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Baillie Gifford slashes fees on 20 funds

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Baillie Gifford slashes fees on 20 funds

Baillie Gifford has slashed fees across it UK Oeic and Irish Ucits fund range. 

The Scottish-based fund firm said the move, which will provide 'value for money' for investors, would be effective from 1 October. 

‘Active managers should take the initiative in today’s environment,’ said Andrew Telfer, joint senior partner at Baillie Gifford.

‘Value for money is an often neglected element of the fund buying process. 

'Investors should be able to choose between passive and attractively priced active funds alongside considering the quality and future capability of active funds to deliver after-fees outperformance.’

The Oeic funds that had the biggest cuts in fees (see table below) were Developed Asia Pacific Fund, European Fund and UK Equity Alpha Fund, which all saw 0.1% cuts to fees. 

OEIC Funds Management fee before fee reduction (%) Management fee after fee reduction (%)
Developed Asia Pacific Fund 0.65 0.55
Emerging Markets Growth Fund 0.75 0.72
Emerging Markets Leading Companies Fund 0.75 0.72
European Fund 0.65 0.55
Global Alpha Growth Fund 0.65 0.57
Global Income Growth Fund 0.65 0.57
Global Select Fund 0.55 0.5
Greater China Fund 0.75 0.72
International Fund 0.65 0.57
Japanese Fund 0.65 0.6
Japanese Income Growth Fund 0.65 0.6
Long Term Global Growth Investment Fund 0.7 0.62
Positive Change Fund 0.55 0.5
UK Equity Alpha Fund 0.65 0.55

The biggest cut to Ucits (see table below) fees were for the Worldwide Global Alpha Choice Fund, which also saw a 0.1% cut to fees.

Irish UCITS Funds Management fee before fee reduction (%) Management fee after fee reduction (%)
Worldwide Emerging Markets Horizon Fund 0.75 0.72
Worldwide Global Alpha Fund 0.65 0.57
Worldwide Global Alpha Choice Fund 0.65 0.57
Worldwide Pan-European Fund 0.65 0.55
Worldwide Japanese Fund 0.65 0.60
Worldwide Long Term Global Growth Fund 0.70 0.62

 ‘All active funds are not the same,’ added Telfer. ‘Sharing economies of scale with investors as funds grow is one way in which Baillie Gifford looks to deliver ongoing value for clients. Meeting all research costs internally is another.

‘We believe that keeping costs low, maintaining high active share, low turnover and engaging with the management of companies in which we invest are key ingredients of a successful active manager.’

The move follows cuts in fees the Edinburgh-based investment manager announced in January, when it reduced the annual management fee for the Baillie Gifford American Fund from 0.65% to 0.50%.

Baillie Gifford has also previously adopted a tiered approach to fees across its range of investment trusts, announcing fee reductions for Scottish Mortgage Investment Trust and Monks Investment Trust earlier this year.

The fund manager has kept fees the same at all its other funds.

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