Baillie Gifford cuts management fees on 20 funds

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Baillie Gifford has slashed annual management charges up to 10 basis points across its UK Oeics and Irish Ucits funds.

Key changes include the Baillie Gifford European fund reduced from 0.65 per cent to 0.55 per cent and the Baillie Gifford Japanese fund down from 0.65 per cent to 0.60 per cent.

The asset manager has already adopted a tiered approach to fees across its investment trusts, and in January it announced the AMC for the Baillie Gifford American Fund would drop from 0.65 per cent to 0.50 per cent.

Baillie Gifford joint senior partner Andrew Telfer lists keeping costs low as important to the success of active fund managers, alongside high active share, low turnover and engagement with company management.

“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.”

The Developed Asia Pacific, European, UK Equity Alpha and Worldwide Pan-European funds will see the largest drop in fees losing 10 basis points.

The changes are effective from 1 October.

OEIC Funds Management fee before fee reduction (%) Management fee after fee reduction (%) Ongoing charges* before fee reduction (%) Ongoing charges* after fee reduction (%)
Developed Asia Pacific Fund 0.65 0.55 0.69 0.59
Emerging Markets Growth Fund 0.75 0.72 0.83 0.80
Emerging Markets Leading Companies Fund 0.75 0.72 0.82 0.79
European Fund 0.65 0.55 0.70 0.60
Global Alpha Growth Fund 0.65 0.57 0.68 0.60
Global Income Growth Fund 0.65 0.57 0.68 0.60
Global Select Fund 0.55 0.50 0.58 0.53
Greater China Fund 0.75 0.72 0.85 0.82
International Fund 0.65 0.57 0.68 0.60
Japanese Fund 0.65 0.60 0.68 0.63
Japanese Income Growth Fund 0.65 0.60 0.68 0.63
Long Term Global Growth Investment Fund 0.70 0.62 0.74 0.66
Positive Change Fund 0.55 0.50 0.65 0.60
UK Equity Alpha Fund 0.65 0.55 0.68

0.58

*Ongoing charges figure is for Class B Accumulation shares.
Irish UCITS Funds Management fee before fee reduction (%) Management fee after fee reduction (%) Ongoing charges** before fee reduction (%) Ongoing charges** after fee reduction (%)
Worldwide Emerging Markets Horizon Fund 0.75 0.72 0.93 0.90
Worldwide Global Alpha Fund 0.65 0.57 0.72

0.64

Worldwide Global Alpha Choice Fund 0.65 0.57 0.74 0.66
Worldwide Pan-European Fund 0.65 0.55 0.75 0.65
Worldwide Japanese Fund 0.65 0.60 0.74 0.69
Worldwide Long Term Global Growth Fund 0.70 0.62 0.80 0.72
**Ongoing charges figure is for Class B USD Accumulation shares.