Baillie Gifford CEO Steps Down Following ‘Artwashing’ Controversy

After more than three decades, the long-serving head of Baillie Gifford, the asset management firm recently caught in an ‘artwashing’ controversy due to its sponsorship of literary festivals, is stepping down.

Andrew Telfer, 57, one of the three managing partners, will retire in March next year after an almost 33-year tenure at the Edinburgh-based company. He has spent 13 years as a managing partner and CEO. Telfer will be succeeded by Tim Campbell, 49, another veteran who has been a partner for 12 of his 25 years with the firm.

Baillie Gifford, known for its £11 billion Scottish Mortgage trust which placed early bets on Amazon and Tesla, became the focal point of a high-profile ‘artwashing’ campaign earlier this year.

The firm, which managed over £225 billion in assets by the end of last year, was criticized by activists from Fossil Free Books for endorsing fossil fuel companies. These activists argued that such investments conflicted with the company’s sponsorship of literary festivals. In response, singer Charlotte Church and comedian Nish Kumar withdrew from the Hay Festival.

Despite the company arguing that only 2% of Baillie Gifford’s client funds were invested in fossil fuel companies, compared to an industry average of 11%, its sponsorship deals with arts festivals like Hay, Cheltenham, and Edinburgh were terminated.

Nick Thomas, a partner at Baillie Gifford, remarked: ‘Our collaboration with the Edinburgh International Book Festival, spanning decades, was rooted in our shared interest in making Edinburgh a thriving and culturally vibrant place to live and work. In recent years, we have been proud to support the schools’ and children’s programs, providing free books and creating opportunities for young readers to meet authors.’

‘Baillie Gifford is a long-term investor with high ethical standards and a complete focus on doing what is right by our clients.’

Telfer did not mention the sponsorship controversy in his statement and described his departure as the conclusion of a ‘long and fulfilling career.’

‘It’s interesting to reflect on how much has changed,’ he added. ‘When I became a managing partner in 2012, the firm managed £77 billion mainly for institutional clients. Today, our client base is more varied, and we have offices worldwide. Despite our growth, our focus on investment excellence and commitment to our clients remains unchanged. Tim’s extensive experience and unwavering motivation are invaluable assets to our firm and clients.’

Founded in 1908 to finance rubber planters in Malaya, Baillie Gifford has thrived under Telfer’s leadership. In 2019, the fund manager’s growth stock strategy delivered stellar returns for investors in Scottish Mortgage, making it the largest independent investor in Tesla, second only to Elon Musk, the electric car maker’s CEO. In April, Baillie Gifford expressed support for Musk’s controversial $56 billion proposed pay package, claiming it ‘strengthened alignment’ between client interests and Tesla management.

In the past five years, Scottish Mortgage shares have surged nearly 65%

Telfer’s successor, Campbell, joined the firm in 1999 as an emerging markets fund manager, a background that may prove valuable as the firm explores new opportunities in countries like Kazakhstan and Vietnam.

In a recent emerging markets report, Baillie Gifford highlighted new investments in Dino Polska, a rural Polish grocery chain, and, while foreign investors are pulling money out of China, it invested in Luckin Coffee, which has surpassed Starbucks as China’s largest coffee company.