Baillie Gifford Managed Fund B Acc

Mixed Asset 61-100% Equity

Rated Fund 2019-20. Active multi-asset fund offering low ongoing charges      

Baillie Gifford Managed is highly diversified. It has around 300 holdings and a top 10 that accounts for just 11% of assets. Its charges are attractively low for a multi-asset offering at 0.42%.

There is a trend for multi-asset managers to turn to alternative assets such as infrastructure, private equity and gold amid lofty valuations in stock and bond markets and increased correlations between asset classes, but Iain McCombie and Steven Hay, the managers of this fund, stand in notable contrast. They keep things simple with a mix of equities, bonds and cash. The fund has a structurally larger position in equities compared with other asset classes, in the belief that in the long run share prices follow fundamentals, so equities should do best. They see bonds as useful for diversification, while cash and derivatives dampen volatility – the fund had 13% and 12% respectively in these areas at the end of 2019.

The managers like to run their winners, and annual turnover is relatively low at 10%. The fund ranks consistently in the first quartile of its peer group. Its geographic split is decided at a quarterly meeting, where regional managers outline opportunities and their levels of conviction. To a large extent, the fund distils Baillie Gifford’s growth-oriented philosophy. Technology features widely among top holdings, which include e-commerce and digital streaming giant Amazon and electric vehicle manufacturer Tesla – both high-growth, global companies. The fund has a yield of 1.3%.

Narrative and ratings content all as of 01 January 2020.

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Name
Baillie Gifford Managed Fund B Acc
Manager
Baillie Gifford & Co Limited.
Type
Open Ended Investment Company
ISIN
GB0006010168
Sector
Mixed Investment 40-85% Shares
Launched
01/04/1987
OCF
0.43 %
Risk Rating
4
3 Year Sharpe
0.86
3 Year Alpha
5.98
Yield
1.2 %
Benchmark
IA Mixed Invest 40 - 85% Shares
The Fund aims to achieve capital growth over rolling five-year periods. The Fund will be actively managed and will invest in a combination of shares, bonds and cash with a minimum of 60% in shares and 10% in bonds and cash.
Holding %
Amazon.com Inc 2.34 %
Tesla Inc 1.78 %
Shopify Inc A 1.64 %
United States Treasury Notes 2% 1.51 %
Just Eat Takeaway.com NV 1.14 %
IMCD NV 1.12 %
Netflix Inc 1.07 %
MarketAxess Holdings Inc 1.06 %
Bechtle AG 1.04 %
United States Treasury Bonds 3% 0.99 %
Region %
United States 26.29 %
United Kingdom 22.74 %
Eurozone 14.82 %
Japan 9.28 %
Europe - ex Euro 8.86 %
Asia - Emerging 5.38 %
Sector %
Consumer Cyclical 17.33 %
Financial Services 15.40 %
Communication Services 15.09 %
Industrials 14.55 %
Technology 11.87 %
Healthcare 9.53 %
Consumer Defensive 7.05 %
Basic materials 6.21 %
Name
Baillie Gifford & Co Limited.
Address
EH1 3AN, Edinburgh, United Kingdom
UCITS
Yes
Legal Structure
Open Ended Investment Company

Managers

Iain McCombie
Joined 11/01/2012

Iain, CFA, graduated MA in Accounting from Aberdeen University and trained as a Chartered Accountant. Iain joined Baillie Gifford in 1994, and has spent the majority of his career as an investment manager in our UK Equity Team. He is lead manager of our UK Core strategy and has been one of the four members of our Pan-European Portfolio Construction Group since 2010. He became a Partner in 2005 and Chief of Investment Staff in 2013.

Steven Hay
Joined 11/01/2012

Steven graduated BAcc in Economics and Accountancy from the University of Glasgow in 1992 and completed an MSc in Economics from Warwick University in 1993. Prior to joining Baillie Gifford, Steven was a fixed income investment manager with Scottish Widows. His experience includes seven years undertaking analysis and research for the Bank of England’s Monetary Policy Committee, and involvement in managing the UK’s foreign exchange reserves. Steven joined Baillie Gifford in 2004 and is Head of the Rates and Currencies Team.

Data provided by Morningstar.

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