Baillie Gifford Asset manager

Profile

Return to list
Name
Baillie Gifford

Baillie Gifford is unique in the UK in being a large-scale investment business that has remained an independent private partnership. This ownership structure has allowed us to keep our efforts focused entirely on our clients and their investments.


Baillie Gifford partner Stuart Dunbar explains Actual Investing: 


 

 
Investment professionals
249

Locaties

Visiting Address
Calton Square, 1 Greenside Row
EH1 3AN, Edinburgh
Mailing Address
Calton Square, 1 Greenside Row
EH1 3AN, Edinburgh

Visiting Address
4/5 School House Lane East, Dublin 2
D02 N279, Dublin
Mailing Address
4/5 School House Lane East, Dublin 2
D02 N279, Dublin

Contacts

Contact person
Jake Halliday
Client Service Manager


Products and Solutions

Advisory/sub-advisory
Securities lending
Custody
Research
ALM/Strategic Advice
Asset Allocation (SAA/TAA/GTAA)
LDI
(Integrated) Risk Management
Fiduciary Management, externally managed only
Fiduciary Management, (partially) in-house
Multi-Asset Mandates
Segregated Accounts
Mutual Funds
Structured Products
ETFS
Derivates
Other
Advisory/sub-advisory
Securities lending
Custody
Research
ALM/Strategic Advice
Asset Allocation (SAA/TAA/GTAA)
LDI
(Integrated) Risk Management
Fiduciary Management, externally managed only
Fiduciary Management, (partially) in-house
Multi-Asset Mandates
Segregated Accounts
Mutual Funds
Structured Products
ETFS
Derivates
Other

Assets under management

AUM by Client Type (EUR m)




AUM by Asset Class (EUR M)




Details

Source: Baillie Gifford & Co, as at 30 June 2019, in EUR.

Market View

We believe that our longer term view, our willingness to back our judgment and our single Investment Management office location are differentiating features. There is a lot of short term noise in the market and many players are focused on a three to six month view. We believe that market timing is exceptionally difficult, but that over the long-term, a company that can grow its earnings and cash flow faster than average will have a share price that out-performs. These are the opportunities we aim to identify. Our single Investment Management location in Edinburgh means that we can gain a global perspective of potential opportunities.

Consequently, what we do with the information available to us is more important than the information itself. The same information on companies is available to investment professionals no matter where in the world they are located. Our proprietary research does not seek to reinvent the wheel by reproducing complicated earnings spreadsheets to three significant figures; instead we use the resources at our disposal in the market to provide our raw quantitative data and then use our time to analyse this data in order to gain insights into the business models and competitive advantages of the companies in which we invest.

 

Values and Objectives

Baillie Gifford has been offering investment management services for more than 100 years. The world has changed in the intervening period and stewardship of the firm has passed down through several generations of partners; however, the delivery of good, long-term investment returns for clients has remained our overriding objective throughout.

Baillie Gifford’s partnership structure is unusual amongst large investment management companies. Our current generation of 43 working partners and over 1000 employees remain singularly focused on our clients’ requirements. We have no external shareholders. This structure helps us to attract and retain talented staff and underpins our organisation’s stability and its distinct and enduring culture. It also allows us to take a long-term view in everything that we do.

There are five main principles to our strategy:

1. Focus investment teams on high value tasks. We aim to reduce distractions to increase the chances of outperformance.

2. Back our investment judgement. Embracing risk within a reasonably diversified portfolio is an integral part of the pursuit of meaningful returns over the long term.

3. Provide high levels of service to enhance client relationships and retain client confidence through clear, thoughtful and helpful communications.

4. Keep our existing clients’ interests’ paramount. Evolving with client needs and developing our business is important but generating strong results for existing clients will always be our core goal.

5. Keep our firm and its activities simple. Our time should be focused on investment activities and on looking after and understanding our clients’ needs. We minimise bureaucracy where we can.

Baillie Gifford’s sole business is investment management. We do not carry out any custodial or intermediary activities. With the exception of some administrative aspects of international pooled vehicles, all operations and controls are carried out in-house.

Baillie Gifford operates within a framework that sets high standards of professionalism and personal integrity. We firmly believe that a strong control environment is essential for our business and we continue to invest in the enhancement of controls where needed.

History

Baillie Gifford & Co was founded in Edinburgh in 1908 and is one of the UK’s largest independent investment management firms, 100% owned by the 43 partners who all work within the firm. Our partnership structure has not changed since 1908 and we are committed to retaining this structure.

Throughout the early part of the twentieth century, Baillie Gifford & Co developed and managed a wide range of investment trusts investing in equities and bonds worldwide. Our first investment offering was a closed-end mutual fund launched in 1909, the Straits Mortgage & Trust Company. The fund initially specialised in investing in the Far East and then moved to a global outlook, with a strong emphasis on North American investments. This trust, now called Scottish Mortgage, is still a client and is one of the largest investment trusts in the industry.

During the 1960s, Baillie Gifford developed its International Equity discipline, becoming one of the first European investment firms to explore the markets of Japan and other areas in the Far East. In recent decades the firm has forged successful investment specialties in Japan, Europe, North America and Emerging Markets.

By the time of its centenary in 2008, Baillie Gifford had offices in New York and London in addition to its headquarters in Edinburgh and was managing more than $100 billion.

Baillie Gifford Overseas Limited was established in 1983 and provides investment management and advisory services to non-UK clients. Baillie Gifford Overseas Limited is wholly owned by Baillie Gifford & Co. It is registered with the Securities & Exchange Commission in the United States of America.

 

More recently, as our record of stable organic growth has continued, the firm has steadily diversified both in terms of client base and by the range of investment strategies we offer such as multi asset and fixed income strategies. By the end of 2018 we were managing asset of over $220bn for clients in around 30 countries, mainly for pension fund clients but also increasingly for other financial institutions, sovereign wealth funds and private individuals.

Performance Measurement

Internal
External
GIPS
Other
Internal
External
GIPS
Other

Fee Structure

When determining fee structures, we aim to ensure clients share the benefits of any economies of scale, enjoy the bulk of targeted outperformance and that the fees reflect the liquidity of the strategy under consideration. This is in keeping with our broader aim, which is to generate long-term outperformance for our clients, net of investment management fees.


Research & Insights

Asset Management

Published 31-7-2019
Curious about Baillie Gifford? Find out how we support society through responsible investment, environmental management and sponsorship in our first edition
Published
At Baillie Gifford, we pride ourselves on not simply being active investors, but Actual Investors, who value constant learning, patience and fortitude. This film gives further insight into our investment philosophy, our history and company structure.
Published
With valuation formulas found wanting once again, our Long Term Global Growth team write in praise of uncertainty.