Capital at risk
Strategic Bond
This is a core corporate bond strategy that brings income generation and diversification to balanced portfolios. It offers broad exposure to global corporate bond markets, using our best ideas. We seek to add value through bond selection and active credit risk management.
Our research-intensive process and extensive experience mean we gain deep insight into companies, differentiating our views from other market participants.
A sharp focus on inefficiencies
Our goal is to provide clients with a resilient income and potential capital growth by lending to a diverse range of companies.
Corporate bond markets exhibit 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.
Strategic Bond Q1 investment update
The Strategic Bond Team reflects on recent performance, portfolio changes and market developments over the last quarter.
A purposeful, conviction-led portfolio
The global corporate bond market, with over 3,700 companies and more than 20,000 bonds, provides a rich canvas of opportunities for active bond selectors.
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 helps us to identify macroeconomic trends and transitory forces. We then construct a diverse core portfolio of about 60-85 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.
Corporate bond markets are structurally inefficient and often fail to reflect fundamental information. This provides opportunities for long-term investors such as us.
Meet the managers
Related insights
Explore further
Curious to learn more about our products and what we can offer you? Please get in touch.
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 |
|---|---|---|
| 1 | LeasePlan 7.375% 2024 Perp AT1 | 2.9% |
| 2 | Rothesay Life 8% 2025 | 2.9% |
| 3 | Admiral Group 8.5% 2034 T2 | 2.6% |
| 4 | DNB Bank 4% 2026/27 | 2.6% |
| 5 | EDF 6% 2026 Perp | 2.5% |
| 6 | Bharti Airtel 5.65% 2025 Perp | 2.3% |
| 7 | Helvetia 2.75% 2031/41 T2 | 2.1% |
| 8 | CPI Property 2.75% 2028 | 1.9% |
| 9 | Banco Santander 1.5% 2026 | 1.9% |
| 10 | Annington Funding 2.308% 2032 | 1.9% |
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.
Explore further
Curious to learn more about our products and what we can offer you? Please get in touch.
Important information
By clicking on South Korea, you have confirmed that you are based in South Korea and that you meet the following requirements.
The information in this area of the website is intended for qualified professional investors and consultants based in South Korea. It is not intended for use by any other persons including members of the general public or investors from other jurisdictions.
Please remember that all investment strategies have the potential for profit and loss and your or your clients’ capital may be at risk.
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 Overseas Limited is licensed with the Financial Services Commission in South Korea as a cross border Discretionary Investment Manager and Non-Discretionary Investment Adviser.
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.
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.