1. Overview

    The Investment Grade Bond Fund aims to outperform (after deduction of costs) the ICE Bank of America Merrill Lynch Sterling Non-Gilt Index by 0.5% 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 31/03/2021

    6 Months

    1 Year

    3 Years

    5 Years

    Class B-Inc -0.8%8.6%4.3%4.7%
    Index* -1.0%7.0%4.1%4.6%
    Target Benchmark** -0.8%7.5%4.6%5.1%

    Annual Discrete Performance to 31 March each year

    Annual percentage return (Updated Quarterly)

    31/03/2016
    31/03/2017

    31/03/2017
    31/03/2018

    31/03/2018
    31/03/2019

    31/03/2019
    31/03/2020

    31/03/2020
    31/03/2021

    Class B-Inc 9.8%1.0%3.7%0.9%8.6%
    Index* 9.3%1.3%3.7%1.7%7.0%
    Target Benchmark** 9.9%1.8%4.3%2.2%7.5%
    Sector Average*** 8.9%1.7%3.0%0.8%9.1%
    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.
    Performance source: FE and relevant underlying index provider, single pricing basis, total return.
    Returns reflect the annual charges but exclude any initial charge paid.
    *ICE BofA Sterling Non-Gilt Index.
    **ICE BofA Sterling Non-Gilt Index +0.5%.
    ***IA £ Corporate Bond Sector.
    Performance - 31/03/2021

    The value of your investment may go down as well as up, and you may not get back the amount you invested.
    Source: FE and relevant underlying index provider, single pricing basis, total return.
    Please bear in mind that past performance is not a guide to future performance.
    The graph is rebased to 100.

    Top Ten Physical Bond Holdings* - 31/03/2021

    Fund %
    1 Rabobank 6.5% Perp 2.1%
    2 KFW 6% 2028 2.0%
    3 UK Treasury 0.375% 22/10/2030 2.0%
    4 Network Rail 4.75% 2024 1.9%
    5 LCR Finance 4.5% 2028 1.7%
    6 UK Treasury 3.25% 22/01/2044 1.6%
    7 EIB 4.5% 2044 1.6%
    8 Cadent 2.125% 2028 1.6%
    9 National Grid 5.625% 2025/73 1.6%
    10 KFW 0.875% 2026 1.5%
    Total 17.5%
    SECTOR ANALYSIS OF TOTAL ASSETS - 31/03/2021

    Fund %

    • 1 Utility 16.29
    • 2 Banking 12.77
    • 3 Government Guaranteed 8.03
    • 4 Real Estate 6.68
    • 5 Financial Services 5.59
    • 6 Retail 5.13
    • 7 Sovereign 4.85
    • 8 Telecommunications 4.63
    • 9 Supranational 4.01
    • 10 Commercial Mortgage Backed 3.78
    • 11 Insurance 3.67
    • 12 Technology & Electronics 3.64
    • 13 Asset Backed 3.41
    • 14 Health Care 2.57
    • 15 Media 2.21
    • 16 Basic Industry 2.05
    • 17 Consumer Goods 2.00
    • 18 Others 4.57
    • 19 Cash & Derivatives 4.12
    • Total 100.0

    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 Manager

    Paul Dilworth

    Paul joined Baillie Gifford in 2019 and is an Investment Manager in the Credit Team. Previously, 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 is a CFA Charterholder and graduated BSc (Hons) in Mathematics from Heriot-Watt University in 2006.

    Documents

    You can access any literature about the Fund here, either by downloading or requesting a copy by post (where available). Please note that, due to current government restrictions, we have a limited number of staff in our office. As a result, if posting instructions to us, there may be a delay in processing these due to these current restrictions.

    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.

    Complaints

    In the first instance, clients should contact their normal Client Contact with any concerns. Alternatively, or for those clients who do not have a direct client contact assigned, complaints can be emailed to Baillie Gifford’s Compliance Department at: [email protected]. A summary document which contains details on Baillie Gifford’s complaints management policy is available upon request. All material complaints are recorded in an in-house incident management system and are escalated to, and dealt with by, members of staff of suitable seniority, independent of the area from which the matter arose.