Capital at risk

Investment strategy

Diversified Return

Our mission is simple – to generate attractive returns over cash with low volatility.  

To find the best opportunities, we take our macro views of the world and integrate them with themes that will drive markets over the long term.  

Our edge is our wide opportunity set and asset mix, creating portfolios that are prepared for different economic conditions.  

A half moon sits above a snowy mountain top at sunset.

Flexible, nimble portfolios

Our Diversified Return Strategy offers exposure to an actively managed, diversified range of assets. This is important when seeking attractive long-term returns at lower volatility than equity markets. 

A wide opportunity set

We seek to provide a diverse portfolio of asset classes that has dual objectives with an equal focus on return and risk.  

We take a broad opportunity set and turn it into a single fund. We know that this offers our clients a simple and effective way to achieve diversification, at lower volatility levels than equity markets.  

Our objectives: 

  • A return that is 3.5 per cent more than the cash rate over rolling five-year periods 
  • A positive return over rolling three-year periods 
  • Volatility of returns below 10 per cent over rolling five-year periods
The performance target is aspirational and is not guaranteed. We don’t use it to compile the portfolio and returns will vary. A single performance target may not be appropriate across all vehicles and jurisdictions. We may not meet our investment objectives if, for example, our growth investment style is out of favour, or we misjudge the long-term earnings growth of our holdings.

We look to the future, not the past

Our portfolios avoid complexity and are positioned to achieve returns with low volatility.  

We identify the major drivers of markets and apply our expertise to construct a portfolio that invests across asset classes, incorporating:  

  • Macroeconomic views 
  • Long-term return expectations 
  • Risk and near-term scenario analysis 

The result is a top-down, macroeconomic and research-led portfolio, which seeks to generate value for our clients throughout economic cycles.  

Change brings opportunities. Short-term changes can be as unpredictable as the meander of a river but by focusing on long-term trends, we think it’s possible to figure out the destination.
James Squires

Meet the managers

Documents

Philosophy and process

Explore our investment philosophy and the processes around how the team constructs the portfolio.

Quarterly update

Get the latest investment commentary, portfolio overview, transactions and performance information alongside governance engagement and voting. 

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You can invest in this strategy through the following fund(s).

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Strategy portfolio holdings

A list of the top 10 holdings that the representative portfolio invests in.

All figures up to: 31 January 2024

#Holding% of portfolio
1Baillie Gifford Worldwide Sustainable Emerging Markets Bond Fund7.3%
2Baillie Gifford Emerging Markets Bond Fund6.5%
3Aegon ABS Opportunity Fund Acc4.1%
4Leadenhall UCITS ILS Fund4.0%
5Baillie Gifford Emerging Markets Leading Companies Fund3.1%
6iShares MSCI EM UCITS ETF3.0%
7TwentyFour Income Fund2.3%
8Baillie Gifford Worldwide Global Strategic Bond Fund2.1%
9Baillie Gifford Worldwide Responsible Global Dividend Growth Fund2.1%
10Baillie Gifford High Yield Bond Fund2.0%

Strategy holdings by sector

All figures up to: 31 January 2024

1Listed Equities14.40%
2Property8.50%
3High Yield Credit6.30%
4Investment Grade Bonds2.10%
5Structured Finance9.20%
6Commodities4.80%
7Emerging Market Bonds Local Currency6.50%
8Emerging Market Bonds Hard Currency8.40%
9Infrastructure15.70%
10Government Bonds7.10%
11Insurance Linked5.80%
12Active Rates and Currency0.10%
13Cash and Equivalents11.20%
Total 100%

Strategy holdings by sector

All figures up to: 31 January 2024

Total: 100%

Please note

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.

Invest in this strategy

You can invest in this strategy through the following fund(s).

Explore further

Curious to learn more about our products and what we can offer you? Please get in touch.

How to invest in this strategy

You can invest in this strategy through the following fund(s).

Explore further

Curious to learn more about our products and what we can offer you? Please get in touch.