Baillie GiffordSep 20 2021

Baillie Gifford cuts fees on US growth trust

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Baillie Gifford cuts fees on US growth trust
Chris Ratcliffe/Bloomberg

Baillie Gifford has cut its fee on the Baillie Gifford US Growth Trust.

The trust was previously charging 0.55 on all net assets over £100m. It now charges 0.70 per cent on the first £100m of net assets, 0.55 per cent on the next £900m of net assets and 0.50 per cent for net assets in excess of £1bn.

James Budden, director of marketing and distribution at Baillie Gifford, said: “The US Growth Trust assets now exceed £1bn, and this change will benefit shareholders as the trust continues to grow. 

“Across our whole fund and trust range, we aim to be as competitive on fees as possible as they are the only element of investment returns which can be guaranteed. This latest fee reduction re-affirms our commitment to provide investors with value for money.”

The trust, managed by Kirsty Gibson and Gary Robinson, was launched in March 2018 and is currently worth £1.06bn. It has raised gross proceeds of £173m, and holds both public and private stocks.

The reduction comes after the investment manager re-opened its diversified growth fund with a reduced annual management fee in July this year.

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, also saw a reduction in fees from 0.65 per cent to 0.55 per cent.