Baillie Gifford  

100 Club Awards 2016: Mixed Asset Fund

This article is part of
100 Club Award Winners - November 2016

100 Club Awards 2016: Mixed Asset Fund
Iain McCombie, co-manager on the Baillie Gifford Managed fund

The Baillie Gifford Managed fund, a multi-asset offering, triumphed in the increasingly popular Mixed Asset category after becoming a 100 Club member for the first time this year.

The £1bn fund is managed by Iain McCombie and Steven Hay and was launched back in April 1987.

The managers seek to produce superior returns over time by combining a long-term stockpicking approach in their regional equity portfolios, with the best ideas from the rates and currencies and credit teams. This includes covering interest rate and active currency views, along with investment-grade and high-yield corporate bond opportunities.

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At the end of September the portfolio was tilted towards the UK, with an exposure of 27.2 per cent, while it had 17.1 per cent in Europe ex UK.

The fund’s top-10 holdings reflect its remit to invest in any economic sector globally, with Nestle, St James’s Place and Rightmove among the biggest positions.

The vehicle has outperformed its IA peer group over every time period, data from FE Analytics shows. It produced a five-year return to October 26 of 74.6 per cent, ahead of the IA Mixed Investment 40-85% Shares sector’s average return of 50.8 per cent.

 

What the judges say

The judges appreciated this fund’s mix of global equities and bonds managed with a focus on quality, and highlighted its very low-cost ongoing charges.

 

CLUB MEMBERS

Hawksmoor Vanbrugh

Newton Multi-Asset Growth

Personal Assets Trust

Royal London Sustainable World Trust