Baillie Gifford has cut the annual management fee on its £1bn UK Equity Alpha fund B class shares from 0.55% to 0.47%.
The change will come into effect from October 1, 2021.
The firm has also cut the annual management fee on the Dublin Ucits Baillie Gifford Worldwide UK Equity Alpha fund B class shares from 0.55% to 0.47%.
Baillie Gifford UK Equity Alpha has returned 18.7% and 61.1% over three and five years, outpacing the average IA UK All Companies fund’s gains of 16.3% and 38.6%, according to Trustnet. But over the past year it has seen performance slump relative to peers, returning 10.6% versus the sector’s 34.7%, as its preferred growth style has wavered during the Covid-led recovery.
Earlier this month Baillie Gifford revealed Milena Mileva (pictured) would become a co-manager on the fund, taking over completely for lead manager Gerard Callahan next May when he retires from the business.
See also: Baillie Gifford UK Equity Alpha manager to retire next year
The latest reductions follow a fee cut on the Baillie Gifford US Growth Trust a week ago and marks the fifteenth occasion that the company has reduced fees on one or more funds or investment trusts since 2013.
James Budden, director of marketing and distribution at Baillie Gifford, said: “We strive to be as competitive on fees as possible. Providing value for money is especially important in relation to UK equities where so many options are available to investors.”
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
