1. Overview

    The High Yield Bond Fund aims to produce a combination of income and capital growth.

    The manager believes an appropriate comparison for this Fund is the Investment Association Sterling High Yield Bond sector average given the investment policy of the Fund and the approach taken by the manager when investing.

    We focus on fundamental, forward looking research leading to a best ideas portfolio where every investment should make a difference.

    Performance & Portfolio

    Periodic Performance

    All figures to 31/01/2024

    6 Months

    1 Year

    3 Years

    5 Years

    Class B-Inc 7.5%8.5%-0.0%2.5%
    Sector Average*** 6.5%8.5%1.4%3.3%
    Sector Ranking 11/3116/3123/3119/26

    Figures for 3 and 5 years are shown as the annualised rate of return. This is the average yearly return over the specified period.

    Annual Discrete Performance to 31 December each year Sector Average

    Annual percentage return (Updated Quarterly)






    Class B-Inc 11.9%3.0%2.5%-13.3%11.3%
    Sector Average*** 10.9%4.0%4.1%-10.2%11.1%

    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

    Source: FE. Total return net of charges, in sterling.
    Share class returns calculated using 10am prices, while the Index is calculated close-to-close.
    *IA £ High Yield Sector.

    Top Ten Physical Bond Holdings* - 31/01/2024

    Fund %
    1 LeasePlan 7.375% 2024 Perp AT1 2.4%
    2 Iliad 6.5% 2026 (144A) 1.9%
    3 IQVIA 2.25% 2029 1.7%
    4 Biogroup 5% 2029 1.7%
    5 Taseko Mines 7% 2026 (144A) 1.6%
    6 EDF 6% 2026 Perp 1.6%
    7 Barclays 7.125% 2025 Perp AT1 1.6%
    8 Teva Pharma Ind 7.375% 2029 1.5%
    9 Ardagh Packaging 2.125% 2026 1.4%
    10 Aggreko 6.125% 2026 (144A) 1.4%
    Total 16.9%

    Fund %

    • 1 Industrials 83.68
    • 2 Financial 13.29
    • 3 Utility 1.62
    • 4 Sovereign 1.20
    • 5 Cash & Derivatives 0.21
    • 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

    Robert Baltzer

    Robert is Head of Credit Research and co-manager of the Global Strategic Bond Fund and our high yield funds. He is a member of the Investment Grade, Crossover and High Yield Portfolio Groups. Robert joined Baillie Gifford in 2001 on the graduate scheme. He graduated MMath from Durham University in 2001 and is a CFA Charterholder.

    Lucy Isles

    Lucy is an investment manager in the Credit Team and co-manager of our high yield bond funds. She leads the High Yield Portfolio Group and chairs the Governance and Sustainability Multi Asset and Fixed Income Working Group. Lucy joined Baillie Gifford in 2012 on the graduate scheme. She graduated MA (Hons) in International Relations and Modern History from the University of St Andrews in 2011.

    Arthur Milson

    Arthur Milson is an investment manager in the Credit Team. He is co-manager of our high yield bond funds and a member of the High Yield Portfolio Group. Before joining Baillie Gifford in 2022, Arthur worked for abrdn/Standard Life Investments for 16 years, where he was responsible for managing a number of high yield funds. Arthur graduated BSc Biological Sciences from The University of Edinburgh in 1992, has a postgraduate diploma in Commerce from The University of Wollongong and is a Chartered Accountant.

    How to Buy

    You can invest in a range of our funds via a number of fund platforms, please see the links opposite. Further information on the funds can be found in the relevant Key Investor Information and Prospectus Documents, which are available in English and will be sent to you free of charge on request. Information on the range of funds available through platforms can be found in our Platform Matrix.

    Baillie Gifford does not sponsor, maintain or have any control over the content of any other websites. Therefore, we are not responsible for the adequacy or accuracy of any of the information you may view, nor do we undertake to ensure successful transmission to any linked website.

    How to Buy

    OEIC Terms of Business

    To buy and sell our funds, you must complete and return a copy of the document below, if you don't already have an agreement with us. In order for us to accept your business for our range of OEICs, please complete and return the Terms of Business Acceptance Form.


    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.

    Philosophy and Process Documents

    Quarterly Investor Reports

    Sustainability-related Disclosures


    General Investment Risk

    Investment markets can go down as well as up and market conditions can change rapidly. The value of an investment in the Fund, and any income from it, can fall as well as rise and investors may not get back the amount invested.


    Custody of assets involves a risk of loss if a custodian becomes insolvent or breaches duties of care.

    Bonds & Inflation

    Bonds issued by companies and governments may be adversely affected by changes in interest rates, expectations of inflation and a decline in the creditworthiness of the bond issuer. The issuers of bonds in which the Fund invests may not be able to pay the bond income as promised or could fail to repay the capital amount.


    The Fund’s concentrated portfolio relative to similar funds may result in large movements in the share price in the short term.


    Derivatives may be used to obtain, increase or reduce exposure to assets and may result in the Fund being leveraged. This may result in greater movements (down or up) in the price of shares in the Fund. It is not our intention that the use of derivatives will significantly alter the overall risk profile of the Fund.


    The Fund’s share price can be volatile due to movements in the prices of the underlying holdings and the basis on which the Fund is priced.


    A dilution adjustment may apply when you buy or sell shares in the Fund. This is applied to the share price and may reduce the return on your investment.

    Under certain market conditions it can be difficult to buy or sell securities and even small purchases or sales can cause their prices to move significantly. To manage the effects of this, we may apply an increased dilution adjustment. As a result investors may face increased dealing costs.

    Fees to Capital

    From 1 October 2019 the fund expenses will be taken from Fund’s capital. This will reduce the capital value of the Fund. The figure for the current financial period has not yet been determined.

    Market Conditions

    Market values for illiquid securities which are difficult to trade may not be readily available, and there can be no assurance that any value assigned to them will reflect the price the Fund might receive upon their sale.

    Tax Rates

    Tax rates and the tax treatment of OEICs can change at any time.