Capital at risk

Investment strategy

Investment Grade Bond

Investment-grade corporate bonds offer potentially compelling risk-adjusted returns, providing higher income than government bonds with little increase in the risk of default.  

Our research-intensive process and extensive experience give us deep insight into companies, differentiating us from other market participants. 

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A sharp focus on inefficiencies

We aim to provide attractive returns with low risk by maximising the opportunities offered by diverse global businesses.

Corporate bond markets show persistent structural inefficiencies. Our approach is designed to exploit these. We find companies offering attractive compensation relative to their strengths, creating a portfolio that we believe will outperform the market in the long term.

A purposeful, conviction-led portfolio

Through deep research we seek to identify resilient companies that can adapt as societies and technologies change. We blend this with our top-down view of the economic environment, our collaborative approach helping identify macroeconomic trends and transitory forces. We then construct a diverse core portfolio of around 50-90 companies.

A patient and flexible approach

While we typically lend to companies for many years, we remain live to short-term inefficiencies in markets – actively seeking to generate returns by selecting specific bond issues which are available with differing maturities, capital protections and currency of issue.

My priority is to protect clients’ capital. To maximise long-term returns, prudent risk taking is key: I ensure the risks are intentional, well-diversified and sized appropriately.
Paul Dilworth

Meet the manager

Paul Dilworth

Paul Dilworth

Paul is an investment manager in the Credit Team, co-manging the Investment Grade and Sterling Aggregate strategies. He joined Baillie Gifford in 2019. Before joining the firm, Paul worked for almost 13 years at Kames Capital where he was responsible for managing a broad range of fixed income mandates, including Global Financial Credit, Global Absolute Return and Investment Grade Credit. Paul graduated BSc (Hons) in Mathematics from Heriot-Watt University in 2006 and is a CFA Charterholder.

Nektarios Chatzilefteris Michalas

Nektarios Chatzilefteris Michalas

Nektarios is an investment manager in the Credit Team, co-manging the Investment Grade Bond Strategy. He joined Baillie Gifford in 2020. Prior to joining Baillie Gifford, Nektarios served for 8 years as an artillery officer in the army followed by 4 years in a variety of banking and insurance roles. He graduated BSc in Military Operations Management and Battle Science from the Hellenic Military Academy in 2008 and MBA from the University of Macedonia in 2017. Nektarios also completed the CFA Program in 2019.

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Strategy portfolio holdings

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

All figures up to: 31 March 2024

#Holding% of portfolio
1AT&T 7% 20401.9%
2EIB 6% 20281.8%
3UK Treasury 4.25% 07/12/20491.7%
4Blackstone Private Credit 4.875% 20261.7%
5Santander UK 6.75% 2024 Perp AT11.5%
6Kyndryl Holdings 6.35% 20341.5%
7AP Moller-Maersk A/S 4.125% 20361.5%
8DNB Bank 1.375% 2024/251.4%
9DNB Bank 4% 2026/271.2%
10IBRD 0.25% 20261.2%

Strategy holdings by sector

All figures up to: 31 March 2024

1Financial34.50%
2Industrials27.00%
3Quasi & Foreign Government13.10%
4Utility10.90%
5Securitized8.80%
6Sovereign3.40%
7Cash & Derivatives2.30%
Total 100%

Strategy holdings by sector

All figures up to: 31 March 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

Please remember that all investment strategies have the potential for profit and loss and your or your clients’ capital may be at risk.
 
The information on this Website is issued by Baillie Gifford Asia (Hong Kong) Limited 柏基亞洲(香港)有限公司 (the “Company”) which is licensed by the Securities and Futures Commission of Hong Kong (the “SFC”) under the Securities and Futures Ordinance (“SFO”) for Type 1 (Dealing in Securities) and a Type 2 (Dealing in Futures Contracts) regulated activities with CE Number BGB803. It allows the Company to market and distribute the Baillie Gifford’s range of collective investment schemes to Professional Investors (as defined by the SFO) in Hong Kong.
 
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Baillie Gifford Asia (Hong Kong) Limited 柏基亞洲(香港)有限公司 is incorporated in Hong Kong.  The Company’s principal place of business is Suites 2713-2715 Two International Finance Centre, 8 Finance Street, Central, Hong Kong . Baillie Gifford Asia (Hong Kong) Limited 柏基亞洲(香港)有限公司 is a wholly owned subsidiary of Baillie Gifford Overseas Limited, which is wholly owned by Baillie Gifford & Co. Baillie Gifford Overseas Limited and Baillie Gifford & Co are authorised and regulated in the UK by the Financial Conduct Authority.