Scots group to launch Euro funds
Edinburgh fund manager, Baillie Gifford, is establishing a Dublin-based management company to launch institutional funds.
"Our aim is to offer international in-vestors a range of funds in asset classes where we have a good track record," says Gareth Howlett, director of European marketing for the company, which has £8bn under management.
The first fund will be a single in-vestor fund for an undisclosed European institutional client, which will have a specialist equity portfolio. Once established, the company will be able to set up new funds "relatively cheaply and quickly" says Howlett.
Baillie Gifford sees a developing market for funds in Europe, particularly among pension funds. "There also is a market for bespoke single investor funds, say, for multinationals wanting to group their subsidiaries' funds under one roof, or for large institutional investors, who want to have a fund structure for their own purposes."
"The focus of this venture is primarily non-UK clients, but if we get interest in the funds from the UK we will welcome this." With single pricing and easy listing, the new funds will be in a form more familiar to European investors.
"We did look at a number of options before coming down in favour of Dublin," says Howlett. It was marginally more expensive for Baillie Gifford to run funds out of Dublin than Luxembourg, but cheaper for the clients. "That being the arithmetic, there was no contest."