Capital at risk
Unconstrained 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.
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 50-90 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.
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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 April 2024
| # | Holding | % of portfolio |
|---|---|---|
| 1 | UK T Bill 22/07/2024 | 3.7% |
| 2 | LeasePlan 7.375% 2024 Perp AT1 | 2.5% |
| 3 | Iliad 6.5% 2026 (144A) | 2.0% |
| 4 | Aggreko 6.125% 2026 (144A) | 1.8% |
| 5 | EDF 6% 2026 Perp | 1.7% |
| 6 | Barclays 7.125% 2025 Perp AT1 | 1.6% |
| 7 | Teva Pharma Ind 7.375% 2029 | 1.5% |
| 8 | Brightline East 11% 2030 (144A) | 1.5% |
| 9 | Telecom Italia 7.875% 2028 | 1.5% |
| 10 | Chart Industries 7.5% 2030 (144A) | 1.5% |
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.
Invest in this strategy
You can invest in this strategy through the following fund(s).
Explore further
Curious to learn more about our products and what we can offer you? Please get in touch.
How to invest in this strategy
You can invest in this strategy through the following fund(s).
Explore further
Curious to learn more about our products and what we can offer you? Please get in touch.
Important information
Baillie Gifford Overseas Limited is wholly owned by Baillie Gifford & Co. Baillie Gifford Overseas Limited provides investment management and advisory services to non-UK clients. Both are authorised and regulated by the Financial Conduct Authority.
The information provided does not constitute an offer of or solicitation for purchase or sale of securities or provision of any investment services. Any general enquiries regarding Baillie Gifford should be directed to the relevant individual as noted in the Contact Us section.
The information contained in this website has been compiled with considerable care to ensure its accuracy at the date of publication. However, no representation or warranty, express or implied, is made to its accuracy or completeness. Nothing in this information or elsewhere in this website shall exclude, limit or restrict our duties and liabilities to you under the United Kingdom's Financial Services and Markets Act 2000 or any conduct of business rules which we are bound to comply with.
This website is informative only and the information provided should not be considered as investment advice or a recommendation to buy, sell or hold a particular investment. Read our Legal and regulatory information for further details.