Baillie Gifford  

Ballie Gifford re-opens growth fund and cuts fees

Ballie Gifford re-opens growth fund and cuts fees

Baillie Gifford has re-opened its diversified growth fund with a reduced annual management fee.

The fund was closed to new investors in 2013 in order to protect the managers’ investment strategy after it had attracted “significant funds”. Existing Baillie Gifford clients were still able to invest in the fund.

The fund, valued at £6.2bn, will also see a reduction in fees from 0.65 per cent to 0.55 per cent. 

James Budden, director of marketing and distribution at Baillie Gifford, said: “We aim to be competitive on fees as they are the only element of investment returns which can be guaranteed.

"We regularly review the costs associated with our funds to ensure they remain fair and reasonable. This latest fee reduction is part of our continued commitment to provide investors with value for money.”

The fund aims to achieve an annualised return of 3.5 per cent over the UK base rate over a rolling five-year period after fees.

In the five years to April 30, the fund's per annum performance was 4.6 per cent, compared with its target of 3.9 per cent.

In the year to March 31 this year, the fund's return was 17.6 per cent compared with the target of 3.6 per cent. The previous year the fund saw a return of -8.8 per cent compared with the target return of 4.2 per cent.

In the firm’s annual report in December last year, it said investors should focus on longer timeframes for performance as it believes that short-term performance measurements are of limited relevance in assessing investment ability.

sally.hickey@ft.com