Capital at risk

Investment strategy

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. 

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 around 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.
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: 31 January 2024

#Holding% of portfolio
1LeasePlan 7.375% 2024 Perp AT12.4%
2Iliad 6.5% 2026 (144A)1.9%
3IQVIA 2.25% 20291.7%
4Biogroup 5% 20291.7%
5Taseko Mines 7% 2026 (144A)1.6%
6EDF 6% 2026 Perp1.6%
7Barclays 7.125% 2025 Perp AT11.6%
8Teva Pharma Ind 7.375% 20291.5%
9Ardagh Packaging 2.125% 20261.4%
10Aggreko 6.125% 2026 (144A)1.4%

Strategy holdings by sector

All figures up to: 31 January 2024

1Industrials83.70%
2Financial13.30%
3Utility1.60%
4Sovereign1.20%
5Cash & Derivatives0.20%
Total 100%

Strategy holdings by sector

All figures up to: 31 January 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 intended for institutional investors (as defined in the Securities and Futures Act, Chapter 289 of Singapore, as amended) and consultants in Singapore only. It is not intended for use by any other persons including members of the general public or investors from other jurisdictions.
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 the United Kingdom's Financial Services and Markets Act 2000 or any conduct of business rules which we are bound to comply with. These Terms and any non-contractual obligations arising from or connected with them shall be governed by, and these Terms shall be construed in accordance with, the laws of Singapore.
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.
Baillie Gifford Asia (Hong Kong) Limited 柏基亞洲(香港)有限公司 is wholly owned by Baillie Gifford Overseas Limited and holds a Type 1 and a Type 2 licence from the Securities and Futures Commission of Hong Kong to market and distribute Baillie Gifford’s range of collective investment schemes to professional investors in Hong Kong.
Baillie Gifford Asia (Hong Kong) Limited 柏基亞洲(香港)有限公司 can be contacted at Suites 2713-2715, Two International Finance Centre, 8 Finance Street, Central, Hong Kong, Telephone +852 3756 5700.
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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.