Overview
Fund objective
The Investment Grade Bond Fund aims to outperform (after deduction of costs) the ICE BofA Sterling Non-Gilt Index, over rolling three-year 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 Corporate Bond Sector.
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.
Investment proposition
Share price and charges
Share class
B, IncPrice
84.02p% change
-0.39%Ex-dividend (XD)
XOngoing charges*
0.27%Initial charge
0%Minimum investment
£100,000Minimum top up
£1,000Fund facts
Fund launch date
30 November 2001
Fund size
£1,116.89m
The Investment Association sector
£ Corporate Bond
Comparative Index
ICE BofA sterling Non-Gilt Index
Annual turnover
42%
Guideline number of issuers
50-90
Current number of issuers
90
Style
Income
XD Date
Last day of December, March, June and September each year
Distribution
Last day of February, May, August and November each year
Pricing
Valuation point 10am daily, swinging single price
Fund settlement cycle
Trade date plus three business days (T+3)
Portfolio characteristics
As at 28 February 2026
| Fund | |
|---|---|
| Duration | 5.9 |
| Average credit rating | BBB |
| Tracking error | 1.2 |
| Tracking error range | 0.5-2.5 |
| Redemption yield | 4.9 |
| Running yield | 4.9 |
Source: Baillie Gifford & Co.
A full glossary of definitions can be viewed at the bottom of this page.
Meet the managers
Risk Warnings
Risk Introduction
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. The specific risks associated with the Fund include:
Market Conditions/Liquidity
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 such securities will accurately reflect the price the Fund might receive upon their sale. In certain circumstances it can be difficult to buy or sell the Fund's holdings and even small purchases or sales can cause their prices to move significantly, affecting the value of the Fund and the price of shares in the Fund.
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.
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.
Fees to Capital
The manager can charge some, or all, expenses to the Fund’s capital, reducing its value. This amount can vary from year to year.
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.
Further Information
Further details of the risks associated with investing in the Fund can be found in the Key Investor Information Document or the Prospectus, copies of which are available at bailliegifford.com.
Index disclaimer
Definitions
Duration
A measure of how sensitive the price of a bond (or other debt instrument) is to a change in interest rates. In general, the higher the duration, the more a bond's price will drop in response to a rise in interest rates.
Credit ratings
Measure the creditworthiness of a bond issuer, such as a company or government. It tells you how likely the issuer is to pay back the money borrowed when they issued the bond. A higher rating means the issuer is considered more reliable and less likely to default on their debt, while a lower rating indicates a higher risk of not getting the invested money back. Baillie Gifford uses a blend of credit ratings from Moody’s and S&P. Where there is no official rating for a bond issuer, Baillie Gifford will rate these internally. The ratings scale from highest to lowest (AAA, AA, A, BBB, BB, B, CCC, CC and C).
Tracking error
Measures the difference in the performance of the fund and the performance of the index it is benchmarked against.
Redemption yield
Estimates the annual total return of the portfolio gross of fees. It assumes all bonds are held until maturity (the date when the bond issuer is due to pay back the agreed value of the bond). The yield takes into account expected interest payments and the difference between the current market price and maturity value of the bonds held in the fund.
Running yield
Estimates expected cash income from the coupons of the current bond holdings in the portfolio. It is calculated by dividing the expected coupon payments from the portfolio’s bonds by the current market price of those bonds. This yield provides investors with an understanding of the income generated by the fund relative to its current price, it does not account for potential capital gains or losses.
Fund performance
Periodic performance
As at: 28 February 2026
1 Month | 3 Months | 6 Months | 1 Year | 3 Years | 5 Years | |
|---|---|---|---|---|---|---|
Class B-Inc | 1.6% | 2.6% | 5.5% | 7.3% | 6.5% | 0.4% |
Index* | 1.3% | 2.0% | 5.0% | 6.8% | 5.8% | -0.1% |
Sector Average** | 1.2% | 1.9% | 4.8% | 7.0% | 6.3% | 0.8% |
Sector Ranking | 9/94 | 8/94 | 19/93 | 25/93 | 29/91 | 51/87 |
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
As at: 31 December 2025
31/12/2020 – 31/12/2021 | 31/12/2021 – 31/12/2022 | 31/12/2022 – 31/12/2023 | 31/12/2023 – 31/12/2024 | 31/12/2024 – 31/12/2025 | |
|---|---|---|---|---|---|
Class B-Inc | -2.5% | -18.5% | 8.2% | 3.7% | 7.4% |
Index* | -3.0% | -17.8% | 8.6% | 1.8% | 6.8% |
Sector Average** | -1.9% | -16.1% | 9.4% | 2.6% | 7.1% |
Fund portfolio holdings
The list of top 10 holdings that this fund invests in.
As at: 28 February 2026
| # | Holding | % of total assets |
|---|---|---|
| 1 | Telereal Securitisation PLC | 3.3% |
| 2 | Banca Intesa BCI | 2.6% |
| 3 | Nationwide Building Society | 2.5% |
| 4 | Banco Santander | 2.4% |
| 5 | HM Treasury | 2.3% |
| 6 | AT&T | 2.3% |
| 7 | Tesco | 2.3% |
| 8 | National Grid | 2.1% |
| 9 | UK Treasury | 2.1% |
| 10 | CPI Property Group | 2.1% |
Quarterly transactions
Transactions for the three-month period ending 31 March 2026
New purchases
- Alphabet 2.7% 2126
- Alphabet 4.8% 2032
- Bank Of Ireland 6.375% 2030 Perp AT1
- Central American Bank 4.35 02/02/2029
- CPI Property 7.4% 2033
- Heathrow 5.6% 2034
- Intesa Sanpaolo 7% 2032 Perp AT1
- Investec 5.625% 2031/36 T2
- KBC Group 6% 2030 Perp AT1
- Piraeus Bank SA 6.75% 2030 Perp AT1
- Rabobank 6.5% Perp
- Santander 7% 2029 Perp AT1
- Telereal 5.634% 2031 TAP
- UK Treasury 0.875% 31/01/2046
- Verizon Communications 5.875% 2056
Complete sales
- Canada Pension Plan 1.25% 2027
- Center Parcs 5.876% 2027
- DNB Bank 4% 2026/27
- KBC 1.25% 2026/27
- Pearson Funding 5.375% 2034
- UK Treasury 4.375% 31/07/2054
- UK Treasury 4.75% 07/12/2030
- Worldline SA 5.5% 2030
Insights
Key articles, videos and podcasts relating to the fund:
Filters
Insights
Corporate bonds: hidden potential
Why you should be excited about the Investment Grade Bond Fund.
Transformational events and corporate bonds
Annington's MoD deal illustrates how sudden change can enhance bond returns.
Investing in UK water
The companies transforming the UK’s water infrastructure.
Legally bond: finding underestimated resilience
By keeping an open mind, we hope to find opportunities other credit investors might overlook.
Re-awakening utilities
Utility companies which can adapt to climate change and the shift to renewables bring the best chance of returns.
Corporate bonds: hidden potential
Why you should be excited about the Investment Grade Bond Fund.Transformational events and corporate bonds
Annington's MoD deal illustrates how sudden change can enhance bond returns.Investing in UK water
The companies transforming the UK’s water infrastructure.Legally bond: finding underestimated resilience
By keeping an open mind, we hope to find opportunities other credit investors might overlook.Re-awakening utilities
Utility companies which can adapt to climate change and the shift to renewables bring the best chance of returns.
How to invest
You can invest in our funds via a number of fund platforms.
Please note that we do not have the facility for you to invest directly with us in our Investment Trusts and we do not offer ISAs, SIPPS or Share Plans.
Please also note that we do not have an online service for individual investors.
Further information on our funds can be found in the relevant Key Information and Prospectus Documents, which are available in English and will be sent to you free of charge on request.
Baillie Gifford does not sponsor, maintain or have any control over the content of any other websites. Therefore, we are not responsible for the adequacy or accuracy of any of the information you may view, nor do we undertake to ensure successful transmission to any linked website.
Investment platforms
Getting financial advice
At Baillie Gifford we don’t provide financial advice, but we do try our best to provide you with all the information we think you might need to make investment decisions. Of course, we realise there are occasions when you may want the advice of an expert.
Using professional financial advice
An authorised intermediary can give you advice and help on how best to manage your financial affairs based on your circumstances and investment aspirations. They can also help keep track of all your different investment interests, saving you a lot of time and bookkeeping.
Finding a financial adviser near you
If you want to use an authorised intermediary, Unbiased is a website that allows you to search for authorised intermediaries in your area. You can visit their site on www.unbiased.co.uk
Documents
You can access any literature about the Fund here.
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.