Baillie Gifford Managed Fund B Acc
Mixed Asset 61-100% Equity
New for 2019. Low-cost active multi-asset fund
The extremely diversified Baillie Gifford Managed has around 340 holdings and its charges are attractively low for a multi-asset offering at 0.43%.
While 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, the managers of this fund – Iain McCombie and Steven Hay since 2012 – stand in notable contrast. They prefer to keep things simple with a straightforward mix of equities, bonds and cash.
McCombie says the team’s approach is ‘simple but not easy’ and should provide a degree of long-term resilience. The fund has a structurally larger position in equities compared to other asset classes in the belief that, in the long run, share prices follow fundamentals so equities should do best. They see bonds as being useful for their diversification characteristics, while cash and derivatives dampen down volatility – the fund had 20% and 6% respectively in these areas at the end of 2018.
The fund ranks consistently in the first quartile of its peer group, with 90% of its returns come from stock-picking rather than asset allocation.
The geographic split of the fund is decided at a quarterly meeting, where regional managers outline where they are finding opportunities and their level of conviction. Asia has recently proved a fertile hunting ground as markets have fallen.
To a large extent, the fund distils Baillie Gifford’s growth-oriented philosophy. Technology features widely in its top holdings, include Amazon, Netflix and Alphabet – high growth, global companies. Given this focus on growth, the fund has a modest yield of 1.5%.
Narrative and ratings content all as of 01 January 2019.See all Money Observer rated funds
|United States Treasury Notes 2.25%||2.81 %|
|United States Treasury Bonds 6.25%||2.34 %|
|Amazon.com Inc||2.12 %|
|Spain (Kingdom of) 5.85%||1.38 %|
|Tesla Inc||1.30 %|
|United States Treasury Bonds 3%||1.13 %|
|Irs Budapest I V 1.84% Mic 111223 C Pay||1.07 %|
|Irs Budapest I V 1.84% Mic 111223 C Rec||1.05 %|
|IMCD NV||1.02 %|
|Svenska Handelsbanken A||0.93 %|
|United States||27.28 %|
|United Kingdom||26.44 %|
|Europe - ex Euro||10.66 %|
|Asia - Developed||5.44 %|
|Financial Services||20.58 %|
|Consumer Cyclical||16.94 %|
|Basic materials||8.70 %|
|Consumer Defensive||6.59 %|
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 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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