Baillie Gifford to shutter four bond funds and scrap international fixed income business
The round of layoffs is expected to affect dozens of the Edinburgh-based asset manager’s 2,000 staff.
Investment Week understands the firm is closing three funds from its Irish UCITS fund range — the Worldwide Global Strategic Bond fund, Worldwide European High Yield fund and Worldwide Sustainable Emerging Markets Debt fund — and the UK OEIC Emerging Markets Bond fund.
The four funds, which have less than £50m of external client assets, represent a small share of the £2bn direct fixed income assets managed by the firm for its UK client base. However, the total AUM of these funds stands at $978m, according to the most recent factsheets.
As of the end of 2023, the firm manages £225.6bn in assets.
According to letters to shareholders seen by Investment Week, the Worldwide European High Yield and Worldwide Global Strategic Bond funds are due to close on 29 February 2024, while the Worldwide Sustainable Emerging Markets Debt and UK OEIC Emerging Markets Bond funds are due to close on 22 April 2024.
abrdn launches 'transformative' £150m cost cutting programme with 2025 deadline
As part of an ongoing cost review, the firm is preparing a round of layoffs that is expected to affect dozens of the Edinburgh-based asset manager's 2,000 staff, with the fixed income, client services and back office departments likely to be most impacted.
«As part of our regular business planning, we consider how to reduce our expenditure,» a Baillie Gifford spokesperson said.
«However, our partnership structure ensures we can continue to invest in growing areas of the business while pursuing excellent long-term returns for our clients.»
The move follows a similar announcement by abrdn, which this morning confirmed it would make 500 people
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