Baillie Gifford calls time on British Smaller Companies fund
The fund has lost 19.2% in the last year, while the IA UK Smaller Companies sector is down 12.6% over the same period.
The fund, which launched in November 1993 and was managed by Charlie Broughton, closed on 27 June. All shareholders will receive cash to the value of their holdings within 30 days, the firm said.
Baillie Gifford said the fund was closed because long-term investment performance had not met clients' expectations and investor demand for the sector and the fund itself had been «weak» for a number of years.
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«The manager Charlie Broughton remains a valuable member of the International Smaller Companies team,» the firm said.
As of the end of May, the fund held £141m in assets. This is down from £237m in August last year, when the Edinburgh-based manager flagged the fund as not providing value to investors due to poor performance.
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According to its latest factsheet, the fund has failed to beat its index, the Numis Smaller Companies index (excl. Investment Companies) and target benchmark, over a 6-month, 1-year, 3-year and 5-year period.
The fund has lost 19.2% in the last year, while the IA UK Smaller Companies sector is down 12.6% over the same period. Over the last five years, the fund is down 5.4%, while the sector is up 0.2%.
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