1. Overview

    The High Yield Bond Fund aims to produce a combination of income and capital growth.

    The manager believes an appropriate comparison for this Fund is the Investment Association Sterling High Yield Bond sector average given the investment policy of the Fund and the approach taken by the manager when investing.

    We focus on fundamental, forward looking research leading to a best ideas portfolio where every investment should make a difference.

    Performance & Portfolio

    Periodic Performance

    All figures to 29/02/2024

    6 Months

    1 Year

    3 Years

    5 Years

    Class B-Inc 8.0%9.6%-0.1%2.2%
    Sector Average*** 6.7%9.5%1.3%3.0%
    Sector Ranking 6/3116/3124/3119/26

    Figures for 3 and 5 years are shown as the annualised rate of return. This is the average yearly return over the specified period.


    Annual Discrete Performance to 31 December each year Sector Average

    Annual percentage return (Updated Quarterly)

    31/12/2018
    31/12/2019

    31/12/2019
    31/12/2020

    31/12/2020
    31/12/2021

    31/12/2021
    31/12/2022

    31/12/2022
    31/12/2023

    Class B-Inc 11.9%3.0%2.5%-13.3%11.3%
    Sector Average*** 10.9%4.0%4.1%-10.2%11.1%

    Please bear in mind that past performance is not a guide to future performance.
    The value of your investment may go down as well as up, and you may not get back the amount you invested

    Source: FE. Total return net of charges, in sterling.
    Share class returns calculated using 10am prices, while the Index is calculated close-to-close.
    *IA £ High Yield Sector.

    Top Ten Physical Bond Holdings* - 29/02/2024

    Fund %
    1 LeasePlan 7.375% 2024 Perp AT1 2.3%
    2 Iliad 6.5% 2026 (144A) 1.8%
    3 IQVIA 2.25% 2029 1.6%
    4 EDF 6% 2026 Perp 1.5%
    5 Biogroup 5% 2029 1.5%
    6 Barclays 7.125% 2025 Perp AT1 1.5%
    7 Taseko Mines 7% 2026 (144A) 1.5%
    8 Teva Pharma Ind 7.375% 2029 1.4%
    9 Aggreko 6.125% 2026 (144A) 1.4%
    10 Ardagh Packaging 2.125% 2026 1.4%
    Total 15.8%
    Sector Analysis of Total Assets - 29/02/2024

    Fund %

    • 1 Industrials 82.33
    • 2 Financial 12.09
    • 3 Utility 1.52
    • 4 Sovereign 0.74
    • 5 Cash & Derivatives 3.32
    • Total 100.00

    As the Fund invests in overseas securities, changes in the rates of exchange may cause the value of your investment (and any income it may pay) to go down or up.
    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.

    Meet the Managers

    Faisal Islam

    Faisal is an investment manager in the Credit Team, co-managing our High Yield Bond Strategy. Before joining Baillie Gifford in 2018, he worked for four years at PwC where he qualified as a chartered accountant in corporate finance, before moving to Aberdeen Standard Investments in 2016 as a high yield credit analyst. Faisal graduated BSc in Economics from the London School of Economics and Political Science in 2011 and is a CFA Charterholder.

    Robert Baltzer

    Robert is Head of Credit Research and co-manager of the Strategic Bond and High Yield strategies. He joined Baillie Gifford in 2001 on the graduate scheme and became an Investment Grade Bond manager in 2004. Robert has managed high yield portfolios since 2010 and crossover portfolios since 2012. He graduated MMath from Durham University in 2001 and is a CFA Charterholder.

    Arthur Milson

    Arthur is an investment manager in the Credit Team, co-managing our High Yield Bond Strategy. Before joining Baillie Gifford in 2022, he worked for abrdn/Standard Life Investments for 16 years. Arthur graduated BSc in Biological Sciences from the University of Edinburgh in 1992, has a postgraduate diploma in commerce from the University of Wollongong and is a Chartered Accountant.

    How to Invest

    You can invest in our funds via a number of fund platforms, please see the links opposite. Information on the range of funds available through platforms can be found in our Platform Matrix.

    Please note that we do not have the facility for you to invest directly with us in our Investment Trusts and we do not offer ISAs, SIPPS or Share Plans.

    Please also note that we do not have an online service for individual investors.

    Further information on our funds can be found in the relevant Key Investor Information and Prospectus Documents, which are available in English and will be sent to you free of charge on request.

    Baillie Gifford does not sponsor, maintain or have any control over the content of any other websites. Therefore, we are not responsible for the adequacy or accuracy of any of the information you may view, nor do we undertake to ensure successful transmission to any linked website.

    How to Invest

    Getting Financial Advice

    At Baillie Gifford we don’t provide financial advice, but we do try our best to provide you with all the information we think you might need to make investment decisions. Of course, we realise there are occasions when you may want the advice of an expert.

    Using professional financial advice

    An authorised intermediary can give you advice and help on how best to manage your financial affairs based on your circumstances and investment aspirations. They can also help keep track of all your different investment interests, saving you a lot of time and bookkeeping.

    Finding a financial adviser near you

    If you want to use an authorised intermediary, MyLocalAdviser is a website that allows you to search for authorised intermediaries in your area. You can visit their site on www.mylocaladviser.co.uk

    Documents

    You can access any literature about the Fund here, either by downloading or requesting a copy by post (where available).

    To download any document you will need Adobe Reader. Please note that we can now provide you with Braille and audio transcriptions of our literature on request. It may take up to 10 days for the transcription to be completed dependent on the size of the document.

    Risks

    General Investment Risk

    Investment markets can go down as well as up and market conditions can change rapidly. The value of an investment in the Fund, and any income from it, can fall as well as rise and investors may not get back the amount invested.

    Custody

    Custody of assets involves a risk of loss if a custodian becomes insolvent or breaches duties of care.

    Bonds & Inflation

    Bonds issued by companies and governments may be adversely affected by changes in interest rates, expectations of inflation and a decline in the creditworthiness of the bond issuer. The issuers of bonds in which the Fund invests may not be able to pay the bond income as promised or could fail to repay the capital amount.

    Concentration

    The Fund’s concentrated portfolio relative to similar funds may result in large movements in the share price in the short term.

    Derivatives

    Derivatives may be used to obtain, increase or reduce exposure to assets and may result in the Fund being leveraged. This may result in greater movements (down or up) in the price of shares in the Fund. It is not our intention that the use of derivatives will significantly alter the overall risk profile of the Fund.

    Volatility

    The Fund’s share price can be volatile due to movements in the prices of the underlying holdings and the basis on which the Fund is priced.

    Dilution

    A dilution adjustment may apply when you buy or sell shares in the Fund. This is applied to the share price and may reduce the return on your investment.

    Under certain market conditions it can be difficult to buy or sell securities and even small purchases or sales can cause their prices to move significantly. To manage the effects of this, we may apply an increased dilution adjustment. As a result investors may face increased dealing costs.

    Fees to Capital

    From 1 October 2019 the fund expenses will be taken from Fund’s capital. This will reduce the capital value of the Fund. The figure for the current financial period has not yet been determined.

    Market Conditions

    Market values for illiquid securities which are difficult to trade may not be readily available, and there can be no assurance that any value assigned to them will reflect the price the Fund might receive upon their sale.

    Tax Rates

    Tax rates and the tax treatment of OEICs can change at any time.