Baillie Gifford is to shutter its Active Gilts range as low interests hit the viability of the fixed income funds.
The Baillie Gifford Active Gilt, Active Index-Linked Gilt and Active Long Gilt funds had been managed by Steven Hay, who will remain at the Scottish manager in his existing role as co-manager of the Managed and Multi Asset Income funds.
The funds collectively had £200.4m assets, according to FE Fundinfo. The long-dated fund had an ongoing charges figure of 0.27% while the other two funds charged just 0.19%.
The £67m Active Gilt fund had underperformed its index by 27.2% over the last decade, according to FE Fundinfo.
Baillie Gifford Active Gilt Investment performance
| 6m | 1yr | 3yr | 5yr | 10yr | |
| Baillie Gifford Active Gilt Investment | 0.69 | 6.27 | 9.68 | 17.29 | 57.62 |
| FTSE Actuaries UK Conventional Gilts All Stocks | 1.53 | 7.16 | 11.72 | 19.94 | 70.45 |
Source: FE Fundinfo
Baillie Gifford head of retail marketing and distribution James Budden said: “After carrying out a review of the future prospects of our Active Gilt fund range, and with the UK base rate likely to stay near record lows for the foreseeable future, we have concluded that it is in the best interests of shareholders to close these funds.
“They will close on or around 3 April 2020 with final income distribution paid within two months of the termination date.”
