With effect from March 31, Baillie Gifford’s Multi Asset Income Fund will be renamed the Baillie Gifford Sustainable Income Fund to better reflect its purpose of producing a steady and inflation-protected income stream.
The Fund, which has a total asset value of £126.78mn, was founded in August 2018 with the purpose of providing a high level of natural monthly income and capital returns that rise in line with inflation (UK CPI) over the long term.
It combines the best of Baillie Gifford‘s income concepts from across asset classes and is aimed at a growing population of potential clients who require regular income.
Since its establishment, sustainability has been an important component of the Fund’s underlying investment methodology. Last year, the team made numerous improvements in this area, including the full inclusion of sovereign bonds in its sustainability study.
The name change now emphasises the importance of sustainability factors to management Steven Hay, Lesley Dunn, James Dow, and Nicoleta Dumitru. In the sustainable income team, all four works as investment managers.
Hay began his career with Baillie Gifford in 2004 and is now the Head of the Income Research Team.
Dunn is also the Strategic Bond Fund’s Head of Credit. She belongs to both the Multi Asset and Income Leadership Group and the Sustainable Income Portfolio Development Group.
Dow began his career at Baillie Gifford on the Graduate Program in 2004 and progressed to become an Investment Manager in the US Equities unit.
Dumitru began working for Baillie Gifford in 2013 and is a member of the Sustainable Income Team.
According to the management team, the businesses that plan ahead and successfully make changes to satisfy the demands of a sustainable economy will be the best income payers of the future.
Together they believe that focusing on sustainability will result in better investment decisions and financial rewards for clients over time.
The organisation incorporates bottom-up analysis as well as investing exclusions. In addition, the Fund will formally adopt sustainable indicators that management feels will assist it in meeting its long-term goal.
Baillie Gifford’s Director of Marketing and Distribution, James Budden, says, “These changes are not actually changing anything so far as the current portfolio is concerned which is an indication of how the team has been thinking in the past. The ongoing clarity offered by the name change allows investors to formally recognise and understand the importance of sustainability in asset selection.”