Baillie Gifford multi-asset funds switch sector

Moved to IA's Targeted Absolute Return sector

Baillie Gifford has switched its Multi Asset Growth and Diversified Growth funds from the Investment Association's Specialist sector to the Targeted Absolute Return sector, which it says the funds are more aligned with.

The IA's Targeted Absolute Return sector stipulates funds must be managed with the aim of achieving a positive return after fees in any market conditions within a clearly stated timeframe of up to three years. The £7.2bn Diversified Growth fund targets an annualised return over five years of at least 3.5% more than UK base rate, and the £1.8bn Multi Asset Growth fund aims to deliver 3.5% more than UK base rate, post fees. Both funds look to post positive returns over three-year periods, after deduction of costs, and annualised volatility of returns of below 10%. Baillie Gifford UK ...