1. Overview

    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 & Portfolio

    Periodic Performance
    All 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 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 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 - 31/03/2021
    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-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.
    The graph is rebased to 100.
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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 - 31/03/2021
    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.
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    Meet the Managers

    Torcail Stewart

    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 Dunn

    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.

    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.