Capital at risk

Investment strategy

Sustainable Income

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 strategy designed to be a core holding for investors with long-term income needs.

Detailed pink halved shell of a chambered nautilus (Nautilus pompilius) shows beautiful spiral pattern. Isolated on white.

Delivering income that lasts

We focus on the monetary amount of income we deliver and avoid chasing short-term yield. Thanks to our global investment universe across eight asset classes, we have an exciting and vast opportunity set, from which we hope to select the best income payers of tomorrow.

Fit for the future

Sustainable income raises two questions:

  • will the income prove to be sustainable over long periods of time?
  • is it sustainable from an ESG perspective?

We believe the two are inextricably linked – that the best income payers of tomorrow will be the forward-thinking companies successfully adapting to meet the needs of a sustainable economy.

We scrutinise every investment and ask if it’s compatible with a sustainable economy. We only consider investments that can pass this test. While each asset class has its nuances, our ESG analyst brings together the bottom-up work of our teams for one consistent approach.

The performance target is aspirational and is not guaranteed. We don’t use it to compile the portfolio and returns will vary. A single performance target may not be appropriate across all vehicles and jurisdictions. We may not meet our investment objectives if, for example, our growth investment style is out of favour or we misjudge the long-term earnings growth of our holdings.

A simple solution for income

Our multi-asset approach helps to reduce income volatility through diversification. We actively adjust asset allocation with the aim of protecting capital and enhancing returns in different macroeconomic environments.

We then task our experts in each asset class to create a bespoke portfolio of their best income-generating ideas.

It all combines into one simple solution, designed to adapt as the world changes to keep delivering real income time after time.

We challenge ourselves to consider the long-term impact of our decisions. High short-term yields can be an illusion with a powerful draw – it takes discipline to think beyond this.
Steven Hay

Meet the managers

Documents

Philosophy and Process

Explore our investment philosophy and the processes around how the team constructs the portfolio.

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Strategy portfolio holdings

A list of the top 10 holdings that the representative portfolio invests in.

All figures up to: 30 April 2024

#Holding% of portfolio
1Novo Nordisk1.7%
2Microsoft1.6%
3Watsco Inc1.6%
4Greencoat UK Wind1.4%
5TSMC1.4%
6Fastenal1.4%
7WEC Energy Group1.4%
8Schneider Electric SE1.3%
9Exelon Corporation1.3%
10Terna1.3%

Please note

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.

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Curious to learn more about our products and what we can offer you? Please get in touch.

Important information

By clicking on South Korea, you have confirmed that you are based in South Korea and that you meet the following requirements.

The information in this area of the website is intended for qualified professional investors and consultants based in South Korea. It is not intended for use by any other persons including members of the general public or investors from other jurisdictions.

Please remember that all investment strategies have the potential for profit and loss and your or your clients’ capital may be at risk.

Baillie Gifford Overseas Limited is wholly owned by Baillie Gifford & Co. Baillie Gifford Overseas Limited provides investment management and advisory services to non-UK clients. Both are authorised and regulated by the Financial Conduct Authority. Baillie Gifford Overseas Limited is licensed with the Financial Services Commission in South Korea as a cross border Discretionary Investment Manager and Non-Discretionary Investment Adviser.

Baillie Gifford Asia (Hong Kong) Limited 柏基亞洲(香港)有限公司 is wholly owned by Baillie Gifford Overseas Limited and holds a Type 1 and a Type 2 licence from the Securities and Futures Commission of Hong Kong to market and distribute Baillie Gifford’s range of collective investment schemes to professional investors in Hong Kong.
Baillie Gifford Asia (Hong Kong) Limited 柏基亞洲(香港)有限公司 can be contacted at Suites 2713-2715, Two International Finance Centre, 8 Finance Street, Central, Hong Kong, Telephone +852 3756 5700.

The information provided does not constitute an offer of or solicitation for purchase or sale of securities or provision of any investment services. Any general enquiries regarding Baillie Gifford should be directed to the relevant individual as noted in the Contact Us section.

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