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 30/06/2024

    6 Months

    1 Year

    3 Years

    5 Years

    Class B-Inc 2.4%11.3%-2.4%0.5%
    Index* 1.1%10.5%-2.1%0.6%
    Sector Average*** 1.5%8.8%-0.8%1.4%
    Sector Ranking 26/8923/8860/8053/70

    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 30 June each year

    Annual percentage return (Updated Quarterly)






    Class B-Inc 3.4%6.7%-15.5%-1.1%11.3%
    Index* 4.3%4.9%-13.2%-2.2%10.5%
    Sector Average*** 3.8%6.1%-10.2%-0.2%8.8%

    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.
    Source: FE, Revolution. Total return net of charges, in sterling.
    Share class returns calculated using 10am prices, while the Index is calculated close-to-close.
    *70% ICE BofA ML Sterling Non Gilts Index / 30% ICE BofA ML European Currency High Yield Constrained Index
    ***IA £ Strategic Bond Sector.

    Top Ten Physical Bond Holdings* - 30/06/2024

    Fund %
    1 Rothesay Life 8% 2025 3.1%
    2 Admiral Group 8.5% 2034 T2 2.8%
    3 EDF 6% 2026 Perp 2.8%
    4 DNB Bank 4% 2026/27 2.8%
    5 Bharti Airtel 5.65% 2025 Perp 2.5%
    6 CPI Property 1.5% 2031 2.4%
    7 Helvetia 2.75% 2031/41 T2 2.3%
    8 Investec 2.625% 2026/32 T2 2.0%
    9 Banco Santander 1.5% 2026 2.0%
    10 Barclays 7.125% 2025 Perp AT1 2.0%
    Total 24.8%
    Sector Analysis of Total Assets - 30/06/2024

    Fund %

    • 1 Industrials 43.29
    • 2 Financial 40.30
    • 3 Quasi & Foreign Government 6.29
    • 4 Securitized 5.09
    • 5 Utility 4.39
    • 6 Cash & Derivatives 0.64
    • 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

    Lesley Dunn

    Lesley is Head of Credit and co-manager of the Strategic Bond strategy. She is a member of the Multi Asset and Income Leadership Group and the Sustainable Income Portfolio Construction Group. Lesley joined Baillie Gifford in 2016 and became a partner of the firm 2023. Prior to this, she spent 15 years at Scottish Widows Investment Partnership. Lesley graduated BSc (Hons) in Maths, Statistics & Economics from Strathclyde University in 2000 and is a CFA Charterholder.

    Robert Baltzer

    Robert is Head of Credit Research and co-manager of the Strategic Bond and High Yield strategies. He joined Baillie Gifford in 2001 on the graduate scheme and became an Investment Grade Bond manager in 2004. Robert has managed high yield portfolios since 2010 and crossover portfolios since 2012. He graduated MMath from Durham University in 2001 and is a CFA Charterholder.

    How to Buy

    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.

    You can invest in our funds via a number of fund platforms. Information on the range of funds available through platforms can be obtained from platforms@bailliegifford.com

    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.

    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 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 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.