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RATHBONE ETHICAL BOND I

Bestinvest LogoA diverse portfolio of sterling-denominated bonds meeting strict ethical criteria.

PRICE (INC)

82.77p

PRICE (ACC)

214.43p

INITIAL CHARGE

0%

ANNUAL MANAGEMENT CHARGE

0.63%

ONGOING CHARGE

0.66%

YIELD

4.8%

1 YEAR
6.17%
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Prices as at 29 Nov 2023.

Fund commentary last updated 17 Jan 2023.

Past performance is not an indication of future performance.

Capital at risk.

The objective of the fund is to deliver a greater total return than the IA Sterling Corporate Bond sector, after fees, over any rolling five-year period. There is no guarantee that this investment objective will be achieved over five years, or any other time period. The manager uses the IA Sterling Corporate Bond sector as a target for the fund’s return because it aims to consistently outperform the average return of the companies competitors. To meet the objective, the fund manager will invest at least 80% of the fund in corporate bonds with an investment-grade rating (AAA to BBB-). The remaining 20% of the fund is invested in corporate bonds with a credit rating below BBB- or with no rating at all. Up to 10% of the fund can be invested directly in contingent convertible bonds. The fund may invest globally but at least 80% of the portfolio will be invested in sterling denominated assets or hedged back to sterling.

Fund summary

Sector£ Corporate Bond
StructureUNIT TRUST
LaunchedMarch 2012
Size£2,074m
Yield4.8%
Dividends paidFebruary, May, August, November

Charges

Standard Initial Charge0%
Initial Charge Via BestInvest0%
Additional Bid/Offer Spread0%
Annual Management Charge0.63%
Ongoing Charges Figure0.66%

Investment Process

In the first stage of the investment process the managers looks at the economic environment to determine which industries to own as well as the duration of its investments. The team then seeks to identify attractive opportunities in the investment grade corporate bond sector. To do this it uses its Four Cs Plus approach to evaluate creditworthiness. It assesses Character - whether a company’s managers have integrity and competence; Capacity – ensuring that a company isn’t over borrowing and has the cash to pay its debts; Collateral –whether there are assets backing the loan which reduces risk; and Covenants – loan agreements which set out the terms of the bond and restrictions in the company. The final C is called The Plus which according to Rathbones means: “We think differently to the market, sometimes contrarian, sometimes sceptical of orthodox thinking but always opinionated.” The bond issuers will also be assessed against a set of positive and negative social and environmental criteria. A company will fail the negative screen if it is involved in any of the following areas: armaments, environmentally unsustainable activities, animal testing, tobacco, nuclear power, alcohol, pornography, and gambling. But it must also show at least one positive aspect such as management of environmental impacts or human rights. The ESG research, is carried out by Rathbone Greenbank, the company’s ethical research division. Indeed, approval for investments must be given at a weekly meeting, by the whole ethical investment team.

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