Baillie Gifford's income fund: It's important to be invested in growth businesses

UK dividends dropped 40% in 2020

clock • 2 min read

Toby Ross, investment manager on Baillie Gifford’s Responsible Global Equity Income Fund, explored whether there is a trade-off between sustainability and investment objectives, and what constitutes a truly responsible investment in a recent Working Lunches event with Professional Adviser.

Last year was a significant stress-tester for UK-based income investors. Dividends in the UK market plummeted more than 40% as businesses suspended pay-outs to investors. A recent study by Link Group found that UK companies were unlikely to return pre-Covid dividends until 2025 as payments to investors halved in the first year of the pandemic. Companies with unsustainable business models and practices found themselves falling victim to divestment from large investment managers. According to Toby Ross (pictured), Baillie Gifford's Responsible Global Equity Income fund performed well la...

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