Trustnet Magazine 58 January 2020 | Page 6

Cover story 6 / 7 BAILLIE SCOTTISH GIFFORD MORTGAGE EUROPEAN INVESTMENT GROWTH TRUST TRUST With no liquid savings, Sarah is vulnerable to income and expenditure shocks and, in the face of an unexpected expense, her choices are either to borrow more or stop saving into her pension income. Sarah is interested in climate change and social issues and worries about what sort of world her future children will inherit. She is in debt, with a student loan to service plus a loan she took out to pay for the deposit on her flat. With no liquid savings, Sarah is vulnerable to income and expenditure shocks and, in the face of an unexpected expense, her choices are either to borrow more or stop saving into her pension. NEST’s THE BAILLIE GIFFORD EUROPEAN GROWTH TRUST WAS FORMERLY THE EUROPEAN INVESTMENT TRUST MAKING IT WORK Sabrina Age: 18 A NEW ROUTE INTO EUROPE. Earns: £16,822 Sabrina is just starting her first job and has no previous pension savings It is not all bad news for low-income workers, as the example of 18-year-old retail employee Sabrina shows. In her first job, 8 per cent of her salary goes into her DC pension each month, which is likely to get Sabrina beyond the minimum standard of living in retirement. She would have the security of knowing all her bills were covered and could afford some leisure or social activities. Sabrina could also enjoy some of the benefits of a moderate standard, such as more money to spend on gifts or a TV subscription package. Sabrina’s annual contribution Tax relief £673 £168 Employer contribution £505 Saving 8%, and a full state pension, would give Sabrina an annual retirement income of £13,526* *This assumes Sabrina’s salary rises in line with general earnings increases. If she changes jobs, gets promoted, or finds a job with a better salary, and continues to save for her retirement, she can expect a better standard of living. Figures are for a single person living outside of London, with no rent or mortgage to pay TRUSTNET The Baillie Gifford European Growth Trust brings our wealth of experience in European investing to the investment trust sector. Our European managers look for exceptional growth companies. They want to identify the big winners across the continent. Investments will be high quality businesses, possibly founder-managed, with strong competitive positions and credible prospects for long-term earnings growth. Please remember that changing stock market conditions will affect the value of the investment in the trust and any income from it. Investors may not get back the amount invested. Are you looking for growth potential across Europe? call 0800 917 2112 or visit us at www.bgeuropeangrowth.com A Key Information Document is available by contacting us. Long-term investment partners Your call may be recorded for training or monitoring purposes. Issued and approved by Baillie Gifford & Co Limited, whose registered address is at Calton Square, 1 Greenside Row, Edinburgh, EH1 3AN, United Kingdom. Baillie Gifford & Co Limited is the authorised Alternative Investment Fund Manager and Company Secretary of the Company. Baillie Gifford & Co Limited is authorised and regulated by the Financial Conduct Authority (FCA). The investment trusts managed by Baillie Gifford & Co Limited are listed UK companies and are not authorised and regulated by the Financial Conduct Authority.