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ii ACE 40: Baillie Gifford Positive Change

Ethical investing

ii ACE 40 investments:
Baillie Gifford Positive Change

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Asset Group

Asset Sub-Group

Investment Category

Equities

Global equities

Adventurous

 

WHY WE RECOMMEND IT

Experienced and well-resourced team: Successful track record of delivering above market returns. The fund is managed by a Portfolio Construction Group (PCG). There are five investment managers and two senior impact analysts on the PCG with access to Baillie Gifford’s extensive resources, and all bringing different expertise to the investment process.

Superior performance:  Successful three-year track record of delivering above market returns. 

The fund is competitively priced: The ‘B’ share class has annual ongoing charges of 0.53%. 

 

ETHICAL CRITERIA

ii ACE ethical style: Embraces. This means the fund adopts a targeted or proactive approach to ethical investing, in an effort to make a positive impact and/or environmental outcomes.

Fund EcoMarket category: Sustainability Themed. This relates to funds that focus on sustainability related issues and opportunities as part of their investment strategy, often alongside ethical criteria. Their focus is often around longer-term societal and environmental trends.

How the fund is managed: The team runs a highly concentrated growth portfolio, in a range of around 25 to 50 quality stocks. Stock selection is driven by fundamental company research along with strong impact criteria – a company has to deliver positive change in one of four areas: Social Inclusion and Education, Environment and Resource Needs, Healthcare and Quality of Life. These two aspects form the two-stage investment process the outcome of which is high conviction and a differentiated portfolio from the competition. As the strategy has a long-term investment horizon, investors should expect low portfolio turnover.

The fund aims to outperform the MSCI AC World Index by at least 2% per annum (after fees) over rolling five-year periods.

 

THE RISKS

High portfolio concentration: This increases the volatility risk and the fund’s return could significantly deviate from those of the index under certain market conditions. 

Style bias: The fund adopts a growth-focused strategy, meaning that the fund could underperform should growth become an out of favour style. 

Currency: Because investments are made predominantly outside the UK, performance may be significantly affected by changes in exchange rates.

 

Information and data compiled to October 2020.

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Risk warnings

The information we provide in the ACE 40 investments list does not constitute a "personal recommendation". You should ensure that any investment decisions you make are suitable for your personal circumstances and that the ethical style of the investment reflects your personal beliefs.

Past performance of the underlying constituents is not a guarantee of future performance. Remember, the value of investments, and any income from them, can fall as well as rise so you could get back less than you invest.

Annual performance can be found on the factsheet of each fund, trust or ETF. Simply click on the asset’s name and then the performance tab.

If you are unsure about the suitability of a particular investment or think that you need a personal recommendation, you should speak to a suitably qualified financial advisor.

Any changes to the ii ACE 40 investments list and the rationale behind those decisions will be communicated through the Quarterly Investment Outlook.

Details of all recommendations issued by ii during the previous 12 month period can be found here.

ii adheres to a strict code of conduct. Members of ii staff may hold shares in companies mentioned in the ii ACE 40 investments list, which could create a conflict of interest. Any member of staff intending to complete some research about any financial instrument in which they have an interest are required to disclose such interest to ii. We will at all times consider whether such interest impairs the objectivity of the recommendation.

In addition, staff involved in the production of this ii ACE 40 list are subject to a personal account dealing restriction. This prevents them from placing a transaction in the specified instrument(s) for five working days before and after an investment is included or amended and made public within the list. This is to avoid personal interests conflicting with the interests of the recipients of this ii ACE 40 investments list.