Baillie Gifford has designed the Baillie Gifford children's savings plan, which provides access to its range of six investment trusts.
The money invested may be used to fund, for example, school and university fees, weddings, buying a car or a home. Investors can choose from the Scottish Mortgage and trust, Monks investment trust, Mid Wynd international investment trust, Baillie Gifford Japan trust, Baillie Gifford Shin Nippon and Pacific horizon investment trust.
Scottish mortgage and trust invests in blue chips mainly in the UK but also invests internationally. Monks investment trust aims for growth by investing globally in companies such as Barclays and the US pharmaceuticals company Pfizer. Mid Wynd investment trust aims for growth and income by investing globally in companies with strong cash flows and a competitive edge over rival firms.
The Baillie Gifford Japan trust invests in medium and small Japanese companies, while the Baillie Gifford Shin Nippon trust focuses on small Japanese companies. Finally, the Pacific horizon investment trust invests in the Asia Pacific region excluding Japan, with Hong Kong and China dominating the portfolio.
The children's plan is available as a designated account, where the plan is set up in an adult's name on a child's behalf. It is also available as a bare trust, where adults act as formal trustees.
Edinburgh Fund Managers has a similar investment trust savings plan, investIT for children, which offers 11 internally-managed investment trusts. It includes UK-specific trusts that Baillie Gifford does not provide.
According to Standard and Poor's, two Baillie Gifford trusts are first quartile and none of the Edinburgh Fund Managers' trusts are first quartile based on £1,000 invested on a mid-to-mid basis with net income reinvested over three years to December 16, 2002.