The fund aims to achieve long-term returns with lower volatility than equity markets. It targets a return of 3.5% per year ahead of the UK base rate net of fees, annualised over rolling five-year periods, with volatility of less than 10%.
The fund’s investable universe encompasses a range of asset classes, and is managed by Baillie Gifford’s Multi Asset team. It applies the same investment process as the Diversified Growth Fund, launched in 2008.
“Many investors are turning to multi-asset approaches to deliver attractive returns with lower volatility,” said Patrick Edwardson, head of the multi asset team. “You can see that with our Diversified Growth Fund and the same people who manage that are applying the same process to our new Multi Asset Growth Fund. We think it’s a really good investment approach and the new fund should be very successful,” he continued.
