Capital at risk

Investment strategy

Emerging Markets ex China

Emerging markets companies often have substantial opportunities and decades of growth ahead. We believe being selective is key to achieving great results: the index is not the best reflection of future growth. Our Emerging Markets ex China Strategy is a portfolio of 40-80 companies.

Aerial view of people fishing in traditional outrigger boat in lake with cloud reflections from above in Polonnaruwa, Sri Lanka.

Emerging Markets growth outside of China

An open-minded, patient approach in the least patient markets; helping our clients benefit from powerful growth tailwinds in developing countries by having a clear idea of the market inefficiencies we are trying to exploit.  

A patient portfolio

EM ex China is a relatively new asset class for most, but our specific experience dates back to 2005.

Our key goal is to build strong relationships with like-minded clients. We know 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.

Exploiting inefficiencies

We appreciate what is underappreciated. And 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 in the opportunity set is increasing, growth is on offer, yet due to external factors and risk perceptions we can invest in many of these at what look like very low prices.
Mike GushInvestment Manager, Partner

Meet the managers

Documents

Quarterly update

Get the latest investment commentary, portfolio overview, transactions and performance information alongside governance engagement and voting. 

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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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Invest in this strategy

You can invest in this strategy through the following fund(s).

Invest through other vehicles

Get in touch to learn about the other ways to invest, including:

  • Separate account

Strategy portfolio holdings

A list of the top 10 holdings that the representative portfolio invests in.

All figures up to: 31 March 2025

#Holding% of portfolio
1TSMC17.16
2Samsung Electronics4.48
3MediaTek4.37
4MercadoLibre4.27
5Naspers4.20
6Sea Limited4.00
7Reliance Industries3.80
8Petrobras2.93
9SK Hynix2.85
10Axis Bank2.55

Strategy holdings by sector

All figures up to: 30 April 2025

Created with Highcharts 11.4.6Information TechnologyFinancialsConsumer DiscretionaryMaterialsEnergyCommunication ServicesIndustrialsConsumer StaplesCash12345678936.20%19.56%15.71%8.22%8.05%4.83%3.42%3.26%0.76%

Total: 100%

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.

Invest in this strategy

You can invest in this strategy through the following fund(s).

Invest through other vehicles

Get in touch to learn about the other ways to invest, including:

  • Separate account

Insights

Key articles, videos and podcasts relating to the strategy:

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Insights

Viewing 16 of 16
  1. Actual investing revisited

    In this keynote paper Partner Stuart Dunbar reaffirms the importance of active management to healthy capitalism.
    May 2025
    ArticleLong read
  2. Emerging markets in 2050

    Trade shifts and underserved populations are among the factors favouring world-class stocks.
    April 2025
    Article
  3. Lithium: powering the future

    Investing in the Chilean mining company charging the energy transition.
    March 2025
    Article3 minutes
  4. Brazil: an uncomfortable dance?

    How our Brazilian holdings are leading with strong growth amid fiscal complexity.
    January 2025
    Article3 minutes
  5. Emerging markets: new opportunities

    The evolving landscape of emerging markets, fuelled by AI, energy transition and world-class companies driving growth.
    December 2024
    Article3 minutes
  6. Samsung: chipping away at challenges

    How Samsung turns challenges into opportunities for future growth.
    November 2024
    Article3 minutes
  7. The rise of the Global South

    Unpacking the BRICS summit's outcomes, the Global South's rise and implications for EM investors.
    October 2024
    Article3 minutes
  8. Travelling Brazil: open for business

    We share the trip notes from our time in Brazil, highlighting the energy sector, sustainability and fintech.
    September 2024
    Article3 minutes
  9. Investment specialist Qian Zhang

    Future Stocks: Our best ideas in Asia

    Qian Zhang highlights three Asian companies at the forefront of global structural trends.
    September 2024
    Video3 minutes
  10. Shareholders are seated in an auditorium, some are raising their hands to vote

    Emerging markets democracy: better than you think

    See what the recent elections in Mexico and India mean for emerging markets investors.
    June 2024
    Article3 minutes
  11. Women in orange saris carrying water at step well in Jaipur, India

    30 years of emerging markets

    Baillie Gifford’s Will Sutcliffe explains how emerging markets have evolved in the last three decades.
    April 2024
    Article15 minutes
  12. High-calibre emerging markets firms

    Why it’s a promising time to invest in exceptional emerging markets companies
    April 2024
    Podcast29 minutes
  13. How do we do what we do

    How do we implement our emerging markets equities philosophy in practice?
    January 2024
    Document
  14. 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.
    December 2023
    Document
  15. Why growth, why now?

    Tough times play to the partnership’s strengths: analysing what enables us to adapt and thrive amid rapid change.
    December 2023
    Article17 minutes
  16. Emerging markets – why bother?

    Emerging markets have underperformed developed ones recently. So, why should we invest in them?
    November 2023
    Article

Emerging markets in 2050

Trade shifts and underserved populations are among the factors favouring world-class stocks.
Read more
April 2025
Article

Invest in this strategy

You can invest in this strategy through the following fund(s).

Invest through other vehicles

Get in touch to learn about the other ways to invest, including:

  • Separate account

How to invest in this strategy

You can invest in this strategy through the following fund(s).

Invest through other vehicles

Get in touch to learn about the other ways to invest, including:

  • Separate account