Baillie Gifford launches Diversified Growth alternative

Baillie Gifford launches Diversified Growth alternative

Baillie Gifford has launched a new multi-asset fund as the approach continues to prove popular with investors.

The portfolio, which is managed by Baillie Gifford’s multi-asset team, applies the same investment process used for the firm’s £5.9bn Diversified Growth offering, which soft-closed in 2013.

The Multi Asset Growth fund will target a return of 3.5 per cent per annum ahead of the UK base rate, net of fees, annualised over rolling five-year periods. It will aim to produce annualised volatility of less than 10 per cent.

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Patrick Edwardson, head of the multi-asset team, said: “Many investors are turning to multi-asset approaches to deliver attractive returns with lower volatility.”

Patrick Connolly, certified financial planner at Chase de Vere, said: “We have seen many investment companies launching or repackaging multi asset funds as they aim to capitalise on a growing pension investment market.

“This new fund from Baillie Gifford is one of those which has real merit. It has an established team and investment process, competitive charges and is, unlike some others, a genuine multi-asset fund.”