Research_strapline

Are you an:

Don't let the labels put you off!
If you're not an investor, but you want to learn, you can select investor

×

Register for FundCalibre!

We just need to know
if you are an:

Don't let the labels put you off!
If you're not an investor, but you want to learn, you can select investor

×

Baillie Gifford High Yield Bond

Elite Rated by FundCalibre

This fund offers investors access to a portfolio of predominantly UK, US and European high yield bonds. As with all other Baillie Gifford funds, the managers focus on stock picking, so the portfolio is likely to be concentrated and turnover low, as they back their ideas with conviction and give them time to come to fruition.

Company Description

Founded in 1908 and employee-owned, Baillie Gifford is based in Edinburgh but has offices in London and New York. Awarded the Elite Provider for Equities Rating in both 2016 and 2017, it specialises globally in equities, fixed income and multi-asset portfolios.

Factsheet_bg_logo_black_ill

Fund Manager

Robert Baltzer has managed the fund since July 2006. He joined Baillie Gifford in 2001, the same year he graduated with MMath from Durham University. Donald Philips joined the company in 2008 as a fixed income analyst after a three-year stint with Aegon in their fixed income team. He became co-manager in June 2010. Donald achieved a Masters in Investment Analysis from Stirling University.

Factsheet_baltzer__rob_rgb

We are looking for resilient businesses that can survive the full business cycle and have the ability to improve their financial health.

Robert Baltzer - Fund Manager

The Investment Process

Stocks that make it into the portfolio will fall into one of four buckets: steady, compounders, accelerated or event-driven. The managers will flex these buckets according to where they find ideas. However, as bonds become expensive, the weightings in the riskier buckets are likely to decrease. The managers are more likely to have conviction in individual bonds than in a particular credit quality band of the market.

Risk

This fund invests in the riskier end of the fixed income spectrum. The managers’ high-conviction approach, which translates into large position sizes, can make the fund more volatile than some of its peers. The managers don’t tend to use derivatives to manage credit or interest rate risk as they feel this approach doesn’t add value over time.

Our Opinion

The managers believe that the most consistent way to deliver outperformance in this segment of the fixed income market is to pick the right stocks using a straightforward investment process. We think this is well justified, as the fund has delivered excellent relative performance for a number of years.

  • Fund
  • Sector

©2014 FundCalibre Limited. All Rights Reserved. The information, data, analyses, and opinions contained herein (1) include the proprietary information of FundCalibre, (2) may not be copied or redistributed without prior permission, (3) do not constitute investment advice offered by FundCalibre, (4) are provided solely for informational purposes and therefore are not an offer to buy or sell a fund, and (5) are not warranted to be correct, complete, or accurate. FundCalibre shall not be responsible for any trading decisions, damages, or other losses resulting from, or related to, this information, data, analyses, or opinions or their use. The Elite Fund rating is subjective in nature and reflects FundCalibre’s current expectations of future events/behaviour as they relate to a particular fund. Because such events/behaviour may turn out to be different than expected, FundCalibre does not ,guarantee that a fund will perform in line with its FundCalibre benchmark. Likewise, the Elite Fund rating should not be seen as any sort of guarantee or assessment of the creditworthiness of a fund or of its underlying securities and should not be used as the sole basis for making any investment decision. FundCalibre disclaims any responsibility for trading decisions, damages or other losses resulting from any use of the Elite Fund rating.