By Mark McSherry
The £1.8 billion global Baillie Gifford Positive Change Fund announced it is adopting the Sustainability Impact Label under the Financial Conduct Authority’s Sustainability Disclosure Requirements (SDR) as of December 2, 2024.
Major holdings in the fund include Nubank, which offers low cost digital banking in South America; mobile learning platform Duolingo; Xylem, a provider of the water infrastructure and digital water systems; and Alnylam, which develops innovative treatments for rare diseases.
Other major investments in the fund include MercadoLibre, TSMC, Shopify, ASML, HDFC Bank, Alnylam Pharmaceuticals, Autodesk and Bank Rakyat Indonesia.
The fund said adopting the Sustainability Impact Label brings several benefits:
- Trust and credibility
- More reliable sustainability information, helping investors make informed decisions and fostering trust in the market for sustainable investment products
- Combatting greenwashing: The SDR label helps combat greenwashing by requiring fund managers to provide clear, substantiated claims about the sustainability credentials of their products
- Standardisation and comparability: The label enhances comparability and standardisation across the market, making it easier for investors to compare products and assess their impact
“The adoption of the label underscores the fund’s unwavering commitment to sustainability and transparency and enhances its credibility and appeal to investors interested in sustainable investing,” said Baillie Gifford.
“Launched in January 2017, the Baillie Gifford Positive Change Fund has grown to manage assets worth £1.8 billion.
“Since inception, the fund has consistently met its objective of generating attractive investment returns of 2% per annum ahead of the MSCI ACWI on a rolling five-year basis, net of fees.
“This performance highlights the fund’s dedication to delivering value to investors while addressing critical social and environmental global challenges.
“The Positive Change Fund is driven by two equally important objectives: generating attractive investment returns and contributing to a more sustainable and inclusive world.
“This is achieved by investing in a concentrated global portfolio of between 25-50 high quality growth companies that address critical challenges in four key areas: Social Inclusion and Education, Environment and Resource Needs, Healthcare and Quality of Life, and Base of the Pyramid. The ‘Base of the Pyramid’ refers to the approximately four billion people who live on less than $3,000 per year.”
James Budden, Director, Distribution & Marketing, Baillie Gifford, said: “We are fully supportive of the FCA’s aim of helping customers better understand the key sustainability features of a fund and build consumer trust.
“No changes to the philosophy and process of the Baillie Gifford Positive Change Fund were necessary in order to adopt the Sustainability Label, which is a testament to our commitment to sustainability, but also gives investors greater clarity and confidence in their investment choices.”
With 1,738 staff and assets under management of £224 billion, Baillie Gifford has offices in Edinburgh, Amsterdam, Dublin, Frankfurt, Hong Kong, London, New York, Shanghai, Toronto, and Zurich.