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Funds Group: Baillie Gifford Funds

Management Company: Baillie Gifford Overseas Limited

Funds Affected: (1) Baillie Gifford Global Select Equity Fund,  (2) Baillie Gifford Global Stewardship Fund, (3) Baillie Gifford Positive Change Equity Fund

Principal Sustainable Investment Management Strategies: (1-2) ESG Integration, (3) Thematic and impact

Summary:

(1) In selecting portfolio investments, the portfolio managers take into account corporate governance and stewardship alongside investment considerations.

(2) In selecting portfolio investments, the portfolio managers take into account corporate governance and stewardship (which involves an environmental, social and governance (“ESG”) analysis) alongside the investment considerations outlined above.

(3)  The intended outcome is a portfolio of between 25-50 growth companies with the potential to outperform the benchmark over the long term and which the portfolio managers consider to have core ambitions of delivering a positive change in at least one of the following areas: social inclusion and education, healthcare, the environment, and addressing basic needs and aspirations of the world’s poorest populations. In order to assess positive change in these areas, the adviser will monitor the progress of each issuer using metrics and/or milestones designed by the adviser.  With respect to each area, the adviser pursues an active, positive approach; investment decisions are generally not made on the basis of negative “screening” of companies viewed as socially irresponsible.

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Research

Research and analysis to keep sustainable investors up to-date on a broad range of topics that include trends and developments in sustainable investing and sustainable finance, regulatory updates, performance results and considerations, investing through index funds and actively managed portfolios, asset allocation updates, expenses, ESG ratings and data, company and product news, green, social and sustainable bonds, green bond funds as well as reporting and disclosure practices, to name just a few.

A continuously updated Funds Directory is also available to investors.  This is intended to become a comprehensive listing of sustainable mutual funds, ETFs and other investment products along with a description of their sustainable investing approaches as set out in fund prospectuses and related regulatory filings.

Getting started

Many questions have surfaced in recent years regarding sustainable and ESG investing.  Here, investors and financial intermediaries will find materials that describe the various approaches to sustainable investing and their implementation.  While sustainable investing approaches vary and they have thus far defied universally accepted definitions, many practitioners agree that they fall into the following broad categories:  Values-based investing, investing via exclusions, impact investing, thematic investments and ESG integration.  In conjunction with each of these approaches, investors may also adopt various issuer engagement procedures and proxy voting practices.  That said, sustainable investing approaches will continue to evolve.

In addition to periodic updates regarding sustainable investing and how this form of investing is evolving, investors and financial intermediaries interested in implementing a sustainable investing approach will also find source materials that cover basic investing themes as well as asset allocation tactics.

Inesting ideas

Thoughts and ideas targeting sustainable investing strategies executed through various registered and non-registered sustainable investment funds and products such as mutual funds, Exchange Traded Funds (ETFs), Exchange Traded Notes (ETNs), closed-end funds, Real Estate Investment Trusts (REITs) and Unit Investment Trusts (UITs). Coverage extends to investment management firms as well as fund groups. 

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