0000930413-11-004166.txt : 20110527 0000930413-11-004166.hdr.sgml : 20110527 20110527090749 ACCESSION NUMBER: 0000930413-11-004166 CONFORMED SUBMISSION TYPE: N-Q PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20110331 FILED AS OF DATE: 20110527 DATE AS OF CHANGE: 20110527 EFFECTIVENESS DATE: 20110527 FILER: COMPANY DATA: COMPANY CONFORMED NAME: BAILLIE GIFFORD FUNDS CENTRAL INDEX KEY: 0001120543 IRS NUMBER: 000000000 STATE OF INCORPORATION: MA FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: N-Q SEC ACT: 1940 Act SEC FILE NUMBER: 811-10145 FILM NUMBER: 11876154 BUSINESS ADDRESS: STREET 1: 1 RUTLAND COURT STREET 2: EDINBURGH SCOTLAND CITY: UK EH3 8E4 STATE: X0 ZIP: 00000 0001120543 S000006833 Baillie Gifford Emerging Markets Fund C000018471 Class II C000018472 Class III C000021545 Class I 0001120543 S000012763 Baillie Gifford International Equity Fund C000034444 Class 1 C000034445 Class 2 C000034446 Class 3 C000078438 Class 4 0001120543 S000012764 Baillie Gifford EAFE Fund C000034447 Class 1 C000034448 Class 2 C000034449 Class 3 C000078439 Class 4 0001120543 S000026148 Baillie Gifford EAFE Choice Fund C000078426 Class 1 C000078427 Class 2 C000078428 Class 3 C000078429 Class 4 N-Q 1 c65750_n-q.txt UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, DC 20549 FORM N-Q QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF REGISTERED MANAGEMENT INVESTMENT COMPANY 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) Angus N G Macdonald 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: December 31 -------------------- Date of reporting period: March 31, 2011 ------------------- EXPLANATORY NOTE: The registrant, an open-end investment company registered pursuant to Section 8(b) of the Investment Company Act of 1940 (the "Act"), has not filed a registration statement that has gone effective under the Securities Act of 1933 (the "1933 Act") because beneficial interests in the registrant are issued and sold solely in private transactions that do not involve any public offering within the meaning of Section 4 (2) of the 1933 Act. Accordingly, this report is not filed under Section 13(a) or Section 15(d) of the Securities Exchange Act of 1934. ITEM 1. SCHEDULE OF INVESTMENTS. PORTFOLIO OF INVESTMENTS MARCH 31, 2011 (UNAUDITED) BAILLIE GIFFORD EMERGING MARKETS FUND -------------------------------------------------------------------------------- SHARES VALUE -------------------------------------------------------------------------------- COMMON STOCKS - 89.9% ARGENTINA - 0.8% MercadoLibre, Inc. 45,400 $ 3,706,002 --------------- BRAZIL - 9.3% All America Latina Logistica 507,510 4,180,939 BM&F BOVESPA SA 291,100 2,112,844 OGX Petroleo e Gas Participacoes SA (a) 384,200 4,605,270 Petroleo Brasileiro SA ADR (a) 583,000 23,570,690 Vale SA ADR (a) 267,100 8,907,785 --------------- 43,377,528 --------------- CHINA - 18.6% Alibaba.com Ltd. 1,906,500 3,267,981 Aluminum Corp. of China Ltd., Class H (a) 6,312,000 5,987,270 Baidu, Inc. ADR (a) 97,700 13,464,037 Bank of China Ltd., Class H 11,320,200 6,295,018 China Construction Bank Corp., Class H 7,328,290 6,860,638 China Life Insurance Co., Ltd., Class H 687,000 2,567,345 China Mobile Ltd. 1,205,500 11,127,968 China Railway Construction Corp. Ltd., Class H 4,539,000 4,720,733 China Shenhua Energy Co., Ltd., Class H 1,921,500 9,044,045 China Taiping Insurance Holdings Co., Ltd. (a) 1,300,000 3,839,182 CSR Corp., Ltd., Class H 3,883,000 3,981,885 Parkson Retail Group Ltd. 1,515,000 2,081,267 Ping An Insurance Co. of China Ltd., Class H 644,000 6,520,224 Renhe Commercial Holdings Co., Ltd. 15,016,000 2,798,915 Want Want China Holdings Ltd. 5,475,000 4,302,252 --------------- 86,858,760 --------------- GUERNSEY - 0.9% Chariot Oil & Gas Ltd. (a) 1,032,799 4,155,140 --------------- INDIA - 6.5% ACC Ltd. 120,700 2,907,834 GAIL India Ltd. 491,193 5,106,386 Hero Honda Motors Ltd. 101,500 3,621,188 Housing Development Finance Corp. 339,600 5,342,497 IFCI Ltd. 1,905,937 2,247,896 Infosys Technologies Ltd. 33,200 2,410,768 Infrastructure Development Finance Co., Ltd. 899,500 3,115,037 Tata Power Co., Ltd. 184,400 5,523,713 --------------- 30,275,319 --------------- INDONESIA - 4.7% PT Astra International Tbk 609,500 3,986,343 PT Bakrieland Development Tbk 91,631,000 1,471,656 PT Bank Rakyat Indonesia 5,578,000 3,678,528 PT Bumi Resources Tbk 18,195,000 6,982,349 PT Semen Gresik Persero Tbk 3,091,500 3,228,480 PT Tambang Batubara Bukit Asam Tbk 1,185,000 2,854,386 --------------- 22,201,742 --------------- IRELAND - 1.4% Kenmare Resources Plc. (a) 9,228,611 6,573,934 --------------- SEE PREVIOUSLY SUBMITTED NOTES TO THE FINANCIAL STATEMENTS FOR THE ANNUAL PERIOD ENDED DECEMBER 31, 2010. PORTFOLIO OF INVESTMENTS (CONTINUED) MARCH 31, 2011 (UNAUDITED) BAILLIE GIFFORD EMERGING MARKETS FUND -------------------------------------------------------------------------------- SHARES VALUE -------------------------------------------------------------------------------- LUXEMBOURG - 0.9% Evraz Group SA GDR Reg S (a) 113,400 $ 4,504,072 --------------- MALAYSIA - 0.6% Public Bank Bhd 634,900 2,754,370 --------------- MEXICO - 4.0% America Movil SAB de CV, Series L ADR (a) 128,300 7,454,230 Cemex SAB de CV ADR (a) 541,840 4,838,631 Wal-Mart de Mexico SAB de CV, Series V 2,075,660 6,229,886 --------------- 18,522,747 --------------- PERU - 1.0% Credicorp Ltd. 44,200 4,637,906 --------------- RUSSIA - 5.0% LUKOIL ADR (a) 99,000 7,067,610 Petropavlovsk Plc. 286,300 4,581,977 Severstal GDR Reg S 255,100 5,001,373 VTB Bank OJSC 454,716 3,180,822 X5 Retail Group NV GDR Reg S (a) 87,300 3,667,871 --------------- 23,499,653 --------------- SOUTH AFRICA - 8.2% AngloGold Ashanti Ltd. 40,900 1,959,985 Gold Fields Ltd. 406,600 7,093,990 Gold Fields Ltd. ADR 142,100 2,481,066 Impala Platinum Holdings Ltd. 162,400 4,692,242 Lonmin Plc. 142,903 3,901,041 Massmart Holdings Ltd. 234,928 4,870,633 Naspers Ltd., N Shares 84,900 4,566,917 Sasol Ltd. 148,800 8,609,251 --------------- 38,175,125 --------------- SOUTH KOREA - 11.4% Cheil Industries, Inc. 36,600 3,881,486 Glovis Co., Ltd. 42,100 5,979,626 Hyundai Mobis 27,000 8,050,037 KB Financial Group, Inc. 83,813 4,384,289 NHN Corp. (a) 26,800 4,675,897 Samsung Electronics Co., Ltd. 18,450 15,644,966 Samsung Fire & Marine Insurance Co., Ltd. (a) 26,800 5,920,720 Shinsegae Co., Ltd. 19,500 4,639,479 --------------- 53,176,500 --------------- TAIWAN - 8.3% Advanced Semiconductor Engineering, Inc. 3,017,038 3,265,335 China Life Insurance Co., Ltd. 5,533,513 5,578,903 Far Eastern Department Stores Ltd. 3,268,122 5,160,987 Hon Hai Precision Industry Co., Ltd. 2,801,769 9,803,352 MediaTek, Inc. 458,680 5,269,973 Taiwan Semiconductor Manufacturing Co., Ltd. 4,101,310 9,827,826 --------------- 38,906,376 --------------- THAILAND - 1.5% Bank of Ayudhya PCL NVDR 8,341,000 6,840,238 --------------- SEE PREVIOUSLY SUBMITTED NOTES TO THE FINANCIAL STATEMENTS FOR THE ANNUAL PERIOD ENDED DECEMBER 31, 2010. PORTFOLIO OF INVESTMENTS (CONTINUED) MARCH 31, 2011 (UNAUDITED) BAILLIE GIFFORD EMERGING MARKETS FUND -------------------------------------------------------------------------------- SHARES VALUE -------------------------------------------------------------------------------- TURKEY - 1.2% Turkiye Garanti Bankasi AS 1,175,323 $ 5,483,909 Turkiye Is Bankasi, Class C 1 --------------- 5,483,910 --------------- TURKMENISTAN - 3.2% Dragon Oil Plc. (a) 1,546,545 14,836,273 --------------- UNITED KINGDOM - 2.4% Desire Petroleum Plc. (a) 218,218 131,903 Gulf Keystone Petroleum Ltd. (a) 1,185,101 2,890,925 Rockhopper Exploration Plc. (a) 51,533 204,814 Tullow Oil Plc. 229,100 5,316,223 United Co. RUSAL Plc. (a) 1,538,000 2,656,339 --------------- 11,200,204 --------------- TOTAL COMMON STOCKS (cost $318,623,012) 419,685,799 --------------- PREFERRED STOCKS - 8.3% BRAZIL - 7.1% Banco Bradesco SA 352,129 7,195,065 Bradespar SA 312,700 8,195,531 Companhia Brasileira de Distribuicao Grupo Pao de Acucar 115,800 4,755,698 Companhia Energetica de Minas Gerais 257,542 4,902,707 Itausa - Investimentos Itau SA 1,006,652 7,855,172 --------------- 32,904,173 --------------- SOUTH KOREA - 1.2% Samsung Electronics Co., Ltd. 10,035 5,712,652 --------------- TOTAL PREFERRED STOCKS (cost $25,143,411) 38,616,825 --------------- TOTAL INVESTMENTS - 98.2% (cost $343,766,423) 458,302,624 Other assets less liabilities - 1.8% 8,484,879 --------------- NET ASSETS - 100.0% $ 466,787,503 =============== (a) Non-income producing security. ADR - American Depositary Receipt. GDR - Global Depositary Receipt. NVDR - Non Voting Depositary Receipt. PCL - Public Company Limited. Reg S - is a safe harbor that defines when an offering of securities will be deemed to come to rest abroad and therefore is not subject to the registration obligations imposed under Section 5 of the 1933 Act. The regulation includes two safe harbor provisions: an issuer safe harbor and a resale safe harbor. In each case, the regulation demands that offers and sales of the securities be made outside the United States and that no offering participant (which includes the issuer, the banks assisting with the offer and their respective affiliates) engage in "directed" selling efforts. In the case of issuers for whose securities there is substantial U.S. market interest, the regulation also requires that no offers and sales be made to U.S. persons (including U.S. persons physically located outside the United States). At March 31, 2011, the aggregate cost of investment securities for income tax purposes was $343,766,423. Net unrealized appreciation aggregated $114,536,201 of which $123,157,239 related to appreciated investment securities and $8,621,038 related to depreciated investment securities. SEE PREVIOUSLY SUBMITTED NOTES TO THE FINANCIAL STATEMENTS FOR THE ANNUAL PERIOD ENDED DECEMBER 31, 2010. PORTFOLIO OF INVESTMENTS (CONCLUDED) MARCH 31, 2011 (UNAUDITED) BAILLIE GIFFORD EMERGING MARKETS FUND -------------------------------------------------------------------------------- Various inputs are used in determining the value of the Fund's investments. These inputs are summarized in the three broad levels listed below. Level 1 - quoted prices in active markets for identical securities Level 2 - other significant observable inputs (including quoted prices in active markets for identical securities and for similar securities in active and inactive markets) Level 3 - significant unobservable inputs (including the Fund's own assumptions in determining the fair value of investments) The following is a summary of the inputs used as of March 31, 2011 in valuing the Fund's assets carried at fair value: LEVEL 1 LEVEL 2 LEVEL 3 -------------------------------------------------------------------------------- INVESTMENTS IN SECURITIES Common Stocks $ 108,297,983 $ 311,387,816 $ - Preferred Stocks 32,904,173 5,712,652 - ------------------------------------------- TOTAL $ 141,202,156 $ 317,100,468 $ - =========================================== Fair value of Level 2 investments at 12/31/10 was $374,741,792. $44,007,087 was transferred out of Level 2 into Level 1 at 3/31/11 as a result of using third-party vendor modeling tools to reflect any (lack of) significant market movements between the time which the Fund valued its securities and the earlier closing of foreign markets. It is the Fund's policy to recognize transfers in and transfers out at the fair value as of the beginning of the period. SEE PREVIOUSLY SUBMITTED NOTES TO THE FINANCIAL STATEMENTS FOR THE ANNUAL PERIOD ENDED DECEMBER 31, 2010. PORTFOLIO OF INVESTMENTS MARCH 31, 2011 (UNAUDITED) BAILLIE GIFFORD INTERNATIONAL EQUITY FUND -------------------------------------------------------------------------------- SHARES VALUE -------------------------------------------------------------------------------- COMMON STOCKS - 95.6% ARGENTINA - 1.0% MercadoLibre, Inc. 95,300 $ 7,779,339 --------------- AUSTRALIA - 3.5% Brambles Ltd. 1,645,376 12,043,453 Cochlear Ltd. 92,666 7,951,590 Woolworths Ltd. 257,414 7,154,398 --------------- 27,149,441 --------------- BELGIUM - 0.9% Groupe Bruxelles Lambert SA 75,994 7,101,116 --------------- BERMUDA - 1.3% Seadrill Ltd. 285,622 10,326,402 --------------- BRAZIL - 4.3% All America Latina Logistica 530,260 4,368,356 BM&F BOVESPA SA 954,100 6,924,990 OGX Petroleo e Gas Participacoes SA (a) 723,400 8,671,141 Petroleo Brasileiro SA ADR (a) 331,800 13,414,674 --------------- 33,379,161 --------------- CANADA - 5.4% Cenovus Energy, Inc. 127,557 5,039,126 Eldorado Gold Corp. 509,458 8,307,923 EnCana Corp. 122,143 4,224,296 Fairfax Financial Holdings Ltd. 25,867 9,778,500 IAMGOLD Corp. 349,282 7,698,975 Ritchie Bros. Auctioneers, Inc. 251,088 7,080,737 --------------- 42,129,557 --------------- CHINA - 8.3% Baidu, Inc. ADR (a) 97,650 13,457,147 Cheung Kong (Holdings) Ltd. 606,000 9,877,698 China Shenhua Energy Co., Ltd., Class H 1,888,500 8,888,721 Hang Seng Bank Ltd. 507,500 8,200,126 Hong Kong Exchanges & Clearing Ltd. 653,400 14,177,706 Kunlun Energy Co., Ltd. 4,448,000 7,084,188 Pacific Basin Shipping Ltd. 4,848,000 3,061,444 --------------- 64,747,030 --------------- DENMARK - 3.5% A P Moller - Maersk AS, B Shares 806 7,564,324 DSV AS 334,899 8,246,586 Novozymes AS, B Shares 73,270 11,194,159 --------------- 27,005,069 --------------- FINLAND - 2.4% Kone Oyj, B Shares 216,160 12,432,086 Sampo Oyj, A Shares 188,674 6,008,573 --------------- 18,440,659 --------------- FRANCE - 3.5% CFAO 147,575 5,532,496 Edenred (a) 170,691 5,151,306 Essilor International SA 125,311 9,297,468 Lafarge SA 121,650 7,582,466 --------------- 27,563,736 --------------- SEE PREVIOUSLY SUBMITTED NOTES TO THE FINANCIAL STATEMENTS FOR THE ANNUAL PERIOD ENDED DECEMBER 31, 2010. PORTFOLIO OF INVESTMENTS (CONTINUED) MARCH 31, 2011 (UNAUDITED) BAILLIE GIFFORD INTERNATIONAL EQUITY FUND -------------------------------------------------------------------------------- SHARES VALUE -------------------------------------------------------------------------------- GERMANY - 3.1% Aixtron SE 184,668 $ 8,096,266 Celesio AG 165,823 4,050,327 Deutsche Boerse AG 159,442 12,070,497 --------------- 24,217,090 --------------- INDIA - 0.9% Infrastructure Development Finance Co., Ltd. 2,115,649 7,326,653 --------------- IRELAND - 2.4% CRH Plc. 283,872 6,521,987 James Hardie Industries SE CDI (a) 944,466 5,948,113 Ryanair Holdings Plc. ADR (a) 227,009 6,310,850 --------------- 18,780,950 --------------- ISRAEL - 0.8% Teva Pharmaceutical Industries Ltd. ADR 121,500 6,095,655 --------------- JAPAN - 9.0% Canon, Inc. 207,600 8,928,828 Chugai Pharmaceutical Co., Ltd. 224,300 3,857,951 Fast Retailing Co., Ltd. 56,800 7,110,823 INPEX Corp. 1,113 8,420,507 Japan Tobacco, Inc. 2,086 7,541,693 Mitsui & Co., Ltd. 418,500 7,492,769 Olympus Corp. 333,600 9,290,164 Rakuten, Inc. 10,556 9,470,485 SMC Corp. 48,700 8,015,673 --------------- 70,128,893 --------------- NETHERLANDS - 1.8% ASML Holding NV (a) 101,841 4,528,703 Heineken Holding NV 200,329 9,620,104 --------------- 14,148,807 --------------- NORWAY - 1.1% AKER Solutions ASA 371,161 8,532,310 --------------- PORTUGAL - 0.5% Galp Energia, SGPS, SA, B Shares 182,934 3,909,480 --------------- RUSSIA - 1.8% Mobile TeleSystems ADR (a) 321,350 6,822,261 X5 Retail Group NV GDR Reg S (a) 176,950 7,434,477 --------------- 14,256,738 --------------- SINGAPORE - 2.7% DBS Group Holdings Ltd. 791,000 9,183,438 United Overseas Bank Ltd. 815,000 12,151,306 --------------- 21,334,744 --------------- SOUTH AFRICA - 3.2% Massmart Holdings Ltd. 507,634 10,524,497 Naspers Ltd., N Shares 276,301 14,862,705 --------------- 25,387,202 --------------- SOUTH KOREA - 2.7% Hyundai Mobis 17,900 5,336,876 Samsung Electronics Co., Ltd. 18,241 15,467,741 --------------- 20,804,617 --------------- SEE PREVIOUSLY SUBMITTED NOTES TO THE FINANCIAL STATEMENTS FOR THE ANNUAL PERIOD ENDED DECEMBER 31, 2010. PORTFOLIO OF INVESTMENTS (CONTINUED) MARCH 31, 2011 (UNAUDITED) BAILLIE GIFFORD INTERNATIONAL EQUITY FUND -------------------------------------------------------------------------------- SHARES VALUE -------------------------------------------------------------------------------- SPAIN - 1.6% Banco Santander SA 329,238 $ 3,840,218 Industria de Diseno Textil SA 103,951 8,341,028 --------------- 12,181,246 --------------- SWEDEN - 4.9% Atlas Copco AB, B Shares 1,024,435 24,743,830 Svenska Handelsbanken AB, A Shares 410,158 13,452,880 --------------- 38,196,710 --------------- SWITZERLAND - 4.1% Nestle SA 424,171 24,290,211 Roche Holding AG 53,121 7,583,840 --------------- 31,874,051 --------------- TAIWAN - 3.5% Hon Hai Precision Industry Co., Ltd. GDR Reg S 939,080 6,578,537 MediaTek, Inc. 514,371 5,909,831 Taiwan Semiconductor Manufacturing Co., Ltd. ADR 1,208,004 14,713,489 --------------- 27,201,857 --------------- TURKEY - 1.8% Anadolu Efes Biracilik ve Malt Sanayii AS 504,430 7,146,647 BIM Birlesik Magazalar AS 203,525 6,850,666 --------------- 13,997,313 --------------- UNITED KINGDOM - 15.6% Amlin Plc. 1,459,000 8,935,003 Antofagasta Plc. 451,463 9,841,464 BG Group Plc. 403,760 10,023,595 BHP Billiton Plc. 272,707 10,796,876 British American Tobacco Plc. 326,305 13,084,130 Capita Group Plc. 623,670 7,433,688 Experian Plc. 714,679 8,848,444 Hargreaves Lansdown PLC 441,000 4,306,892 Premier Farnell Plc. 774,547 3,370,999 Rio Tinto Plc. 250,200 17,688,819 Sage Group Plc. (The) 1,623,251 7,241,232 Tullow Oil Plc. 516,244 11,979,347 Wolseley Plc. (a) 256,800 8,644,962 --------------- 122,195,451 --------------- TOTAL COMMON STOCKS (cost $609,616,144) 746,191,277 --------------- PREFERRED STOCKS - 3.1% BRAZIL - 3.1% Itau Unibanco Holding SA ADR 274,780 6,608,459 Vale SA ADR 605,000 17,859,600 --------------- TOTAL PREFERRED STOCKS (cost $18,979,317) 24,468,059 --------------- TOTAL INVESTMENTS - 98.7% (cost $628,595,461) 770,659,336 Other assets less liabilities - 1.3% 10,393,958 --------------- NET ASSETS - 100.0% $ 781,053,294 =============== (a) Non-income producing security. ADR - American Depositary Receipt. SEE PREVIOUSLY SUBMITTED NOTES TO THE FINANCIAL STATEMENTS FOR THE ANNUAL PERIOD ENDED DECEMBER 31, 2010. PORTFOLIO OF INVESTMENTS (CONCLUDED) MARCH 31, 2011 (UNAUDITED) BAILLIE GIFFORD INTERNATIONAL EQUITY FUND -------------------------------------------------------------------------------- CDI - Chess Depository Interest. GDR - Global Depositary Receipt. Reg S - is a safe harbor that defines when an offering of securities will be deemed to come to rest abroad and therefore is not subject to the registration obligations imposed under Section 5 of the 1933 Act. The regulation includes two safe harbor provisions: an issuer safe harbor and a resale safe harbor. In each case, the regulation demands that offers and sales of the securities be made outside the United States and that no offering participant (which includes the issuer, the banks assisting with the offer and their respective affiliates) engage in "directed" selling efforts. In the case of issuers for whose securities there is substantial U.S. market interest, the regulation also requires that no offers and sales be made to U.S. persons (including U.S. persons physically located outside the United States). At March 31, 2011, the aggregate cost of investment securities for income tax purposes was $628,595,461. Net unrealized appreciation aggregated $142,063,875 of which $147,200,526 related to appreciated investment securities and $5,136,651 related to depreciated investment securities. Various inputs are used in determining the value of the Fund's investments. These inputs are summarized in the three broad levels listed below. Level 1 - quoted prices in active markets for identical securities Level 2 - other significant observable inputs (including quoted prices in active markets for identical securities and for similar securities in active and inactive markets) Level 3 - significant unobservable inputs (including the Fund's own assumptions in determining the fair value of investments) The following is a summary of the inputs used as of March 31, 2011 in valuing the Fund's assets carried at fair value: LEVEL 1 LEVEL 2 LEVEL 3 -------------------------------------------------------------------------------- INVESTMENTS IN SECURITIES Common Stocks $145,788,300 $600,402,977 $ - Preferred Stocks 24,468,059 - - ----------------------------------------- TOTAL $170,256,359 $600,402,977 $ - ========================================= Fair value of Level 2 investments at 12/31/10 was $563,051,449. $20,150,140 was transferred out of Level 2 into Level 1 at 3/31/11 as a result of using third-party vendor modeling tools to reflect any (lack of) significant market movements between the time at which the Fund valued its securities and the earlier closing of foreign markets. It is the Fund's policy to recognize transfers in and transfers out at the fair value as of the beginning of the period. SEE PREVIOUSLY SUBMITTED NOTES TO THE FINANCIAL STATEMENTS FOR THE ANNUAL PERIOD ENDED DECEMBER 31, 2010. PORTFOLIO OF INVESTMENTS MARCH 31, 2011 (UNAUDITED) BAILLIE GIFFORD EAFE FUND -------------------------------------------------------------------------------- SHARES VALUE -------------------------------------------------------------------------------- COMMON STOCKS - 93.1% AUSTRALIA - 5.8% Brambles Ltd. 4,007,030 $ 29,329,757 Fortescue Metals Group Ltd. 2,234,646 14,806,860 Woodside Petroleum Ltd. 748,608 36,242,138 Woolworths Ltd. 704,320 19,575,415 --------------- 99,954,170 --------------- BRAZIL - 2.1% B2W Companhia Global do Varejo 535,900 7,352,562 BM&F BOVESPA SA 1,506,500 10,934,386 OGX Petroleo e Gas Participacoes SA (a) 1,530,700 18,347,961 --------------- 36,634,909 --------------- CHINA - 10.4% Baidu, Inc. ADR (a) 533,600 73,535,416 China Merchants Bank Co., Ltd., Class H 6,884,500 19,031,357 CNOOC Ltd. 6,109,000 15,437,581 Hong Kong Exchanges & Clearing Ltd. 1,070,200 23,221,581 Li & Fung Ltd. 1,872,000 9,573,397 Ports Design Ltd. 1,078,000 2,484,772 Tencent Holdings Ltd. 1,464,000 35,652,819 --------------- 178,936,923 --------------- DENMARK - 3.5% Novo Nordisk AS, B Shares 203,697 25,580,796 Novozymes AS, B Shares 99,518 15,204,317 Vestas Wind Systems AS (a) 433,940 18,835,435 --------------- 59,620,548 --------------- FRANCE - 5.8% Essilor International SA 382,164 28,354,714 L'Oreal SA 236,246 27,524,849 PPR 292,126 44,741,517 --------------- 100,621,080 --------------- GERMANY - 6.0% Adidas AG 488,261 30,697,735 Aixtron SE 229,300 10,053,034 Axel Springer AG 6,751 1,091,170 HeidelbergCement AG 204,842 14,244,159 Q-Cells SE (a) 288,421 1,243,678 SAP AG 386,561 23,642,114 SMA Solar Technology AG 61,880 7,785,137 TUI AG (a) 1,280,627 15,288,803 --------------- 104,045,830 --------------- INDIA - 1.0% Housing Development Finance Corp. 744,200 11,707,558 Reliance Capital Ltd. 461,400 6,034,270 --------------- 17,741,828 --------------- IRELAND - 0.5% James Hardie Industries SE CDI (a) 1,242,501 7,825,095 --------------- ISRAEL - 1.1% Teva Pharmaceutical Industries Ltd. ADR 369,700 18,547,849 --------------- SEE PREVIOUSLY SUBMITTED NOTES TO THE FINANCIAL STATEMENTS FOR THE ANNUAL PERIOD ENDED DECEMBER 31, 2010. PORTFOLIO OF INVESTMENTS (CONTINUED) MARCH 31, 2011 (UNAUDITED) BAILLIE GIFFORD EAFE FUND -------------------------------------------------------------------------------- SHARES VALUE -------------------------------------------------------------------------------- JAPAN - 11.1% Canon, Inc. 587,000 $ 25,246,735 Hoya Corp. 530,000 12,095,110 Japan Tobacco, Inc. 810 2,928,462 Kyocera Corp. 67,500 6,840,958 Nintendo Co., Ltd. 121,700 33,091,429 Rakuten, Inc. 45,533 40,850,665 Rohm Co., Ltd. 159,700 10,034,394 SMC Corp. 173,300 28,523,947 Yamada Denki Co., Ltd. 226,440 15,217,276 Yamaha Motor Co., Ltd. (a) 923,000 16,071,196 --------------- 190,900,172 --------------- LUXEMBOURG - 0.6% Oriflame Cosmetics SA 203,137 10,502,895 Reinet Investments SCA (a) 39,281 693,355 --------------- 11,196,250 --------------- MEXICO - 0.5% Wal-Mart de Mexico SAB de CV, Series V 2,727,200 8,185,417 --------------- SINGAPORE - 0.5% Singapore Exchange Ltd. 1,342,000 8,352,933 --------------- SOUTH AFRICA - 0.5% Impala Platinum Holdings Ltd. 299,900 8,665,046 --------------- SOUTH KOREA - 1.6% Celltrion, Inc. 245,607 7,789,795 Samsung Electronics Co., Ltd. 22,300 18,909,634 --------------- 26,699,429 --------------- SPAIN - 5.0% Banco Santander SA 4,112,502 47,968,050 Industria de Diseno Textil SA 474,156 38,046,276 --------------- 86,014,326 --------------- SWEDEN - 7.9% Alfa Laval AB 967,204 21,008,954 Atlas Copco AB, A Shares 2,201,730 58,470,498 Sandvik AB 1,328,343 25,069,133 Svenska Handelsbanken AB, A Shares 955,843 31,350,946 --------------- 135,899,531 --------------- SWITZERLAND - 6.8% ABB Ltd. (a) 770,546 18,503,092 Compagnie Financiere Richemont SA, Br A 814,169 46,944,991 Geberit AG 105,132 22,868,267 Syngenta AG 86,973 28,294,578 --------------- 116,610,928 --------------- TAIWAN - 1.0% Taiwan Semiconductor Manufacturing Co., Ltd. ADR 1,386,806 16,891,297 --------------- TURKEY - 1.2% Turkiye Garanti Bankasi AS 4,385,821 20,463,689 --------------- SEE PREVIOUSLY SUBMITTED NOTES TO THE FINANCIAL STATEMENTS FOR THE ANNUAL PERIOD ENDED DECEMBER 31, 2010. PORTFOLIO OF INVESTMENTS (CONTINUED) MARCH 31, 2011 (UNAUDITED) BAILLIE GIFFORD EAFE FUND -------------------------------------------------------------------------------- SHARES VALUE -------------------------------------------------------------------------------- UNITED KINGDOM - 20.2% ARM Holdings PLC 1,430,278 $ 13,272,070 Autonomy Corp. Plc. (a) 662,300 16,877,154 BG Group Plc. 888,251 22,051,388 BHP Billiton Plc. 1,357,055 53,727,829 British American Tobacco Plc. 912,659 36,595,667 Lloyds Banking Group Plc. (a) 17,891,080 16,624,561 Meggitt Plc. 4,570,046 25,166,572 Prudential Plc. 2,463,000 27,892,855 Rolls-Royce Group Plc. (a) 2,966,701 29,416,714 SABMiller Plc. 891,000 31,531,739 Signet Jewelers Ltd. (a) 176,359 7,940,695 Standard Chartered Plc. 1,611,780 41,808,041 Tesco Plc. 4,124,570 25,195,759 --------------- 348,101,044 --------------- TOTAL COMMON STOCKS (cost $1,214,317,114) 1,601,908,294 --------------- PREFERRED STOCKS - 3.7% BRAZIL - 3.3% Itau Unibanco Holding SA ADR 1,114,380 26,800,839 Petroleo Brasileiro SA ADR 866,100 30,781,194 --------------- 57,582,033 --------------- GERMANY - 0.4% Porsche Automobil Holding SE 110,353 7,185,607 --------------- TOTAL PREFERRED STOCKS (cost $51,285,095) 64,767,640 --------------- RIGHTS(A) - 0.1% BRAZIL - 0.0% B2W Companhia Global do Varejo expiring on 4/27/11 224,760 151,432 --------------- GERMANY - 0.1% Porsche Automobil Holding SE expiring on 4/13/11 110,353 956,647 --------------- TOTAL RIGHTS (cost $0) 1,108,079 --------------- TOTAL INVESTMENTS - 96.9% (cost $1,265,602,209) 1,667,784,013 Other assets less liabilities - 3.1% 53,381,078 --------------- NET ASSETS - 100.0% $1,721,165,091 =============== (a) Non-income producing security. ADR - American Depositary Receipt. CDI - Chess Depository Interest. SEE PREVIOUSLY SUBMITTED NOTES TO THE FINANCIAL STATEMENTS FOR THE ANNUAL PERIOD ENDED DECEMBER 31, 2010. PORTFOLIO OF INVESTMENTS (CONCLUDED) MARCH 31, 2011 (UNAUDITED) BAILLIE GIFFORD EAFE FUND -------------------------------------------------------------------------------- Reg S - is a safe harbor that defines when an offering of securities will be deemed to come to rest abroad and therefore is not subject to the registration obligations imposed under Section 5 of the 1933 Act. The regulation includes two safe harbor provisions: an issuer safe harbor and a resale safe harbor. In each case, the regulation demands that offers and sales of the securities be made outside the United States and that no offering participant (which includes the issuer, the banks assisting with the offer and their respective affiliates) engage in "directed" selling efforts. In the case of issuers for whose securities there is substantial U.S. market interest, the regulation also requires that no offers and sales be made to U.S. persons (including U.S. persons physically located outside the United States). At March 31, 2011, the aggregate cost of investment securities for income tax purposes was $1,265,602,209. Net unrealized appreciation aggregated $402,181,804 of which $429,916,821 related to appreciated investment securities and $27,735,017 related to depreciated investment securities. Various inputs are used in determining the value of the Fund's investments. These inputs are summarized in the three broad levels listed below. Level 1 - quoted prices in active markets for identical securities Level 2 - other significant observable inputs (including quoted prices in active markets for identical securities and for similar securities in active and inactive markets) Level 3 - significant unobservable inputs (including the Fund's own assumptions in determining the fair value of investments) The following is a summary of the inputs used as of March 31, 2011 in valuing the Fund's assets carried at fair value: LEVEL 1 LEVEL 2 LEVEL 3 -------------------------------------------------------------------------------- INVESTMENTS IN SECURITIES Common Stocks $ 155,579,413 $1,446,328,881 $ - Preferred Stocks 57,582,033 7,185,607 - Rights 1,108,079 - - ------------------------------------------- TOTAL $ 214,269,525 $1,453,514,488 $ - =========================================== Fair value of Level 2 investments at 12/31/10 was $1,384,915,742. $35,695,901 was transferred out of Level 2 into Level 1 at 3/31/11 as a result of using third-party vendor modeling tools to reflect any (lack of) significant market movements between the time at which the Fund valued its securities and the earlier closing of foreign markets. It is the Fund's policy to recognize transfers in and transfers out at the fair value as of the beginning of the period. SEE PREVIOUSLY SUBMITTED NOTES TO THE FINANCIAL STATEMENTS FOR THE ANNUAL PERIOD ENDED DECEMBER 31, 2010. PORTFOLIO OF INVESTMENTS MARCH 31, 2011 (UNAUDITED) BAILLIE GIFFORD EAFE CHOICE FUND -------------------------------------------------------------------------------- SHARES VALUE -------------------------------------------------------------------------------- COMMON STOCKS - 96.9% AUSTRALIA - 5.4% Aristocrat Leisure Ltd. 384,745 $ 1,292,650 Billabong International Ltd. 132,042 1,030,127 Brambles Ltd. 192,355 1,407,957 Cochlear Ltd. 17,536 1,504,749 Woolworths Ltd. 34,917 970,460 --------------- 6,205,943 --------------- BELGIUM - 2.6% Colruyt SA 21,375 1,125,694 Groupe Bruxelles Lambert SA 19,954 1,864,564 --------------- 2,990,258 --------------- BERMUDA - 1.7% Midland Holdings Ltd. 386,000 300,156 Seadrill Ltd. 43,494 1,572,486 --------------- 1,872,642 --------------- CHINA - 3.5% BOC Hong Kong (Holdings) Ltd. 339,000 1,105,223 China Merchants Bank Co., Ltd., Class H 167,000 461,651 Esprit Holdings Ltd. 149,100 683,624 Hang Lung Properties Ltd. 196,000 859,651 Hong Kong Exchanges & Clearing Ltd. 38,700 839,726 --------------- 3,949,875 --------------- DENMARK - 6.8% A P Moller - Maersk AS, B Shares 63 591,256 Carlsberg AS, Class B 19,164 2,060,774 Danisco AS 9,457 1,192,137 Jyske Bank AS (a) 32,437 1,441,537 Novo Nordisk AS, B Shares 10,646 1,336,952 Novozymes AS, B Shares 7,749 1,183,889 --------------- 7,806,545 --------------- FINLAND - 2.1% Kone Oyj, B Shares 27,865 1,602,609 Nokia Corp. 94,136 801,493 --------------- 2,404,102 --------------- FRANCE - 5.1% BioMerieux 9,566 1,002,968 Legrand SA 30,767 1,279,829 L'Oreal SA 7,753 903,296 Neopost SA 6,744 590,442 Total SA 34,514 2,103,052 --------------- 5,879,587 --------------- GERMANY - 3.2% Adidas AG 16,988 1,068,062 Celesio AG 44,807 1,094,438 Deutsche Boerse AG 10,873 823,136 Deutsche Post AG 39,353 707,299 --------------- 3,692,935 --------------- INDIA - 0.9% Mahindra & Mahindra Ltd. GDR 64,740 1,016,723 --------------- ITALY - 0.5% Intesa Sanpaolo SpA 207,671 612,644 --------------- SEE PREVIOUSLY SUBMITTED NOTES TO THE FINANCIAL STATEMENTS FOR THE ANNUAL PERIOD ENDED DECEMBER 31, 2010. PORTFOLIO OF INVESTMENTS (CONTINUED) MARCH 31, 2011 (UNAUDITED) BAILLIE GIFFORD EAFE CHOICE FUND -------------------------------------------------------------------------------- SHARES VALUE -------------------------------------------------------------------------------- JAPAN - 19.1% Asahi Breweries Ltd. 37,500 $ 623,475 Canon, Inc. 37,000 1,591,362 Chugai Pharmaceutical Co., Ltd. 37,700 648,439 Fast Retailing Co., Ltd. 5,600 701,067 Hitachi High-Technologies Corp. 28,900 576,094 INPEX Corp. 178 1,346,676 Japan Tobacco, Inc. 572 2,068,000 Kao Corp. 37,500 935,704 Kyocera Corp. 9,700 983,071 Mitsubishi Electric Corp. 101,000 1,188,626 Mitsui & Co., Ltd. 38,800 694,670 MS&AD Insurance Group Holdings, Inc. 31,100 709,689 NAMCO BANDAI Holdings, Inc. 112,200 1,222,318 Olympus Corp. 26,200 729,623 Rakuten, Inc. 1,097 984,191 Rohm Co., Ltd. 16,900 1,061,874 Sankyo Co. Ltd. 19,000 973,124 SMC Corp. 6,500 1,069,854 Sumitomo Realty & Development Co., Ltd. 57,000 1,139,789 THK Co., Ltd. 42,200 1,057,404 Trend Micro, Inc. 18,500 492,687 Yamaha Motor Co., Ltd. (a) 60,900 1,060,386 --------------- 21,858,123 --------------- NETHERLANDS - 0.9% QIAGEN NV (a) 52,705 1,051,983 --------------- SINGAPORE - 2.3% DBS Group Holdings Ltd. 80,000 928,793 United Overseas Bank Ltd. 116,000 1,729,511 --------------- 2,658,304 --------------- SOUTH AFRICA - 1.4% Clicks Group Ltd. 181,711 1,141,277 Lonmin Plc. 14,814 404,401 --------------- 1,545,678 --------------- SOUTH KOREA - 0.9% Samsung Electronics Co., Ltd. GDR Reg S (a) 2,300 977,073 --------------- SPAIN - 1.9% Banco Popular Espanol SA 134,109 787,541 Corporacion Financiera Alba SA 23,106 1,426,625 --------------- 2,214,166 --------------- SWEDEN - 7.1% Atlas Copco AB, B Shares 119,574 2,888,147 Investor AB, B Shares 45,946 1,114,549 Scania AB, B Shares 68,649 1,591,367 Svenska Handelsbanken AB, A Shares 78,381 2,570,839 --------------- 8,164,902 --------------- SWITZERLAND - 8.5% Geberit AG 6,617 1,439,327 Nestle SA 44,335 2,538,850 Roche Holding AG 18,373 2,623,028 Schindler Holding AG 14,004 1,682,907 UBS AG (a) 76,000 1,367,246 --------------- 9,651,358 --------------- SEE PREVIOUSLY SUBMITTED NOTES TO THE FINANCIAL STATEMENTS FOR THE ANNUAL PERIOD ENDED DECEMBER 31, 2010. PORTFOLIO OF INVESTMENTS (CONTINUED) MARCH 31, 2011 (UNAUDITED) BAILLIE GIFFORD EAFE CHOICE FUND -------------------------------------------------------------------------------- SHARES VALUE -------------------------------------------------------------------------------- TAIWAN - 1.6% Hon Hai Precision Industry Co., Ltd. GDR Reg S 121,352 $ 850,107 Taiwan Semiconductor Manufacturing Co., Ltd. ADR 81,000 986,580 --------------- 1,836,687 --------------- TURKEY - 0.9% Turkiye Garanti Bankasi AS 212,803 992,912 --------------- UNITED KINGDOM - 16.9% AMEC Plc. 50,000 956,271 ASOS Plc. (a) 46,800 1,282,831 Autonomy Corp. Plc. (a) 23,000 586,101 BG Group Plc. 67,000 1,663,317 BHP Billiton Plc. 29,000 1,148,153 Cairn Energy Plc. (a) 198,160 1,468,256 Hargreaves Lansdown Plc. 132,000 1,289,138 Hays Plc. 238,500 444,557 Imperial Tobacco Group Plc. 34,600 1,067,636 Intertek Group Plc. 34,000 1,109,678 John Wood Group Plc. 146,800 1,502,869 Johnson Matthey Plc. 39,000 1,162,709 Kazakhmys Plc. 47,000 1,049,643 Pearson Plc. 54,000 953,983 Reed Elsevier Plc. 57,000 493,400 Rightmove Plc. 61,640 939,393 Standard Chartered Plc. 44,856 1,163,522 Unilever Plc. 35,759 1,089,394 --------------- 19,370,851 --------------- UNITED STATES - 3.6% Central European Distribution Corp. (a) 41,224 467,893 Coca-Cola Enterprises, Inc. 46,433 1,267,621 Mettler-Toledo International, Inc. (a) 8,046 1,383,912 Protalix BioTherapeutics, Inc. (a) 166,157 1,010,234 --------------- 4,129,660 --------------- TOTAL COMMON STOCKS (cost $99,633,243) 110,882,951 --------------- PREFERRED STOCKS - 1.5% BRAZIL - 1.5% Itau Unibanco Holding SA ADR 35,600 856,180 Petroleo Brasileiro SA ADR 25,900 920,486 --------------- TOTAL PREFERRED STOCKS (cost $1,789,338) 1,776,666 --------------- TOTAL INVESTMENTS - 98.4% (cost $101,422,581) 112,659,617 Other assets less liabilities - 1.6% 1,776,763 --------------- NET ASSETS - 100.0% $ 114,436,380 =============== (a) Non-income producing security. ADR - American Depositary Receipt. GDR - Global Depositary Receipt. SEE PREVIOUSLY SUBMITTED NOTES TO THE FINANCIAL STATEMENTS FOR THE ANNUAL PERIOD ENDED DECEMBER 31, 2010. PORTFOLIO OF INVESTMENTS (CONCLUDED) MARCH 31, 2011 (UNAUDITED) BAILLIE GIFFORD EAFE CHOICE FUND -------------------------------------------------------------------------------- Reg S - is a safe harbor that defines when an offering of securities will be deemed to come to rest abroad and therefore is not subject to the registration obligations imposed under Section 5 of the 1933 Act. The regulation includes two safe harbor provisions: an issuer safe harbor and a resale safe harbor. In each case, the regulation demands that offers and sales of the securities be made outside the United States and that no offering participant (which includes the issuer, the banks assisting with the offer and their respective affiliates) engage in "directed" selling efforts. In the case of issuers for whose securities there is substantial U.S. market interest, the regulation also requires that no offers and sales be made to U.S. persons (including U.S. persons physically located outside the United States). At March 31, 2011, the aggregate cost of investment securities for income tax purposes was $101,422,581. Net unrealized appreciation aggregated $11,237,036 of which $14,549,737 related to appreciated investment securities and $3,312,701 related to depreciated investment securities. Various inputs are used in determining the value of the Fund's investments. These inputs are summarized in the three broad levels listed below. Level 1 - quoted prices in active markets for identical securities Level 2 - other significant observable inputs (including quoted prices in inactive markets for identical securities and for similar securities in active and inactive markets) Level 3 - significant unobservable inputs (including the Fund's own assumptions in determining the fair value of investments) The following is a summary of the inputs used as of March 31, 2011 in valuing the Fund's assets carried at fair value: LEVEL 1 LEVEL 2 LEVEL 3 -------------------------------------------------------------------------------- INVESTMENTS IN SECURITIES Common Stocks $ 8,899,535 $101,983,416 $ - Preferred Stocks 1,776,666 - - --------------------------------------- TOTAL $10,676,201 $101,983,416 $ - ======================================= Fair value of Level 2 investments at 12/31/10 was $92,984,680. $750,133 was transferred out of Level 2 into Level 1 at 3/31/11 as a result of using third-party vendor modeling tools to reflect any (lack of) significant market movements between the time at which the Fund valued its securities and the earlier closing of foreign markets. It is the Fund's policy to recognize transfers in and transfers out at the fair value as of the beginning of the period. SEE PREVIOUSLY SUBMITTED NOTES TO THE FINANCIAL STATEMENTS FOR THE ANNUAL PERIOD ENDED DECEMBER 31, 2010. ITEM 2. CONTROLS AND PROCEDURES. (a) The President and Treasurer of the registrant have concluded, based on their evaluation of the effectiveness of the registrant's disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940 (the "Act")) as of a date within 90 days of the filing date of this report on Form N-Q, that, to the best of their knowledge, the design and operation of such procedures are effective to provide reasonable assurance that information required to be disclosed by the registrant in this report on Form N-Q is recorded, processed, summarized, and reported within the time periods specified in the Securities and Exchange Commission's rules and forms. (b) There has been no change in the registrant's internal control over financial reporting (as defined in Rule 30a-3(d) under the Act) that occurred during the registrant's last fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting. ITEM 3. EXHIBITS. Certifications required by Rule 30a-2(a) under the Act. SIGNATURES Pursuant to the requirements of 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/ Peter Hadden ------------------------------- PETER HADDEN, PRESIDENT May 25, 2011 -------------------------- DATE Pursuant to the requirements of the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated. By (Signature and Title) /s/ Peter Hadden --------------------------------- PETER HADDEN, PRESIDENT May 25, 2011 --------------------------- DATE By (Signature and Title) /s/ Nigel Cessford ------------------------------- NIGEL CESSFORD, TREASURER May 25, 2011 --------------------------- DATE EXHIBIT LIST 3(i) Certification of the Principal Executive Officer required by Rule 30a-2(a) under the Act. 3(ii) Certification of the Principal Financial Officer required by Rule 30a-2(a) under the Act. EX-99.CERT 2 c65750_ex99-cert.txt EX-99.CERT EXHIBIT 3(i) CERTIFICATION I, Peter Hadden, certify that: 1. I have reviewed this report on Form N-Q of Baillie Gifford Funds; 2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; 3. Based on my knowledge, the schedules of investments included in this report fairly present in all material respects the investments of the registrant as of the end of the fiscal quarter for which the report is filed; 4. The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) and internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) for the registrant and have: (a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; (b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; (c) Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report, based on such evaluation; and (d) Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and 5. The registrant's other certifying officer and I have disclosed to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions): (a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize, and report financial information; and (b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting. Date: May 25, 2011 /s/ Peter Hadden ---------------------------------------- Peter Hadden President EXHIBIT 3(ii) CERTIFICATION I, Nigel Cessford, certify that: 1. I have reviewed this report on Form N-Q of Baillie Gifford Funds; 2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; 3. Based on my knowledge, the schedules of investments included in this report fairly present in all material respects the investments of the registrant as of the end of the fiscal quarter for which the report is filed; 4. The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) and internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) for the registrant and have: (a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; (b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; (c) Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report, based on such evaluation; and (d) Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and 5. The registrant's other certifying officer and I have disclosed to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions): (a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize, and report financial information; and (b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting. Date: May 25, 2011 /s/ Nigel Cessford ---------------------------------------- Nigel Cessford Treasurer