Baillie Gifford adds portfolio turnover figure to fund factsheets
Figure currently ranges between 5%-33%
Baillie Gifford will publish an annual portfolio turnover figure on its retail fund factsheets from next month.
The figure measures the percentage of the portfolio a fund manager replaces on an annual basis, with a low annual turnover figure typically indicating a long-term investment approach, according to the group.
As of 31 October, the annual turnover for Baillie Gifford funds ranged from 33% for the Baillie Gifford American fund to 5% for the company's Global Discovery fund.
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James Budden (pictured), director of retail marketing and distribution at Baillie Gifford, says: "Well documented research shows that managers with a high active share, low portfolio turnover, a long investment horizon and who engage with company management are more likely to outperform indices after fees.
"We were one of the first firms to disclose our active share figures and now we are publishing turnover percentages for all our funds and trusts.
"These numbers are important because they provide evidence that we take a credible long term approach to investing in an increasingly short-term environment.
"Low turnover also points to lower trading costs which is good for investors who in turn need this kind of transparency if they are going to be able to separate the genuinely active from the index huggers and high turnover traders."
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