Baillie Gifford to launch RDR-friendly share classes
Baillie Gifford is to introduce a retail distribution review (RDR) share class for its fund range by making one institutional share classes available to the retail market.
The firm’s institutional “B” clean share class range will be opened up to retail investors last this year. The minimum investment will consequently be reduced from £250,000 to £10,000.
James Budden, director of retail marketing and distribution at Baillie Gifford, comments: “Our funds now offer significant value in pricing terms, which should prove attractive to investors.
“It was simpler for us to offer our institutional B share class more widely than to launch a whole new range. Successful long term active management of equities at an average annual charge of 0.65% is an exciting cocktail for intermediaries and their clients.”
As a result of this move, Baillie Gifford says that its equity funds will carry an unbundled annual management fee of 0.65% while the fixed income range will be priced between 0.25% and 0.65%.
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