STRATEGIC BOND FUNDSTRATEGIC BOND FUND
The Strategic Bond Fund aims to produce monthly income. Opportunities for capital growth are also sought, subject to prevailing market conditions.
The manager believes an appropriate comparison for this Fund is the Investment Association Sterling Strategic Bond sector average given the investment policy of the Fund and the approach taken by the manager when investing.
Our performance is driven by stock selection. We source ideas across both investment grade and high yield bonds and are guided by our fundamental, bottom-up stock analysis.
Performance & PortfolioPeriodic PerformanceAll figures to 31/03/2021
6 Months 1 Year 3 Years 5 Years Class B-Inc 2.6% 16.3% 5.0% 6.1%Annual Discrete Performance figures to 31 March each yearAnnual percentage return (Updated Quarterly) 31/03/2016
Class B-Inc 11.6% 4.2% 4.0% -4.2% 16.3% Sector Average*** 8.0% 2.3% 2.1% -1.4% 12.5%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.
Sector data based on B-Acc share class performance.
Performance source: FE, single pricing basis, total return.
Returns reflect the annual charges but exclude any initial charge paid.
***IA £ Strategic Bond Sector.Performance - 31/03/2021The value of your investment may go down as well as up, and you may not get back the amount you invested.
Sector data based on B-Inc share class performance.
Source: FE and relevant underlying index provider(s), single pricing basis, total return.
Please bear in mind that past performance is not a guide to future performance.
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Top Ten Physical Bond Holdings* - 31/03/2021
Fund % 1 Netflix 4.625% 2029 2.8% 2 National Grid 5.625% 2025/73 2.6% 3 Virgin Media 5% 2027 2.0% 4 Rabobank 6.5% Perp 2.0% 5 EDP 4.496% 2024/79 1.9% 6 Co-operative Group 7.5% 2026 1.9% 7 EIB 3.875% 2037 1.8% 8 Cheniere Energy 4.625% 2028 (144A) 1.7% 9 Enel 5.75% 2040 1.5% 10 Fidelity 2.5% 2026 1.5% Total 19.7% Fund % 1 Netflix 4.625% 2029 2.8% 2 National Grid 5.625% 2025/73 2.6% 3 Virgin Media 5% 2027 2.0% 4 Rabobank 6.5% Perp 2.0% 5 EDP 4.496% 2024/79 1.9% 6 Co-operative Group 7.5% 2026 1.9% 7 EIB 3.875% 2037 1.8% 8 Cheniere Energy 4.625% 2028 (144A) 1.7% 9 Enel 5.75% 2040 1.5% 10 Fidelity 2.5% 2026 1.5% Total 19.7%Sector Analysis of Total Assets - 31/03/2021As 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.
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InsightsAll InsightsDecember 2020
Muscle for the Rebound.
Challenging circumstances function as a litmus test, from which the strongest business models survive, and even, thrive. During 2020 your Strategic Bond Fund has sought to invest in businesses that can do just that.September 2020
Actual Income - Enviva.
It’s not always easy to discern how green a company actually is. A detailed governance and sustainability review helps determine what the issues are, and whether they impact on the investment case. Wood pellet producer Enviva is a case in point.September 2020
Actual Income - Aptiv.
The most dangerous thing about a car is its driver. Automotive supply company Aptiv is developing advanced technology to make driving safer, greener, and even, driverless.July 2020
Actual Income - Expectation Management.
Client focus on governance and sustainability (or G&S) factors has never been greater and is only accelerating with time – and rightly so. We believe our early decision to integrate G&S into our investment process has enhanced our ability to source dependable income streams, precisely because we take a broad and complete view of what makes companies succeed over the long term.July 2020
Actual Income - Darling Ingredients.
What does the White House’s china crockery have in common with Mercedes car seats, animal feed and biodiesel? The answer is both simple and incredibly complex – and probably not one for a dinner party chat. They are all products made possible by the bloody-minded genius of Texas-based Darling Ingredients, whose ability to turn unwanted remains into a diverse array of useful products is unsurpassed.July 2020
Strategic Bond Fund Update.
Kevin Mitchell, client manager, hosts a webinar with Torcail Stewart and Lesley Dunn, co-managers of the Strategic Bond Fund, in which an update on the fund is given and questions from clients are answered.May 2020
Actual Income - CO-OP.
Appearances can be deceptive. Not least in the credit markets, where companies tainted by problems can end up producing attractive buying opportunities as they start to return to health. Co-op is just one example.May 2020
Actual Income - Island Time.
Torcail Stewart wants those who are investing in bonds to slow down and take some tips from island living.March 2020
Actual Income - Netflix.
Netflix has shaken up the global paid TV market and is on track to becoming an investment grade company.
Meet the Managers
Torcail joined Baillie Gifford in 2008 and is an Investment Manager in the Credit Team. Prior to joining Baillie Gifford, he worked as an Investment Analyst for the Alliance Trust’s UK Large Cap Equity Fund. Torcail graduated BA in Geography from the University of Cambridge in 2002 and MPhil in Management, Economics and International Relations from the University of St Andrews in 2005. Torcail is a member of the UK Society of Investment Professionals (UKSIP).
Lesley is an Investment Manager in the High Yield Team and is a CFA Charterholder. She previously worked for Scottish Widows Investment Partnership for 15 years, initially in the Investment Grade Team before moving to manage the company’s High Yield portfolios. Lesley graduated BSc (Hons) in Maths, Statistics & Economics from the University of Strathclyde in 2000.
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.
Bulletins and Factsheets
Enhanced Disclosure Document
Key Investor Information Documents
Philosophy and Process Documents
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.