Baillie Gifford reveals turnover figures for retail funds

Budden James Baillie GiffordBaillie Gifford is to start publishing its annual portfolio turnover numbers on its retail funds from December.

The figures, which show the percentage of the portfolio the fund manager replaces every year, will be included on individual fund factsheets.

The move follows Baillie Gifford’s decision to disclose a measure of active share in portfolios last year.

This year, for example, the annual turnover for Baillie Gifford ranged from 33 per cent for the firm’s  American fund to 5 per cent for the Global Discovery fund as of the end of October, according to the firm. (See other figures below)

Baillie Gifford director of retail marketing and distribution James Budden says: “Well documented research shows that managers with a high active share, low portfolio turnover, a long investment horizon and who engage with company management are more likely to outperform indices after fees. We were one of the first firms to disclose our active share figures and now we are publishing turnover percentages for all our funds and trusts.

Budden says the numbers highlight the firm’s long-term approach to investing “in an increasingly short term environment”.

He adds: “Low turnover also points to lower trading costs which is good for investors who in turn need this kind of transparency if they are going to be able to separate the genuinely active from the index huggers and high turnover traders.”

Source: Baillie Gifford
Source: Baillie Gifford