Proposed Merger of Baillie Gifford Defensive Growth Fund with Baillie Gifford Monthly Income Fund
The resolution for the proposed merger of Baillie Gifford Defensive Growth Fund with Baillie Gifford Monthly Income Fund was approved at the extraordinary general meeting of the Shareholders of Baillie Gifford Defensive Growth Fund on 26 March 2026. Further details can be found in the results of the shareholders meeting.
Details of the Merger Proposal and the Scheme, together with details regarding the action shareholders should take and the implications for shareholders, can be found in the letter to shareholders.
If you have any questions concerning the Merger Proposal, please contact us on 0800 917 2113 between 9 a.m. and 5 p.m. Monday to Friday or your usual Baillie Gifford contact. Your call may be recorded for training or monitoring purposes. Please note that whilst we will be happy to take your calls and answer general queries, we are not able to provide you with financial advice. If you require financial advice, we recommend that you speak with a financial adviser.
Overview
Fund objective
The Defensive Growth Fund aims to achieve (after deduction of costs):
- an annualised return over rolling five-year periods that is 3.5% more than UK Base Rate
- a positive return over rolling three-year periods
- annualised volatility of returns over rolling five-year periods that is below 10%
There is no guarantee that a positive return will be achieved over rolling three-year periods, or any time period, and capital may be at risk.
The manager believes these are appropriate targets given the investment policy of the Fund and the approach taken by the manager when investing. There is no guarantee that these objectives will be achieved over any time period and actual results may differ from these objectives, particularly over shorter time periods.
Investment proposition
Share price and charges
Share class
B, IncPrice
105.90p% change
0.19%Yield
2.5%Ex-dividend (XD)
NOngoing charges*
0.56%Initial charge
0%Minimum investment
£100,000Minimum top up
£1,000Fund facts
Fund launch date
20 May 2022
Fund size
£263.77m
The Investment Association sector
Targeted Absolute Return
Comparative Index
UK Base Rate
Annual turnover
52%
Current number of holdings
129
Style
Growth
XD Date
Last day of June and December each year
Distribution
Last day of August and February each year
Pricing
Valuation point 10am daily, swinging single price
Fund settlement cycle
Trade date plus three business days (T+3)
Meet the managers
Risk Warnings
Risk Introduction
The Fund does not guarantee positive returns. It aims to limit the extent of loss in any short term period to a lower level than equities. Investment markets can go down as well as up and market conditions can change rapidly. The value of an investment in the Fund, and any income from it, can fall as well as rise and investors may not get back the amount invested. The specific risks associated with the Fund include:
Market Conditions/Liquidity
Market values for illiquid securities which are difficult to trade, or value less frequently than the Fund, such as holdings in weekly or monthly dealt funds, may not be readily available. There can be no assurance that any value assigned to them will reflect the price the Fund might receive upon their sale. In certain circumstances it can be difficult to buy or sell the Fund's holdings and even small purchases or sales can cause their prices to move significantly, affecting the value of the Fund and the price of shares in the Fund.
Custody
Custody of assets, particularly in emerging markets, involves a risk of loss if a custodian becomes insolvent or breaches duties of care.
Emerging Markets
The Fund invests in emerging markets, which includes China, where difficulties with market volatility, political and economic instability including the risk of market shutdown, trading, liquidity, settlement, corporate governance, regulation, legislation and taxation could arise, resulting in a negative impact on the value of your investment.
Bonds & Inflation
Bonds issued by companies and governments may be adversely affected by changes in interest rates, expectations of inflation and a decline in the creditworthiness of the bond issuer. The issuers of bonds in which the Fund invests, particularly in emerging markets, may not be able to pay the bond income as promised or could fail to repay the capital amount.
Alternative Assets
Investments may be made directly in hedge funds and insurance-linked bonds or, through specific investment vehicles into property, infrastructure, private (unlisted) companies and commodities. Returns from these investments are sensitive to various factors which may include interest and exchange rates, economic growth prospects and inflation, the occurrence of natural disasters, and the cost and availability of gearing (debt finance).
Foreign Currency
The Fund has exposure to foreign currencies and changes in the rates of exchange will cause the value of any investment, and income from it, to fall as well as rise and you may not get back the amount invested.
Derivatives
Derivatives may be used to obtain, increase or reduce exposure to assets and may result in the Fund being leveraged. This may result in greater movements (down or up) in the price of shares in the Fund. It is not our intention that the use of derivatives will significantly alter the overall risk profile of the Fund.
Environmental, Social and Governance
The Fund invests according to certain ESG-related factors. This means it cannot invest in certain sectors and companies. The universe of available investments will be more limited than other funds that do not apply such criteria/ exclusions, therefore the Fund may have different returns than a fund which has no such restrictions.
Further Information
Further details of the risks associated with investing in the Fund can be found in the NURS-Key Investor Information Document or the Prospectus, copies of which are available at bailliegifford.com.
Fund performance
Periodic performance
As at: 28 February 2026
1 Month | 3 Months | 6 Months | 1 Year | 3 Years | Since Inception | |
|---|---|---|---|---|---|---|
Class B-Acc | 2.7% | 5.1% | 7.9% | 13.8% | 8.1% | 5.0% |
Index* | 0.3% | 0.9% | 2.0% | 4.2% | 4.7% | 4.3% |
Target Benchmark** | 0.6% | 1.8% | 3.7% | 7.7% | 8.2% | 7.8% |
Annual discrete performance
As at: 31 December 2025
31/12/2020 – 31/12/2021 | 31/12/2021 – 31/12/2022 | 31/12/2022 – 31/12/2023 | 31/12/2023 – 31/12/2024 | 31/12/2024 – 31/12/2025 | |
|---|---|---|---|---|---|
Class B-Acc | n/a | n/a | 7.1% | 3.8% | 10.4% |
Index* | n/a | n/a | 4.8% | 5.4% | 4.4% |
Target Benchmark** | n/a | n/a | 8.2% | 8.7% | 7.8% |
Fund portfolio holdings
The list of top 10 holdings that this fund invests in.
As at: 28 February 2026
| # | Holding | % of total assets |
|---|---|---|
| 1 | Sequoia Economic Infrastructure Income Fund | 2.9% |
| 2 | Citi/BG Value Equity ETN | 2.3% |
| 3 | Lynas Corporation | 2.1% |
| 4 | Baillie Gifford Responsible Global Equity Income Fund | 2.1% |
| 5 | Blackrock GBP LEAF Fund | 1.7% |
| 6 | Terna | 1.6% |
| 7 | United Utilities | 1.6% |
| 8 | TSMC | 1.6% |
| 9 | RWE | 1.5% |
| 10 | Equinix | 1.5% |
Insights
Key articles, videos and podcasts relating to the fund:
Filters
Insights
Amazon: Stock Story
Jon Henry gives three key reasons why tech giant Amazon remains a special investment.
Adyen: Stock Story
Beatrice Faleri explores Adyen, the one-platform engine for unified commerce.
Climate scenarios: so what?
Six themes we think will influence companies’ futures as the world adapts to climate change.
The clean energy election
Will the US election result affect investors in US renewables? Felix Amoako-Kwarteng finds out.
The rate cut conundrum: Multi Asset’s LTRE
Insights on economic growth, inflation trends, and investment opportunities in bonds, equities, and more for the next decade.
Financing the future
Discover Baillie Gifford’s role in financing Australia’s first green bonds.
Japan: the land of the rising yield
How Japan's changing economy is reshaping the Multi Asset investment landscape.
Multi Asset: Investment process evolution
Focusing on the central pillars of our multi-asset investment process has sparked an evolution.
Why now for multi-asset investing
Who benefits from the new macro environment? Why multi-asset investing remains a viable option.
Multi Asset: our views on inflation
Will inflation subside soon? The team gives their view and explains the effect on the portfolio.
Productivity’s slowdown unravelled
Casting fresh light on why productivity growth lost steam and why it might be about to pick up.
Why excess global savings matter
The savings surplus affects companies that want to issue financial assets to fund investment.
The robots are coming
Robots won’t take all our jobs, but they will affect labour markets and, with them, inflation.
The productivity surge of the 2020s
Are the days of productivity growth over? The Multi Asset Team does not think so.
Reducing carbon, not growth. Weighing return, risk and climate
Meet your needs without comprising the future using a multi-asset approach to sustainability.
Amazon: Stock Story
Jon Henry gives three key reasons why tech giant Amazon remains a special investment.Adyen: Stock Story
Beatrice Faleri explores Adyen, the one-platform engine for unified commerce.Climate scenarios: so what?
Six themes we think will influence companies’ futures as the world adapts to climate change.The clean energy election
Will the US election result affect investors in US renewables? Felix Amoako-Kwarteng finds out.The rate cut conundrum: Multi Asset’s LTRE
Insights on economic growth, inflation trends, and investment opportunities in bonds, equities, and more for the next decade.Financing the future
Discover Baillie Gifford’s role in financing Australia’s first green bonds.Japan: the land of the rising yield
How Japan's changing economy is reshaping the Multi Asset investment landscape.Multi Asset: Investment process evolution
Focusing on the central pillars of our multi-asset investment process has sparked an evolution.Why now for multi-asset investing
Who benefits from the new macro environment? Why multi-asset investing remains a viable option.Multi Asset: our views on inflation
Will inflation subside soon? The team gives their view and explains the effect on the portfolio.Productivity’s slowdown unravelled
Casting fresh light on why productivity growth lost steam and why it might be about to pick up.Why excess global savings matter
The savings surplus affects companies that want to issue financial assets to fund investment.The robots are coming
Robots won’t take all our jobs, but they will affect labour markets and, with them, inflation.The productivity surge of the 2020s
Are the days of productivity growth over? The Multi Asset Team does not think so.Reducing carbon, not growth. Weighing return, risk and climate
Meet your needs without comprising the future using a multi-asset approach to sustainability.
How to invest
You can invest in our funds via a number of fund platforms.
Please note that we do not have the facility for you to invest directly with us in our Investment Trusts and we do not offer ISAs, SIPPS or Share Plans.
Please also note that we do not have an online service for individual investors.
Further information on our funds can be found in the relevant Key Information and Prospectus Documents, which are available in English and will be sent to you free of charge on request.
Baillie Gifford does not sponsor, maintain or have any control over the content of any other websites. Therefore, we are not responsible for the adequacy or accuracy of any of the information you may view, nor do we undertake to ensure successful transmission to any linked website.
Investment platforms
Getting financial advice
At Baillie Gifford we don’t provide financial advice, but we do try our best to provide you with all the information we think you might need to make investment decisions. Of course, we realise there are occasions when you may want the advice of an expert.
Using professional financial advice
An authorised intermediary can give you advice and help on how best to manage your financial affairs based on your circumstances and investment aspirations. They can also help keep track of all your different investment interests, saving you a lot of time and bookkeeping.
Finding a financial adviser near you
If you want to use an authorised intermediary, Unbiased is a website that allows you to search for authorised intermediaries in your area. You can visit their site on www.unbiased.co.uk
Documents
You can access any literature about the Fund here.
To download any document you will need Adobe Reader. Please note that we can now provide you with Braille and audio transcriptions of our literature on request. It may take up to 10 days for the transcription to be completed dependent on the size of the document.