fund

Rated

This is one of our rated funds. They’re the ones our experts believe will do well for investors over the longer term. Top of the class!

Baillie Gifford Global Discovery B

  • 2302.00p
    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.

  • 2668.00p
    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?

  • 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!

  • 0.75%
    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).

  • 0.76%
    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.

  • 0.00%
    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 22 October 2021

The fund invests in globally ambitious early-stage companies that could be the leaders of the future and aims to outperform the S&P Global Small Cap Index by at least 2% per year over rolling 5-year periods. Lead manager Douglas Brodie invests in “special” companies which he believes can transform or disrupt their industries and grow globally. He targets companies in the $500million to $5billion valuation range at the time of investment, with holdings including electric vehicle maker Tesla and online grocer Ocado. Brodie takes a qualitative investment approach, looking at factors such as management strategy and innovative technology rather than using quantitative stock screens. He has long-term time horizons with a low turnover of holdings.

Fund summary

Sector Global
Structure OEIC
Launched
Size £2,147m
Yield 0.00%
Charging basis Income
Dividends paid 30 Jun

Charges

Standard initial charge 0.00%
Initial charge via Bestinvest 0.00%
Annual management charge 0.75%
Ongoing charges figure 0.76%

Allocation

Proportion (%)

  • {{chartDataItem.text}}
    {{chartDataItem.value}}

Allocation

Proportion (%)

  • {{chartDataItem.text}}
    {{chartDataItem.value}}

Allocation

Proportion (%)

  • {{chartDataItem.text}}
    {{chartDataItem.value}}

Investment process

The fund focuses on small-cap companies because of their upside potential when it comes to profit and ultimately share price growth. The team’s bottom-up investment process looks for companies that are using innovation and sometimes disruptive technology to react quickly and nimbly to market changes such as an ageing population or environmental issues. They also search for management teams with a clear growth strategy, with much of their portfolio led by founders. In addition, they target small caps with an emerging competitive advantage, few rivals and a business model which can scale in size. The team considers around 500 stocks per year, of which between 10 and 15 make it into the portfolio after a process of peer review and debate. The portfolio consists of between 75 and 150 stocks with typical holding sizes of between 0.5% and 3% depending on risk. It has a sector bias towards information technology and healthcare.

Investing in small caps, some pre-profit or with low profit because of huge investment, can be high risk. However, the experienced management team is unapologetically aggressive in nature as returns in this space can be many times the original investment. The fund has a stunning investment track record, though returns have been volatile. Manager Douglas Brodie’s qualitative only approach helps differentiate it from its peers. He has a clear investment philosophy believing that large, mature companies often fail to innovate and react to change and it is less mature, more entrepreneurial companies that shape an industry’s future path. Brodie doesn’t automatically sell if a company exceeds its $5billion limit, instead basing the decision on its fundamentals and valuation, so the fund may move up the cap scale over time.

Manager research

Average monthly relative returns

  • 16/17 0.00%
  • 17/18 0.00%
  • 18/19 0.00%
  • 19/20 0.00%
  • 20/21 0.00%

Bestinvest MRI

  • 3 years 0.00%
  • 5 years 0.00%
  • Career 0.00%
  • 3 years 0.00%
  • 5 years 0.00%
  • Career 0.00%

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

Track record

Periods of worst performance

Absolute 0.00% ()
Relative 0.00% ()

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.

Allocation

Proportion (%)

  • {{chartDataItem.text}}
    {{chartDataItem.value}}

Allocation

Proportion (%)

  • {{chartDataItem.text}}
    {{chartDataItem.value}}

Allocation

Proportion (%)

  • {{chartDataItem.text}}
    {{chartDataItem.value}}

Sector breakdown

Health Care 36.00%
Information Technology 29.00%
Consumer Discretionary 10.00%
Industrials 9.00%
Communications 5.00%
Financials 4.00%
Consumer Staples 4.00%
Money Market 3.00%

Portfolio

75 to 150 stocks.

Key Investor Information - Income

Download

Key Investor Information - Accumulation

Download