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 that appropriate comparisons for this Fund are the Investment Association Sterling Strategic Bond sector average, given the investment policy of the Fund and the approach taken by the manager and a composite index comprising 70%: ICE BofA Sterling Non-Gilt Index and 30%: ICE BofA European Currency High Yield Constrained Index (hedged to GBP) being representative of the strategic asset allocation of the Fund.

    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 28/02/2023

    6 Months

    1 Year

    3 Years

    5 Years

    Class B-Inc 0.3%-9.6%-3.7%0.0%
    Index* 0.2%-9.5%-3.5%-0.0%

    Annual Discrete Performance to 31 December each year

    Annual percentage return (Updated Quarterly)






    Class B-Inc -1.7%11.5%6.2%-0.6%-16.0%
    Index* -1.8%10.4%6.7%-0.9%-15.5%
    Sector Average*** -2.5%9.3%6.6%0.8%-11.0%

    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, total return in sterling.
    *70% ICE BofA ML Sterling Non Gilts Index / 30% ICE BofA ML European Currency High Yield Constrained Index
    ***IA £ Strategic Bond Sector.

    Figures for 3 and 5 years show the annual rate of return.

    Performance - 28/02/2023

    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.

    Top Ten Physical Bond Holdings* - 28/02/2023

    Fund %
    1 NatWest Gp 2.875% 2026 2.7%
    2 Barclays 1.7% 2026 2.6%
    3 LeasePlan 7.375% 2024 Perp AT1 2.6%
    4 Netflix 4.625% 2029 2.2%
    5 Accor SA 2.625% 2025 Perp 2.2%
    6 Virgin Media 5% 2027 2.1%
    7 Bharti Airtel 5.65% 2025 Perp 2.0%
    8 Investec 2.625% 2026/32 2.0%
    9 EDF 6% 2026 Perp 1.9%
    10 Santander 4.75% 2025 Perp AT1 1.8%
    Total 22.2%

    Fund %

    • 1 Banking 14.50
    • 2 Financial Services 10.94
    • 3 Insurance 10.21
    • 4 Telecommunications 7.96
    • 5 Services 6.84
    • 6 Real Estate 6.55
    • 7 Utility 6.41
    • 8 Commercial Mortgage Backed 6.34
    • 9 Retail 5.02
    • 10 Technology & Electronics 4.02
    • 11 Media 3.69
    • 12 Government Guaranteed 3.26
    • 13 Basic Industry 2.50
    • 14 Leisure 2.20
    • 15 Others 6.25
    • 16 Cash & Derivatives 3.31
    • 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.
    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 Managers

    Torcail Stewart

    Torcail is an investment manager in the Credit Team and co-manager of our strategic bond funds. Torcail leads the Crossover Portfolio Group and is a member of the Multi Asset and Income Leadership Group. Before joining Baillie Gifford in 2008, 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 M.Phil in Management, Economics and International Relations from the University of St Andrews in 2005. He is a member of the CFA Society of the UK (CFA UK).

    Lesley Dunn

    Lesley is Head of Credit and co-manager of the Strategic Bond Fund. She is a member of the Multi Asset and Income Leadership Group and the Multi Asset Income Portfolio Construction Group. Before joining Baillie Gifford in 2016, Lesley spent 15 years at Scottish Widows Investment Partnership, initially in the Investment Grade Team then as a high yield manager. She graduated BSc (Hons) in Maths, Statistics & Economics from Strathclyde University in 2000 and is a CFA Charterholder.


    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.


    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: InstitutionalComplaints@bailliegifford.com. 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.