Baillie Gifford is set to merge its £276m Multi Asset Growth fund into the Baillie Gifford Defensive Growth fund.
In a letter to shareholders seen by our sister publication Portfolio Adviser, Baillie Gifford said the Multi Asset Growth fund is contracting in size, making efficient management more difficult.
The firm also noted the fund has faced a challenging period for performance, returning 14.4% over the past five years. The fund launched in 2015.
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Shareholders will vote on the proposal on 6 June, with the merger taking place on 27 June if approved. The enlarged fund would hold assets worth £589m.
Both funds have the same management team and the same investment objective, which is to target an annualised return that is 3.5% more than the UK Base Rate over rolling five-year periods, a positive return over rolling three-year periods, and annualised volatility of returns over rolling five-year periods that is below 10%.
This story was written by our sister title, Portfolio Adviser
