fund

Liontrust Monthly Income Bond B Gross

Bestinvest LogoAn actively managed quality bond fund which incorporates sustainability screening.

PRICE (INC)

89.41p

PRICE (ACC)

163.34p

INITIAL CHARGE

0%

ANNUAL MANAGEMENT CHARGE

0.5%

ONGOING CHARGE

0.59%

YIELD

4.9%

1 YEAR
-6.44%

Prices as at 25 May 2022.

Fund commentary last updated 16 Nov 2021.

Past performance is not an indication of future performance.

Capital at risk.

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
StructureOEIC
LaunchedNovember 2010
Size£519m
Yield4.9%
Charging BasisIncome
Dividends paidLast day of each month

Charges

Standard Initial Charge0%
Initial Charge Via BestInvest0%
Additional Bid/Offer Spread0%
Annual Management Charge0.5%
Ongoing Charges Figure0.59%
Equity
Equity
0%
0%
High Yield Bonds
High Yield Bonds
13%
13%
Quality Bonds
Quality Bonds
82%
82%
Property
Property
0%
0%
Commodities
Commodities
0%
0%
Hedge
Hedge
0%
0%
Fund Cash
Fund Cash
5%
5%

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 information on this website is not intended to be advice or a recommendation to buy, sell or hold any investment mentioned. The value of investments and the income from them can go down as well as up and you may not get back the amount invested.

Past performance is not a guide to future performance. View full risk warning