The Positive Change Equity Fund seeks capital appreciation with an emphasis on investing in businesses that deliver positive change by contributing towards a more sustainable and inclusive world.
The Fund invests in an actively managed portfolio of 25-50 global high quality growth companies which can deliver positive social change in one of four areas: Social inclusion and Education, Environment and Resource Needs, Healthcare and Quality of Life; and Base of the Pyramid (addressing the needs of the world’s poorest populations). A Portfolio Construction Group of six investment managers and two corporate governance analysts generate ideas from a diverse range of sources. With a focus on fundamental in-house research, the group complete a two stage analysis of all holdings, looking at both the financial and positive social change cases for each stock using a consistent framework. The output is a high conviction and differentiated portfolio.
Fund FactsAll figures to 09/30/2018
Ticker - Share Class K BPEKX Ticker - Share Class Institutional BPESX Launch Date December 14, 2017 Size $10.7m Benchmark MSCI AC World Index Current Number of Stocks 28 Active Share 98%* Annual Turnover — Style Growth Stocks (guideline range) 25-50
Baillie Gifford are long-term investors, not speculators. We are not interested in following fads and fashions or pursuing short-term performance.
Fund MSCI AC World Index Market Cap (weighted average) $75.07bn $159.03bn Price/Book 6.13 2.30 Price/Earnings (12 months forward) 36.77 14.81 Earnings Growth (5 year historic) 10.44% 5.18% Return on Equity 16.68% 15.59% Beta 1.07 n/a
Meet the ManagersJulia Angeles
Julia has a particular interest in healthcare. Julia’s core contention is that over the next 10 years healthcare systems around the world will experience a monumental change. She believes that we will witness a move away from traditional to a world where prevention and cure will become an integral part of healthcare.
Julia holds a PhD in Economics from the University of Aarhus, Denmark and speaks fluent Russian and Danish. Before joining Baillie Gifford in April 2008, Julia worked as a Management Consultant at McKinsey & Company advising firms in Denmark, Russia and Hungary. Julia has been part of different global and regional teams within Baillie Gifford and is currently an Investment Manager in the EAFE Alpha Team and a member of the Positive Change Portfolio Construction Group.Kate Fox
Kate believes the financial community plays a crucial role in creating a more sustainable world for future generations. Kate’s experience analysing smaller companies has left her with a natural enthusiasm for businesses that address unmet needs or challenge the status quo, as well as an appreciation of their long-term potential.
Kate graduated MA in Economics and Maths from the University of Edinburgh in July 2001. Kate is an Investment Manager for the Positive Change strategy and a member of the Positive Change Fund Portfolio Construction Group.Kirsty Gibson
Kirsty’s Masters degree in Carbon Management brings a deep knowledge of climate change and sustainability issues. She is excited about the opportunity to further explore two areas she finds fascinating and believes are of increasing importance for investments: sustainability and the issue of sustainability when considering long-term global investments.
Kirsty graduated MA (Hons) in Economics in 2011 and MSc in Carbon Management in 2012, both from the University of Edinburgh. She joined Baillie Gifford in 2012 and is an Investment Manager in the US Equities Team. She is a member of the Positive Change Portfolio Construction Group.Lee Qian
Lee grew up in China during a period of incredible economic and social progress, when hundreds of millions of people were lifted out of poverty and the standard of living improved for the majority of the population. Witnessing that has influenced Lee deeply about the role of businesses in society.
Lee graduated BA (Hons) in Economics and Management from Oxford University in 2012. Lee joined Baillie Gifford in 2012 and is an Investment Manager for the Positive Change strategy and a member of the Positive Change Fund Portfolio Construction Group.Will Sutcliffe
Having spent nearly his entire investment career as an Emerging Markets investor, Will has a profound interest in why some societies have been able to make the transition from relatively poor to relatively rich while others have not, and the role that companies and institutions can play in facilitating this transition.
Will graduated MA in History from the University of Glasgow in 1996. Will is a Partner and an Investment Manager in the Emerging Markets Equity Team. He is a member of the Emerging Markets Product Group as well as the Positive Change Portfolio Construction Group.
K Institutional Management Fee 0.50% 0.50% Other Expenses 0.56% 0.71% Gross Expense Ratio 1.06% 1.21% Net Expense Ratio 0.65% 0.80%
The most significant risks of an investment in The Positive Change Equity Fund are Asia Risk, Currency and Currency Hedging Risk, Emerging Markets Risk, Equity Securities Risk, Focused Investment Risk, Frontier Markets Risk, Growth Stock Risk, Information Technology Risk, Impact Risk, IPO Risk, Large-Capitalization Securities Risk, Liquidity Risk, Long-Term Investment Strategy Risk, Market Disruption and Geopolitical Risk, Market Risk, Non-Diversification Risk, Non-U.S. Investment Risk, Service Provider Risk, Settlement Risk, Small- and Medium-Capitalization Securities Risk and Socially Responsible Investing Risk. For more information about these and other risks of an investment in the Fund, see “Principal Investment Risks” and “Additional Investment Strategies” in the prospectus.
Source: MSCI. The MSCI information may only be used for your internal use, may not be reproduced or redisseminated in any form and may not be used as a basis for or a component of any financial instruments or products or indices. None of the MSCI information is intended to constitute investment advice or a recommendation to make (or refrain from making) any kind of investment decision and may not be relied on as such. Historical data and analysis should not be taken as an indication or guarantee of any future performance analysis, forecast or prediction. The MSCI information is provided on an ‘as is’ basis and the user of this information assumes the entire risk of any use made of this information. MSCI, each of its affiliates and each other person involved in or related to compiling, computing or creating any MSCI information (collectively, the ‘MSCI Parties’) expressly disclaims all warranties (including, without limitation, any warranties or originality, accuracy, completeness, timeliness, non-infringement, merchantability and fitness for a particular purpose) with respect to this information. Without limiting any of the foregoing, in no event shall any MSCI Party have any liability for any direct, indirect, special, incidental, punitive, consequential (including, without limitation, lost profits) or any other damages (www.msci.com).
The Baillie Gifford Mutual Funds are distributed by Baillie Gifford Funds Services LLC. Investors should carefully consider the objectives, risks, charges and expenses of the Funds before investing. This information and other information about the Funds can be found in the prospectus and the summary prospectus. For a prospectus and summary prospectus please go here. Please carefully read the Fund’s prospectus and related documents before investing.