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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 31/03/2025 6 Months
1 Year
3 Years
5 Years
Class B-Inc 2.6% 6.7% 1.9% 3.1% Index* 1.2% 4.4% 1.2% 2.1% Sector Average*** 1.2% 5.0% 2.0% 3.1% Sector Ranking 17/88 22/87 47/80 37/69
Annual discrete performance 31 March each year
Annual percentage return (Updated Quarterly) 31/03/2020
31/03/202131/03/2021
31/03/202231/03/2022
31/03/202331/03/2023
31/03/202431/03/2024
31/03/2025Class B-Inc 16.3% -5.2% -9.4% 9.4% 6.7% Index* 11.6% -4.3% -8.1% 8.1% 4.5% Sector Average*** 12.4% -2.2% -5.7% 7.2% 5.0% Please bear in mind that past performance is not a guide to future returns. 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.
Figures for 3 and 5 years are shown as the annualised rate of return. This is the average yearly return over the specified period.
*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* - 31/03/2025
Fund % 1 Barclays 3.8% 2 HM Treasury 3.5% 3 Telereal Securitisation PLC 3.0% 4 Rothesay Life Plc 2.6% 5 Motability Operations 2.5% 6 DNB Bank ASA 2.4% 7 Berkeley Group 2.3% 8 KfW 2.2% 9 Investec Plc 2.1% 10 Realty Income Corporation 2.1% Total 26.5% Sector analysis of total assets 31/03/2025Fund %
- 1 Financial Services 14.92
- 2 Insurance 11.22
- 3 Banking 9.37
- 4 Real Estate 8.58
- 5 Retail 7.11
- 6 Asset Backed 6.99
- 7 Services 4.43
- 8 Commercial Mortgage Backed 4.00
- 9 Sovereign 3.53
- 10 Agency 3.29
- 11 Utility 2.95
- 12 Transportation 2.83
- 13 Health Care 2.73
- 14 Media 2.31
- 15 Government Guaranteed 2.19
- 16 Telecommunications 2.06
- 17 Capital Goods 2.05
- 18 Others 6.60
- 19 Cash & Derivatives 2.82
- 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.
A negative cash position may sometimes occur due to obligations awaiting settlement
The information contained on this page is intended as a guide only and should not be relied upon when making investment decisions. Source Baillie Gifford & Co.Please note that totals may not sum due to rounding.
Insights
View all Insights.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 in 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 Strategy. He joined Baillie Gifford in 2001 on the graduate scheme, becoming an investment grade bond manager in 2004 before going on to manage high yield portfolios in 2010. He is responsible for running the corporate credit portion of the Managed strategy. Robert has managed strategic bond strategies since 2012. He graduated MMath from Durham University in 2001 and is a CFA Charterholder.
Theo Golden
Theo is an investment manager in the Credit Team, co-managing our Strategic Bond Strategy, and chair of the Corporate Credit Macro Group. Prior to joining Baillie Gifford in 2021, Theo was a financial journalist from 2019, with roles at news outlets including Bloomberg, Business Insider, and Mergermarket. Theo graduated BA in Music from Durham University in 2020 and is a CFA Charterholder.
Documents
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.
Application forms
Enhanced disclosure document
Factsheets
Interim reports
Key investor information documents (KIIDs)
Philosophy and process documents
Quarterly investor reports
Sustainability-related disclosures and climate reports
Important Information
Baillie Gifford Overseas Limited is wholly owned by Baillie Gifford & Co. Baillie Gifford Overseas Limited provides investment management and advisory services to non-UK clients. Both are authorised and regulated by the Financial Conduct Authority.
The information provided does not constitute an offer of or solicitation for purchase or sale of securities or provision of any investment services. Any general enquiries regarding Baillie Gifford should be directed to the relevant individual as noted in the Contact Us section.
The information contained in this website has been compiled with considerable care to ensure its accuracy at the date of publication. However, no representation or warranty, express or implied, is made to its accuracy or completeness. Nothing in this information or elsewhere in this website shall exclude, limit or restrict our duties and liabilities to you under the United Kingdom's Financial Services and Markets Act 2000 or any conduct of business rules which we are bound to comply with.
This website is informative only and the information provided should not be considered as investment advice or a recommendation to buy, sell or hold a particular investment. You can read details of our Legal and Important Information here.
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