  We present here, the effect of microstructure on the magnetic, electrical and
thermal properties of (V$_{0.60}$Ti$_{0.40}$)-Gd alloys. The gadolinium is
found to be immiscible and precipitates with a size $<$1.2~$\mu$m in the
(V$_{0.60}$Ti$_{0.40}$)-Gd alloys. These precipitates enhance the grain
boundary density. The (V$_{0.60}$Ti$_{0.40}$)-Gd alloys become ferromagnetic
below $T_{mc}$ = 295~K with an increase in the superconducting transition
temperature ($T_{sc}$). Though the disorder increases with increasing Gd
content, the electronic thermal conductivity ($\kappa_{e} (H = 0)$) reduces by
at most 15\% which is in contrast with the 80\% decrease of the phononic
thermal conductivity ($\kappa_{l} (H = 0)$). Our analysis suggests that the
magnetic moments of Gd precipitates polarize the conduction electrons along and
around the grain boundaries leading to increase in the mean free path of the
electrons. The partial suppression of spin fluctuations in the
(V$_{0.60}$Ti$_{0.40}$)-Gd alloy by the conduction electron polarization
enhances the $T_{sc}$.
