2. Overview

    The Sterling Aggregate Bond Fund aims to outperform (after deduction of costs) an index comprising 50% of the FTSE Actuaries UK Conventional Gilts All Stocks Index and 50% of the ICE Bank of America Sterling Non-Gilt Index by 0.65% 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 Strategic Bond Sector.

    A predominately sterling portfolio of government and corporate bonds created holistically to represent our best and strongest fixed income investment views. Our sterling aggregate bond strategy is driven by active bond selection based on country and company fundamentals. Our intention is to look across markets, and to exploit anomalies in fundamental values created by investors operating differently from us.

    Performance & Portfolio

    Periodic performance

    All figures to 31/10/2025

    1 Month

    3 Months

    6 Months

    1 Year

    3 Years

    5 Years
    Class B-Acc 2.3%3.0%4.6%7.9%5.0%-2.2%
    Index* 2.4%2.4%3.2%5.6%3.6%-2.9%
    Target Benchmark** 2.4%2.6%3.5%6.3%4.3%-2.3%
    Sector Average*** 1.2%2.4%4.7%7.4%7.2%2.2%

    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 30 September each year

    Annual percentage return (Updated Quarterly)

    30/09/2020
    30/09/2021

    30/09/2021
    30/09/2022

    30/09/2022
    30/09/2023

    30/09/2023
    30/09/2024

    30/09/2024
    30/09/2025
    Class B-Acc -2.7%-23.8%3.3%9.8%3.7%
    Index* -3.6%-22.8%2.4%8.8%1.2%
    Target Benchmark** -3.0%-22.3%3.1%9.5%1.8%
    Sector Average*** 4.6%-14.5%4.9%11.8%5.2%

    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, FTSE, 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.

    *50% of the FTSE Actuaries UK Conventional Gilts All Stock Index and of the 50% BofA Sterling Non-Gilts Index.

    **50% of the FTSE Actuaries UK Conventional Gilts All Stock Index and of the 50% BofA Sterling Non-Gilts Index +0.65%.

    ***IA £ Strategic Bond Sector.

    Top ten physical bond holdings* 31/10/2025

    Fund %
    1 HM Treasury 20.5%
    2 UK Treasury 12.1%
    3 Colombia 2.8%
    4 Banca Intesa BCI 2.7%
    5 Peru 2.6%
    6 Bundesrepublik Deutschland - Finanzagentur Gesellschaft Mit BeschraNkter Haftung 2.6%
    7 Telereal Securitisation PLC 2.2%
    8 NatWest Group plc 2.1%
    9 New Zealand 1.9%
    10 AT&T 1.7%
    Total 51.2%

    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 Fund may also hold derivative positions for hedging purposes.

    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

    Sally Greig

    Sally is head of the Emerging Market Debt Team and chief of investment staff for the Multi Asset and Income area. She joined Baillie Gifford in 2005. Before joining the firm, she worked at the Bank of England from 2001 as an economist in the Foreign Exchange Division and provided regular analysis to the Monetary Policy Committee. Sally graduated MA in Economics and Statistics from the University of Edinburgh in 1998 and MSc in Finance and Econometrics from the University of York in 2003.

    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.

    How to Invest

    You can invest in a range of our funds via a number of fund platforms and supermarkets, please see the links below. Baillie Gifford does not provide investment advice. If you are unsure whether an investment is suitable for you, you should seek advice from an authorised intermediary.

    Further information on the range of funds available through platforms may be obtained by downloading our Platform Matrix.

    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.

    Annual reports

    Baillie Gifford Investment Funds II ICVC Annual Report - June 2025
    Download

    Application forms

    OEIC Withdrawal form
    Download
    Request for Income Distribution for Personal Investors Form
    Download
    Stock Transfer Form and Guidance Notes
    Download
    OEIC Application Form for Personal Investors
    Download
    Topping Up Your OEIC Investment Form
    Download

    Enhanced disclosure document

    Sterling Aggregate Bond Fund Enhanced Disclosure of Fund Charges and Costs
    Download

    Interim reports

    Baillie Gifford Investment Funds II ICVC Interim Report - December 2024
    Download

    Key investor information documents (KIIDs)

    Supplementary Information Document
    Download
    Sterling Aggregate Bond Fund Class B Inc Shares Key Investor Information Document
    Download
    Sterling Aggregate Bond Fund Class B Acc Shares Key Investor Information Document
    Download

    Prospectus

    Baillie Gifford Investment Funds II ICVC Prospectus - November 2025
    Download

    Sustainability-related disclosures and climate reports

    Sterling Aggregate Bond Fund TCFD Climate Report
    Download

    Value assessment

    Value Assessment Report - 31 March 2025
    Download

    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.

    Foreign Currency

    The Fund has exposure to foreign currencies and changes in the rates of exchange will cause the value of any investment, and income from it, to fall as well as rise and you may not get back the amount invested.

    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.

    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.

    Fees to Capital

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

    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.