UK furniture manufacturer DFS is one of the favourite holdings of Donald Phillips, co-manager of Baillie Gifford’s high yield bond fund. He says it perfectly illustrates the opportunities he likes in the riskier end of the corporate bond market.

He has a reputation for spotting a gem. His is the number one global fixed income fund over the three years to the end of March, according to an analysis of risk-adjusted performance prepared by analysis company Camradata and published this month.