Baillie Gifford Managed Class B - Income (GBP)

The fund's performed well over the long term. It invests a higher proportion in shares compared to other funds in the same sector. This means it could perform differently to peers. We expect the fund to perform well compared to peers when stock markets rise, but lag when markets fall.

That's why it's done well since the 2008 financial crisis, with markets going up for many years. For the same reason though, it hasn't sheltered the value of investments as much as other funds in the sector during tougher times.

The period during and immediately after COVID-19 resulted in extreme performance, with some significant growth followed by material losses. While the fund has continued to experience more ups and downs than the IA Mixed Investment 40-85% sector, these have been less extreme more recently.

Overall investors should be aware that this fund has the potential to have lots of ups and downs over the short term and that a long-term time horizon is important when investing in the fund.

Past performance isn't an indication of future performance.

The fund uses a team-based approach to select its favourite shares and bonds. Shares are there to drive returns over the long run, whereas bonds provide some balance and aim to dampen some of the volatility that comes from only investing in shares and adds diversification.

The managers believe bringing together their best ideas means they're more likely to find investments with excellent long-term prospects. They have the support of six other experienced investors who are all experts in their fields, representing a mix of fixed income, US, Europe, emerging markets and developed Asia equity teams. The managers can also draw upon the vast resources at Baillie Gifford to help with additional research, challenge and analysis.

The shares section of the portfolio is managed in line with Baillie Gifford's growth-focused investment philosophy. The managers look for high-quality companies with clear and sustainable advantages over the competition. The bond section of the fund invests in government bonds and investment grade and higher-risk, high-yield corporate bonds.

The amount invested in shares and bonds can change over time though, depending on the team's economic outlook. During the 2008 financial crisis, for example, they reduced investments in shares and increased bonds and cash in the portfolio.

Different fund managers are responsible for selecting companies in different parts of the world. They look for the ones they think have the best long-term growth prospects. They've found the most opportunities in developed countries like the US, UK and Japan. The team invests in bonds and higher-risk emerging markets through other Baillie Gifford managed funds. Please note the fund's investments in emerging markets and derivatives add risk.