fund

Rated

This is one of our rated funds. They’re the ones our experts believe will do well for investors over the longer term. Top of the class!

Liontrust Monthly Income Bond B Gross

  • 97.91p
    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.

  • 175.26p
    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?

  • 0.00%

    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!

  • 0.50%
    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).

  • 0.59%
    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.

  • 4.50%
    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 30 November 2021, fund data last updated 16 November 2021

The fund aims to produce monthly income payments together with capital growth by investing at least 80% of the portfolio in investment grade corporate bonds. The management team, comprising Stuart Steven, Kenny Watson, Aitken Ross, and Jack Willis, aims to outperform the Markit iBOXX GBP Corporate 5-15 year Index over rolling five-year periods. The corporate bonds need to meet Liontrust’s environmental and social criteria, including no allocation to tobacco or oil and gas extraction businesses. In addition, they need to be attractively valued and provide downside protection to avoid losses. The team, which combines a bottom-up investment process with top-down economic analysis, can also invest in government bonds, non-sterling investment grade corporate bonds and sub-investment grade bonds. Its holdings include HSBC, AT&T and Vodafone Group.

Fund summary

Sector £ Corporate Bond
Structure OEIC
Launched
Size £553m
Yield 4.50%
Charging basis Income
Dividends paid Last day of each month

Charges

Standard initial charge 0.00%
Initial charge via Bestinvest 0.00%
Annual management charge 0.50%
Ongoing charges figure 0.59%

Allocation

Proportion (%)

  • {{chartDataItem.text}}
    {{chartDataItem.value}}

Allocation

Proportion (%)

  • {{chartDataItem.text}}
    {{chartDataItem.value}}

Allocation

Proportion (%)

  • {{chartDataItem.text}}
    {{chartDataItem.value}}

Investment process

The investment process has two key stages – identifying superior bonds and constructing resilient portfolios and controlling risk. It includes top-down economic analysis looking at relevant areas such as interest rates policy. This involves quarterly strategy meetings to determine the long-term positioning of the fund, weekly meetings to implement and review portfolio positions and daily meetings reviewing market data and news. This is a crucial stage in determining asset allocation, interest rate positioning and credit rating exposure. The bottom-up process starts with an investment universe of 500 issuers. The fund managers, assisted by a team of credit analysts, look at a company’s ability to pay debt, its default risk, and the track record of its management team. There is also in-depth analysis of issuer-specific factors, including Environmental Social and Governance exposure. This incorporates a sustainability matrix, which scores companies based on the quality of its management and the sustainability of its products/services. All issuers in the fund are independently screened both before purchase and every quarter. The managers believe that their focus on sustainability will help deliver superior risk-adjusted returns and help them identify issuers which will be supported by long-term growth trends and regulation. After a valuation stage the portfolio is constructed, typically holding between 50 and 100 bonds.

The fund is managed by a highly experienced team, with Stuart Steven having been at the reins since its launch in June 2010. They have a clear and consistent investment approach with a strong focus on Environment, Social and Governance considerations. The fund offers an attractive income return with volatility historically being below that of its index. It achieves this by using derivatives to manage interest rate and other portfolio risks. The managers’ high conviction and low turnover approach to credit investing is also a strength, in that it gives them a lot of flexibility when creating the portfolio. This is a suitable option for investors requiring regular income.

Manager research

Average monthly relative returns

  • 16/17 0.00%
  • 17/18 0.00%
  • 18/19 0.00%
  • 19/20 0.00%
  • 20/21 0.00%

Bestinvest MRI

  • 3 years 0.00%
  • 5 years 0.00%
  • Career 0.00%
  • 3 years 0.00%
  • 5 years 0.00%
  • Career 0.00%

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

Track record

Periods of worst performance

Absolute 0.00% ()
Relative 0.00% ()

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

Proportion (%)

  • {{chartDataItem.text}}
    {{chartDataItem.value}}

Allocation

Proportion (%)

  • {{chartDataItem.text}}
    {{chartDataItem.value}}

Allocation

Proportion (%)

  • {{chartDataItem.text}}
    {{chartDataItem.value}}

Sector breakdown

Banks 24.00%
Insurance 18.00%
Telecommunications 17.00%
Utilities 14.00%
Government Bonds 6.00%
Real Estate 4.00%
Property 3.00%
Financial Services 3.00%
Mortgage & Secured Bonds 3.00%
Travel 3.00%

Key Investor Information - Income

Download

Key Investor Information - Accumulation

Download