In this video we delve into the reasons why strategic bonds have emerged as an attractive option for investors seeking to diversify their portfolios, effectively manage risk, and achieve a reliable stream of income. Our guest, Torcail Stewart, co-manager of the Baillie Gifford Strategic Bond fund, shares valuable insights on how this fund capitalises on its stock-picking expertise to unlock the potential of strategic bond investments, while maintaining a prudent approach to credit quality allocation.
Throughout the discussion, Torcail Stewart sheds light on the three key characteristics of the companies held in this concentrated portfolio, discussing their resilience and long-term prospects. Despite recent headlines, Torcail explains why the fund remains highly invested in the banking sector, highlighting the underlying quality and rationale behind this decision.
Finally, to showcase the diversity within the fund, Torcail presents two notable holdings: Yara International, a global fertiliser company, and InPost, the Polish delivery service, demonstrating the fund's ability to identify and capitalise on compelling investment opportunities.