Baillie Gifford American B

A concentrated large/midcap US fund looking for reasonably valued growth.

  • 942.70p
    Price (Inc)

    These are the shares in the fund that pay out an income to clients. The income is made up of the total dividends – the money a company can pay out to its investors – from the companies in the fund.

  • 1021.00p
    Price (Acc)

    These are the shares in the fund that don’t pay out an income to clients. Any dividends – the money a company can pay out to its investors – are reinvested into companies in the fund. Despite no income, the shares should be worth more over time. Good incentive, eh?

  • 1.00% 0.00%

    Initial charge

    Some funds charge you when you first invest, which is aptly known as the initial charge. They’re usually between 3-5% but at Bestinvest, we usually don’t charge you a penny!

  • 0.50%
    Annual management charge

    This is how much the fund management company charges to run the fund. It’s like paying a babysitter, dog sitter or house sitter (that makes well-informed, heavily researched changes to improve your baby/dog/house when needed).

  • 0.52%
    Ongoing charges

    This stands for Ongoing Charges Figure. It’s the cost of running a fund and includes admin fees, manager fees, administration costs, etc.

  • 0.40%
    Yield

    How much the fund is currently paying out in income to investors. It’s NOT to be confused with the overall growth of a fund – a very different thing indeed. It’s also NOT a guarantee of future pay-outs, just a snapshot. This is more what it’s not than what it is…

Prices as at 17 February 2020

The focus of this fund is selecting large and medium sized companies showing long term growth potential, whose shares are trading on reasonable valuations. The fund is managed from Edinburgh. Research is conducted internally and through the use of sell side analysts. The team will also make regular visits to the US. Group views and constraints may also affect the portfolio construction.

Fund summary

Sector North America
Structure OEIC
Launched March, 2002
Size £2,492m
Yield 0.40%
Charging basis Income
Dividends paid

Charges

Standard initial charge 1.00%
Initial charge via Bestinvest 0.00%
Additional bid/offer spread 0.00%
Annual management charge 0.50%
Ongoing charges figure 0.52%

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Investment process

This fund holds companies with a market cap greater than $3bn, mainly in the US but Canadian stocks may be held at times. A bottom up stock-picking approach is used to identify attractive long-term growth prospects coupled with shares trading on reasonable valuations. Industry and economic factors will be taken into account when analysing companies, but the profile of the fund will be mainly a result of the stock selection and adherence to risk controls. Analysts seek a sustainable return on capital generated through a strong business model or market position, above average growth funded internally and management committed to creating shareholder value. Inclusion in the portfolio is determined by strength of conviction and the effect on portfolio profile. Portfolio turnover is low, with the management prepared to back companies for the long term if fundamentals remain in place.

Manager research

Average monthly relative returns

  • 15/16 0.49%
  • 16/17 0.26%
  • 17/18 0.45%
  • 18/19 1.82%
  • 19/20 -1.08%

Bestinvest MRI

  • 3 years 0.40%
  • 5 years 0.39%
  • Career 0.29%
  • 3 years 74.20%
  • 5 years 83.20%
  • Career 78.50%

Performance figures are based on the average of monthly percentage returns relative to the benchmark index.

Gary Robinson / Ian Tabberer

Tabberer graduated BSc in Geography from the University of Southampton in 1995. He then joined the Royal Navy where he served as a Warfare Officer within the Submarine Service for six years. He entered the investment management industry in 2001 and worked at Scottish Widows, where he was a Portfolio Manager for North American Equity until joining Baillie Gifford in 2008. Ian is an Investment Manager in our North American Equity Team

Track record

Gary Robinson / Ian Tabberer has 5.4 years experience of managing mutual funds in this sector. Over this period the average monthly return relative to the benchmark index has been +0.29%. During the worst period of relative performance (from August 2018 - September 2019) there was a decline of 14% relative to the index. The worst absolute loss has been 20%. Statistically, we estimate the probability that this fund manager is adding value, rather than being lucky, is 79%.

Periods of worst performance

Absolute -20.00% (August 2018 - December 2018)
Relative -14.00% (August 2018 - September 2019)

About the MRI

Our unique indicator: the Bestinvest Manager Record Index (MRI) measures the likelihood that the fund manager is adding value through their decisions. It is based on their performance record over the course of their career, adjusted for the amount of risk taken. MRI is an important contributor to our fund rating system but it is also vital to take account of qualitative factors. It is also very important to select funds to form a cohesive portfolio with an appropriate overall risk level.

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Top 10 holdings

Data accurate as at 30 November 2019

8.2% Amazon.com Inc
5.9% Marketaxess Hldgs Inc
5.6% Shopify Inc Npv Subordinated A
5.3% Tesla Inc
4.8% Netflix Inc
4.6% Alphabet Inc
4.3% Mastercard Inc
4.2% Illumina Inc
4.2% The Trade Desk
3.9% Facebook Inc
Source: Trustnet

Sector breakdown

Consumer Discretionary 23.00%
Information Technology 20.00%
Communications 19.00%
Health Care 17.00%
Financials 11.00%
Industrials 8.00%
Real Estate 1.00%
Money Market 1.00%

Portfolio

A concentrated portfolio of 40-50 stocks.

Constraints

Maximum stock and sector bets relative to the S&P 500 are +/-5% and +/-10% respectively. Tracking error target is 4-8%.

Key Investor Information - Income

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Key Investor Information - Accumulation

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