1. Overview

    The High Yield Bond Fund aims to produce a combination of income and capital growth.

    The manager believes an appropriate comparison for this Fund is the Investment Association Sterling High Yield Bond sector average given the investment policy of the Fund and the approach taken by the manager when investing.

    We focus on fundamental, forward looking research leading to a best ideas portfolio where every investment should make a difference.

    Performance & Portfolio

    Periodic Performance

    All figures to 31/05/2024

    6 Months

    1 Year

    3 Years

    5 Years

    Class B-Inc 7.6%14.1%0.5%2.3%
    Sector Average*** 5.6%10.8%1.3%3.1%
    Sector Ranking 4/293/2920/2917/24

    Figures for 3 and 5 years are shown as the annualised rate of return. This is the average yearly return over the specified period.


    Annual Discrete Performance to 31 March each year Sector Average

    Annual percentage return (Updated Quarterly)

    31/03/2019
    31/03/2020

    31/03/2020
    31/03/2021

    31/03/2021
    31/03/2022

    31/03/2022
    31/03/2023

    31/03/2023
    31/03/2024

    Class B-Inc -10.8%23.9%-3.5%-8.2%14.0%
    Sector Average*** -10.1%23.5%-1.1%-4.5%10.8%

    Please bear in mind that past performance is not a guide to future performance.
    The value of your investment may go down as well as up, and you may not get back the amount you invested

    Source: FE. Total return net of charges, in sterling.
    Share class returns calculated using 10am prices, while the Index is calculated close-to-close.
    *IA £ High Yield Sector.

    Top Ten Physical Bond Holdings* - 31/05/2024

    Fund %
    1 UK T Bill 19/08/2024 3.0%
    2 Aggreko 6.125% 2026 (144A) 1.8%
    3 EDF 6% 2026 Perp 1.7%
    4 Barclays 7.125% 2025 Perp AT1 1.6%
    5 Teva Pharma Ind 7.375% 2029 1.5%
    6 Chart Industries 7.5% 2030 (144A) 1.5%
    7 Brightline East 11% 2030 (144A) 1.4%
    8 IMA FRN 2029 1.4%
    9 Italmatch Chemicals 10% 2028 1.3%
    10 The House of HR 9% 2029 1.3%
    Total 16.7%
    Sector Analysis of Total Assets - 31/05/2024

    Fund %

    • 1 Industrials 85.20
    • 2 Financial 9.44
    • 3 Sovereign 3.01
    • 4 Utility 1.69
    • 5 Cash & Derivatives 0.66
    • Total 100.00

    As the Fund invests in overseas securities, changes in the rates of exchange may cause the value of your investment (and any income it may pay) to go down or up.
    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.

    Meet the Managers

    Faisal Islam

    Faisal is an investment manager in the Credit Team, co-managing our High Yield Bond Strategy. Before joining Baillie Gifford in 2018, he worked for four years at PwC where he qualified as a chartered accountant in corporate finance, before moving to Aberdeen Standard Investments in 2016 as a high yield credit analyst. Faisal graduated BSc in Economics from the London School of Economics and Political Science in 2011 and is a CFA Charterholder.

    Robert Baltzer

    Robert is Head of Credit Research and co-manager of the Strategic Bond and High Yield strategies. He joined Baillie Gifford in 2001 on the graduate scheme and became an Investment Grade Bond manager in 2004. Robert has managed high yield portfolios since 2010 and crossover portfolios since 2012. He graduated MMath from Durham University in 2001 and is a CFA Charterholder.

    Arthur Milson

    Arthur is an investment manager in the Credit Team, co-managing our High Yield Bond Strategy. Before joining Baillie Gifford in 2022, he worked for abrdn/Standard Life Investments for 16 years. Arthur graduated BSc in Biological Sciences from the University of Edinburgh in 1992, has a postgraduate diploma in commerce from the University of Wollongong and is a Chartered Accountant.

    How to Buy

    Further information on the funds can be found in the relevant Key Investor Information and Prospectus Documents, which are available in English and will be sent to you free of charge on request.

    You can invest in our funds via a number of fund platforms. Information on the range of funds available through platforms can be obtained from platforms@bailliegifford.com

    OEIC Terms of Business

    To buy and sell our funds, you must complete and return a copy of the document below, if you don't already have an agreement with us. In order for us to accept your business for our range of OEICs, please complete and return the Terms of Business Acceptance Form.

    Documents

    You can access any literature about the Fund here, either by downloading or requesting a copy by post (where available).

    To download any document you will need Adobe Reader. Please note that we can now provide you with Braille and audio transcriptions of our literature on request. It may take up to 10 days for the transcription to be completed dependent on the size of the document.

    Risks

    General Investment Risk

    Investment markets can go down as well as up and market conditions can change rapidly. The value of an investment in the Fund, and any income from it, can fall as well as rise and investors may not get back the amount invested.

    Custody

    Custody of assets involves a risk of loss if a custodian becomes insolvent or breaches duties of care.

    Bonds & Inflation

    Bonds issued by companies and governments may be adversely affected by changes in interest rates, expectations of inflation and a decline in the creditworthiness of the bond issuer. The issuers of bonds in which the Fund invests may not be able to pay the bond income as promised or could fail to repay the capital amount.

    Concentration

    The Fund’s concentrated portfolio relative to similar funds may result in large movements in the share price in the short term.

    Derivatives

    Derivatives may be used to obtain, increase or reduce exposure to assets and may result in the Fund being leveraged. This may result in greater movements (down or up) in the price of shares in the Fund. It is not our intention that the use of derivatives will significantly alter the overall risk profile of the Fund.

    Volatility

    The Fund’s share price can be volatile due to movements in the prices of the underlying holdings and the basis on which the Fund is priced.

    Dilution

    A dilution adjustment may apply when you buy or sell shares in the Fund. This is applied to the share price and may reduce the return on your investment.

    Under certain market conditions it can be difficult to buy or sell securities and even small purchases or sales can cause their prices to move significantly. To manage the effects of this, we may apply an increased dilution adjustment. As a result investors may face increased dealing costs.

    Fees to Capital

    From 1 October 2019 the fund expenses will be taken from Fund’s capital. This will reduce the capital value of the Fund. The figure for the current financial period has not yet been determined.

    Market Conditions

    Market values for illiquid securities which are difficult to trade may not be readily available, and there can be no assurance that any value assigned to them will reflect the price the Fund might receive upon their sale.

    Tax Rates

    Tax rates and the tax treatment of OEICs can change at any time.

    Important Information

    Your location indicates you are based in the Channel Islands and you have confirmed that you are an intermediary. The information in the website is not intended for retail investors. Please select “Change” at the top of the page if this is not suitable for you.

    Baillie Gifford Investment Management (Europe) Limited is authorised and regulated by the Central Bank of Ireland (Reference number C182354) as an Alternative Investment Fund Manager and UCITS Manager to Baillie Gifford Worldwide Funds plc. Its registered office is 4/5 School House Lane East, Dublin 2, D02 N279, Ireland.

    This website is informative only and the information provided should not be considered as investment or other advice or a recommendation to buy, sell or hold a particular investment. You can read details of our Legal and Important Information here.