The Edinburgh-based asset manager has expanded its multi-asset range.

Baillie Gifford has launched a multi-asset growth fund targeting long-term returns with less volatility than equity markets.

The Baillie Gifford Multi Asset Growth Fund will invest in the following range of asset classes: equities, property, infrastructure, emerging market government bonds, high yield credit, commodities, active currency, structured finance and absolute return.

It will target an annual return of 3.5 per cent ahead of the UK base rate, net of fees, annualised over rolling five-year periods, with annualised volatility of less than 10 per cent.

The UK authorised non-UCITS retail scheme fund may also invest in asset classes that have lower expected returns, but which may hold tactical appeal. These include gold, investment grade bonds, developed market government bonds, index-linked bonds and cash.

“Many investors are turning to multi-asset approaches to deliver attractive returns with lower volatility. We do multi-asset investing really well at Baillie Gifford,” said Patrick Edwardson, head of the firm's multi-asset team. 

“You can see that with our Diversified Growth Fund and the same people who manage that are applying the same process to our new Multi Asset Growth Fund.”

Baillie Gifford, which employs over 900 people, had assets under management and advice of £122.7 billion ($178.2 billion) as at the end of March 2016.