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

  • 100.62p
    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.

  • 177.46p
    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).

  • 0.62%
    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.

  • 4.40%
    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 27 July 2021, fund data last updated 12 November 2019

The fund aims to produce an attractive total return profile and monthly income yield via a core portfolio of predominantly sterling investment grade corporate bonds that meet Liontrust’s environmental and social criteria.The fund can also invest in government bonds, non-sterling investment grade corporate bonds, sub-investment grade bonds, and the management team will actively manage interest rate and other portfolio risks via derivatives.

Fund summary

Sector £ Corporate Bond
Structure OEIC
Launched
Size £533m
Yield 4.40%
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 0.62%

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; constructing resilient portfolios and controlling risk. The process is a combination of top down (interest rate and credit beta) and bottom up (sector, credit quality, subordination). Top down - quarterly strategy meetings determine long-term positioning. Weekly meetings are designed to implement and review positioning. Daily meetings to review market data & news. The key decision-marker in this regard is head of the desk, Stuart Steven, and this work features strongly in the asset allocation, interest rate positioning and credit rating exposure they seek when “identifying superior bonds”. The bottom up process starts at idea generation (value screen, new issues) from a universe of 500 issuers. The fund managers then combine fundamental credit analysis (company’s ability to pay debt/ default risk, management team track record etc) with in-depth analysis of issuer specific factors, including ESG and macro-economic analysis. The process incorporates Liontrust's established sustainability matrix, which scores companies based on the quality of its management (1-5, 5 being worst) and the sustainability of its products/services (A-E, E being worst). In this fund issuers must score D3 or higher to be considered for portfolio inclusion but it has a weighted average score of B2. Individual bonds are then analysed alongside asymmetric risks, before the team seek to value the bond on both an absolute and relative basis. Portfolio construction reflects stock selection, the managers’ long-term views of markets, and hedging strategies will be used, as appropriate, to reduce downside risk (interest rate positioning, cross-market & curve positions, volatility). From the available buy recommendations identified in stage 1, the team select the best combination of 50 to 100 bonds for inclusion in a focused portfolio that is constructed to safeguard against sustained downside risk.

We believe that this fund offers an attractive income and risk profile. This is a high conviction approach to credit investing, which provides the experienced management team much more flexibility than most of their peer group to actively manage the fund. Portfolio construction incorporates both bottom-up issuer selection and top-down macro positioning, with the bottom-up criteria including Liontrust's sustainability matrix, which scores companies based on the quality of their management and the sustainability of their products/services.

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 16.00%
Utilities 15.00%
Real Estate 6.00%
Financial Services 5.00%
Government Bonds 5.00%
Mortgage & Secured Bonds 3.00%
Money Market 3.00%
Property 2.00%

Portfolio

62 issuers currently. They quote an average credit rating of A, but this is BBB when you strip out the derivatives.

Key Investor Information - Income

Download

Key Investor Information - Accumulation

Download