Actual income

We describe our task at Baillie Gifford as Actual investing: putting your capital to use in tangible, returns-generating activities. We believe it’s the right way to invest on your behalf over the long term. That’s why we apply the same philosophy to income.

Income comes in many forms, and it’s easy to lose sight of what matters. The allure of high short-term yields can be enticing but often proves deceptive in reality. It takes discipline to maintain a long-term mindset.

• We aim to ensure that your income lasts a lifetime.
• Actual income is the pounds and pence we deliver to you over time.
• Actual income is about dependability and resilience.
• Actual income is the natural income produced by investing in companies and countries preparing for the challenges of an ever-changing future.
• Actual income means long-term income, not short-term yields.

Focusing our research helps us build resilient, genuinely diversified income streams for you. The questions we ask include:

• Is this balance sheet likely to improve through the cycle?
• How fast might a company’s dividends grow over the next 10 years?
• Can this country improve its foreign currency reserves?
• Ultimately, where will the cash flow come from, and how secure is it?