Baillie Gifford has renamed its £159m Sustainable Income fund to comply with the FCA’s sustainability disclosure requirements.
Moving forward, the strategy will be known as the Baillie Gifford Monthly Income fund.
However, the fund’s investment process will remain unchanged. The strategy aims to deliver a natural monthly income alongside capital returns, which look to grow in line with UK inflation over the long term.
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The strategy will continue to be managed by Steven Hay, Lesley Dunn and Nicoleta Dumitru.
James Dow, who co-manages the firm’s Responsible Global Equity Income fund and the Scottish American Investment Company, has been replaced by Jon Stewart on the fund’s portfolio construction group.
Stewart will focus on property investing, while Dow will remain linked to the strategy as its equity allocation uses the Responsible Global Equity Income model.
James Budden, head of global marketing at Baillie Gifford, said: “Ultimately, we believe the term ‘Monthly Income’ is more appropriate as it describes how the fund seeks to provide a resilient income stream and grow capital in real terms.
“No changes to the philosophy and process have been made to the Baillie Gifford Monthly Income Fund and we are confident that the name change gives investors greater clarity around their investment choice. We think this fund provides an excellent income solution for investors many of whom might be a long time retired.”
This article first appeared on PA Future’s sister site Portfolio Adviser
