Capital at risk
Investment Grade Bond
Investment-grade corporate bonds offer potentially compelling risk-adjusted returns, providing higher income than government bonds with little increase in the risk of default.
Our research-intensive process and extensive experience give us deep insight into companies, differentiating us from other market participants.
A sharp focus on inefficiencies
We aim to provide attractive returns with low risk by maximising the opportunities offered by diverse global businesses.
Corporate bond markets show persistent structural inefficiencies. Our approach is designed to exploit these. We find companies offering attractive compensation relative to their strengths, creating a portfolio that we believe will outperform the market in the long term.
A purposeful, conviction-led portfolio
Through deep research we seek to identify resilient companies that can adapt as societies and technologies change. We blend this with our top-down view of the economic environment, our collaborative approach helping identify macroeconomic trends and transitory forces. We then construct a diverse core portfolio of about 50-90 companies.
A patient and flexible approach
While we typically lend to companies for many years, we remain live to short-term inefficiencies in markets – actively seeking to generate returns by selecting specific bond issues which are available with differing maturities, capital protections and currency of issue.
My priority is to protect clients’ capital. To maximise long-term returns, prudent risk taking is key: I ensure the risks are intentional, well-diversified and sized appropriately.
Meet the managers
Paul Dilworth
Paul is an investment manager in the Credit Team, co-manging the Investment Grade and Sterling Aggregate strategies. He joined Baillie Gifford in 2019. Before joining the firm, Paul worked for almost 13 years at Kames Capital where he was responsible for managing a broad range of fixed income mandates, including Global Financial Credit, Global Absolute Return and Investment Grade Credit. Paul graduated BSc (Hons) in Mathematics from Heriot-Watt University in 2006 and is a CFA Charterholder.
Nektarios Chatzilefteris Michalas
Nektarios is an investment manager in the Credit Team, co-managing the Investment Grade Bond Strategy. He joined Baillie Gifford in 2020. Prior to joining the firm, he served for 8 years as an artillery officer in the army followed by 4 years in a variety of banking and insurance roles. He graduated BSc in Military Operations Management and Battle Science from the Hellenic Military Academy in 2008 and MBA from the University of Macedonia in 2017. Nektarios is a CFA Charterholder.
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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 | Blackstone Private Credit 4.875% 2026 | 2.3% |
| 2 | AT&T 7% 2040 | 1.9% |
| 3 | International Workplace Group 6.5% 2030 | 1.7% |
| 4 | Mitchells & Butlers FRN (AB) 2033 | 1.6% |
| 5 | Nationwide 5.875% 2024 Perp AT1 | 1.6% |
| 6 | Burberry 1.125% 2025 | 1.6% |
| 7 | Inchcape 6.5% 2028 | 1.6% |
| 8 | TAG Immobilien 4.25% 2030 | 1.3% |
| 9 | IBRD 0.25% 2026 | 1.3% |
| 10 | Yorkshire Building Society 6.375% 2027/28 | 1.3% |
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.