Our history

Their timing was perfect. The trust thrived and quickly expanded into new ventures, including US land, Chilean railways and UK theatres. In 1913, it was renamed Scottish Mortgage, a name that still exists today. This early success laid the foundation for more investment trusts and the long-term investment philosophy defining Baillie Gifford.

Scottish Mortgage thrived in this environment, delivering strong returns and expanding its reach, and the business launched new investment trusts to build on this momentum. In 1927, the founders created Baillie Gifford & Co to manage the trusts independently of their legal practice, which laid the foundations for the firm as it exists today.

But the good times didn’t last. In October 1929, the Wall Street Crash abruptly ended the decade’s boom.

After Augustus Baillie’s death on 8 January 1939, the Second World War brought fresh challenges, with many of the firm’s staff serving in uniform. Carlyle Gifford, now in his late 50s, received papers from the Governor of the Bank of England, requesting that he advise HM Treasury on how to build a war chest by requisitioning assets in exchange for government bonds to be sold to the US to help fund Britain’s war effort. In November 1939, Gifford travelled to New York to negotiate the sale of an estimated $4.4bn worth of dollar assets to the US, securing vital resources for the country. He was subsequently involved in the follow-up discussions in 1941 that led to the government securing a $425m loan. 

By the late 1940s, the firm was managing pension funds for companies such as Cadbury and The Times, marking the start of long-term partnerships that continue to define us, and its investment trusts were once again outperforming.

However, the firm was storing up problems for its future. By 1950, Carlyle Gifford was approaching 70 and no longer oversaw day-to-day matters. The partner in charge opted to focus on existing business rather than expansion.

The 1960s brought challenges. New tax laws and regulations made investment trusts less attractive, and some were forced to merge. Despite this, Baillie Gifford remained forward-looking. It was among the first to invest in Japan when the market reopened, backing companies such as Canon.

While the firm missed some opportunities by focusing on existing business, its global outlook and early moves into Asia laid the groundwork for future growth.

This was when one of the firm’s core trusts was taken over, a stark reminder of how vulnerable the business had become. In response, Baillie Gifford shifted focus, securing new clients such as the WS Widows Fund and the Church of Scotland, ensuring we could continue to chart our own course and laying the groundwork for a broader, more resilient business.

The firm also expanded its pension fund business, winning clients such as Michelin, Essex County Council and Distillers. By the decade's end, assets under management had grown more than tenfold, from £300m in 1979 to £3.5bn in 1989.

It was a decade of rebuilding and laying the foundations for global growth.

Back home, our UK pension fund business continued to grow, and we launched Baillie Gifford Life Limited to support it. We also took on new trusts and strengthened our presence in Asia with the Pacific Horizon Trust.

By the end of the decade, our global outlook took shape, with a deepening commitment to client relationships and assets under management reaching £16.2bn.

We also began managing part of Vanguard’s International Growth Fund, a relationship that continues today.

Despite market shocks such as the dotcom crash and the Global Financial Crisis, we kept growing: adding new trusts, expanding into fixed income and deepening our partnerships in Japan and the US. By the end of 2007, as we approached our centenary, we managed over £55bn in assets.

We’ve also expanded into private markets, launched funds with sustainability goals, and partnered with leading thinkers to help us anticipate long-term trends.

Despite challenges such as the financial crisis, the pandemic and rising inflation, we’ve stayed true to our long-term investment approach. As of 31 March 2025, we manage over £197bn in assets and remain the UK’s only large-scale independent, unlimited-liability investment partnership. Putting our clients’ interests first, we remain committed to independence, innovation and long-term thinking.