The active share figure is the percentage of a fund’s holdings that differ from its benchmark.
In general terms the higher this figure is the greater the degree of active management and stock selection being carried out by the managers.
At 31 December 2014 the active share figure for Baillie Gifford funds range from 69% for The Baillie Gifford Greater China Fund to 99% for the Baillie Gifford Global Discovery Fund. The rest of the funds are detailed on Baillie Gifford’s website.
“We are passionate about the value of truly active management and recognise the need for investors to be able to identify an actively managed fund from in-and-amongst the shoal of ‘closet tracker’ funds,” said James Budden, director of retail marketing and distribution. “You can only outperform by being different from the index. Anything over 60% suggests you are on the right track.”
“RDR has created polarisation between cheap passive funds and more expensive active strategies. Clients need to be sure that they are getting what they are paying for.”
