2. Overview

    The Diversified Growth Fund aims to achieve (after deduction of costs): an annualised return over rolling five-year periods that is at least 3.5% more than UK Base Rate, a positive return over rolling three-year periods and annualised volatility of returns over rolling five-year periods that is below 10%. There is no guarantee that a positive return will be achieved over rolling three-year periods, or any time period, and capital may be at risk.

    The manager believes this is an appropriate benchmark given the investment policy of the Fund and the approach taken by the manager when investing.

    Our investment approach embraces the concept of diversification by investing actively across a very broad range of asset classes to deliver capital growth with low volatility.

    Portfolio

    Fund %
    1 Baillie Gifford LTGG Investment Fund C Acc 5.9%
    2 Baillie Gifford Global Alpha Growth Fund C Acc 5.8%
    3 Baillie Gifford Global Income Growth Fund C Acc 5.4%
    4 Baillie Gifford EM Government Bonds(Hard Currency) 4.0%
    5 Baillie Gifford Worldwide Japanese Fund C GBP Acc 3.3%
    6 Ishares Physical Gold ETC 3.1%
    7 Invesco Gold ETF 3.1%
    8 Baillie Gifford Emerging Markets Bond Fund C Acc 2.7%
    9 BG Worldwide Global Credit Fund C USD Acc 2.6%
    10 UBS CSI 500 NTR index + 8.25% 2.0%
    Total 37.9%
    Fund %
    1 Baillie Gifford LTGG Investment Fund C Acc 5.9%
    2 Baillie Gifford Global Alpha Growth Fund C Acc 5.8%
    3 Baillie Gifford Global Income Growth Fund C Acc 5.4%
    4 Baillie Gifford EM Government Bonds(Hard Currency) 4.0%
    5 Baillie Gifford Worldwide Japanese Fund C GBP Acc 3.3%
    6 Ishares Physical Gold ETC 3.1%
    7 Invesco Gold ETF 3.1%
    8 Baillie Gifford Emerging Markets Bond Fund C Acc 2.7%
    9 BG Worldwide Global Credit Fund C USD Acc 2.6%
    10 UBS CSI 500 NTR index + 8.25% 2.0%
    Total 37.9%
    Sector Analysis of Total Assets - 30/09/2020
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    Insights

    All Insights
    September 2020

    Multi Asset Ways To Pay Your Pensions.

    Falling income is just the latest in a long line of problems that have faced defined benefit pension schemes over the years. Managers now need to increase exposure to higher yielding assets to compensate for declining dividends. Anthony Dickson considers some of the options.

    Read more
    September 2020

    Back to the Future.

    Has the pandemic ushered in a return of mid-20th century economics? With unprecedented stimulus replacing austerity, David McIntyre argues that monetary policy has given way to fiscal policy, creating new opportunities for multi asset portfolios.

    Read more
    August 2020

    Multi Asset Long-Term Return Expectations.

    Long-Term Return Expectations sets out the Multi Asset Team’s views, as at 30 June 2020, on the prospective returns for asset classes over cash, over the next 10 years and beyond.

    Read more
    February 2020

    Long-Term Return Expectations.

    Long-Term Return Expectations sets out the Multi Asset team’s views, as at 31 December 2019, on the prospective returns for asset classes over cash over the next 10 years and beyond.

    Read more
    ARCHIVED
    Third Quarter 2019

    Engineering Resilience.

    With stable, inflation-linked cash flows, infrastructure may offer both a good source of return and diversification benefits within a multi-asset portfolio. Investment Manager James Squires takes a closer look at the asset class and its key characteristics.

    Read more

    Meet the Managers

    James Squires

    James is Head of the Multi Asset Team and a member of the Investment Risk Committee. He became a Partner in 2018. James joined Baillie Gifford in 2006, initially working in our North American Equity and Fixed Income Teams. He has been a CFA Charterholder since 2010 and graduated BA in Mathematics and Philosophy from the University of Oxford in 2005.

    David McIntyre

    David is an Investment Manager in the Multi Asset Team and is a CFA Charterholder. He joined Baillie Gifford in 2008, initially working in our Fixed Income and European Equity Teams. David previously worked for KPMG and in 2007 qualified as a Chartered Accountant. He graduated BA in History and Politics from the University of Oxford in 2004.

    Felix Amoako

    Felix joined Baillie Gifford in 2011 and is an Investment Manager in the Multi Asset Team. He is a CFA Charterholder. Felix graduated BComm in Accounting from University of Cape Coast, Ghana in 2008 and MSc in Investment Analysis from the University of Stirling in 2010.

    Scott Lothian

    Scott joined Baillie Gifford in 2015 and is an Investment Manager in the Multi Asset Team. Prior to joining Baillie Gifford, he worked for Schroders in London, BEA Union in Hong Kong and Towers Watson. Scott graduated BSc in Actuarial Mathematics and Statistics from Heriot-Watt University in 1999. He is a Fellow of the Institute and Faculty of Actuaries.

    Nicoleta Dumitru

    Nicoleta joined Baillie Gifford in 2013 and is an Investment Manager in the Multi Asset Team. In 2018, she joined the Multi Asset Income Portfolio Construction Group (PCG). Nicoleta graduated BSc (Hons) in Management and Marketing from the University of Manchester in 2013.  

    How to Buy

    You can invest in a range of our funds via a number of fund platforms and supermarkets, please see the links opposite. Further information on the funds can be found in the relevant Key Investor Information and Prospectus Documents, which are available in English and will be sent to you free of charge on request. Information on the range of funds available through platforms can be found in our Platform Matrix.

    Baillie Gifford does not sponsor, maintain or have any control over the content of any other websites. Therefore, we are not responsible for the adequacy or accuracy of any of the information you may view, nor do we undertake to ensure successful transmission to any linked website.

    Fund Platforms/Supermarkets

    OEIC Terms of Business

    To buy and sell our funds, you must complete and return a copy of the document below, if you don't already have an agreement with us. In order for us to accept your business for our range of OEICs, please complete and return the Terms of Business Acceptance Form.

    Documents

    You can access any literature about the Fund here, either by downloading or requesting a copy by post (where available). To download any document you will need Adobe Reader.  Please note that we can now provide you with Braille and audio transcriptions of our literature on request. It may take up to 10 days for the transcription to be completed dependent on the size of the document.

    Risks

    General Investment Risk

    The Fund does not guarantee positive returns. It aims to limit the extent of loss in any short-term period to a lower level than equities. Investment markets can go down as well as up and market conditions can change rapidly. The value of an investment in the Fund, and any income from it, can fall as well as rise and investors may not get back the amount invested.

    Custody

    Custody of assets involves a risk of loss if a custodian becomes insolvent or breaches duties of care.

    Emerging Markets

    The Fund invests in emerging markets where difficulties in dealing, settlement and custody could arise, resulting in a negative impact on the value of your investment.

    Bonds and Inflation

    Bonds issued by companies and governments may be adversely affected by changes in interest rates, expectations of inflation and a decline in the creditworthiness of the bond issuer. The issuers of bonds in which the Fund invests, particularly in emerging markets, may not be able to pay the bond income as promised or could fail to repay the capital amount.

    Alternative Assets

    Investments may be made directly in hedge funds and insurance-linked bonds or, through specific investment vehicles into property, infrastructure, private (unlisted) companies and commodities.

    Returns from these investments are sensitive to various factors including interest and exchange rates, economic growth prospects and inflation, and the cost and availability of gearing (debt finance). Certain specific factors affect these assets such as:

    • Hedge funds – invest in a wide variety of assets and use gearing which may increase losses; it may be difficult to obtain independent verification of the value of shares in hedge funds and there is a risk that investments in them may be difficult to sell; some funds are not directly regulated, increasing the risk of lack of transparency.
    • Insurance-linked bonds (also known as catastrophe bonds) – exposed to the risk of extreme insurance losses should several natural disasters like earthquakes, fire or hurricanes occur during the bond’s life.
    • Property - rents, vacancy rates, the supply of new property, and confidence.
    • Infrastructure and Private Companies – expectations of future cash flow.
    • Commodities – climate, supply, industrial and consumer demand, and tariffs.

    Derivatives

    Derivatives may be used to obtain, increase or reduce exposure to assets and may result in the Fund being leveraged. This may result in greater movements (down or up) in the price of shares in the Fund. It is not our intention that the use of derivatives will significantly alter the overall risk profile of the Fund.

    Foreign Currency

    The Fund has exposure to foreign currencies and changes in the rates of exchange will cause the value of any investment, and income from it, to fall as well as rise and you may not get back the amount invested.

    Dilution

    A dilution adjustment may apply when you buy or sell shares in the Fund. This is applied to the share price and may reduce the return on your investment.

    Under certain market conditions it can be difficult to buy or sell securities and even small purchases or sales can cause their prices to move significantly. To manage the effects of this, we may apply an increased dilution adjustment. As a result investors may face increased dealing costs.

    Fees from Revenue

    Where possible, charges are taken from the Fund's revenue. Where there is insufficient revenue, the remainder will be taken from capital. This will reduce the capital value of your investment.

    Market Conditions

    Market values for illiquid securities which are difficult to trade, or value less frequently than the Fund, such as holdings in weekly or monthly dealt funds, may not be readily available. There can be no assurance that any value assigned to them will reflect the price the Fund might receive upon their sale.

    Investment in vehicles which themselves invest in a range of assets described previously which may become illiquid may not be easily converted into cash when required.

    Tax Rates

    Tax rates and the tax treatment of OEICs can change at any time.