The Baillie Gifford Diversified Growth fund is set to re-open to new investors next month, with an accompanying reduction in its annual management charge (AMC). 
The multi-asset fund, which is managed by James Squires, David McIntyre, Scott Lothian, Felix Amoako and Nicoleta Dumitru, was closed in 2013 after it hit £3bn in assets under management. The reason behind this was capacity grounds relating to various asset classes such as insurance-linked securities.
Baillie Gifford Diversified Growth, which now has assets of £6.4bn, will open to new investors on 1 July. The firm said the significant growth in markets since the fund’s closure means its managers believe there is now “sufficient headroom” to re-open the fund.
Performance of fund vs sector and benchmark since launch
Source: FE Analytics
The fund invests across a broad range of asset classes to deliver capital growth with low volatility. It resides in the IA Targeted Absolute Return sector and takes a fund-of-funds approach, with top holdings including Baillie Gifford Cyclical Recovery Equity, Baillie Gifford Global Alpha Growth and Baillie Gifford Global Income Growth.
In addition, the AMC on Baillie Gifford Diversified Growth’s B share class will be lowered from 0.65 per cent to 0.55 per cent.
This is the 13th time Baillie Gifford has reduced fees across one or more of its range of funds and investment trusts since 2013, with recent examples including the £732m Baillie Gifford Global Income Growth fund, the £241m Baillie Gifford Responsible Global Equity Income fund and the £879.6m Scottish American Investment Company.
James Budden, director of marketing and distribution at Baillie Gifford, said: “We aim to be competitive on fees as they are the only element of investment returns which can be guaranteed.
“We regularly review the costs associated with our funds to ensure they remain fair and reasonable. This latest fee reduction is part of our continued commitment to provide investors with value for money.”