Sustainable Income Fund
Sustainable Income Fund
What does sustainable mean to you? Something that lasts a lifetime? We think it’s a resilient income that can keep pace with inflation over time. Sustainable income is a simple, multi-asset fund designed to be a core holding for investors with long-term income needs.
The Sustainable Income Fund aims to produce monthly income, whilst seeking to maintain the value of that income and of capital in line with inflation (UK CPI) over five-year periods. The Fund has no benchmark. The manager believes an appropriate performance comparison for this Fund is the Investment Association Mixed Investment 40-85% Shares Sector.
Sustainable income has two meanings for us. Will the income prove to be sustainable over long periods of time? And is it sustainable from an ESG perspective? We believe the two are inextricably linked.
Performance & Portfolio
All figures to 31/10/2023
Class B-Inc -5.2% 3.3% 2.0% 4.2%
***IA Mixed Investment 40-85% Shares Sector.
Performance source: FE, total return in sterling.
Since inception figures are from 31 August 2018.
Annual Discrete Performance to 30 September each year
Annual percentage return (Updated Quarterly)
Class B-Inc 11.9% 2.1% 11.1% -9.4% 5.9% Sector Average*** 4.2% -0.2% 16.6% -10.2% 5.1%
Please bear in mind that past performance is not a guide to future performance.
The value of your investment may go down as well as up, and you may not get back the amount you invested.
Share class and Sector returns calculated using 10am prices, while the Index is calculated close-to-close.
***IA Mixed Investment 40-85% Shares Sector.
Figures for 3 and 5 years show the annual rate of return.
Top Ten Holdings - 31/10/2023
Fund % 1 US Treasury 4.125% 15/11/2032 3.8% 2 UK T Bill 26/02/2024 2.1% 3 UK T Bill 29/01/2024 2.0% 4 Novo Nordisk 1.7% 5 Microsoft 1.7% 6 Greencoat UK Wind 1.5% 7 Watsco Inc 1.4% 8 Fastenal 1.4% 9 Procter & Gamble 1.3% 10 TSMC 1.1% Total 17.9%Asset Allocation -
- Total 0.00
As the Fund invests in overseas securities, changes in the rates of exchange may cause the value of your investment (and any income it may pay) to go down or up.
The information contained on this page is intended as a guide only and should not be relied upon when making investment decisions. All holdings information is unaudited. Source Baillie Gifford & Co.
Please note that totals may not add due to rounding.
Meet the Managers
James was appointed Co-Head of the Global Income Growth Team and Co-Manager of The Scottish American Investment Company PLC (SAINTS) in 2017. He became a Partner in the firm from 1 May 2023. He joined Baillie Gifford in 2004 on the Graduate Scheme and became an Investment Manager in our US Equities Team. Previously, James spent three years working at The Scotsman newspaper, where he was the Economics Editor. He is a CFA Charterholder, graduated MA (Hons) in Economics-Philosophy from the University of St Andrews in 2000 and MSc in Development Studies from the London School of Economics in 2001.
Steven joined Baillie Gifford in 2004 and is Head of the Income Research Team. Prior to joining Baillie Gifford, Steven was a Fixed Income Investment Manager with Scottish Widows. His experience includes seven years undertaking analysis and research for the Bank of England’s Monetary Policy Committee, and involvement in managing the UK’s foreign exchange reserves. Steven graduated BAcc (Hons) in Economics and Accountancy from the University of Glasgow in 1992 and MSc in Economics from the University of Warwick in 1993.
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.
Lesley is Head of Credit and co-manager of the Strategic Bond Fund. She is a member of the Multi Asset and Income Leadership Group and the Multi Asset Income Portfolio Construction Group. Before joining Baillie Gifford in 2016, Lesley spent 15 years at Scottish Widows Investment Partnership, initially in the Investment Grade Team then as a high yield manager. She graduated BSc (Hons) in Maths, Statistics & Economics from Strathclyde University in 2000 and is a CFA Charterholder.
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.
Enhanced Disclosure Document
Key Investor Information Documents
Other Fund Literature
General Investment Risk
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.
The Fund does not guarantee positive returns. It aims to maintain the capital value in line with inflation, however this is not guaranteed.
Custody of assets involves a risk of loss if a custodian becomes insolvent or breaches duties of care.
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 & 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.
Investments may be made directly in hedge funds or, through specific investment vehicles into property, infrastructure 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.
- Property - rents, vacancy rates, the supply of new property, and confidence.
- Infrastructure – expectations of future cash flow.
- Commodities – climate, supply, industrial and consumer demand, and tariffs.
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.
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.
The Fund’s share price can be volatile due to movements in the prices of the underlying holdings and the basis on which the Fund is priced.
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 to Capital
For distribution purposes the Authorised Corporate Director (ACD) has the facility to allocate some or all expenses to capital. This will reduce the capital value of the Fund. For the year to 31 January 2020 100% of expenses were allocated to capital. The figure for the current financial period has not yet been determined however this number may vary from year to year.
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 and the tax treatment of OEICs can change at any time.