ESG Fund Factsheet

For adviser use only

Baillie Gifford Positive Change

Classification: Impact
Management style: Active

Introduction

Baillie Gifford Positive Change is an actively managed global equity fund aiming to outperform the MSCI ACWI Index by 2% per annum after fees.  It invests in an actively managed portfolio of 25-50 global high quality growth companies which can deliver positive change in one of four current themes,

Name Launch Date IA Sector Portfolio OCF* Fund Size (m)
Baillie Gifford Positive Change B Acc 03/01/2017 Global Equity 0.53% £2408

About Baillie Gifford

Baillie Gifford was established as an investment management partnership over 110 years ago. Much has changed since then. For Baillie Gifford, seeking superior, long-term investment returns for their clients has not.

Their current generation of partners and employees remains single-minded about their clients’ requirements. They are responsible for the careful stewardship of long-term vision without the distraction of short-term shareholder demands. This ownership structure allows them to attract and retain the best investment talent, creating a distinctive and enduring culture.

Baillie Gifford are long-term investors, not speculators. Their investment philosophy focuses on growth while their universe is global. Accordingly, they believe that fundamental analysis and proprietary research are core to a successful, long-term, bottom-up investment approach. From their head office in Edinburgh they are able to harness this intellectually curious and rigorous approach – where the sharing of ideas and robust debate between their investment teams are central to their investment process.

ESG Process

The Positive Change is managed by a team of four decision makers: two investment managers and two senior impact analysts.

The strategy invests in high quality growth companies which can deliver positive social change in one of four areas: Social Inclusion and Education, Environment and Resource Needs, Healthcare and Quality of Life and Base of the Pyramid (addressing the needs of the world’s poorest populations).

Positive Screening

The Baillie Gifford strategy is centered around positive selection criteria. The managers look for companies where delivering a positive impact is core to their business; whose products and services represent a significant improvement to the status quo; and who conduct business with honesty and integrity.

They look for areas where there is a meaningful, and widely-accepted, opportunity gap between the current situation and the desirable social outcome, and for companies that are proactively narrowing that gap through their business activities. Similar to financial returns, making a meaningful positive impact requires patience.

Exclusion Policies

Negative screening in this fund is very limited. The managers opt to focus primarily in positive impact companies.

Key Themes

At Baillie Gifford, they have four key themes that they look for when investing in a company:

  • Social Inclusion and Education
  • Environment and Resource Needs
  • Healthcare and Quality of Life
  • Base of the Pyramid

Cost

The OCF for this fund is 0.53%. This offers a very good value for an actively managed impact fund.

Investment Performance

Name 6 mths 1 yr 3 yrs (pa) 5 yrs  (pa)
Positive Change B Acc -27.7% -16.8% 21.7% 19.3
MSCI AC World -4.6% 5.6% 12.2% 10.1%

Source: Baillie Gifford. Performance to 31st May 2022

Past performance is not a reliable indicator of future performance.

Platform availability

Baillie Gifford Positive Changes is available on the following platforms:

  • Abrdn Wrap
  • Abrdn Elevate
  • Advance – Embark
  • AEGON
  • AJ Bell
  • Ascentric
  • Aviva
  • Embark
  • Fidelity
  • Hubwise
  • James Hay
  • Novia
  • Nucleus
  • Transact

Supporting documents

Tenet Opinion

Baillie Gifford Positive Change fund is a well established and managed fund with a detailed responsible investment process. The portfolio is a higher risk and high conviction portfolio with 25-50 stocks.

The funds objectives are to target both good levels of performance and targeting high impact companies looking to make a difference within the four stated themes.

This fund would make a good addition to a diversified portfolio with clients looking to make an impact with their money. It should be noted however, this fund is a high risk choice and may experience period of underperformance when value of cyclical market areas outperform. Overall, this could be a good option for clients who are willing and able to accept high levels of volatility, within a diversified portfolio suitable for their attitude to risk.

Information approved for Professional Adviser use only and should not be relied upon by private investors (this is not for Retail Clients).