Interactive Investor

Baillie Gifford cuts fee on another top fund

27th September 2021 12:17

Tom Bailey from interactive investor

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The cut marks the fifteenth occasion Baillie Gifford has reduced fees on a fund since 2013.

Baillie Gifford has announced that the Baillie Gifford UK Equity Alpha Fund will cut management fee cut. The fund’s annual management fee is currently 0.55%. The new fee, effective from 1 October 2021, will be 0.47%.

The fund focuses on small UK growth companies. It aims to outperform, after fees, the FTSE All-Share Index by at least 2% per year over rolling five-year periods.

Over the past five years, the fund has returned investors 61.1%, total return in sterling terms. In comparison, the FTSE All-Share has returned 29.6% over the same period. The fund also beat the average return of the IA’s UK All Companies sector, which stood at 39.6% over the same period.

The fund has also outperformed over the past 10 years. Since October 2011, the fund has returned 190.7%. In comparison, the FTSE All Share returned 121.6% and the IA UK All Companies sector average 148.4%.

Among the fund’s top holdings are Rightmove (LSE:RMV), Aveva (LSE:AVV), Ocado (LSE:OCDO), Auto Trader (LSE:AUTO) and Renishaw (LSE:RSW). Typically, the fund holds between 30 and 40 holding. The fund currently has around £1 billion in assets under management and is managed by Gerard Callahan.

The fee cut comes soon after the announcement that the popular Baillie Gifford US Growth trust was cutting its management fee. The trust is cutting the management fee charged on assets over £1 billion, a number its assets under management recently surpassed.

Baillie Gifford UK Equity Alpha Fund’s management fee cut is the fifteenth occasion Baillie Gifford has reduced fees on its funds or trusts since 2013.

James Budden, director of marketing and distribution at Baillie Gifford commented on the latest fee cut: “We strive to be as competitive on fees as possible. Providing value for money is especially important in relation to UK equities where so many options are available to investors.”

These articles are provided for information purposes only.  Occasionally, an opinion about whether to buy or sell a specific investment may be provided by third parties.  The content is not intended to be a personal recommendation to buy or sell any financial instrument or product, or to adopt any investment strategy as it is not provided based on an assessment of your investing knowledge and experience, your financial situation or your investment objectives. The value of your investments, and the income derived from them, may go down as well as up. You may not get back all the money that you invest. The investments referred to in this article may not be suitable for all investors, and if in doubt, an investor should seek advice from a qualified investment adviser.

Full performance can be found on the company or index summary page on the interactive investor website. Simply click on the company's or index name highlighted in the article.

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