Baillie Gifford  

Baillie Gifford suffers worst month on record with £1.2bn outflows

Baillie Gifford suffers worst month on record with £1.2bn outflows
 

Baillie Gifford saw its worst month on record for its UK-domiciled open-ended funds, with £1.2bn of net redemptions in February.

February marks the third consecutive month the manager has experienced outflows, the first time this has happened since 2015, according to Morningstar.

The research house said the outflows were widespread, with only eight Baillie Gifford funds out of 34 receiving net inflows in February.

The Baillie Gifford Diversified Growth Fund saw £393mn of outflows, and its largest fund, the Baillie Gifford Managed Fund, experiencing £53mn in net redemptions.

Estimated net flows for top ten fund groups 

Fund group

Net flows Feb 2022 (£)

Net flows 12 months (£)

Organic growth rate (February) 

Assets (£)

Baillie Gifford

-1.2bn

-1.2bn

-2.24%

53bn

Vanguard

-535mn

3bn

-1%

48bn

M&G

-238mn

-4bn

-0.8%

28bn

Aviva

-164mn

-4.7bn

0.19%

85bn

BlackRock

-147mn

2.1bn

0.08%

172bn

Abrdn

-41mn

1.3bn

0.07%

45bn

Schroders

-24mn

3bn

0.06%

40bn

Legal & General

268mn

3.1bn

0.47%

56bn

Royal London

464mn

5.1bn

0.63%

73bn

Fidelity

918mn

1.9bn

1.77%

51bn

Source: Morningstar, as at February 28

The manager’s funds have been stung by the sharp decline in the share price performance of tech, biotech and other growth shares, in which the house’s managers prefer to invest.

Over 30 days in January the firm lost £30bn, according to Morningstar, which was due to a combination of outflows and a steep decline in the value of the investments

Indeed, its investment trusts have not fared much better, with the Baillie Gifford UK Growth Trust losing 6 per cent during February, bring its year-to-date losses to February 28 to 21 per cent.

The fund house’s US Growth Trust lost 3 per cent in February, however in the year-to-date to February 28 it lost 25 per cent of its value.

Meanwhile, passive house Vanguard saw a rare month of outflows, posting £535mn in net redemptions.

Morningstar said the fund group had remarkable consistent inflows for the past 10 years, and then in February suffered its worst month on record for UK-domiciled funds.

The agency pointed to large net redemptions from its FTSE All-Share tracker, but also reasonably large net outflows from the US equivalent and UK Long Duration Gilt Index.

Lindsell Train’s UK Equity fund also suffered outflows, with investors pulling £172mn from the fund after its poor performance in 2021 continued into 2022.

The fund was removed from Bestinvest’s list of favourite funds at the start of February, after it underperformed the MSCI World Index by more than 30 percentage points during the three years to January 31.

Jason Hollands, managing director at Bestinvest, blamed the fund’s recent poor performance on the decision.

“While the manager has a good long-term track record and a clearly articulated philosophy, it has endured an extended period of disappointing performance and we feel there are other global equity funds that have the edge in the current environment,” he said.

Lindsell Train Global Equity fund performance to January 31 2022

 

1 month

YTD

1 year

3 year

5 year

Since launch

LT Global Equity Fund

-4.3%

-4.3%

-2.0%

24.6%

79.4%

348.9%

MSCI World Index

-4.4%

-4.4%

19.3%

55.3%

74.7%

255.1%

Source: Lindsell Train

sally.hickey@ft.com