FUND OF THE MONTH: Baillie Gifford Positive Change

by 12 Feb, 2020

In our series with 3d Investing, every month we throw a spotlight on a sustainable investment fund, exploring its process, portfolio and performance to sort the stars from the spin.

This month, 3d has pulled out Baillie Gifford Positive Change, a fund launched in January 2017 that invests in companies all over the world delivering positive social change. Led by a majority female management team (a rarity in finance), to date the fund has delivered outstanding returns for investors.

Vital fund statistics

Fund name: Baillie Gifford Positive Change
Sector: Global Equity
Investment approach: Impact
Annual Fund Fee: 0.55%
Minimum Investment: £1 with AJ Bell YouInvest (other platforms available)
NOTE: Charles Stanley Direct is currently offering to waive platform fees to invest in Baillie Gifford Positive Change through them, valid until 12 July. The minimum investment required is not stated.

The 3D View

Baillie Gifford has a pedigree dating back to 1908 and is a champion of long-term, engaged investing. The Positive Change Fund is a relatively recent addition to the range of funds, but builds on a heritage of engaged investing. This a high conviction, concentrated portfolio with thoughtful and detailed impact reporting that goes beyond outputs to look at outcomes and impact. The fund lives up to its name with clear documentation of how it is achieving Positive Change with reference to the UN Sustainable Development Goals and justifies its status as a five star fund.

Sustainable investment areas

Baillie Gifford Positive Change  

Baillie Gifford Positive Change pie chart

Making a Difference

A ‘Positive Conversations’ report is produced which includes details of voting and specific engagements. The managers also participate in advocacy programmes with other investors and organisations to raise standards and work together for change.

Impact of Baillie Gifford Positive Change vs. MSCI World Index:

INVESTMENT SOLUTIONS POSITIVE PRACTICES LIMITED BENEFITS HARMFUL IMPACTS CASH
Baillie Gifford Positive Change 91% 5.40% 2.90% 0% 0.60%
MSCI World Index Top 250 31% 25.40% 28.40% 15% 0.30%

 

Investment returns

Baillie Gifford Positive Change recently celebrated its three year anniversary with a stellar return record. From 31 January 2017 to 31 January 2020, the fund has returned 92.8% to investors. This means had you invested £100 back then, you’d be sitting on a gross £192.80* now.

INVESTMENT  1 YEAR RETURN 3 YEAR RETURN 
Baillie Gifford Positive Change 29.40% 92.80%
Global fund sector 16.40% 28.50%
MSCI World Index 17.50% 32.10%

Data is sourced from FE Analytics and is correct to 31 January 2020. Past performance is no guarantee of future performance.
*This is before the fees charged by the fund and platform you invest through, which will reduce returns typically by around 1% – 2% per year.

Fund Summary

Baillie Gifford Positive Change

√ Exclusive focus on investments with a high positive impact

√ Rationale for all holdings clearly stated

√ Detailed, comprehensive and independently audited impact report

√ Positive influence on companies and within the industry

√ Low exposure to harmful industries

For info on how to invest in funds, check out our guide: ‘Make Responsible Investments in 4 Easy Steps

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About the author

About the author

John Fleetwood

John Fleetwood is founder and director of 3d Investing, the UK's leading sustainable fund analyst