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
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
5
3 Year Sharpe
1.30
Yield
1.5 %
Benchmark
IA Mixed Invest 40 - 85% Shares
The objective is to produce capital growth over the long term. The Sub-fund will invest primarily in a combination of equities, fixed interest securities, collective investment schemes, cash, near cash and deposits. The Sub-fund may invest in derivatives and currency forwards for investment purposes as well as for efficient portfolio management. The Sub-fund is actively managed and the investment manager has the discretion to invest in any combination of these asset classes and also to diversify the portfolio by investing in any country and in any economic sector. The equities in which the Sub-fund invests may be from companies of any size and from anywhere in the world and the fixed interest securities in which the Sub-fund invests may be issued by sovereign, supranational, public sector or corporate issuers in any country.
Holding %
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 %
Region %
United States 27.28 %
United Kingdom 26.44 %
Europe - ex Euro 10.66 %
Japan 9.15 %
Eurozone 9.09 %
Asia - Developed 5.44 %
Sector %
Financial Services 20.58 %
Technology 18.67 %
Consumer Cyclical 16.94 %
Industrials 12.90 %
Healthcare 10.40 %
Basic materials 8.70 %
Consumer Defensive 6.59 %
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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