Baillie Gifford American co-fund manager Peter Cawston says the industry is obsessed with short-term performance and consistently ignores sustained long-term growth.
Cawston says the average US mutual fund has an annual stock turnover of 100 per cent and likens it to a form of betting. He favours a longer-term approach in his 47-stock high-conviction portfolio and says the fund’s turnover was just 13 per cent in 2005. He says the fund’s philosophy is to stick with firms that are easy to understand and cites Google as an example of a stock that has diversified into too many areas. He says the fund is instinctively underweight in technology because it is a complicated sector and he believes that while the short-term outlook for the US economy is not great, its long-term potential is very strong. Two recent picks that have outperformed are oil services firm Schlumberger and billboard advertising group Lamar. He believes the fund’s ability to outperform the market has been helped by being located in Edinburgh and says: “It allows us to ignore the background market noise in London.” The group launched its core strategy in 2002 to focus on the UK, European and US markets. Baillie Gifford head of UK equities and chief of investment staff Charles Plowden believes Baillie Gifford’s recent growth and success is due to it remaining a strictly independent 29-partner business with low fund manager turnover. He says: “In the City, the average fund manager tenure is less than three years. At Baillie Gifford, it is 10 years.Recommended
Advisers underestimate life expectancy at their peril, warns Pensions Regulator
Underestimating life expectancy among their members could leave pension schemes with tens of millions of pounds of unforeseen liabilities, the Pensions Regulator has warned.
Burns-Anderson on sale for 12m
Burns-Anderson is looking for a provider or providers to buy the business from its shareholders for 12m. The network’s manage-ment, which aims to continue at the firm, intends to use the money to pay off shareholders and invest the surplus in upgrading its technology and in-house IFA. Burns-Anderson says some of its 450 shareholders – […]
FSA fines Langtons IFA 63,000
The FSA has fined Langtons IFA Limited 63,000 for failing to properly apportion roles and responsibilities to its senior management, putting consumers at risk. The firm is also accused of not having systems in place to ensure its advisers were trained and competent.
Mutual trends
Consolidation had become a distant memory until Nationwide’s takeover of Portman. If more lenders increase competition, then surely fewer lenders will have the opposite effect?

Mark Page: “A good time to be a European fund manager”
With European markets picking up in early 2015, Mark Page, Artemis European Opportunities Fund manager, discusses the ‘macro’ drivers and whether the improvements are sustainable. Largely driven by economic stimulus by the European Central Bank, European stockmarkets have performed strongly so far in 2015. Mark discusses the relative merits and sustainability of ECB policy with […]
Most Read
- Top trends
Newsletter

News and expert analysis straight to your inbox
Sign upLatest from Money Marketing

Tenet woos bank and provider advisers with ready-made package
Tenet is looking to attract advisers from providers and banks with a new ‘business in a box’ solution. The network is vying for business from advisers who want to pursue the self-employed route in the simplest fashion. For example, the network will help the adviser set up their own limited company and provide loans for […]

FOS penalises adviser over Harlequin Sipp property investment
The Financial Ombudsman Service has told Kingswood Financial Advisors to compensate a client over a Sipp investment in an unregulated Harlequin property fund. The case concerns Mr B’s complaints about the advice he received regarding two unregulated investments: one into a Harlequin property fund and the other into Green Oil. The ombudsman’s ruling relates to […]

Revealed: Fidelity International director investigated over harassment claims
A former Fidelity International female employee is claiming compensation against the asset manager following an alleged case of harassment from senior management, Money Marketing can reveal. The employee, who we will name Mrs A, and who used to be based at one of Fidelity’s offices in India, was sent an employment termination letter on 14 March […]