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Baillie Gifford Global Discovery B

Bestinvest LogoGlobal equity fund investing primarily in fast-growing smaller companies.

PRICE (INC)

1299p

PRICE (ACC)

1505p

INITIAL CHARGE

0%

ANNUAL MANAGEMENT CHARGE

0.75%

ONGOING CHARGE

0.77%

YIELD

0%

1 YEAR
-41.52%

Prices as at 24 Jun 2022.

Fund commentary last updated 06 Oct 2021.

Past performance is not an indication of future performance.

Capital at risk.

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

SectorGlobal
StructureOEIC
LaunchedMay 2011
Size£1,110m
Yield0%
Charging BasisIncome
Dividends paid30 Jun

Charges

Standard Initial Charge0%
Initial Charge Via BestInvest0%
Additional Bid/Offer Spread0%
Annual Management Charge0.75%
Ongoing Charges Figure0.77%
Equity
Equity
96%
96%
High Yield Bonds
High Yield Bonds
0%
0%
Quality Bonds
Quality Bonds
0%
0%
Property
Property
0%
0%
Commodities
Commodities
0%
0%
Hedge
Hedge
0%
0%
Fund Cash
Fund Cash
4%
4%

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.

The information on this website is not intended to be advice or a recommendation to buy, sell or hold any investment mentioned. The value of investments and the income from them can go down as well as up and you may not get back the amount invested.

Past performance is not a guide to future performance. View full risk warning