Capital at risk
Emerging Markets Concentrated Growth
This is a concentrated portfolio of 15-25 companies.
We’ve been investing in Emerging Markets (EM) for decades and are grateful to be entrusted by a wide range of long-standing clients across the world.
Developed investing in the developing world
EM investors should be open-minded about where growth can come from. We take a patient approach in the least patient markets; helping our clients benefit from powerful growth tailwinds in developing countries.
Turning time to your advantage
Our goal is to build strong relationships with like-minded clients. We can only do this if we deliver strong investment performance, net of costs, over the long term.
The number of genuinely world-class companies in emerging markets is growing, and we feel very fortunate to be tasked with seeking these out. We must invest with patience and give decisions time to prove themselves.
EM companies often have substantial addressable opportunities and decades of growth ahead of them. We believe that being selective is imperative to those seeking the best results: the index is not the best reflection of future growth.
Appreciating the underappreciated
We believe there are three persistent inefficiencies that we are well-placed to exploit for our clients:
- Growth duration: many companies grow for much longer than expected
- Growth pace: many companies grow much faster than expected
- Growth surprise: many companies grow when it’s least expected
Much of our process relies on the interplay of data, experience, educated creativity and probability. This does not necessarily lend itself to a matrix or a flowchart.
The quality of companies is increasing, growth is very much on offer, yet because of external factors and risk perceptions, we have an opportunity to invest at what look like very low prices.
Meet the managers
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Philosophy and process
Explore our investment philosophy and the processes around how the Emerging Markets team construct the portfolio.
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Strategy portfolio holdings
A list of the top 10 holdings that the representative portfolio invests in.
All figures up to: 30 September 2024
| # | Company | Fund % |
|---|---|---|
| 1 | TSMC | 14.0% |
| 2 | Tencent | 9.5% |
| 3 | Samsung Electronics | 6.4% |
| 4 | Meituan | 5.0% |
| 5 | Petrobras Common ADR | 4.5% |
| 6 | MercadoLibre | 4.5% |
| 7 | Sea Ltd ADR | 4.4% |
| 8 | ICICI Bank Ltd | 4.4% |
| 9 | First Quantum Minerals | 4.2% |
| 10 | Reliance Industries Ltd | 4.2% |
Please note
The information contained on this page is intended as a guide only and should not be relied upon when making investment decisions. All holdings information is unaudited. Source Baillie Gifford & Co. Please note that totals may not add due to rounding.
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Insights
Key articles, videos and podcasts relating to the strategy:
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Insights
Samsung: chipping away at challenges
How Samsung turns challenges into opportunities for future growth.
The rise of the Global South
Unpacking the BRICS summit's outcomes, the Global South's rise and implications for EM investors.
Travelling Brazil: open for business
We share the trip notes from our time in Brazil, highlighting the energy sector, sustainability and fintech.
The brilliance of Brilliance
Brilliance China Automotive's journey with its partnership, BMW, through governance, engagement, and value.
China’s third plenum: staying the tech course
Unveil China's third plenum resolutions focusing on AI, biotech, and renewable energies amid global challenges.
Emerging markets democracy: better than you think
See what the recent elections in Mexico and India mean for emerging markets investors.
From earth to equity: the platinum opportunity
Platinum's role in health, tech and green energy.
Luckin Coffee: looking forward
How Luckin Coffee is revolutionising China's coffee culture.
30 years of emerging markets
Baillie Gifford’s Will Sutcliffe explains how emerging markets have evolved in the last three decades.
High-calibre emerging markets firms
Why it’s a promising time to invest in exceptional emerging markets companies
ESG analyst trip notes: India and China
Read more about the unique perspective on the evolving energy landscape and corporate governance in these emerging markets.
BRICS expansion and impact
Unveiling the BRICS expansion's global influence and its effect on trade and geopolitics
Copper's role in emerging markets
Assessing copper's supply challenges and investment potential in emerging markets for 2024.
How do we do what we do
How do we implement our emerging markets equities philosophy in practice?
Why do we do what we do
Andrew Keiller and John Rae look at why we invest in emerging markets equities in the way that we do.
India's triumph in a turbulent world
Uncover insights on emerging markets, India's economy, and Asia's rising export champions.
China: fear or FOMO?
Ben Buckler on how investors should steer between the twin poles of risk in China.
Why growth, why now?
Tough times play to the partnership’s strengths: analysing what enables us to adapt and thrive amid rapid change.
South-east Asia's new export champions
Uncovering Asia's rising export stars in Vietnam, Indonesia and Thailand.
Emerging markets – why bother?
Emerging markets have underperformed developed ones recently. So, why should we invest in them?
Conversations with Shanghai
Discover the importance of High Bandwidth Memory in AI development and the key players in the market - SK Hynix and Samsung Electronics.
Finding China’s A-share jewels
The country’s domestic markets are rich in companies with the know-how to become global leaders.
Beyond the numbers
An analysis of the relationship between GDP growth and stock market returns in emerging markets, with a focus on China.
Brazil's economic landscape
Challenging perceptions: Lula's re-election and Brazil's economic potential
Emerging Markets: the possibilist
Understanding the difference between pessimism and possibility in Emerging Markets.
Emerging Markets: coming of age
It’s time to stop looking in the rear-view mirror when it comes to emerging markets.
The shape of things to come
It’s essential to be realistic and keep the risk of over-optimism in check. But there’s plenty to feel positive about in emerging markets, says Tim Erskine-Murray, who offers an insight into the reasons for his unwavering enthusiasm.
How do we do what we do
Monthly insights
Related insights
30 years of emerging markets
Baillie Gifford’s Will Sutcliffe explains how emerging markets have evolved in the last three decades.High-calibre emerging markets firms
Why it’s a promising time to invest in exceptional emerging markets companiesHow do we do what we do
How do we implement our emerging markets equities philosophy in practice?Why do we do what we do
Andrew Keiller and John Rae look at why we invest in emerging markets equities in the way that we do.China: fear or FOMO?
Ben Buckler on how investors should steer between the twin poles of risk in China.Why growth, why now?
Tough times play to the partnership’s strengths: analysing what enables us to adapt and thrive amid rapid change.Emerging markets – why bother?
Emerging markets have underperformed developed ones recently. So, why should we invest in them?Finding China’s A-share jewels
The country’s domestic markets are rich in companies with the know-how to become global leaders.Emerging Markets: the possibilist
Understanding the difference between pessimism and possibility in Emerging Markets.Emerging Markets: coming of age
It’s time to stop looking in the rear-view mirror when it comes to emerging markets.The shape of things to come
It’s essential to be realistic and keep the risk of over-optimism in check. But there’s plenty to feel positive about in emerging markets, says Tim Erskine-Murray, who offers an insight into the reasons for his unwavering enthusiasm.
Explore further
Curious to learn more about our products and what we can offer you? Please get in touch.
Important information
Baillie Gifford Overseas Limited (ARBN 118 567 178) is registered as a foreign company under the Corporations Act 2001 (Cth) and holds Foreign Australian Financial Services Licence No 528911. The information in this area is provided to you on the basis that you are a “wholesale client” within the meaning of section 761G of the Corporations Act 2001 (Cth) (“Corporations Act”). Please advise Baillie Gifford Overseas Limited immediately if you are not a wholesale client. In no circumstances should the information in this area be made available to “retail clients” as defined by the Corporations Act.
The information in this area contains general information only. It does not take into account any person’s objectives, financial situation or needs.