Overview
The Investment Grade Bond Fund aims to outperform (after deduction of costs) the ICE Bank of America Sterling Non-Gilt Index by 0.75% per annum over rolling three-year periods. There is no guarantee that this objective will be achieved over any time period and actual investment returns may differ from this objective, particularly over shorter time periods.
The manager believes this is an appropriate benchmark given the investment policy of the Fund and the approach taken by the manager when investing. In addition, the manager believes an appropriate performance comparison for this Fund is the Investment Association Sterling Corporate Bonds Sector.
As we prospect for ideas we value robust debate. This is why the investment teams are kept small, why we rotate sector coverage, and why our ideas are shared with the wider firm.
Performance & Portfolio
Periodic performance
All figures to 30/11/2024 6 Months
1 Year
3 Years
5 Years
Class B-Inc 4.7% 8.5% -3.0% -0.7% Index* 3.3% 6.8% -3.3% -0.9% Target Benchmark** 3.8% 7.7% -2.6% -0.3% Sector Average*** 3.9% 7.6% -2.1% 0.0% Sector Ranking 10/96 20/94 58/91 60/87
Annual discrete performance 30 September each year
Annual percentage return (Updated Quarterly) 30/09/2019
30/09/202030/09/2020
30/09/202130/09/2021
30/09/202230/09/2022
30/09/202330/09/2023
30/09/2024Class B-Inc 3.6% 0.3% -22.1% 6.5% 11.1% Index* 3.9% -0.3% -22.2% 7.4% 9.7% Target Benchmark** 4.4% 0.2% -21.9% 8.2% 10.6% Sector Average*** 4.2% 1.3% -20.5% 7.3% 10.9% Please bear in mind that past performance is not a guide to future returns. The value of your investment may go down as well as up, and you may not get back the amount you invested.
Source: FE, Revolution, ICE Data Indices. Total return net of charges, in sterling.
Share class returns calculated using 10am prices, while the Index is calculated close-to-close.
Figures for 3 and 5 years are shown as the annualised rate of return. This is the average yearly return over the specified period.
*ICE BofA Sterling Non-Gilts Index.
**ICE BofA sterling Non-Gilt Index plus +0.50% to 16 September 2022; thereafter ICE BofA sterling Non-Gilt Index plus +0.75% per annum, over rolling three-year periods. The indices have been chain-linked for performance figures above.
***IA £ Corporate Bond Sector.
Top ten physical bond holdings* 30/11/2024
Fund % 1 UK Treasury 4.75% 07/12/2030 3.0% 2 Blackstone Private Credit 4.875% 2026 2.1% 3 Legal & General 5.375% 2025/45 T2 1.8% 4 AT&T 7% 2040 1.8% 5 International Workplace Group 6.5% 2030 1.6% 6 Mitchells & Butlers FRN (AB) 2033 1.5% 7 Nationwide 5.875% 2024 Perp AT1 1.5% 8 Burberry 1.125% 2025 1.4% 9 Inchcape 6.5% 2028 1.4% 10 Santander UK 7.098% 2026/27 1.3% Total 17.3% Sector analysis of total assets 30/11/2024Fund %
- 1 Banking 17.52
- 2 Utility 10.26
- 3 Real Estate 7.92
- 4 Asset Backed 7.91
- 5 Financial Services 7.21
- 6 Sovereign 6.74
- 7 Insurance 6.64
- 8 Supranational 3.91
- 9 Telecommunications 3.90
- 10 Commercial Mortgage Backed 3.85
- 11 Government Guaranteed 3.71
- 12 Retail 2.87
- 13 Consumer Goods 2.41
- 14 Agency 2.06
- 15 Others 10.35
- 16 Cash & Derivatives 2.74
- 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.
A negative cash position may sometimes occur due to obligations awaiting settlement.
The information contained on this page is intended as a guide only and should not be relied upon when making investment decisions. Source Baillie Gifford & Co.
Please note that totals may not sum due to rounding.
Meet the Managers
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 is an investment manager in the Credit Team, co-managing the Investment Grade Bond Strategy. He joined Baillie Gifford in 2020. Prior to joining the firm, he 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 is a CFA Charterholder.
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, unbiased is a website that allows you to search for authorised intermediaries in your area. You can visit their site on www.unbiased.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.
Application forms
Bulletins
Enhanced disclosure document
Factsheets
Interim reports
Key investor information documents (KIIDs)
Sustainability-related disclosures and climate reports
Value assessment
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.
Government and Public Securities
More than 35% of scheme property may be invested in securities issued or guaranteed by Governments and/or other organisations worldwide. For further details please see the Prospectus.
Tax Rates
Tax rates and the tax treatment of OEICs can change at any time.
