Baillie Gifford reduces fees on investment trusts


Baillie Gifford is today reducing investment management fees on two of its investment trusts, saying it is taking advantage of “economies of scale”.

A new tier of 0.55 per cent on assets above £250m will be added to the £422m Baillie Gifford Japan and £271.8m Edinburgh Worldwide Investment trusts.

The existing tiers are 0.95 per cent on the first £50m and 0.65 per cent on net assets above £50m.

Director of retail marketing and distribution at Baillie Gifford James Budden says: “The investment trust industry has to take the initiative if it wants to compete in the new world of transparency and clarity of costs for investors.

“There is an opportunity for the boards of trusts and managers to work together to grow assets under management and drive down fees for the end investor.”

Budden says the move highlights Baillie Gifford’s “ongoing commitment to the long-term future of the investment trusts we manage”.

“We already have one of the most attractive fee levels for Scottish Mortgage Investment Trust PLC, the £4 billion global investment trust, and by taking advantage of economies of scale there is an attractive opportunity to reduce costs and remain competitive.”