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 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.
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 April 2024

#Holding% of portfolio
1UK T Bill 22/07/20243.7%
2LeasePlan 7.375% 2024 Perp AT12.5%
3Iliad 6.5% 2026 (144A)2.0%
4Aggreko 6.125% 2026 (144A)1.8%
5EDF 6% 2026 Perp1.7%
6Barclays 7.125% 2025 Perp AT11.6%
7Teva Pharma Ind 7.375% 20291.5%
8Brightline East 11% 2030 (144A)1.5%
9Telecom Italia 7.875% 20281.5%
10Chart Industries 7.5% 2030 (144A)1.5%

Strategy holdings by sector

All figures up to: 30 April 2024

1Industrials84.10%
2Financial12.40%
3Sovereign3.70%
4Utility1.70%
5Cash & Derivatives-1.80%
Total 100%

Strategy holdings by sector

All figures up to: 30 April 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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Curious to learn more about our products and what we can offer you? Please get in touch.