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
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
|INVESTMENT||SOLUTIONS||POSITIVE PRACTICES||LIMITED BENEFITS||HARMFUL IMPACTS||CASH|
|Baillie Gifford Positive Change||91%||5.40%||2.90%||0%||0.60%|
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.
All figures are before the fees charged by the fund and platform you invest through, which will reduce returns typically by around 1% – 2% per year.
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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DISCLAIMER: The information provided in this article shall not constitute or be deemed to constitute any invitation or inducement to any person to engage in investment activity. Should you undertake any investment activity based on information within this article you do so entirely at your own risk. The value of an investment in funds can fall as well as rise, as can any income payment received from an investment. Any information relating to past performance is not a guide to future performance. If you are unsure of an investment decision you should seek professional financial advice. 3D Investing is run by Ethical Money Limited which is a wholly owned subsidiary of Square Mile Investment Consulting and Research Limited.