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% Sector Average*** 2.4% 12.5% 4.2% 4.6% Sector Ranking 45/94 25/91 19/81 13/74Annual 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.
Please note that totals may not add due to rounding.Unfortunately we were unable to load the chart. Please try again later.
InsightsView all Insights.March 2021
Featuring the news and views of the teams involved in running our funds.December 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.November 2020
Featuring the news and views of the teams involved in running our fundsSeptember 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.
View all Insights.
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.
How to Buy
You can invest in a range of our funds via a number of fund platforms and supermarkets, 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.
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). 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.
Enhanced Disclosure Document
Fund Ratings Reports
Key Investor Information Documents
Philosophy and Process Documents
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 and 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’s expenses will be taken from the 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 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 and the tax treatment of OEICs can change at any time.