7th December 2016 – Baillie Gifford Corporate Bond has replaced the Man GLG Strategic Corporate Bond fund in the Chelsea Cautious Growth EasyISA and on the Chelsea Core Selection.
Commenting on the change, James Yardley, senior research analyst at Chelsea, said: “Where previously the fund held bonds with just a short time to maturity, it now holds longer-dated bonds which are more sensitive to interest rate risks and the move, at the wrong time, has hurt performance. This means it is no longer fulfilling the role we gave it within the Cautious Growth EasyISA portfolio and we have decided to remove it.
“We chose the Baillie Gifford Corporate Bond fund as a replacement for a number of reasons. Firstly, Baillie Gifford is one of the premier bond houses in the industry and this fund is one of their 'best ideas' strategies and therefore offers the best exposure to their stock selection abilities.
“In addition, the fund is Elite Rated by FundCalibre and, while it is concentrated, it has a very good track record and has performed well even in a period of global uncertainty.
“Trying to second guess central bankers and forecast interest rates has been the undoing of many fixed income managers in recent times. The managers of this fund don't even attempt to do this and, unlike other funds in the strategic bond sector, instead aim to add value almost exclusively through their stock-picking prowess.”