The Edinburgh-based investment firm has dropped the annual management fee for class B shares of the US-focused fund by 15 basis points from 0.65% to 0.50%. The change came into effect at the start of the year.
As of the start of December 2016, the fund had assets under management of close to £500 million (£490 million.)
James Budden, director of retail marketing and distribution at Baillie Gifford, said: ‘We want our American fund to be as competitive as possible.
‘Received wisdom has it that active management doesn’t work in the US market given its supposed efficiency. We happen to believe that the opposite can be true, and by cutting our fee on this fund we are giving ourselves and its investors a greater chance of beating the index over the long term.’