Diverse portfolio of sterling denominated bonds meeting strict ethical criteria.
Prices as at 16 Aug 2022.
Fund commentary last updated 17 Jan 2022.
Past performance is not an indication of future performance.
Capital at risk.
Sector | £ Corporate Bond |
---|---|
Structure | UNIT TRUST |
Launched | March 2012 |
Size | £2,286m |
Yield | 4% |
Charging Basis | Capital |
Dividends paid | 31 Mar, 30 Jun, 30 Sep, 31 Dec |
Standard Initial Charge | 0% |
---|---|
Initial Charge Via BestInvest | 0% |
Additional Bid/Offer Spread | 0% |
Annual Management Charge | 0.63% |
Ongoing Charges Figure | 0.66% |
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.
Past performance is not a guide to future performance. View full risk warning