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 December 2024
| # | Holding | % of portfolio |
|---|---|---|
| 1 | Blackstone Private Credit 4.875% 2026 | 2.1% |
| 2 | Legal & General 5.375% 2025/45 T2 | 1.8% |
| 3 | AT&T 7% 2040 | 1.8% |
| 4 | UK Treasury 4.75% 07/12/2030 | 1.7% |
| 5 | International Workplace Group 6.5% 2030 | 1.6% |
| 6 | Annington Funding 2.924% 2051 | 1.5% |
| 7 | Public Property Invest 4.625% 2030 | 1.5% |
| 8 | Mitchells & Butlers FRN (AB) 2033 | 1.5% |
| 9 | Burberry 1.125% 2025 | 1.5% |
| 10 | Inchcape 6.5% 2028 | 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
The information on this website is intended for institutional investors and accredited investors (as defined in the Securities and Futures Act, Chapter 289 of Singapore, as amended) and consultants in Singapore only. It is not intended for use by any other persons including members of the general public or investors from other jurisdictions.
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 the United Kingdom's Financial Services and Markets Act 2000 or any conduct of business rules which we are bound to comply with. These Terms and any non-contractual obligations arising from or connected with them shall be governed by, and these Terms shall be construed in accordance with, the laws of Singapore.
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.
Baillie Gifford Asia (Singapore) Private Limited is wholly owned by Baillie Gifford Overseas Limited and holds a Capital Markets Services Licence from the Monetary Authority of Singapore to conduct fund management activities for institutional investors and accredited investors in Singapore. Baillie Gifford Asia (Singapore) Private Limited can be contacted at Singapore Land Tower, Level 46, Unit 4616-17, 50 Raffles Place, Singapore 048624.
This website is informative only and the information provided should not be considered as investment or other advice or a recommendation or offer to buy, sell or hold a particular investment. You can read details of our Legal and Important Information here.