Overview
The Sterling Aggregate Bond Fund aims to outperform (after deduction of costs) an index comprising 50% of the FTSE Actuaries UK Conventional Gilts All Stocks Index and 50% of the ICE Bank of America Sterling Non-Gilt Index by 0.65% per annum over rolling three-year periods. There is no guarantee that this objective will be achieved over any time period and actual investment returns may differ from this objective, particularly over shorter time periods.
The manager believes this is an appropriate benchmark given the investment policy of the Fund and the approach taken by the manager when investing. In addition, the manager believes an appropriate performance comparison for this Fund is the Investment Association Sterling Strategic Bond Sector.
A predominately sterling portfolio of government and corporate bonds created holistically to represent our best and strongest fixed income investment views. Our sterling aggregate bond strategy is driven by active bond selection based on country and company fundamentals. Our intention is to look across markets, and to exploit anomalies in fundamental values created by investors operating differently from us.
Performance & Portfolio
Periodic Performance
All figures to 30/11/2024 6 Months
1 Year
3 Years
5 Years
Class B-Acc 3.3% 5.7% -5.8% -2.4% Index* 3.0% 5.5% -6.1% -2.7% Target Benchmark** 3.3% 6.2% -5.4% -2.1% Sector Average*** 4.7% 8.9% 0.3% 1.7% Figures for 3 and 5 years are shown as the annualised rate of return. This is the average yearly return over the specified period.
Annual Discrete Performance to 30 September each year
Annual percentage return (Updated Quarterly) 30/09/2019
30/09/202030/09/2020
30/09/202130/09/2021
30/09/202230/09/2022
30/09/202330/09/2023
30/09/2024Class B-Acc 4.7% -2.7% -23.8% 3.3% 9.8% Index* 3.8% -3.6% -22.8% 2.4% 8.8% Target Benchmark** 4.5% -3.0% -22.3% 3.1% 9.5% Sector Average*** 3.6% 4.6% -14.5% 4.9% 11.8% Please bear in mind that past performance is not a guide to future performance.
The value of your investment may go down as well as up, and you may not get back the amount you invested.Source: FE, Revolution, FTSE, ICE Data Indices. Total return net of charges, in sterling.
Share class returns calculated using 10am prices, while the Index is calculated close-to-close.
†04 September 2017.
*50% of the FTSE Actuaries UK Conventional Gilts All Stock Index and of the 50% BofA ML Sterling Non-Gilts Index.
**50% of the FTSE Actuaries UK Conventional Gilts All Stock Index and of the 50% BofA ML Sterling Non-Gilts Index +0.65%.
***IA £ Strategic Bond Sector.Top Ten Physical Bond Holdings* - 30/11/2024
Fund % 1 UK Treasury 4.75% 07/12/2038 4.2% 2 UK Treasury 3.5% 22/01/2045 4.0% 3 UK Treasury 1.625% 22/10/2028 3.7% 4 Bund 2.4% 19/10/2028 2.8% 5 UK Treasury 3.25% 22/01/2044 2.7% 6 UK Treasury 4.25% 7/12/2055 2.2% 7 UK Treasury 0.125% IL 22/03/2051 2.2% 8 Colombia 7% 26/03/2031 2.0% 9 EBRD 20% 19/03/2025 1.9% 10 EBRD 0% 19/11/2034 1.9% Total 27.6% Insights
View all Insights.Meet the Managers
Sally Greig
Sally is head of the Emerging Market Debt Team and chief of investment staff for the Multi Asset and Income area. She joined Baillie Gifford in 2005. Before joining the firm, she worked at the Bank of England from 2001 as an economist in the Foreign Exchange Division and provided regular analysis to the Monetary Policy Committee. Sally graduated MA in Economics and Statistics from the University of Edinburgh in 1998 and MSc in Finance and Econometrics from the University of York in 2003.
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.
How to Buy
Further information on the funds can be found in the relevant Key Investor Information and Prospectus Documents, which are available in English and will be sent to you free of charge on request.
You can invest in our funds via a number of fund platforms. Information on the range of funds available through platforms can be obtained from platforms@bailliegifford.com
OEIC Terms of Business
To buy and sell our funds, you must complete and return a copy of the document below, if you don't already have an agreement with us. In order for us to accept your business for our range of OEICs, please complete and return the Terms of Business Acceptance Form.
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
Key investor information documents (KIIDs)
Quarterly investor reports
Sustainability-related disclosures and climate reports
Value assessment
Risks
General Investment Risk
Investment markets can go down as well as up and market conditions can change rapidly. The value of an investment in the Fund, and any income from it, can fall as well as rise and investors may not get back the amount invested.
Custody
Custody of assets involves a risk of loss if a custodian becomes insolvent or breaches duties of care.
Bonds & Inflation
Bonds issued by companies and governments may be adversely affected by changes in interest rates, expectations of inflation and a decline in the creditworthiness of the bond issuer. The issuers of bonds in which the Fund invests may not be able to pay the bond income as promised or could fail to repay the capital amount.
Concentration
The Fund’s concentrated portfolio relative to similar funds may result in large movements in the share price in the short term.
Foreign Currency
The Fund has exposure to foreign currencies and changes in the rates of exchange will cause the value of any investment, and income from it, to fall as well as rise and you may not get back the amount invested.
Derivatives
Derivatives may be used to obtain, increase or reduce exposure to assets and may result in the Fund being leveraged. This may result in greater movements (down or up) in the price of shares in the Fund. It is not our intention that the use of derivatives will significantly alter the overall risk profile of the Fund.
Volatility
The Fund’s share price can be volatile due to movements in the prices of the underlying holdings and the basis on which the Fund is priced.
Dilution
A dilution adjustment may apply when you buy or sell shares in the Fund. This is applied to the share price and may reduce the return on your investment.
Market Conditions
Market values for illiquid securities which are difficult to trade may not be readily available, and there can be no assurance that any value assigned to them will reflect the price the Fund might receive upon their sale.
Fees to Capital
From 1 October 2019 the Fund’s expenses will be taken from the Fund’s capital. This will reduce the capital value of the Fund. The figure for the current financial period has not yet been determined.
Government and Public Securities
More than 35% of scheme property may be invested in securities issued or guaranteed by Governments and / or other organisations worldwide. For further details please see the Prospectus.
Tax Rates
Tax rates and the tax treatment of OEICs can change at any time.
