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.
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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.
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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.”
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