Simply targeting the highest yields available is unlikely to be a successful income strategy in the long run. A portfolio also needs to generate real growth in income and capital. The traditional home for equity income investors, the UK, faces big economic challenges and long run real income growth is likely to lag global growth rates. A globally-invested equity income portfolio can deliver faster growth whilst also achieving better diversification through a wider spread of stock, sector and country exposures.

Stock selection and portfolio construction for the Fund is led by Dominic who works with other specialist Global Income investors at Baillie Gifford. They draw on the research efforts and market knowledge of all of Baillie Gifford’s investment teams.

The emphasis is on owning fundamentally attractive businesses irrespective of yield, and then holding those shares in appropriate weights to deliver an above market portfolio yield.

The Global Income Fund is suitable for investors who are comfortable with investing for the long term. The portfolio will typically consist of between 60 and 100 stocks. This degree of concentration, our focus on long-term income growth, and our desire to back our judgement leads to a distinctive portfolio which may be volatile over short-time horizons. It is our belief however that an actively managed and focused portfolio is the best way to achieve the Fund’s long-term aims.