basis unrealized gains (losses) is attributable primarily to wash sales and net mark to market gains (losses) on securities categorized as PFICs.

Note B — Investment Management and Other Services

The Fund is advised and managed by the Manager. The Manager, an investment adviser registered with the Securities and Exchange Commission (the "SEC"), is a wholly owned subsidiary of Baillie Gifford & Co.

Under an investment advisory agreement between the Manager and the Trust on behalf of the Fund (the "Advisory Agreement"), the Fund pays the Manager an investment advisory fee (the "Advisory Fee") in arrears.

The Advisory Fee paid by the Fund under the Advisory Agreement is calculated and accrued daily on the basis of the annual rate noted below and expressed as a percentage of the Fund's average daily net assets.

Fund

  Average Daily Net Assets
of the Fund (billions)
  Annual Rate at
Each Asset Level
  Annual Rate at
Each Asset Level
Post Waiver
*
 
Baillie Gifford Multi Asset Fund
 
 
  $0 - $2
>$2 - $5
Above $5
  0.33%
0.29%
0.27%
  0.08%
0.06%
0.05%
 

*  The Manager has contractually agreed to waive a portion of its Advisory Fee (the "Temporary Advisory Fee Waiver") with respect to the Fund until August 31, 2023. This will be given effect prior to the application of the expense limitation agreement and Affiliated Fund Waiver.


29


Notes to Financial Statements

Annual Report April 30, 2022

The Manager is responsible for providing certain administrative services to Fund shareholders as well as coordinating, overseeing and supporting services provided to Fund shareholders by third parties, including financial intermediaries that hold accounts with the Fund, pursuant to an Administration and Supervisory Agreement between the Manager and the Trust on behalf of the Fund. The Fund has adopted an Administration, Supervisory and Sub- Accounting Services Plan with respect to Class K and Institutional Class shares, which authorizes the Fund to pay the Manager an administration and supervisory fee (the "Administration and Supervisory Fee") quarterly, in arrears, at an annual rate of 0.17% of the Fund's average net assets.

The Fund may enter into certain agreements with Financial Intermediaries that require payments for sub- transfer agency services in excess of the Board approved cap on payments and/or reimbursements to Financial

Intermediaries. In such instances the Manager will pay, out of its own profits, the difference between the amount due under the agreement with the Financial Intermediary and the cap on such payments and/or reimbursements approved by the Board.

The Manager has contractually agreed to irrevocably waive a portion of its management fee in an amount equal to 100% of the Advisory Fee and the Administration and Supervisory Fee paid by any Affiliated Fund with respect to Fund assets invested in such Affiliated Fund. For purposes of this waiver, "Affiliated Fund" means any pooled investment vehicle that is managed by the Manager or by any of its affiliates and that pays a management fee. This contractual agreement (the "Affiliated Fund Waiver") has an indefinite term for so long as the Fund's investment advisory agreement and related contractual arrangements remain in full force and effect, and it may only be terminated by the Board.

The Manager has contractually agreed to waive its fees and/or bear Other Expenses of the Fund to the extent that the Fund's total annual operating expenses (excluding taxes, sub-accounting expenses, acquired fund fees and expenses* and extraordinary expenses) exceed the following amounts, less the above Affiliated Fund Waiver:

Fund

 

Class

 

Expense Limitation

 

Expiration Date

 

Baillie Gifford Multi Asset Fund

 

Class K

   

0.40

%

 

8/31/2023

 

Baillie Gifford Multi Asset Fund

 

Institutional Class

   

0.40

%

 

8/31/2023

 

*  The term "acquired fund fees and expenses" originates in the mutual fund prospectus disclosure requirements and refers to a methodology for estimating the operating expenses of funds in which the Fund invests. This information is part of the fees and expenses displayed in the Fund's prospectus.

Waived fees for the Fund are not subject to recoupment. The contractual fee waiver/expense reimbursement arrangements described above may only be terminated by the Board.

Baillie Gifford Funds Services LLC, a wholly-owned subsidiary of the Manager, serves as the sole distributor and principal underwriter of the shares of the Fund.

The Bank of New York Mellon serves as the Fund's administrator and custodian. BNY Mellon Investment Servicing (U.S.) Inc. serves as the Trust's transfer agent, registrar and dividend disbursing agent.

The Fund may own outstanding voting shares of other funds within Baillie Gifford Funds, the issuer of which is considered an affiliate. At April 30, 2022, transactions in affiliated funds, if any, are listed under the heading Affiliated Fund Holdings at the end of the Portfolio of Investments.

Note C — Investment Transactions

Purchases and proceeds from sales of securities (excluding short-term securities) for the year ended April 30, 2022 were as follows:

   

Purchases

 

Sales

 

Long Term Investments

 

$

14,252,979

   

$

20,848,166

   

U.S. Government Obligations

   

279,560

     

   


30


Notes to Financial Statements

Annual Report April 30, 2022

Note D — Transactions in Shares of Beneficial Interest

   

Baillie Gifford Multi Asset Fund

 
    For the
Year Ended
April 30, 2022
  For the
Year Ended
April 30, 2021
 

Class K Shares

 

Shares

 

Amount

 

Shares

 

Amount

 

Shares sold

   

4,333

   

$

47,669

     

1,041,667

   

$

10,000,000

   

Shares issued in reinvestment of dividends and distributions

   

99,070

     

1,114,541

     

7,586

     

84,965

   

Shares redeemed

   

(1,112,034

)

   

(12,076,856

)

   

     

   

Net increase (decrease)

   

(1,008,631

)

 

$

(10,914,646

)

   

1,049,253

   

$

10,084,965

   

Institutional Class Shares

 

Shares

 

Amount

 

Shares

 

Amount

 

Shares sold

   

118,114

   

$

1,321,726

     

62,931

   

$

716,420

   

Shares issued in reinvestment of dividends and distributions

   

41,198

     

463,476

     

2,405

     

26,961

   

Shares redeemed

   

(13,846

)

   

(150,134

)

   

     

   

Net increase (decrease)

   

145,466

   

$

1,635,068

     

65,336

   

$

743,381

   

Note E — Beneficial Ownership

Beneficial ownership, either direct or indirect, of more than 25% of the voting securities of the Fund creates a presumption of control under Section 2(a)(9) of the 1940 Act. As of April 30, 2022, the following shareholder beneficially owned 25% or more of the Fund's voting securities:

Fund

 

Investor

 

Percentage

 

Baillie Gifford Multi Asset Fund

 

Baillie Gifford International LLC

   

86.46

%

 

Purchase and redemption activity of this account may have a significant effect on the operation of the Fund.

Note F — Commitments and Contingencies

The Fund indemnifies the Trust's officers and Trustees for certain liabilities that might arise from the performance of their duties to the Fund. Additionally, in the normal course of business, the Fund enters into contracts that contain a variety of representations and warranties and which provide general indemnifications.

The Fund's maximum exposure under these arrangements is unknown, as this would involve future claims that may be made against the Fund that have not yet occurred. However, based on experience, the Fund expects the risk of loss to be remote.


31


Notes to Financial Statements

Annual Report April 30, 2022

Note G — Line of Credit

The Trust entered into a committed facility with Bank of New York Mellon on May 1, 2017, renewed April 19, 2022, and expiring April 18, 2023, which allows certain series of the Trust to borrow up to $75 million in total subject to minimum asset coverage requirements set out in the Credit Agreement. Each such series may borrow money under this credit facility for the temporary funding of shareholder redemptions or for other temporary or emergency purposes.

In normal market conditions, borrowings are charged an interest rate of 1.25% per annum plus the greater of the Federal Funds Effective Rate or the Secured Overnight Financing Rate + 0.10%. Prior to April 19, 2022, the rate used was the greater of the Federal Funds Effective Rate or the one-month U.S. LIBOR Rate.

The Fund pays a share of a commitment fee on the portion of the facility which is undrawn. The commitment fee is 0.25% on undrawn amounts.

The rate payable at April 30, 2022 was 1.63% on any amounts drawn down. There were no drawdowns for the Fund in the year ended April 30, 2022.

Note H — Principal Risks (unaudited)

The below is a selection of the Fund's principal risks. For a full list of the Fund's principal risks, including a description of each risk, please refer to the Fund's prospectus.

Asset Allocation Risk

The Fund's investment performance depends upon the successful allocation of the Fund's assets among asset classes, geographical regions, industry sectors, and specific issuers and investments. Asset allocation does not eliminate risk, and market conditions sometimes arise in which even effective asset allocation cannot prevent losses, such as market conditions in which most or all asset valuations decline simultaneously. There is no guarantee that the Fund's allocation techniques and decisions will produce the desired results. It is possible to lose money on an investment in the Fund as a result of these allocation decisions.

Volatility Management Risk

There can be no guarantee that the portfolio managers will be successful in managing the Fund's overall level of volatility. As a result, the Fund may not realize the anticipated benefits from its volatility management strategies or it may realize losses, especially in situations where the valuation of a broad range of asset classes, markets and instruments move in the same direction. Under certain market conditions, the use of volatility management strategies may also result in less favorable performance than if such strategies had not been used. Volatility is non-directional; low volatility does not necessarily suggest that the Fund will not lose value or is less risky.

Market Risk

The value of the Fund's investments will be affected by fluctuations in the markets in which the Fund is invested, factors affecting a particular industry or industries, real or perceived adverse economic conditions, changes in interest or currency rates or adverse investor sentiment generally. Declines in securities market prices may reduce the net asset value of the Fund's shares.

Derivatives Risk

Investing in derivative instruments involves the risk that these instruments' values may not move as expected relative to the values of the underlying assets, rates, or indices. Derivatives also present other risks, including market risk, counterparty risk, and liquidity risk.

Structured Finance Securities Risk

Holders of structured finance securities bear the risks of the underlying investments, index or reference obligation and are subject to counterparty risk. Payment streams associated with structured finance securities held by the Fund depend on many factors (e.g., the cash flow generated by the assets backing the securities, deal structure, creditworthiness of any credit-support provider, and reliability of various other service providers with access to the payment stream), and a problem in any of these factors can lead to a reduction in the payment stream the Manager expected the Fund to receive when the Fund purchased the structured finance security.


32


Notes to Financial Statements

Annual Report April 30, 2022

Underlying Funds Risk

Investments in other pooled investment vehicles may indirectly expose the Fund to all of the risks applicable to an investment in such other pool. The Fund must pay its pro rata portion of the other pooled vehicles fees and expenses. If such pool is an ETF or other product traded on a securities exchange or otherwise actively traded, its shares may trade at a premium or discount to their net asset value, an effect that might be more pronounced in less liquid markets. Further, during the period, the Manager served as investment advisor to some pooled vehicles in which the Fund invests, leading to potential conflicts of interest.

Market Disruption and Geopolitical Risk

Geopolitical, environmental and other events may disrupt securities markets and adversely affect global economies and markets. These disruptions could prevent the Fund from implementing its investment strategies and achieving its investment objectives. Given the increasing interdependence among global economies and markets, conditions in one country, market, or region might adversely affect markets, issuers, and/or foreign exchange rates in other countries, including the U.S. War, terrorism, public health crises, and other geopolitical events, such as sanctions, tariffs, trade disputes, the imposition of exchange controls or other cross-border trade barriers, have led, and in the future may lead, to increased short-term market volatility and may have adverse long-term effects on U.S. and world economies and markets generally. For instance, the 2022 Russian invasion of Ukraine and the sanctions that followed had immediate negative effects on global financial markets, sovereign debt and the markets for certain securities and commodities, such as oil and natural gas, and reduced the liquidity and value of Russian securities to zero or near zero. Similarly, terrorism in the U.S. and around the world has resulted in increased geopolitical risk.

Communicable diseases, including those that result in pandemics or epidemics, may pose significant threats to human health, and such diseases, along with any efforts to contain their spread, may be highly disruptive to both global and local economies and markets, with significant negative impact on individual issuers, sectors, industries, and asset classes. Significant public health crises, including those triggered by the transmission of a communicable disease and efforts to contain it may result in, among other things, border closings and other significant travel

restrictions and disruptions, significant disruptions to business operations, supply chains and customer activity, lower consumer demand for goods and services, event cancellations and restrictions, service cancellations, reductions and other changes, significant challenges in healthcare service preparation and delivery, and prolonged quarantines, as well as general concern and uncertainty. All of these disruptive effects were present, for example, in the global pandemic linked to the outbreak of respiratory disease caused by a novel coronavirus designated as COVID-19 that was first reported in China in December 2019.

For further information on the risks associated with investing in the Fund, please refer to the Fund's prospectus.

Note I — Legal Notice (unaudited)

ICE

ICE Data Indices, LLC ("ICE DATA"), is used with permission. ICE DATA, its affiliates and their respective third party suppliers disclaim any and all warranties and representations, express and/or implied, including any warranties of merchantability or fitness for a particular purpose or use, including the indices, index data and any data included in, related to, or derived therefrom. Neither ICE DATA, its affiliates nor their respective third party providers shall be subject to any damages or liability with respect to the adequacy, accuracy, timeliness or completeness of the indices or the index data or any component thereof, and the indices and index data and all components thereof are provided on an "as is" basis and your use is at your own risk. ICE DATA, its affiliates and their respective third party suppliers do not sponsor, endorse, or recommend Baillie Gifford, or any of its products or services.

Note J — Subsequent Events

Events or transactions that occur after the financial statement date but before the financial statements are issued are categorized as recognized or non-recognized for financial statement purposes.

The Board has approved and adopted a Plan of Liquidation and Termination (the "Plan") for the Fund. Effective as of the close of business on June 24, 2022, the Fund will cease selling shares to new investors, and the Manager will begin liquidation of the Fund's investments.


33


Notes to Financial Statements

Annual Report April 30, 2022

The Board has determined to close the Fund and redeem all outstanding shares no later than August 26, 2022 (the "Liquidation Date"). The Fund reserves the right, in its discretion, to modify the extent to which sales of shares are limited prior to the Liquidation Date.

Pursuant to the Plan, the Fund will liquidate its investments and thereafter redeem all of its outstanding shares by distribution of its assets to shareholders in amounts equal to the net asset value of each shareholder's

Fund investment after the Fund has paid or provided for all of its charges, taxes, expenses, and liabilities. The Manager anticipates that the Fund's assets will be fully liquidated and all outstanding shares will be redeemed on or about the Liquidation Date.

There were no other subsequent events identified between April 30, 2022 and the issuance of the Financial Statements.


34


Report of Independent Registered Public Accounting Firm

Annual Report April 30, 2022

To the Shareholders of Baillie Gifford Multi Asset Fund
and Board of Trustees of Baillie Gifford Funds

Opinion on the Financial Statements

We have audited the accompanying statement of assets and liabilities, including the portfolio of investments, of Baillie Gifford Multi Asset Fund (the "Fund"), a series of Baillie Gifford Funds, as of April 30, 2022, the related statement of operations for the year then ended, the statements of changes in net assets for each of the two years in the period then ended, the related notes, and the financial highlights for each of the four periods in the period then ended (collectively referred to as the "financial statements"). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Fund as of April 30, 2022, the results of its operations for the year then ended, the changes in net assets for each of the two years in the period then ended, and the financial highlights for each of the four periods in the period then ended, in conformity with accounting principles generally accepted in the United States of America.

Basis for Opinion

These financial statements are the responsibility of the Fund's management. Our responsibility is to express an opinion on the Fund's financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) ("PCAOB") and are required to be independent with respect to the Fund in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement whether due to error or fraud.

Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our procedures included confirmation of securities owned as of April 30, 2022, by correspondence with the custodian, brokers, and trustees; when replies were not received from brokers, we performed other auditing procedures. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion.

We have served as the auditor of one or more of Baillie Gifford Overseas Limited's investment companies since 2017.

COHEN & COMPANY, LTD.

Cleveland, Ohio
June 28, 2022


35


Supplemental Information (unaudited)

Annual Report April 30, 2022

Federal Income Tax Information

Qualified dividend income was taxable to the Fund through April 30, 2022. The Fund intends to designate the maximum amount of dividends that qualify for the reduced tax rate pursuant to the Jobs and Growth Tax Relief Reconciliation Act of 2003.

Fund

  Qualified
Dividend Income
 

Baillie Gifford Multi Asset Fund

   

25.13

%

 

For corporate shareholders, the percentage of ordinary income distributions for the year ended April 30, 2022 for the corporate dividends-received deduction is:

Fund

  Dividends-received
Deductions
 

Baillie Gifford Multi Asset Fund

   

2.24

%

 


36


Supplemental Information (unaudited)

Annual Report April 30, 2022

Management of the Trust

The following tables set forth the Trustees and officers of the Trust, their principal occupations during the past five years, and certain other information as of April 30, 2022.

Name and Year of Birth

  Position(s)
Held with
Trust
  Length of
Time
Served
as Trustee(1)
  Principal Occupation and Other
Directorships Held During Past 5 Years(2)
  Number of Funds in
Fund Complex
overseen by
Trustee(3)
 

Indepedent Trustees

                 
Howard W. Chin
1952
 

Trustee, Chair of the Nominating and Governance Committee

 

Since 2015

 

Retired. Formerly: Managing Director, Investments, Guardian Life Insurance (financial services).

 

19

 
Pamela M. J. Cox
1952
 

Trustee

 

Since 2017

 

Retired. Formerly: Senior Associate (non-resident), CSIS (think tank); Senior Vice President; Vice President East Asia, World Bank Group (international bank & financial services).

 

19

 
Robert E. Rigsby
1949
 

Trustee, Chair of the Audit Oversight Committee

 

Since 2014

 

Retired. Formerly: President & COO, Delivery Business at Dominion Energy, Inc. (electric and gas energy company).

 

19

 
Donald P. Sullivan Jr.
1954
 

Trustee

 

Since 2020

 

Retired. Formerly: Senior Vice President, Agency Distribution, Guardian Life Insurance (financial services).

 

19

 

Interested Trustee as defined in the 1940 Act(2)

 
David Salter(4)
1975
 

Trustee, Chair of the Board, and President

 

Since 2016. Formerly, Vice President.

 

Partner, Baillie Gifford & Co. (parent of investment adviser); CEO & Chairman, Baillie Gifford Funds Services LLC (broker-dealer).

 

19

 

 

Name and Year of Birth

  Position(s)
Held with
Trust
  Length of
Time
Served(1)
 

Principal Occupation During Past 5 Years(2)

 

Officers (other than officers who are also Trustees)

             
Andrew Telfer
1967
 

Vice President

 

Since 2008

 

Managing Partner, Baillie Gifford & Co.

 
Michael Stirling-Aird
1977
 

Vice President

 

Since 2012

 

Partner, Baillie Gifford & Co.

 
Julie Paul
1975
 

Vice President

 

Since 2012

 

Manager, North American Funds Operations Department, Baillie Gifford & Co.

 
Tim Campbell
1975
 

Vice President

 

Since 2014

 

Partner, Baillie Gifford & Co. (investment adviser); Manager, Baillie Gifford International LLC with oversight of marketing performed in North America.

 
Lindsay Cockburn
1978
 

Treasurer

 

Since 2015

 

Manager, North American Funds Operations Department, Baillie Gifford & Co.

 


37


Supplemental Information (unaudited)

Annual Report April 30, 2022

Name and Year of Birth

  Position(s)
Held with
Trust
  Length of
Time
Served(1)
 

Principal Occupation During Past 5 Years(2)

 

Officers (other than officers who are also Trustees)

             
Gareth Griffiths
1973
 

Secretary and Chief Legal Officer

 

Secretary since 2015; Chief Legal Officer since 2017

 

Senior Legal Counsel for Baillie Gifford & Co.

 
Graham Laybourn
1966
 

Vice President

 

Since 2018

 

Partner, Baillie Gifford & Co.

 
Suzanne Quinn
1979
 

Chief Compliance Officer and AML Compliance Officer

 

Since 2018

 

Manager, Compliance Department, Baillie Gifford & Co.

 
Lesley-Anne Archibald
1988
 

Vice President

 

Since 2017

 

Manager, North American Funds Operations Department, Baillie Gifford & Co.

 
Kelly Cameron
1989
 

Vice President

 

Since 2020

 

Client Service Director, Baillie Gifford Overseas Limited.

 
Neil Riddell
1988
 

Chief Risk Officer

 

Since 2021

 

Head of Group Risk, Baillie Gifford & Co.

 

The address of each Trustee of the Trust is c/o Ropes & Gray LLP, Prudential Tower, 800 Boylston Street, Boston, MA, 02199. The address of each officer of the Trust is c/o Baillie Gifford Funds, Calton Square, 1 Greenside Row, Edinburgh, Scotland EH1 3AN.

(1)  There is no stated term of office for the Trustees and a Trustee may serve until such Trustee reaches the age of 75 years. The Chair of the Board and officers of the Trust, including the President of the Trust, are elected annually by the Board.

(2)  Previous positions during the past five years with Baillie Gifford & Co., the Manager, and Baillie Gifford Group are omitted if not materially different from the positions listed.

(3)  The number of Funds in the Fund complex overseen by the Trustee includes series of the Trust not included in this shareholder report or which have not yet commenced investment operations as of the date hereof.

(4)  David Salter is an "interested person" (as defined in the 1940 Act) of the Trust or the Manager due to his positions with the Manager and his role as an officer of the Trust.

Additional information regarding the Trustees is in the Fund's Statement of Additional Information and is available upon request, without charge, by calling the Manager at 011-44-131-275-2000. Shareholders may submit to the Trust claims for reimbursement of telephone charges incurred in placing such calls.

A description of the Fund's proxy voting policies and procedures related to portfolio securities is available without charge, upon request, by calling the Manager at 011-44-131-275-2000 or on the SEC's website at http://www.sec.gov. Shareholders may submit to the Trust claims for reimbursement of telephone charges incurred in placing such calls.

Information regarding how the Fund voted proxies relating to portfolio securities during the most recent

12-month period ended June 30 is also available without charge upon request by calling the Manager at 011-44-131-275-2000 or by accessing the Fund's Form N-PX on the SEC's website at http://www.sec.gov. Shareholders may submit to the Trust claims for reimbursement of telephone charges incurred in placing such calls.

The Fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year as an exhibit to its Form N-PORT. The Fund's Form N-PORT is available on the SEC's website at http://www.sec.gov. The Fund's holdings can also be found at Baillie Gifford Funds' website: http://USmutualfund.bailliegifford.com.


38


Copyright © Baillie Gifford & Co 2015.


 

(b)Not applicable

 

Item 2. Code of Ethics.

 

The registrant, as of the end of the period covered by this report, has adopted a code of ethics that applies to the registrant’s principal executive officer, principal financial officer, principal accounting officer or controller, or persons performing similar functions, regardless of whether these individuals are employed by the registrant or a third party.

 

There have been no amendments, during the period covered by this report, to a provision of the code of ethics that applies to the registrant’s principal executive officer, principal financial officer, principal accounting officer or controller, or persons performing similar functions, regardless of whether these individuals are employed by the registrant or a third party, and that relates to any element of the code of ethics description.

 

The registrant has not granted any waivers, including an implicit waiver, from a provision of the code of ethics that applies to the registrant’s principal executive officer, principal financial officer, principal accounting officer or controller, or persons performing similar functions, regardless of whether these individuals are employed by the registrant or a third party, that relates to one or more of the items set forth in paragraph (b) of this item’s instructions.

 

The registrant’s Code of Ethics is attached hereto as an exhibit.

 

Item 3. Audit Committee Financial Expert.

 

As of the end of the period covered by the report, the registrant’s Board of Trustees has determined that Mr. Robert E. Rigsby, is qualified to serve as an audit committee financial expert serving on its audit oversight committee and that he is “independent,” as defined by Item 3 of Form N-CSR.

 

Item 4. Principal Accountant Fees and Services.

 

The following fees being reported are those charged with respect to services provided in relation to Baillie Gifford Multi Asset Fund, except where otherwise noted.

 

(a) Audit Fees

 

The aggregate fees billed for each of the last two fiscal years for professional services rendered by the principal accountant for the audit of the registrant's annual financial statements or services that are normally provided by the accountant in connection with statutory and regulatory filings or engagements for those fiscal years are $28,000 for 2022 and $28,000 for 2021.

 

 

 

 

(b) Audit-Related Fees

 

The aggregate fees billed in each of the last two fiscal years for assurance and related services by the principal accountant that are reasonably related to the performance of the audit of the registrant's financial statements and are not reported under paragraph (a) of this Item are $0 for 2022 and $0 for 2021.

 

(c) Tax Fees

 

The aggregate fees billed in each of the last two fiscal years for professional services rendered by the principal accountant for tax compliance, tax advice, and tax planning are $7,000 for 2022 and $7,000 for 2021. These services are related to the review of federal and state income tax returns, excise tax returns, and the review of the distribution requirements for excise tax purposes.

 

(d) All Other Fees

 

The aggregate fees billed in each of the last two fiscal years for products and services provided by the principal accountant, other than the services reported in paragraphs (a) through (c) of this Item are $0 for 2022 and $0 for 2021.

 

(e)(1)In order for the Trust’s accountant to remain independent, the following engagements must be approved in advance by the Trust’s Audit Oversight Committee or pursuant to the Pre-Approval Policies and Procedures for Audit and Non-Audit Services, as adopted by the Trust’s Audit Oversight Committee:

 

a)any engagement of the accountant to provide audit services or non-audit services to the Trust; and

 

b)any engagement of the accountant to provide non-audit services to the Trust’s investment adviser, or any entity controlling, controlled by or under common control with the investment adviser that provides ongoing services to the Trust, if the engagement relates directly to the operations and financial reporting of the Trust.

 

  (2)No services included in (b)-(d) above were approved by the audit committee pursuant to paragraph (c)(7)(i)(C) of Rule 2-01 of Regulation S-X.

 

(f)Not applicable.

 

(g)The aggregate non-audit fees billed by the registrant's accountant for services rendered to the registrant, and rendered to the registrant's investment adviser (not including any sub-adviser whose role is primarily portfolio management and is subcontracted with or overseen by another investment adviser), and any entity controlling, controlled by, or under common control with the adviser that provides ongoing services to the registrant for each of the last two fiscal years of the registrant was $7,302* for 2022 and $5,500* for 2021.

 

* This amount was paid by the Trust's investment adviser in relation to services delivered to the adviser and applicable to the Trust rather than services applicable to any individual series of the Trust.

 

(h)The registrant's Audit Oversight Committee has considered whether the provision of non-audit services that were rendered to the registrant's investment adviser (not including any sub-adviser whose role is primarily portfolio management and is subcontracted with or overseen by another investment adviser), and any entity controlling, controlled by, or under common control with the investment adviser that provides ongoing services to the registrant that were not pre-approved pursuant to paragraph (c)(7)(ii) of Rule 2-01 of Regulation S-X is compatible with maintaining the principal accountant's independence.

 

 

 

 

(i)Not applicable.

 

(j)Not applicable.

 

Item 5. Audit Committee of Listed Registrants.

 

Not applicable.

 

Item 6. Investments.

 

(a)Schedule of Investments in securities of unaffiliated issuers as of the close of the reporting period is included as part of the report to shareholders filed under Item 1 of this form.

 

(b)In accordance with Section 13(c) of the Investment Company Act of 1940 (the "1940 Act"), the registrant has divested itself of the following security since the filing of its last report or Form N-CSR.

 

Name of Issuer Exchange
Ticker Symbol
Security
Identifier
(CUSIP
number/ISIN
Total Number
of Shares
Divested
Date Securities
were Divested
Total Number
of Shares Held
on Filing Date
Statute
CHINA YANGTZE POWER 600900.SS CNE000001G87

19,000

04/06/2022

29,800 Sudan Accountability and Divestment Act of 2007

 

Item 7. Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies.

 

Not applicable.

 

Item 8. Portfolio Managers of Closed-End Management Investment Companies.

 

Not applicable.

 

Item 9. Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers.

 

Not applicable.

 

 

 

 

Item 10. Submission of Matters to a Vote of Security Holders.

 

Not applicable.

 

Item 11. Controls and Procedures.

 

(a)The registrant’s principal executive and principal financial officers, or persons performing similar functions, have concluded that the registrant’s disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940, as amended (the “1940 Act”) (17 CFR 270.30a-3(c))) are effective, as of a date within 90 days of the filing date of the report that includes the disclosure required by this paragraph, based on their evaluation of these controls and procedures required by Rule 30a-3(b) under the 1940 Act (17 CFR 270.30a-3(b)) and Rules 13a-15(b) or 15d-15(b) under the Securities Exchange Act of 1934, as amended (17 CFR 240.13a-15(b) or 240.15d-15(b)).

 

(b)There were no changes in the registrant’s internal control over financial reporting (as defined in Rule 30a-3(d) under the 1940 Act (17 CFR 270.30a-3(d))) that occurred during the period covered by this report that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting.

 

Item 12. Disclosure of Securities Lending Activities for Closed-End Management Investment Companies.

 

Not applicable.

 

Item 13. Exhibits.

 

(a)(1)Code of ethics, or any amendment thereto, that is the subject of disclosure required by Item 2 is attached hereto.

 

(a)(2)Certifications pursuant to Rule 30a-2(a) under the 1940 Act and Section 302 of the Sarbanes-Oxley Act of 2002 are attached hereto.

 

(b)Certifications pursuant to Rule 30a-2(b) under the 1940 Act and Section 906 of the Sarbanes- Oxley Act of 2002 are attached hereto.

 

 

 

 

SIGNATURES

 

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

 

(Registrant): Baillie Gifford Funds  

 

By (Signature and Title)* /s/ David Salter  
  David Salter, President  
  (principal executive officer)  

 

Date: June 30, 2022