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Baillie Gifford American Class B - Income (GBP)

Sell:912.60p Buy:912.60p Change: 42.50p (4.88%)
Prices as at 24 June 2022
Change: 42.50p (4.88%)
You can buy or sell holdings in this fund through a Stocks and Shares ISA, Lifetime ISA, SIPP or Fund and Share Account
Prices as at 24 June 2022
Change: 42.50p (4.88%)
Prices as at 24 June 2022
You can buy or sell holdings in this fund through a Stocks and Shares ISA, Lifetime ISA, SIPP or Fund and Share Account
The selling price currently displayed is higher than the buying price. This can occur temporarily for a variety of reasons; shortly before the market opens, after the market closes or because of extraordinary price volatility during the trading day.

Our view on this Fund

This fund is on the Wealth Shortlist of funds our analysts believe have the potential to outperform their peers over the long term. However, this is not a recommendation to buy.

We think this fund is a great way to invest in businesses with strong growth prospects in the world's largest stock market. The manager's growth style of investing aims to benefit from investing in exceptional growth businesses and holding them for long enough to reap the rewards. We like their long-term focus and disciplined investment process and think they are well equipped to succeed. We think this fund could work well in a portfolio with little exposure to the US, invested for long-term growth. Its focus on large companies means it could also sit well alongside a US equity fund focused on medium-sized or higher-risk smaller sized companies, or a US fund with a value bias.

Our view on the sector

UK investors need little introduction to America. It's the world's biggest stock market and is home to world-leading companies in almost every industry there is, from media and film, through to manufacturing and transportation. We think most diversified portfolios should have some exposure to the US market. But it's one of the most heavily researched in the world so share prices of well-known companies can react quickly to new information. We think this can make it more difficult for fund managers to find opportunities missed by others and to consistently perform better than the broader market over the long term. Many funds investing in the US aim to grow the value of your original investment, rather than pay a high level of income. Some focus on the largest companies in the market. Others look for opportunities amongst small and medium-sized companies, which may offer greater growth potential, but are higher risk.

Performance Analysis

The fund aims to outperform the S&P500 index by 1.5% per year after costs over any five year period. The share prices of well-known US companies can react very quickly to new information. This makes it difficult to consistently perform better than the broader market over the long term, but we think the Baillie Gifford American team are well equipped to do so.

Investors should note that while growth-style investing has done very well in recent years compared to value investing, a well-diversified and robust portfolio should include a variety of styles, as well as different asset classes and geographies. The manager's long term time horizon means the fund tends to have a relatively low annual turnover of stocks.

When the manager's growth-focused investment style is out of favour, investors are less willing to pay up for companies with high growth potential and so we wouldn't expect the fund to perform as well in this environment. You should consider annual performance in the context of a longer time horizon and not in isolation.

Investment Philosophy

The managers believe few companies are capable of delivering exceptional returns over the long run, so they run a relatively concentrated fund of between 30 and 50 stocks. These are companies they believe have excellent growth potential and each one can contribute significantly to returns, although this approach increases risk. Baillie Gifford also has a dedicated Governance and Sustainability team responsible for producing ESG research which challenges and contributes to the investment decision-making process. The managers also have access to a wider team of 38 analysts who spend time researching US equities at Baillie Gifford. We think the managers are well resourced to focus on the job in hand.

Process and Portfolio Construction

The managers invest in companies with high growth potential that they think could be capable of delivering exceptional returns over the long run. They believe that companies with resilient business models make for good long term investments and that corporate culture can be a key component of company performance and ultimately investor returns although of course there are no guarantees.

Culture is difficult to measure and capture. But the managers believe it's one of the most underappreciated drivers of long-term returns. Companies with a strong culture are often adaptable, durable and willing to invest for the future at the expense of short term profits. And although there's no exact science, they believe that it's these kind of companies that are often the ones to really deliver on their vision and purpose. Founder involvement is another element that the managers view positively. They believe these individuals, who usually still have much of their wealth tied up in the business, often possess the strong vision that's required to continue growing the company.

The managers spend a lot of time thinking about industry dynamics and the powerful trends developing across the economy. Many of these businesses disrupt old ways of doing things and they have grouped these into eight distinct areas. They are; the future of commerce, innovative healthcare, the battle for our Attention, new enterprise, the digitalisation of finance, the evolution of Transport, capital allocators, and changing education.

question mark Manager Track Record Based on HL Quantitative Research

This information is currently unavailable.

Fund Track Record

24/06/17 to 24/06/18 24/06/18 to 24/06/19 24/06/19 to 24/06/20 24/06/20 to 24/06/21 24/06/21 to 24/06/22
Annual return 36.29% 10.71% 52.86% 54.43% -52.42%

Please remember past performance is not a guide to future returns. Where no data is shown, figures are not available. This information is provided to help you choose your own investments, remember they can fall as well as rise in value so you may not get back the original amount invested.

Fund Management Group Comment

Baillie Gifford was founded as an investment partnership in 1908 and the firm has always been wholly owned by the people who invest and look after their clients' money. They now have £326 billion under management and advice in specialist equity, fixed income and multi-asset portfolios for a global client base.

Information about the fund

Fund manager biography

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Manager Name: Tom Slater
Manager start date: 4 January 2016
Manager located in: Edinburgh

Tom is Head of the US Equities Team and is a decision maker for the Long Term Global Growth strategy. He joined Baillie Gifford in 2000 and became a Partner of the firm in 2012. After serving as Deputy Manager for five years, Tom was appointed Joint Manager of Scottish Mortgage Investment Trust in 2015. During his time at Baillie Gifford he has also worked in the Developed Asia and UK Equity teams. Tom's investment interest is focused on high growth companies both in listed equity markets and as an investor in private companies. He graduated BSc in Computer Science with Mathematics from the University of Edinburgh in 2000.

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Manager Name: Kirsty Gibson
Manager start date: 1 January 2018
Manager located in: Edinburgh

Kirsty is an Investment Manager in the US Equities Team. Kirsty joined Baillie Gifford in 2012 and began her career on the US Equities Team, moving on to spend several years in small and large cap global equities departments, before returning to the US Equities Team. She graduated MA (Hons) in Economics in 2011and MSc in Carbon Management in 2012, both from the University of Edinburgh.

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Manager Name: Gary Robinson
Manager start date: 1 May 2014
Manager located in: Edinburgh

Gary is a Partner and Investment Manager in the US Equities Team. He graduated MBiochem in Biochemistry from the University of Oxford in 2003 and joined Baillie Gifford the same year. He spent time working on our Japanese, UK and European Equity Teams before moving to the US Equities Team in 2008. Gary is a generalist investor but retains a special interest in the healthcare sector dating back to his undergraduate degree. Gary is also a member of the Global Stewardship Team.

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Manager Name: Dave Bujnowski
Manager start date: 1 June 2020
Manager located in: Edinburgh

Dave is an Investment Manager in the US Equities Team. He joined Baillie Gifford in 2018 and became a partner in the firm in 2021. Dave's investment interest is focused on markets and businesses in which a highly dynamic societal change or business model shift affects potential future cash flow in a monumental and underappreciated manner. Prior to joining Baillie Gifford, he co-founded Coburn Ventures in 2005, a consulting and investment company that studies monumental change in business, markets and society to better understand the powerful forces that shape investment opportunities. In his 13 years at Coburn Ventures, Dave was a Partner, primary client-facing consultant, research analyst and portfolio manager of a long-short, market neutral hedge fund. He started his career in 1996, joining Warburg Dillon Read's equity research group as an associate semiconductor analyst before joining UBS's Global Tech Strategy Team. Dave graduated from Boston College in 1993, where he majored in Finance and Philosophy.

Data policy - All information should be used for indicative purposes only. You should independently check data before making any investment decision. HL cannot guarantee that the data is accurate or complete, and accepts no responsibility for how it may be used. Benchmark data provided subject to this disclaimer.
You can buy or sell holdings in this fund through a Stocks and Shares ISA, Lifetime ISA, SIPP or Fund and Share Account