Baillie Gifford wins American contract

Apr 14 2008

Scots firm to manage two more funds for Vanguard

Scottish fund manager Baillie Gifford has received a major boost after being appointed to manage two more funds for US based group Vanguard.

It has been appointed to manage Global Equities for the $6.9 bn Vanguard Global Equity Fund and to manage US Equities for the $996m Vanguard Growth Equity Fund.

The firm has been advising Vanguard on part of its $18.5 billion International Growth Fund and the $1 billion International Portfolio of the Vanguard Variable Insurance Fund since 2003 and now manages more than $5 billion of assets for Vanguard.

Mick Brewis, partner and head of North American Equities will lead Baillie Gifford’s investment team managing the assets in the Growth Equity Fund and Charles Plowden, joint senior partner and responsible for the management of the Global Alpha product, will manage Baillie Gifford’s portion of the Global Equity Fund.

Vanguard, headquartered in Valley Forge, Pennsylvania, is one of the world’s largest investment management companies and is a major provider of company-sponsored retirement plan services.

It manages nearly $1.25 trillion in U.S. mutual fund assets, including more than $486 billion in employer-sponsored retirement plans. Vanguard offers more than 150 funds to U.S. investors and more than 40 additional funds in foreign markets.

Baillie Gifford joint senior partner Alex Callander said: “It is testament to the strength of our investment management capabilities in Global and US Equities that we have been appointed  to advise on two further funds.

“One of our goals is to work with a small number of major financial institutions around the world such as Vanguard and build strong working relationships like this. We are all very pleased to be working so closely with Vanguard.”