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Baillie Gifford Investment Management has restructured the management of two of its high-profile funds, but sought to reassure investors the changes are not part of a performance-related shake-up.

The Edinburgh-based firm has installed new co-managers on its £134.9m Pacific and £69.8m European funds. The changes took effect on 1 June.

Peter Hollis has replaced Michael MacPhee as co-manager of the firm’s European offering. Mr Hollis joined Baillie Gifford in 1989 and has since worked in the UK equity and the North American investment teams, before joining the European team in 2004.

He will co-manage the fund alongside existing co-manager John Burke, together with Angus Franklin. After joining Baillie Gifford in 1994, Mr Franklin worked in the UK Small Companies team and is now an investment manager in the European investment team.

Meanwhile Baillie Gifford’s Pacific fund has lost its co-manager Ben Lloyd, who is planning to travel in China. He was replaced by Mike Gush who joined the firm in 2003 and is an investment manager in the emerging markets team.

Gerald Smith remains co-manager of the fund, a position he has held since January 1995. Mr Gush has previously run institutional mandates for the firm.

Ken Edwards, sales and marketing director at Baillie Gifford, said: "Most of our funds are run on a team basis and they will not suffer from the changes at all. We have a strong team ethic and not a ‘star-fund-manager’ ethos.

"It just so happened a number of people wanted to take time off or have a change. We would be more concerned if they were leaving to join other companies."

The European fund is third quartile over three years until 28 May 2008. It returned 55.43 per cent, underperforming the IMA Excluding UK sector, which returned 60.1 per cent, according to Morningstar. It is ranked 53rd out of 86 funds in the peer group. However, over the last year the fund has nudged into the second quartile.

Mr Edwards said Mr MacPhee, who is also a partner at the firm, had been moved on to new product development and wider investment-related projects.

Mr Edwards said it was not yet known what Mr Lloyd would embark on when he returned from his travels. However, he added Baillie Gifford had been happy with the performance of Mr Lloyd’s fund.

The Pacific offering has returned 98.5 per cent over three years, outperforming the IMA Asia Pacific ex-Japan sector, which returned 89 per cent. However, over the last year the fund has slipped into the fourth quartile.