Fund Evaluator:

Baillie Gifford International Growth 2 Overview

Baillie Gifford International Growth 2 (BGETX) is an actively managed International Equity Foreign Large Growth fund. Baillie Gifford Funds launched the fund in 2008.

The investment seeks capital appreciation. The fund invests in a diversified, international portfolio of common stocks and other equity securities of issuers located in countries of developed and emerging markets. It invests predominantly in securities issued by companies located in countries outside the U.S., including a range of developed and emerging market countries. The fund may, however, invest up to 10% of its net assets in common stocks and other equities of companies located in the U.S.

About Baillie Gifford International Growth 2 (BGETX)

There are 5 members of the management team with an average tenure of 10.74 years: Thomas Coutts (2008), Lawrence Burns (2012), Brian Lum (2015), Julia Angeles (2017), Robert Wilson (2024). Management tenure is more important for actively managed funds than passive index funds.

The fund has 2 primary benchmarks: MSCI EAFE GR USD index with a weighting of 100% and MSCI ACWI Ex USA GR USD index with a weighting of 100%. Baillie Gifford International Growth 2 has 64 securities in its portfolio. The top 10 holdings constitute 36.3% of the fund’s assets. The fund meets the SEC requirement of being classified as a diversified fund. The fund is not considered to have an ESG focus with its investment selection and management.

Baillie Gifford International Growth 2 is part of the Equity global asset class and is within the International Equity fund group. Baillie Gifford International Growth 2 has 88.4% of its portfolio invested in foreign issues. The overall assets allocated to domestic stock is 10.5%. There is 88.4% allocated to foreign stock, and 0.0% is allocated to preferred stocks. The bond allocation as a percentage of total assets is 0.0% (0.0% domestic bond, 0.0% foreign bond and 0.0% convertible bond). Baillie Gifford International Growth 2 has 1.1% of the portfolio in cash.

Assets Under Management

The fund has $362 million in total assets, which is below the $1 billion average for the Foreign Large Growth category. Normally, lower assets under management translates to higher average expense ratios, and greater total assets are desired. However, for some investment categories, such as small-cap investing, it may be difficult for the manager to fully employ the desired active strategy if assets grow too large or too quickly.

BGETX Performance and Fees

The expense ratio measures how much of a fund’s assets are used for administrative expenses and operating expenses, including adviser fees and fees for the transfer agent and custodial services. The Baillie Gifford International Growth 2 expense ratio is average compared to funds in the Foreign Large Growth category. Baillie Gifford International Growth 2 has an expense ratio of 0.57%, which is 45% lower than its category average, making the fund expense ratio grade a A. While it is difficult to predict returns, it is known that high annual expense ratios reduce your rate of return, and excessive fees are difficult to overcome. Active management normally comes with higher expense ratios than passive index management. Certain investment categories such as small company and foreign also normally have higher expense ratios. It is best to compare fund expense ratios against the category averages for meaningful assessments.

High portfolio turnover can translate to higher expenses and lower aftertax returns. Baillie Gifford International Growth 2 has a portfolio turnover rate of 21%, indicating that holds its assets around 0.0 years. By way of comparison, the average portfolio turnover is 51% for the Foreign Large Growth category.

Recently, in the month of July 2026, Baillie Gifford International Growth 2 returned -0.1%, which earned it a grade of B, as the Foreign Large Growth category had an average return of -2.7%. The letter grades of A, B, C, D and F are based upon relative rankings within the investment category. A grade of A, for example, would indicate that the return is in the highest 20% for that time period compared to all funds in that category.

Baillie Gifford International Growth 2 has a trailing yield of 0.05%, which is below the 0.95% category average. The fund normally distributes its income annually and its capital gains annually.

It’s natural to seek the best-performing investments, but you must consider the relationship between risk and return and the impact of costs and taxes on your realized returns.

Baillie Gifford International Growth 2 Grades

Year to date, the fund has returned 4.2%, 2.4 percentage points worse than the category, which translates into a grade of D. The fund has returned 9.6% over the past year (grade of D), 7.6% over the past three years (grade of D) and -2.0% per year over the past five years (grade of F) and 9.1% per year over the past 10 years (grade of B).

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