Capital at risk
Strategic Bond
This is a core corporate bond strategy that brings income generation and diversification to balanced portfolios. It offers broad exposure to global corporate bond markets, using our best ideas. We seek to add value through bond selection and active credit risk management.
Our research-intensive process and extensive experience mean we gain deep insight into companies, differentiating our views from other market participants.
A sharp focus on inefficiencies
Our goal is to provide clients with a resilient income and potential capital growth by lending to a diverse range of companies.
Corporate bond markets exhibit 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.
Strategic Bond Q3 update
The Strategic Bond Team reflects on recent performance, portfolio changes and market developments.
A purposeful, conviction-led portfolio
The global corporate bond market, with over 3,700 companies and more than 20,000 bonds, provides a rich canvas of opportunities for active bond selectors.
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 helps us to identify macroeconomic trends and transitory forces. We then construct a diverse core portfolio of about 60-85 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.
Corporate bond markets are structurally inefficient and often fail to reflect fundamental information. This provides opportunities for long-term investors such as us.
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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 | Rothesay Life 8% 2025 | 2.9% |
| 2 | DNB Bank 4% 2026/27 | 2.7% |
| 3 | Bharti Airtel 5.65% 2025 Perp | 2.4% |
| 4 | Banco Santander 1.5% 2026 | 2.3% |
| 5 | Barclays 7.125% 2025 Perp AT1 | 2.3% |
| 6 | Telereal FRN 2031 (C1) | 2.1% |
| 7 | Berkeley Group 2.5% 2031 | 2.0% |
| 8 | Realty Income 5.125% 2034 | 2.0% |
| 9 | Yorkshire Water 6.375% 2034 | 1.8% |
| 10 | Schroders 6.346% 2029/34 T2 | 1.8% |
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.
Invest in this strategy
You can invest in this strategy through the following fund(s).
Explore further
Curious to learn more about our products and what we can offer you? Please get in touch.
Insights
Key articles, videos and podcasts relating to the strategy:
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Insights
Strategic Bond Q3 update
The Strategic Bond Team reflects on recent performance, portfolio changes and market developments.
Strategic Bond Q2 update
The Strategic Bond Team reflects on recent performance, portfolio changes and market developments
Strategic Bond Q1 update
The Strategic Bond Team reflects on recent performance, portfolio changes and market developments.
Strategic Bond Q4 update
The Strategic Bond Team reflects on recent performance, portfolio changes and market developments.
Strategic Bond Q3 update
The Strategic Bond Team reflects on recent performance, portfolio changes and market developments.
Strategic Bond Q3 update
The Strategic Bond Team reflects on recent performance, portfolio changes and market developments.
Strategic Bond Q3 update
The Strategic Bond Team reflects on recent performance, portfolio changes and market developments.Strategic Bond Q2 update
The Strategic Bond Team reflects on recent performance, portfolio changes and market developmentsStrategic Bond Q1 update
The Strategic Bond Team reflects on recent performance, portfolio changes and market developments.Strategic Bond Q4 update
The Strategic Bond Team reflects on recent performance, portfolio changes and market developments.Strategic Bond Q3 update
The Strategic Bond Team reflects on recent performance, portfolio changes and market developments.
Invest in this strategy
You can invest in this strategy through the following fund(s).
Explore further
Curious to learn more about our products and what we can offer you? Please get in touch.
How to invest in this strategy
You can invest in this strategy through the following fund(s).
Explore further
Curious to learn more about our products and what we can offer you? Please get in touch.
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. Read our Legal and regulatory information for further details.