Baillie Gifford cuts AMCs across onshore and offshore fund ranges

The reduction of annual management fees, which affects 20 funds in total, follows the announcement in January of a reduction in the AMC for the Baillie Gifford American Fund from 0.65% to 0.50%.

Key changes include the Baillie Gifford European Fund reduced from 0.65% to 0.55% and the Baillie Gifford Japanese Fund down from 0.65% to 0.60%. For a full list of the cuts see the table below.

Baillie Gifford had previously adopted a tiered approach to fees across its range of investment trusts, announcing fee reductions for Scottish Mortgage Investment Trust and Monks Investment Trust earlier this year.

Andrew Telfer, joint senior partner at Baillie Gifford, said: “Active managers should take the initiative in today’s environment. Value for money is an often neglected element of the fund buying process. Investors should be able to choose between passive and attractively priced active funds alongside considering the quality and future capability of active funds to deliver after-fees outperformance.

“All active funds are not the same. Sharing economies of scale with investors as funds grow is one way in which Baillie Gifford looks to deliver ongoing value for clients. Meeting all research costs internally is another. We believe that keeping costs low, maintaining high active share, low turnover and engaging with the management of companies in which we invest are key ingredients of a successful active manager.”

The changes are effective from 1 October.