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Baillie Gifford Managed Class B - Accumulation (GBP)

Sell:1,266.00p Buy:1,266.00p Change: 33.00p (2.68%)
Prices as at 20 May 2022
Change: 33.00p (2.68%)
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 20 May 2022
Change: 33.00p (2.68%)
Prices as at 20 May 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.

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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.

Please note the fund currently holds shares in Hargreaves Lansdown PLC.

This fund invests in a mix of company shares from across the globe, alongside bonds and cash. The managers think shares will be the main driver of returns over the long run, and they invest in businesses they feel possess exceptional growth potential. Shares tend to make up more of the fund compared with others in the same sector, so we think this is a more adventurous option. It could boost the growth of a more defensive investment portfolio with a focus on bonds or add a little stability to a portfolio focused on shares.

We like the fund managers' long-term approach and that they stick to the investment process through different market conditions. They're prepared to stay invested in a company through the good times and the bad if they believe it's a great business.

Our view on the sector

The Mixed and Flexible Investment sectors could be the answer for investors who want to leave the asset allocation decisions to an expert. Funds in these sectors invest a certain amount of their portfolio in shares, from 0% to 35% in the case of the Mixed Investment 0-35% Shares Sector, 20% to 60% for the Mixed Investment 20-60% Shares Sector, 40% to 85% for the Mixed Investment 40-85% Shares Sector, and 0% to 100% for the Flexible Investment Sector. Any proportion of the fund not invested in shares can be invested in bonds, cash, currencies, commodities or property. Funds within these sectors can be very different from each other so they'll perform differently too. Each should be looked at on its own merits, taking account of your investment objectives and the amount of risk you want to take.

Performance Analysis

The fund's performed well over the long term. It invests a higher proportion in shares compared to other funds in the same sector. This means it could perform differently to peers. We expect the fund to perform well compared to peers when stock markets rise, but lag when markets fall.

That's why it's done well since the 2008 financial crisis, with markets going up for many years. For the same reason though, it hasn't sheltered the value of investments as much as other funds during tougher times.

The positive news about the effectiveness of vaccines against coronavirus in November 2020 signalled a turning point for markets. Sectors of the market that had suffered in 2020 started to perform better, benefitting value focused funds and posing a headwind to growth focused funds.

High growth stocks, often those with cashflows expected furthest in the future, have since suffered some of the largest share price falls. Worries about rising inflation and interest rates have seen investors be less willing to pay up for companies with high growth potential. The fund's growth style of investing has been out of favour and some of the companies that did well in the early stages of the pandemic have recently detracted from performance.

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.

Past performance isn't an indication of future performance.

Investment Philosophy

The fund uses a team-based approach to select its favourite shares and bonds. Shares are there to drive returns over the long run, whereas bonds provide some balance and aim to dampen some of the volatility that comes from only investing in shares and adds diversification.

The managers believe bringing together their best ideas means they're more likely to find investments with excellent long-term prospects. They have the support of six other experienced investors who are all experts in their fields, representing a mix of fixed income, US, Europe, emerging markets and developed Asia equity teams. The managers can also draw upon the vast resources at Baillie Gifford to help with additional research, challenge and analysis.

Process and Portfolio Construction

The shares section of the portfolio is managed in line with Baillie Gifford's growth-focused investment philosophy. The managers look for high-quality companies with clear and sustainable advantages over the competition. The bond section of the fund invests in government bonds and investment grade and higher-risk, high-yield corporate bonds.

The amount invested in shares and bonds can change over time though, depending on the team's economic outlook. During the 2008 financial crisis, for example, they reduced investments in shares and increased bonds and cash in the portfolio.

Different fund managers are responsible for selecting companies in different parts of the world. They look for the ones they think have the best long-term growth prospects. They've found the most opportunities in developed countries like the US, UK and Japan. The team invests in bonds and higher-risk emerging markets through other Baillie Gifford managed funds. Please note the fund's investments in emerging markets and derivatives add risk.

question mark Manager Track Record Based on HL Quantitative Research

  • Baillie Gifford Managed A Inc
  • IA Mixed Investment 40-85% Shares

Fund Track Record

20/05/17 to 20/05/18 20/05/18 to 20/05/19 20/05/19 to 20/05/20 20/05/20 to 20/05/21 20/05/21 to 20/05/22
Annual return 11.50% 4.37% 12.84% 25.83% -18.79%

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

manager photo
Manager Name: Steven Hay
Manager start date: 1 November 2012
Manager located in: Edinburgh

Steven is the co-lead Manager on our flagship Managed Fund. He has been involved in running the Fixed Income portion of the Fund since 2012. Steven joined Baillie Gifford in 2004 and is Head of the Income Research Team. 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 graduated BAcc (Hons) in Economics and Accountancy from the University of Glasgow in 1992 and MSc in Economics from the University of Warwick in 1993.

manager photo
Manager Name: Iain McCombie
Manager start date: 1 November 2012
Manager located in: Edinburgh

Iain is a founding member of the Global Stewardship Team and is the lead Iain is a founding member of the Global Stewardship Team and is the lead manager of our UK Core strategy. Most recently, Iain served as Chief of Investment Staff from 2013 to 2018 and became a Partner of the firm in 2005. He initially joined Baillie Gifford in 1994 and spent five years training as an Investment Manager in the US Equities Team before joining the UK Equity Team in 1999. Iain graduated MA in Accountancy from the University of Aberdeen and subsequently trained as a Chartered Accountant.

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