fund
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!
Rathbone Ethical Bond I
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103.06p
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.
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244.66p
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?
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0.00%
Initial chargeSome 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!
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0.63%
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).
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0.67%
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.
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3.10%
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…
The objective of the fund is to provide a regular, above average income by investing in a range of sterling-dominated bonds that meet Rathbone's ethical and financial criteria. The portfolio primarily consists of investment grade corporates, but some high yield and unrated bonds are also included. The team apply both negative and positive screening to all investments considered for the portfolio. The fund will avoid issuers involved in armaments, environmentally unsustainable activities, animal testing, tobacco, nuclear power, alcohol, pornography, gambling and predatory lending.
Fund summary
| Sector | £ Corporate Bond |
| Structure | UNIT TRUST |
| Launched | |
| Size | £2,569m |
| Yield | 3.10% |
| Charging basis | Capital |
| Dividends paid | 31 Mar, 30 Jun, 30 Sep, 31 Dec |
Charges
| Standard initial charge | 0.00% |
| Initial charge via Bestinvest | 0.00% |
| Annual management charge | 0.63% |
| Ongoing charges figure | 0.67% |
Allocation
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Investment process
Rathbone invests in a diverse portfolio of investment grade corporate bonds that pass the team's ethical screening process. The team identify attractive fixed interest opportunities before analysing the ethical position of a company. Approval for investment has to be given at a weekly meeting, by the whole ethical investment team. Research will be carried out on the issuers using various sources of information, including company visits. The bond issuer will be assessed against a set of negative ethical specifications and if they qualify, will then have to demonstrate policies in at least one positive aspect. A company will not pass the negative screen if they are involved in any of the following areas; armaments, environmentally unsustainable activities, animal testing, tobacco, nuclear power, alcohol, pornography and gambling. It then must show to be having a positive effect in one of these areas; management of environmental impacts, human rights, provision of beneficial products/services, corporate community investment and employment opportunities.
This fund is benchmark agnostic and has been one of the best performing funds in the market in recent years. Fund manager Bryn Jones applies a "Four Cs Plus" process in determining credit selection - character (management), capacity (ability to repay), collateral (security) and covenants. The plus is the conviction that the team have in the underlying investments. The fund tends to have a lower duration than the benchmark, which is viewed as favourable in current market conditions.
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
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Sector breakdown
| Insurance | 39.00% |
| Banks | 33.00% |
| Property | 8.00% |
| Financial Services | 5.00% |
| Alternative & Renewable Energy | 3.00% |
| Cash & Cash Equivalents | 2.00% |
| Real Estate | 2.00% |
| Telecommunications | 2.00% |
| Government Bonds | 1.00% |
| Infrastructure | 1.00% |