Edinburgh investment manager Baillie Gifford has been appointed to run approximately $1bn (€934m) in assets for the $5.4bn Vanguard International Growth Fund.

Baillie Gifford Overseas, a subsidiary of the asset manager, will manage around 20%-25% of the fund’s portfolio and a similar proportion of the $210m Vanguard Variable Insurance Fund.

Previously the entire International Growth Fund was managed by Schroder Investment Management North America, which has managed the fund since its inception in 1981.

Schroders will continue to manage the remaining 75-80%.

The International Growth Fund is Vanguard’s largest and oldest international portfolio.