Vanguard Baillie Gifford Global Positive Impact Stock Fund Investor Shares VBPIX

Baillie Gifford has announced changes to the management roster of its Positive Change strategy and a planned refresh of its impact framework, which is expected to be implemented in January 2027, subject to regulatory approval. The most significant development is the departure of Lee Qian, who has decided to leave Baillie Gifford. According to the firm, the decision was personal and unrelated to the recently announced voluntary exit program. Qian will step away from the strategy at the end of September 2026 but will remain employed by the firm until year-end to support the transition process. Qian was the founder of this strategy, which launched in 2017, and served as one of the two lead managers alongside Kate Fox. He will be replaced by Katherine Davidson, who will join the strategy as a decision-maker at the end of September 2026. Davidson came to Baillie Gifford in September 2022 and served as comanager of its Sustainable Growth strategy. That strategy was closed in early 2026 because of limited commercial traction. According to the firm, Davidson’s appointment to Positive Change is unrelated to the closure of Sustainable Growth. Baillie Gifford noted that she has worked increasingly closely with the Positive Change team over the past year and brings portfolio construction experience that complements the existing team. We know Davidson from our coverage of Schroders Global Sustainable Growth, where she served as comanager from 2010, first on its predecessor, Schroders Demographic Opportunities, and then from 2017 on the repositioned Global Sustainable Growth strategy. Given this prior experience, we think she brings a strong background in sustainable investing within global equity mandates. Separately, the team intends to introduce refreshed impact themes from the start of 2027. Baillie Gifford describes the initiative as an evolution rather than a change in philosophy, with the overarching objective of contributing to a more sustainable, inclusive, and healthier world remaining unchanged. The firm stated that the work has been underway for more than 18 months and is unrelated to the management changes. Additional details have not yet been disclosed, and the proposals will be subject to regulatory approval. The departure of Qian is notable given his role as the strategy's founder and one of its two lead managers since launch. Nevertheless, Davidson's appointment adds an experienced sustainable equity investor with a long track record managing global sustainable equity mandates. The announced developments do not alter our current assessment of the strategy. We therefore maintain the Average People and Average Process ratings. We intend to perform a comprehensive review once the planned impact framework enhancements have been formally announced in early 2027.