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Baillie Gifford Monthly Income Class B - Income (GBP)

Sell:106.70p Buy:106.70p Change: 0.30p (0.28%)
Prices as at 6 June 2025
Sell:106.70p
Buy:106.70p
Change: 0.30p (0.28%)
You can buy or sell holdings in this fund through a Stocks and Shares ISA, Lifetime ISA, SIPP or Fund and Share Account
Prices as at 6 June 2025
Sell:106.70p
Buy:106.70p
Change: 0.30p (0.28%)
Prices as at 6 June 2025
You can buy or sell holdings in this fund through a Stocks and Shares ISA, Lifetime ISA, SIPP or Fund and Share Account
The selling price currently displayed is higher than the buying price. This can occur temporarily for a variety of reasons; shortly before the market opens, after the market closes or because of extraordinary price volatility during the trading day.

Our view on this Fund

This fund is on the Wealth Shortlist of funds our analysts believe have the potential to outperform their peers over the long term. However, this is not a recommendation to buy.

Steven Hay, Nicoleta Dumitru, Lesley Dunn and Jon Stewart are the fund's managers. They each have different areas of investment specialism and, with the exception of Jon Stewart, are managers of other funds at Baillie Gifford.

The fund invests across three broad investment areas: shares, real assets (such as property) and bonds. It aims to increase the income paid to investors by more than the increase in the consumer prices index (a measure of inflation) over the long term. The fund focuses on providing a resilient income over time, meaning that while the income provided by this fund may not be the highest available, it can be expected to be more consistent.

We think the fund could be used to provide diversification to an investment portfolio focused on growth or be a useful addition to a portfolio focused on providing an income.

The fund changed its name from Baillie Gifford Sustainable Income to Baillie Gifford Monthly Income on 31 January 2025. The previous name reflects the fact the managers look at every investment through a sustainable investing lens.

However, the fund’s name has changed as it hasn’t obtained a label under the Financial Conduct Authority’s (FCA) new Sustainability Disclosure Requirements. The process used to select investments hasn’t changed though and the key question, ‘is this investment compatible with a sustainable economy?’, remains central to the philosophy.

Our view on the sector

The Mixed and Flexible Investment sectors could be the answer for investors who want to leave the asset allocation decisions to an expert. Funds in these sectors invest a certain amount of their portfolio in shares, from 0% to 35% in the case of the Mixed Investment 0-35% Shares Sector, 20% to 60% for the Mixed Investment 20-60% Shares Sector, 40% to 85% for the Mixed Investment 40-85% Shares Sector, and 0% to 100% for the Flexible Investment Sector. Any proportion of the fund not invested in shares can be invested in bonds, cash, currencies, commodities or property. Funds within these sectors can be very different from each other so they'll perform differently too. Each should be looked at on its own merits, taking account of your investment objectives and the amount of risk you want to take.

Performance Analysis

The fund's performed better than the IA Mixed Investment 40-85% sector average since launch in September 2018. The focus on income means we typically expect the fund to lose less value than peers when markets stumble, but not rise as much when markets rally. We also expect the fund to have fewer ups and downs than the peer group average over the long term.

When it comes to the income paid from this fund, we expect the distributions in pounds and pence to remain relatively consistent and increase over time, but there are no guarantees.

Investment Philosophy

The aim of the fund is to increase the income paid to investors by more than the increase in the consumer prices index over the long term. It uses the IA Mixed Investment 40-85% sector average as a performance comparator.

There are three broad categories of investments in the fund: shares, real assets and bonds. All of the managers look for investments that will contribute to the income paid by the fund, so that it's not reliant on any one asset class to generate its income. This diversification helps the level of income to be more consistent over time. That said, it's expected the bonds will be the largest contributor to the fund's income over time.

The fund invests globally, and is diversified across 200-300 investments. While there is debate and challenge across the team, the individual managers are given authority to select investments from their specialist areas for inclusion in the fund.

Please note that the fund takes its charges from capital which can increase the yield, but reduces the potential for capital growth.

Process and Portfolio Construction

There are three broad categories of investments in the fund: shares, real assets and bonds.

The shares portion of the fund is globally invested in large companies that the team expect to be able to pay and grow their dividend a long way into the future. This includes some companies in emerging markets, which are higher risk.

The bonds portion is currently largely made up of corporate bonds and will often include exposure to high yield and emerging market bonds. These bonds usually pay a higher income, however they're also higher risk. The real assets section differentiates the fund from some of its peers and is focused on infrastructure and property.

The team invests in both individual companies and investment trusts in each of these areas. These companies typically have revenues that are linked in some way to inflation, for example property rents that are increased in line with inflation each year. Because of the more consistent and predictable earnings that these companies achieve, their long-term performance is usually more consistent. That said, as company shares they can be volatile at times too.

The amount invested in each asset changes over time. The team's long and shorter-term views on the world influence where they invest. However, over the long term the fund will have roughly a third of its assets in each of the sections outlined above.

The fund applies a screening process to remove companies from their universe that are subject to UN Security Council sanctions or are non-compliant with the UN Global Compact initiative. They also screen out companies that have revenues above particular thresholds coming from fossil fuel extraction and production, thermal coal distribution, tobacco production, controversial weapons and armaments.

In addition to these exclusions, as part of their company assessments, the managers consider a number of different sustainability metrics and assign each company an overall score. This helps them to compare different companies' sustainability credentials. Those that are considered leaders within their sector are preferred.

This sustainability analysis is considered alongside their wider due diligence, which means that the managers don't always have to invest in the highest scoring companies from a sustainability perspective. However, they won't invest in the lowest scoring companies, regardless of how good they may be on other metrics.

question mark Manager Track Record Based on HL Quantitative Research

This information is currently unavailable.

Fund Track Record

06/06/20 to 06/06/21 06/06/21 to 06/06/22 06/06/22 to 06/06/23 06/06/23 to 06/06/24 06/06/24 to 06/06/25
Annual return 16.30% 0.09% -0.06% 6.46% 3.93%

Please remember past performance is not a guide to future returns. Where no data is shown, figures are not available. This information is provided to help you choose your own investments, remember they can fall as well as rise in value so you may not get back the original amount invested.

Information about the fund

Fund manager biography

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Manager Name: Lesley Dunn
Manager start date: 1 February 2021
Manager located in: Edinburgh

Lesley is Head of Credit and co-manager of the Strategic Bond Strategy. She is a member of the Multi Asset and Income Leadership Group and the Sustainable Income Portfolio Construction Group. Lesley joined Baillie Gifford in 2016 and became a partner of the firm 2023. Prior to this, she spent 15 years at Scottish Widows Investment Partnership. Lesley graduated BSc (Hons) in Maths, Statistics & Economics from Strathclyde University in 2000 and is a CFA Charterholder.

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Manager Name: Jon Stewart
Manager start date: 31 January 2025
Manager located in: -

Jon is an investment manager within the Income Research Team specialising in listed property securities, as well as a member of the Portfolio Construction Group for the Monthly Income Strategy. He joined Baillie Gifford in 2020 from Standard Life Aberdeen where he was part of the Real Estate Equities Team managing a number of UK, European and global real estate equity mandates. Prior to that, Jon spent four years as a sell-side analyst specialising in real estate equities, having begun his career on the UK Equity Team at Ignis Asset Management. Jon is a CFA Charterholder and graduated with an MPhys (Hons) in Physics and Photonics from the University of St Andrews in 2006.

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Manager Name: Nicoleta Dumitru
Manager start date: 31 August 2018
Manager located in: Edinburgh

Nicoleta is an investment manager in the Multi Asset Team and part of the Sustainable Income Portfolio Construction Group. She joined Baillie Gifford in 2013 after graduating BSc (Hons) in Management and Marketing from the University of Manchester that same year.

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Manager Name: James Dow
Manager start date: 31 August 2018
Manager located in: Edinburgh

James is head of Global Income Growth and manager of the Scottish American Investment Company PLC (SAINTS). He joined Baillie Gifford in 2004 and became a partner of the firm in 2023. Prior to this he was an investment manager in our US Equities Team. Before joining the firm, he spent three years at the Scotsman, where he was economics editor. James is a CFA Charterholder. He graduated MA (Hons) in Economics and Philosophy from the University of St Andrews in 2000 and MSc in Development Studies from the London School of Economics in 2001.

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Manager Name: Steven Hay
Manager start date: 31 August 2018
Manager located in: Edinburgh

Steven joined Baillie Gifford in 2004 and is head of the Income Research Team. He has been involved in running the Fixed Income portion of the strategy since 2012. He previously worked at Scottish Widows and spent seven years doing research for the Bank of England's Monetary Policy Committee and managing the UK's foreign exchange reserves. Steven graduated BAcc (Hons) in Economics and Accountancy from the University of Glasgow in 1992 and MSc in Economics from the University of Warwick in 1993.

Data policy - All information should be used for indicative purposes only. You should independently check data before making any investment decision. HL cannot guarantee that the data is accurate or complete, and accepts no responsibility for how it may be used. Benchmark data provided subject to this disclaimer.
You can buy or sell holdings in this fund through a Stocks and Shares ISA, Lifetime ISA, SIPP or Fund and Share Account