Baillie Gifford Fund: Where Should Your Money Go?

Baillie Gifford is one of the UK's leading independently owned investment management firms, with £130 billion in funds under management and advice. The company offers a range of funds to choose from, including equity, fixed-income, and multi-asset portfolios, each designed to meet different investment goals and risk tolerances. With such a diverse range of options, it can be challenging for investors to decide which Baillie Gifford fund aligns best with their financial objectives and risk appetite. Therefore, it is essential to carefully consider one's investment goals, risk tolerance, and time horizon before selecting a fund.

Baillie Gifford's investment approach

Baillie Gifford is one of the UK's leading independently owned investment management firms, with an investment approach that incorporates the development of people as well as philosophy and process. The company was founded in 1908, is based in Edinburgh, and has £130 billion in funds under management and advice.

Baillie Gifford offers a range of funds to suit different investor preferences, including equity, fixed-income, and multi-asset portfolios. All of their funds aim to provide access to their expertise in seeking out long-term growth. The company's funds are structured as publicly listed companies or open-ended funds.

In terms of investment style, Baillie Gifford offers core growth portfolios, which are large and diverse, built with benchmarks and reduced volatility in mind. They also offer equity and multi-asset income funds, seeking both dependable income and long-term capital growth. For those seeking lower-risk investments, the company provides fixed-income funds that target company and government bonds with a focus on long-term outcomes. Additionally, they offer flexible growth portfolios, which include a mix of firms focused on disruption, compounding, and timely capital allocation. For investors seeking higher returns, Baillie Gifford has high-growth portfolios concentrated on 25 to 50 stocks of fast-growing companies.

During the coronavirus crisis, Baillie Gifford temporarily suspended its typically hands-off approach and instructed fund managers and analysts to scrutinize company balance sheets for hidden weaknesses. This shift demonstrates the company's adaptability and commitment to ensuring the resilience of the stocks it holds during challenging market conditions.

Baillie Gifford's top-performing American fund and US Growth trust are managed by Gary Robinson, who believes that surging US tech companies still have significant growth potential. The fund's performance has been propelled by holdings in healthcare, Amazon, Google-owner Alphabet, Netflix, and Tesla. Robinson also co-manages the US Growth trust, which holds private, unlisted companies that have yet to join the stock market.

Investment options

Baillie Gifford offers a range of funds to invest in, including equity, fixed-income, and multi-asset portfolios. The company is an independently owned investment management firm based in Edinburgh, with a long history dating back to 1908 and currently has £130 billion in funds under management and advice.

The company's investment approach is centred on the development of people, philosophy, and process. They have a decentralised approach, giving their professional investors the freedom to pursue their passions and identify long-term winning stocks.

You can invest directly with Baillie Gifford by contacting their Client Relations Team. They also offer investments through a number of fund platforms and supermarkets, such as Hargreaves Lansdown, where you can open an account with a lump sum of £100 or start with as little as £25 per month.

• Baillie Gifford American Fund: This fund has seen impressive returns, outperforming the S&P 500. It focuses on US tech giants like Amazon, Alphabet, Netflix, and Tesla, which the fund managers believe still have significant growth potential.
• Baillie Gifford US Growth Trust (USA): This trust is similar to the American Fund but holds 13% of its assets in private, unlisted companies.
• Baillie Gifford Global Discovery Fund: One of the most popular funds offered by Baillie Gifford, focusing on global discovery and exploration.
• Baillie Gifford Japanese Smaller Companies Fund: Another popular choice, this fund focuses on smaller companies in the Japanese market.
• Baillie Gifford Global Income Growth Fund: Aiming to provide both dependable income and long-term capital growth.
• Baillie Gifford UK Equity Alpha Fund: Focusing on UK equity investments.

Remember that Baillie Gifford does not provide financial advice, and you should consider seeking advice from an authorised intermediary or financial advisor to ensure that any investment choices align with your specific circumstances and goals.

Baillie Gifford's handling of the coronavirus crisis

Baillie Gifford is one of the UK's leading independently owned investment management firms, founded in 1908 and based in Edinburgh. The company has £130 billion in funds under management and advice.

The coronavirus crisis has impacted the way the fund management group handles its investment staff. Baillie Gifford suspended its typically hands-off approach and told fund managers and analysts to scour company balance sheets for hidden weaknesses. This was a shift from its decentralised approach, where professional investors were given the freedom to 'follow their passions' and identify long-term winning stocks.

Despite the crisis, Baillie Gifford's top-performing American fund and US Growth trust, managed by Gary Robinson, saw a 42% and 38% increase in 2024, respectively. The fund's performance has been propelled by healthcare holdings like Moderna, whose potential coronavirus vaccine has shown positive results in early trials. Amazon, Google-owner Alphabet, Netflix, and Tesla are also among the fund's top holdings.

Robinson believes that the coronavirus pandemic has boosted the prospects of these US tech companies, and their share prices could more than double in the next five years. He attributes this to the large market opportunities relative to the size of these companies, allowing them to be held for long periods.

Baillie Gifford offers a range of funds available to individual investors, including equity, fixed-income, and multi-asset portfolios. While they do not provide financial advice, they provide extensive information to help investors make decisions.

Baillie Gifford's American fund

The Baillie Gifford American Fund is a sub-fund that aims to outperform the S&P 500 Index by at least 1.5% per annum over rolling five-year periods. The fund invests at least 90% in shares of US companies listed, incorporated, domiciled, or conducting a significant portion of their business in the US. It is actively managed, concentrated, and invests in companies of any size and in any sector. The fund's top holdings include companies in the software & computer services, pharmaceuticals & biotechnology, technology hardware & equipment, and medical equipment & services sectors. The Baillie Gifford American Fund is a high-growth portfolio, focusing on fast-growing companies.

The fund is suitable for investors with a high tolerance for volatility and a long-term investment horizon. The fund managers adopt a growth style of investing, aiming to benefit from investing in exceptional growth businesses over the long term. The fund has a minimum investment amount of £100,000 and an ongoing charge of 0.53%.

The Baillie Gifford American Fund is a great option for investors seeking exposure to the world's largest stock market and looking to invest in businesses with strong growth prospects. The fund's performance relative to the S&P 500 Index should be carefully considered, as past performance is not a guarantee of future results.

It is important to note that the value of investments may go down as well as up, and investors may not get back the amount originally invested. Seeking financial advice from an authorised intermediary can help individuals manage their financial affairs and investment interests based on their circumstances and aspirations.

Baillie Gifford's US Growth trust

When considering which Baillie Gifford fund to invest in, it is important to remember that the value of your investment may go down as well as up, and you may not get back the amount you invested.

The Baillie Gifford US Growth Trust plc seeks to invest predominantly in listed and unlisted US companies that the company believes have the potential to grow substantially faster than the average company. The fund's goal is to hold these investments for long periods to produce long-term capital growth. The fund's ongoing charges are 0.70% as of 27 September 2024, and the price per share was 202.00 at the same date. The Baillie Gifford US Growth Trust is a closed-ended fund structured as a publicly listed company.

The Baillie Gifford US Growth Trust Annual Financial Report for May 2024, as well as the Interim Financial Reports for November 2023 and November 2022, are available on the Baillie Gifford website. The Baillie Gifford website also provides information on the fund's performance and portfolio, including sector analysis of total assets.

If you are interested in investing in the Baillie Gifford US Growth Trust, you can do so by contacting the Baillie Gifford Client Relations Team by phone, email, or fax. It is important to note that Baillie Gifford does not provide financial advice, and you may want to seek advice from an authorised intermediary to help manage your financial affairs based on your circumstances and investment aspirations.

Frequently asked questions