The international arm of Baillie Gifford, the independent Edinburgh asset management firm, has won a $1bn (€930m) mandate from Vanguard, the US asset management firm.

Baillie Gifford will be managing approximately 20% to 25% of the $5.4bn Vanguard international growth fund and a similar proportion of the $210m Vanguard variable insurance fund. It is one of the the largest US mandates for Baillie Gifford since the $43bn Pennsylvania Public School Employees Retirement System awarded it an $800m global ex-US mandate last year. In the first nine months of 2002 Baillie Gifford captured a total of £1.7bn in new business in the wake of its relative outperformance in a range of sectors.