Capital at risk
High Yield Bond
High-yield corporate bonds offer compelling risk-adjusted returns, providing long-term return potential similar to equities but with typically lower volatility.
Our research-intensive process and extensive experience mean we gain deep insight into companies, differentiating our views from other market participants.
Focused on resilience
Our goal is to provide clients with a resilient income and potential capital growth by lending to a diverse range of companies. We seek to exploit market inefficiencies through in-depth research, selecting companies offering attractive compensation relative to their strengths.
Our focus on resilience gives us confidence to take meaningful positions in our best ideas and reduces downside risk, as measured by company defaults which erode returns. Ongoing monitoring is a crucial part of our investment process.
A purposeful, conviction-led portfolio
Through deep research, we seek to identify companies that can adapt as societies and technologies change. We blend this with our top-down view of the economic environment. Our collaborative approach helps us to identify macroeconomic trends and transitory forces. We then construct a diverse core portfolio of about 90-120 companies.
A patient and flexible approach
While we typically lend to companies for many years, we remain live to evolving market conditions, actively managing exposure by region, sector and credit rating to make the best of prevailing valuation opportunities.
We spend the vast majority of our time on deep, forward-looking company research, with our active positions reflecting our conviction in underappreciated fundamentals.
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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 October 2024
| # | Holding | % of portfolio |
|---|---|---|
| 1 | Barclays 7.125% 2025 Perp AT1 | 1.8% |
| 2 | Aggreko 6.125% 2026 (144A) | 1.7% |
| 3 | IMA E+3.75% FRN 2029 | 1.7% |
| 4 | UK T Bill 13/01/2025 | 1.6% |
| 5 | Teva Pharma 7.375% 2029 | 1.5% |
| 6 | Brightline East 11% 2030 (144A) | 1.5% |
| 7 | Neopharmed 7.125% 2030 | 1.5% |
| 8 | Burford Capital 9.25% 2031 (144A) | 1.4% |
| 9 | Cheplapharm 5.5% 2028 (144A) | 1.4% |
| 10 | Kier Group 9% 2029 | 1.4% |
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.
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Important information
Baillie Gifford Overseas Limited (ARBN 118 567 178) is registered as a foreign company under the Corporations Act 2001 (Cth) and holds Foreign Australian Financial Services Licence No 528911. The information in this area is provided to you on the basis that you are a “wholesale client” within the meaning of section 761G of the Corporations Act 2001 (Cth) (“Corporations Act”). Please advise Baillie Gifford Overseas Limited immediately if you are not a wholesale client. In no circumstances should the information in this area be made available to “retail clients” as defined by the Corporations Act.
The information in this area contains general information only. It does not take into account any person’s objectives, financial situation or needs.