Annual Report by Investment Company (Form N-CSR)

BAILLIE GIFFORD FUNDS

Baillie Gifford Multi Asset Fund

Annual Report

April 30, 2022

Index

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.

Management Discussion (unaudited)

Annual Report April 30, 2022

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

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.

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.

Fund Expenses (unaudited)

Annual Report April 30, 2022

* 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.

Industry Diversification Table (unaudited)

Annual Report April 30, 2022

April 30, 2022
Baillie Gifford Multi Asset Fund

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.

Portfolio of Investments

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Baillie Gifford Multi Asset Fund

Portfolio of Investments

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Baillie Gifford Multi Asset Fund

Portfolio of Investments

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Baillie Gifford Multi Asset Fund

Portfolio of Investments

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Baillie Gifford Multi Asset Fund

Portfolio of Investments

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Baillie Gifford Multi Asset Fund

Portfolio of Investments

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Baillie Gifford Multi Asset Fund

Portfolio of Investments

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Baillie Gifford Multi Asset Fund

Portfolio of Investments

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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

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

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:

Portfolio of Investments

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April 30, 2022
Baillie Gifford Multi Asset Fund

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

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:

⁽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:

* 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.

Statement of Assets and Liabilities

Annual Report April 30, 2022

April 30, 2022
Baillie Gifford Multi Asset Fund

Statement of Operations

Annual Report April 30, 2022

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

Statement of Operations

Annual Report April 30, 2022

Statements of Changes in Net Assets

Annual Report April 30, 2022

Baillie Gifford Multi Asset Fund

Financial Highlights

Annual Report April 30, 2022

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

* 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.

Financial Highlights

Annual Report April 30, 2022

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

* 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.

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.