Baillie Gifford Emerging Markets Bond B

Emerging markets bond fund targeting yield over 7%

  • 86.82p
    Price (Inc)

    These are the shares in the fund that pay out an income to clients. The income is made up of the total dividends – the money a company can pay out to its investors – from the companies in the fund.

  • 136.60p
    Price (Acc)

    These are the shares in the fund that don’t pay out an income to clients. Any dividends – the money a company can pay out to its investors – are reinvested into companies in the fund. Despite no income, the shares should be worth more over time. Good incentive, eh?

  • 0.50% 0.00%

    Initial charge

    Some funds charge you when you first invest, which is aptly known as the initial charge. They’re usually between 3-5% but at Bestinvest, we usually don’t charge you a penny!

  • 0.60%
    Annual management charge

    This is how much the fund management company charges to run the fund. It’s like paying a babysitter, dog sitter or house sitter (that makes well-informed, heavily researched changes to improve your baby/dog/house when needed).

  • 0.70%
    Ongoing charges

    This stands for Ongoing Charges Figure. It’s the cost of running a fund and includes admin fees, manager fees, administration costs, etc.

  • 5.70%
    Yield

    How much the fund is currently paying out in income to investors. It’s NOT to be confused with the overall growth of a fund – a very different thing indeed. It’s also NOT a guarantee of future pay-outs, just a snapshot. This is more what it’s not than what it is…

Prices as at 15 January 2021

Fund summary

Sector Global Emerging Markets Bond - Local Currency
Structure OEIC
Launched July, 2008
Size £268m
Yield 5.70%
Charging basis Income
Dividends paid 28 Feb, 31 May, 31 Aug, 30 Nov

Charges

Standard initial charge 0.50%
Initial charge via Bestinvest 0.00%
Additional bid/offer spread 0.00%
Annual management charge 0.60%
Ongoing charges figure 0.70%

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Investment process

The fund aims to achieve total return (before charges and expenses) in excess of J.P. Morgan GBI-EM Global Diversified Index un-hedged in sterling. It invests primarily in bonds issued by sovereign, supranational, public sector or corporate issuers. Normally at least 75% of the fund’s assets will be held in bonds ranging from AAA to CCC (S&P) issued by emerging market borrowers or denominated in emerging market currencies.

Manager research

Average monthly relative returns

  • 16/17 0.55%
  • 17/18 0.58%
  • 18/19 -0.82%
  • 19/20 0.69%
  • 20/21 -0.32%

Bestinvest MRI

  • 3 years -0.15%
  • 5 years 0.13%
  • Career -0.19%
  • 3 years 44.80%
  • 5 years 65.90%
  • Career 36.30%

Performance figures are based on the average of monthly percentage returns relative to the benchmark index.

Steven Hay

Prior to joining Baillie Gifford in 2004, Hay was a fixed income investment manager with Scottish Widows. His considerable experience includes seven years undertaking analysis and research for the Bank of England’s Monetary Policy Committee, and latterly involvement in managing the UK’s foreign exchange reserves. Hay graduated with a BAcc in Economics and Accountancy from the University of Glasgow in 1992 and with an MSc in Economics from Warwick University in 1993.

Track record

Steven Hay has 9.5 years experience of managing mutual funds in this sector. Over this period the average monthly return relative to the benchmark index has been -0.19%. During the worst period of relative performance (from April 2013 - March 2020) there was a decline of 43% relative to the index. The worst absolute loss has been 34%.

Periods of worst performance

Absolute -34.00% (April 2013 - September 2015)
Relative -43.00% (April 2013 - March 2020)

About the MRI

Our unique indicator: the Bestinvest Manager Record Index (MRI) measures the likelihood that the fund manager is adding value through their decisions. It is based on their performance record over the course of their career, adjusted for the amount of risk taken. MRI is an important contributor to our fund rating system but it is also vital to take account of qualitative factors. It is also very important to select funds to form a cohesive portfolio with an appropriate overall risk level.

Allocation

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Top 10 holdings

Data accurate as at 31 July 2020

5.8% Thailand (Ministry Of Finance) 1.25% Bds 12/03/28 Thb100000
5% Indonesia 8.375% 15/03/2024
3% Brazil(Federative Republic Of) 10% Bds 01/01/23 Brl1000
3% Brazil(Federative Republic Of) 0% Tb 01/07/23 Brl1000
2.7% Indonesia(Republic Of) 8.375% Bds 15/03/34 Idr1000
2.7% Poland 2.75% Il 25/08/2023
2.6% South Africa(Republic Of) 10.5% Bds 21/12/2026 Zar1(186)
2.3% Thailand 3.775% 25/06/2032
2.2% Peru(Republic Of) 6.9% Bds 12/08/37 Pen1000
2.2% Colombia(Republic Of) 6.25% Bds 26/11/25 Cop100000
Source: Trustnet

Portfolio

40-50 holdings

Key Investor Information - Income

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Key Investor Information - Accumulation

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