Capital at risk

Investment strategy

High Yield Bond

High-yield corporate bonds offer compelling risk-adjusted returns, providing long-term return potential similar to equities but with typically lower volatility.

Our research-intensive process and extensive experience mean we gain deep insight into companies, differentiating our views from other market participants. 

Close up of green and blue Greenwinged Macaw feathers

Focused on resilience

Our goal is to provide clients with a resilient income and potential capital growth by lending to a diverse range of companies. We seek to exploit market inefficiencies through in-depth research, selecting companies offering attractive compensation relative to their strengths.

Our focus on resilience gives us confidence to take meaningful positions in our best ideas and reduces downside risk, as measured by company defaults which erode returns. Ongoing monitoring is a crucial part of our investment process. 

A purposeful, conviction-led portfolio

Through deep research, we seek to identify companies that can adapt as societies and technologies change. We blend this with our top-down view of the economic environment. Our collaborative approach helps us to identify macroeconomic trends and transitory forces. We then construct a diverse core portfolio of about 90-120 companies. 

A patient and flexible approach

While we typically lend to companies for many years, we remain live to evolving market conditions, actively managing exposure by region, sector and credit rating to make the best of prevailing valuation opportunities.

We spend the vast majority of our time on deep, forward-looking company research, with our active positions reflecting our conviction in underappreciated fundamentals.
Arthur Milson

Meet the managers

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Strategy portfolio holdings

A list of the top 10 holdings that the representative portfolio invests in.

All figures up to: 30 November 2024

#Holding% of portfolio
1UK T Bill 20/01/20252.0%
2Aggreko 6.125% 2026 (144A)1.6%
3IMA E+3.75% FRN 20291.6%
4Brightline East 11% 2030 (144A)1.6%
5Teva Pharma 7.375% 20291.5%
6Neopharmed 7.125% 20301.5%
7Burford Capital 9.25% 2031 (144A)1.4%
8Cheplapharm 5.5% 2028 (144A)1.4%
9Kier Group 9% 20291.4%
10Virgin Media RFN 4.875% 20281.3%

Strategy holdings by sector

As at: 30 November 2024

1Industrials85.20%
2Financial10.20%
3Sovereign2.70%
4Utility0.90%
5Cash & Derivatives1.00%
Total 100%

Strategy holdings by sector

All figures up to: 30 November 2024

Total: 100%

Please note

The information contained on this page is intended as a guide only and should not be relied upon when making investment decisions. All holdings information is unaudited. Source Baillie Gifford & Co. Please note that totals may not add due to rounding.

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Important information

Baillie Gifford Overseas Limited (ARBN 118 567 178) is registered as a foreign company under the Corporations Act 2001 (Cth) and holds Foreign Australian Financial Services Licence No 528911. The information in this area is provided to you on the basis that you are a “wholesale client” within the meaning of section 761G of the Corporations Act 2001 (Cth) (“Corporations Act”). Please advise Baillie Gifford Overseas Limited immediately if you are not a wholesale client. In no circumstances should the information in this area be made available to “retail clients” as defined by the Corporations Act.

The information in this area contains general information only. It does not take into account any person’s objectives, financial situation or needs.