Baillie Gifford bond fund changes name and cuts fees by 50%

Dan Barnes
Jan Oliver, partner responsible for income strategies, Baillie Gifford.

In January 2021, the Baillie Gifford Worldwide Global Credit Fund became the Baillie Gifford Worldwide Global Strategic Bond Fund. In addition, Baillie Gifford cut the annual management charge for the B share class on the Dublin UCITS fund from 0.45% to 0.225% for a period of three years from 15 January 2021.

The Baillie Gifford Worldwide Global Strategic Bond Fund was launched in July 2012 and has assets of €274 million based on figures at 28 February 2021. The fund is designed as a single solution to credit investing. It has a broad investment mandate which is designed to give it flexibility to adapt to expected market conditions. By exploiting market inefficiencies and making best use of asset allocation flexibility, the fund seeks to deliver returns in excess of the broad fixed income market. The fund is managed by Rob Baltzer and Torcail Stewart. Over the last five years it has delivered a €-return of 5.0% per annum against the return of 3.5% per annum for the Bloomberg Barclays Global Credit Index (hedged to euros), according to the investment firm.

Jan Oliver, partner responsible for income strategies at Baillie Gifford, says, “The name change clarifies the investment proposition of the fund and its strategic allocation to both high yield and investment grade bonds. It also aligns the Fund more closely with our popular UK OEIC Baillie Gifford Strategic Bond. The fund has comfortably outpaced its benchmark since inception in 2012 and we hope that a 50% cut in management fees will be beneficial to its current and potential client base.”

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