GF Absolute Return Fund | Liontrust Asset Management PLC

Fund launch date 25/06/2018

Fund size $115,734,992.87

Number of holdings 92

Managed by current team for 5 years

The Fund

The GF Absolute Return Bond Fund has been managed since launch in June 2018 by Phil Milburn and Donald Phillips. The Fund aims to generate positive absolute returns over a rolling 12-month period irrespective of market conditions through a combination of capital growth and income. The fund managers seek to achieve this objective by investing in bond and credit markets worldwide (including developed and emerging markets). The fund managers seek to take advantage of market inefficiencies through understanding the economic environment, bottom up stock analysis and flexibility over duration, credit, sector and geographical allocations. The managers only commit cash to the market when they believe investors will receive a return that justifies the risk they are taking.

You are able to redeem your investment from the Fund at any time and there is no exit fee for doing so.

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Past performance does not predict future returns. You may get back less than you originally invested. Reference to specific securities is not intended as a recommendation to purchase or sell any investment.

Key Information

Manager Inception Date of Fund

26/06/2018

Class Launch Date

26/06/2018

Price

Single Price

$11.100

Offer Price

Price Date

08/12/2023

Awards and Ratings

SFDR Article 8

Citywire Manager Rating: +

Morningstar Sustainability Rating: 4

Meet the team

Before joining Liontrust in early 2018, Phil Milburn worked at Kames Capital for 14 years, where he was Head of Investment Strategy. Donald Phillips also joined Liontrust in 2018 and was previously an investment manager in the Credit team at Baillie Gifford and worked with Phil at Kames Capital for three years.

More about the team

Our Investment Process

The process is designed to take advantage of inefficiencies in fixed income markets through a thorough understanding of the economic environment and detailed bottom up stock analysis.

The process uses the same framework to garner a thorough understanding of the economic environment and for bottom up stock analysis: fundamentals, valuations and technicals (FVT).

These three factors are examined regardless of whether the managers are considering a duration position or an investment in a speculative grade rated company. In judging whether a company is attractive long-term investment, the managers analyse the following factors, which they call PRISM.

Protections: operational and contractual, such as structure and covenants
Risks: credit, business and market
Interest cover: leverage and other key ratios
Sustainability: of cash flows and environmental, social and governance (ESG) factors
Motivations: of management and shareholders

While the Fund has neutral target levels of duration risk and asset allocation, the investment team takes a high conviction approach which can lead positioning to diverge significantly from neutral levels and benchmark profiles. This results in periods when investment performance diverges from benchmark indices.

Performance

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Performance since manager inception date (%)

Discrete performance (%)

As at previous quarter 12 months ending:	Sep 23	Sep 22	Sep 21	Sep 20	Sep 19
Liontrust GF Absolute Return Bond	5.9	-6.1	0.8	4.1	3.5

Cumulative performance (%)

As at previous day end	1 month	3 months	6 months	YTD	1 year	3 years	5 years	10 years	Since Inception
Liontrust GF Absolute Return Bond	1.2	2.2	3.5	5.9	5.8	1.7	10.4	-	11.0

Source: FE fundinfo as at 08/12/2023. Performance figures are shown in USD. Total return performance figures are calculated net of costs and charges, on a bid price to bid price basis (mid to mid for OEICs) with net income (dividends) reinvested. Where applicable the quartile rank is for the primary share class within the sector. If your investment is made in a currency other than that used in the past performance calculation the return may increase or decrease as a result of currency fluctuations.

Current positioning

Top 10 Holdings (%)

CITIGROUP INC. FRN 26/03/25 USD1000	1.66
NESTLE HOLDINGS INC	1.63
BANCO SANTANDER, S.A. 1.849% BDS 25/03/26 USD200000	1.55
CROWN CASTLE INTERNATIONAL CORP 1.05% BDS 15/07/26 USD2000	1.52
SEALED AIR CORPORATION 1.573% BDS 15/10/26 USD2000144A	1.51
HCA INC. 5.25% BDS 15/06/26 USD2000	1.50
FRESENIUS MEDICAL CARE CAP TST III 1.875% BDS 01/12/26 USD150000144A	1.50
INTERNATIONAL BUSINESS MACHINES CO	1.42
NATIONWIDE BUILDING SOCIETY 4.5% SNR PFD NTS 01/11/26 EUR100000	1.41
GLOBAL SWITCH HLDGS LTD 0% BDS 31/01/24 EUR100000	1.40

Sector Breakdown (%)

Banks	16.45
Health Care	15.46
Financial Services	9.65
Telecommunications	9.24
Real Estate	7.68
Consumer Goods	7.54
Money Market	7.39
Insurance	5.29
Capital Goods	5.15
Automotive	3.26
Electronics	2.68
Utilities	2.68
Media	2.65
Services	2.08
Fixed Interest	1.02
Transport	0.85
Retail	0.84

Geographic Breakdown (%)

Source: Liontrust as at 30/11/2023.
USA	49.29
UK	14.23
Cash & Cash Equivalents	7.39
Netherlands	5.48
Ireland	4.37
Spain	2.67
Italy	2.07
France	1.97
Switzerland	1.84
Japan	1.77
Luxembourg	1.63
Sweden	1.55
Hong Kong	1.15
Venezuela	1.02
Canada	0.96
Belgium	0.87
Mexico	0.84
Germany	0.82

Credit Rating *

Source: UBS Delta and Liontrust as at 28/04/2023

Key features of the Fund

The investment objective of the Fund is to generate positive absolute returns over a rolling 12 month period, irrespective of market conditions. There is no guarantee the investment objective will be achieved over this or any other time period. The Fund aims to achieve its investment objective through investment in corporate and government fixed income markets worldwide, including developed and emerging markets. In achieving its objective, the Fund also aims to minimise volatility and reduce the possibility of a significant drawdown (i.e. a period where the Fund is worth less than the initial investment at the start of a 12 month period). The Fund invests in a wide range of bonds issued by companies and governments, from investment grade through to high yield. The Fund invests in developed and emerging markets, with a maximum of 20% of its net assets invested in emerging markets. Investments are made in US Dollar denominated assets or non-US Dollar denominated assets that are predominately hedged back into US Dollar. Up to 10% of the Fund's currency exposure may not be hedged (i.e. the Fund may be exposed to the risks of investing in another currency for up to 10% of its assets). The Fund may invest both directly, and through the use of derivatives. The use of derivatives may generate market leverage (i.e. where the Fund takes market exposure in excess of the value of its assets). The Fund has both Hedged and Unhedged share classes available. The Hedged share classes use forward foreign exchange contracts to protect returns in the base currency of the Fund. The fund manager considers environmental, social and governance ("ESG") characteristics of issuers when selecting investments for the Fund.

5 years or more.

2 (Please refer to the Fund PRIIP KID for further detail on how this is calculated)

Active

The Fund is actively managed without reference to any benchmark meaning that the Investment Adviser has full discretion over the composition of the Fund's portfolio, subject to the stated investment objectives and policies.

The Fund is a financial product subject to Article 8 of the Sustainable Finance Disclosure Regulation (SFDR).

Additional Information

Minimum initial investment

$5,000,000

Minimum additional investment

$1,000

Ex-dividend date

1 January, 1 April, 1 July, 1 October

Distribution date

Sedol code

BD85PP7

ISIN code

IE00BD85PP71

Charges

Initial charge

Ongoing Charges Figure

0.37%

Included within the OCF is the Annual Management Charge

0.30%

For more information on the OCF, see our costs and charges page.

Key fund literature

Factsheet B1 Acc KIID B1 Acc Liontrust Global Funds plc - Prospectus

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Key Risks

Past performance is not a guide to future performance. The value of an investment and the income generated from it can fall as well as rise and is not guaranteed. You may get back less than you originally invested. The issue of units/shares in Liontrust Funds may be subject to an initial charge, which will have an impact on the realisable value of the investment, particularly in the short term. Investments should always be considered as long term.

Investment in the GF Absolute Return Bond Fund involves foreign currencies and may be subject to fluctuations in value due to movements in exchange rates. The value of fixed income securities will fall if the issuer is unable to repay its debt or has its credit rating reduced. Generally, the higher the perceived credit risk of the issuer, the higher the rate of interest. Bond markets may be subject to reduced liquidity. The Fund may invest in emerging markets/soft currencies and in financial derivative instruments, both of which may have the effect of increasing volatility. The Fund may invest in derivatives. The use of derivatives may create leverage or gearing. A relatively small movement in the value of a derivative's underlying investment may have a larger impact, positive or negative, on the value of a fund than if the underlying investment was held instead.

Disclaimer

This is a marketing communication. Before making an investment, you should read the relevant Prospectus and the Key Investor Information Document (KIID), which provide full product details including investment charges and risks. These documents can be obtained, free of charge, from www.liontrust.co.uk or direct from Liontrust. Always research your own investments. If you are not a professional investor please consult a regulated financial adviser regarding the suitability of such an investment for you and your personal circumstances.

This should not be construed as advice for investment in any product or security mentioned, an offer to buy or sell units/shares of Funds mentioned, or a solicitation to purchase securities in any company or investment product. Examples of stocks are provided for general information only to demonstrate our investment philosophy. The investment being promoted is for units in a fund, not directly in the underlying assets. It contains information and analysis that is believed to be accurate at the time of publication, but is subject to change without notice. Whilst care has been taken in compiling the content of this document, no representation or warranty, express or implied, is made by Liontrust as to its accuracy or completeness, including for external sources (which may have been used) which have not been verified. It should not be copied, forwarded, reproduced, divulged or otherwise distributed in any form whether by way of fax, email, oral or otherwise, in whole or in part without the express and prior written consent of Liontrust.