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

Global equity fund investing primarily in fast-growing smaller companies.

  • 2200.00p
    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.

  • 2550.00p
    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).

  • 0.78%
    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 20 October 2020

The fund's objective is to provide above average total returns over the long-term. The manager will invest globally in transferable securities of companies considered to offer excellent future growth prospects. Around 80% of the portfolio is made up of stocks with a market capitalisation of no more than $3bn. Maximum market capitalisation at point of initial purchase is $5bn.

Fund summary

Sector Global
Structure OEIC
Launched June, 2001
Size £1,428m
Yield 0.00%
Charging basis Income
Dividends paid 30 Jun

Charges

Standard initial charge 0.00%
Initial charge via Bestinvest 0.00%
Additional bid/offer spread 0.00%
Annual management charge 0.75%
Ongoing charges figure 0.78%

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Investment process

The fund invests in smaller companies with the potential to grow fast and become the large companies of the future. The fund invests in companies between $100m and $5bn in size – the managers estimate there are around 15,000 companies worldwide that meet their size and liquidity criteria. However, they make no attempt to cover the whole universe, as most small companies remain small and hence are not of interest to them. They source ideas on a mainly qualitative basis from trade shows, universities, looking at lists of companies, and from companies themselves. They focus on companies that will benefit from either a change in market backdrop (e.g. demographics, macro-economic factors, rising wealth) or their own response to change (innovation, the use of technology, a new business model). They also question whether other companies have the ability to replicate what they do. The analysts and managers on the Global Discovery team primarily research their own ideas, but they also interact with other Baillie Gifford teams.

Baillie Gifford Global Discovery was launched in 2011 with the intention to take a holistic approach to small-cap investing. The team take an innovative approach to global small cap in that they target a specific type of company - those capable of growing into large caps. The team believes that small companies are often no longer just domestic businesses - they can expand internationally more easily than in the past because of globalisation, and hence grow faster for longer. The Baillie Gifford Global Discovery fund has performed strongly since launch, though it has been fairly volatile.

Manager research

Average monthly relative returns

  • 15/16 -0.35%
  • 16/17 0.33%
  • 17/18 1.75%
  • 18/19 -0.49%
  • 19/20 4.24%

Bestinvest MRI

  • 3 years 1.83%
  • 5 years 1.09%
  • Career 0.75%
  • 3 years 99.40%
  • 5 years 98.70%
  • Career 99.40%

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

Douglas Brodie

Brodie graduated with a BSc in Molecular Biology & Biochemistry from the University of Durham in 1997 and DPhil in Molecular Immunology from the University of Oxford in 2001. He joined Baillie Gifford in 2001 and is now head of the Global Discovery team, having previously worked on the UK Team.

Track record

Douglas Brodie has 9.4 years experience of managing mutual funds in this sector. Over this period the average monthly return relative to the benchmark index has been +0.75%. During the worst period of relative performance (from February 2014 - December 2016) there was a decline of 18% relative to the index. The worst absolute loss has been 21%. Statistically, we estimate the probability that this fund manager is adding value, rather than being lucky, is more than 99%.

Periods of worst performance

Absolute -21.00% (August 2018 - December 2018)
Relative -18.00% (February 2014 - December 2016)

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

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Top 10 holdings

Data accurate as at 31 July 2020

4.7% Tesla Inc
4.4% Ocado Group Plc
4.2% Alnylam Pharmaceuticals Inc
4.2% Chegg Inc
4.2% Teladoc
3.9% Marketaxess Hldgs Inc
3.1% Zillow Inc
2.6% Staar Surgical
2.4% Lendingtree Inc
2.1% Blackline Inc
Source: Trustnet

Sector breakdown

Health Care 35.00%
Information Technology 23.00%
Consumer Discretionary 18.00%
Financials 7.00%
Money Market 7.00%
Communications 6.00%
Industrials 4.00%

Key Investor Information - Income

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Key Investor Information - Accumulation

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