Baillie Gifford has cut the annual management charge on its US Growth Trust, marking the group’s 14th fee reduction across its funds and investment trusts since 2013.
On 1 September, the AMC on the strategy became 0.7% on the first £100m of net assets, 0.55% on the next £900m and 0.5% for those over £1bn. Previously, it was 0.55% on all assets over £100m.
The trust, managed by Gary Robinson and Kirsty Young, has seen its assets swell to more than £1bn.
According to FE Trustnet, the trust has delivered a share price return of 37% and 150.7% over one and three years, respectively, compared with the IT North America sector’s average of 38% and 50.1%. On a net asset value basis, it has delivered 46% and 169.9% over the respective periods.
The move follows a reduction in the fee on the £6.4bn Diversified Growth Fund’s B share class, available to retail investors, from 0.65% to 0.55%.
Baillie Gifford director of marketing and distribution James Budden (pictured) said: “The US Growth Trust assets now exceed £1bn, and this change will benefit shareholders as the trust continues to grow.
“Across our whole fund and trust range, we aim to be as competitive on fees as possible as they are the only element of investment returns which can be guaranteed. This latest fee reduction re-affirms our commitment to provide investors with value for money.”
According to its latest accounts, Baillie Gifford’s UK arm took in £336m in management fees over the year to 31 March 2021 as the firm took home £22.5m in profits – up nearly 50% from £15.2m the year before.
See also: Track to the Future – with Baillie Gifford’s James Budden
