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Baillie Gifford launches Positive Change Fund

31 July 2017

Baillie Gifford has launched a Positive Change Fund, which aims to contribute to a more sustainable world for future generations while making attractive long-term returns for investors.

The fund, managed by a team of six fund managers and two corporate governance specialists, will invest in companies for whom delivering a positive change by contributing towards a more sustainable and inclusive world is core to their business, rather than simply looking to filter out firms that are perceived to cause harm.

In terms of performance, it aims to deliver outperformance of the global stock market index (by 2% annually versus the MSCI ACWI) over five-year rolling periods.

The portfolio is relatively concentrated, made up of between 25 and 50 stocks.

The Fund has an estimated ongoing charge of 0.65% for Class B Shares.

Portfolio turnover will be low and is expected to be below 20% per annum over the long term. Active share is currently 98%*.

Portfolio construction is driven by bottom-up stock selection. However, in order to help identify how companies will deliver a positive impact, the portfolio invests in four broad areas (click image to enlarge).

The Fund was seeded earlier this year with £5m from the Baillie Gifford partnership and is now open to external investors.

Lee Qian, Baillie Gifford Positive Change fund manager, says: “We believe that businesses and innovations have the potential to make tremendous improvements to people’s lives. We further believe companies that are seeking to effect positive social and environmental change will see rising demand for their products and services and are therefore naturally growth companies. By focusing on a subset of those companies that enjoy sustainable competitive advantages and are run by committed management teams, we aim to deliver attractive investment returns over the long term.”

 

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