GF High Yield Bond Fund | Liontrust Asset Management PLC

Fund launch date 07/06/2018

Fund size $30,240,321.58

Number of holdings 77

Managed by current team for 5 years

The Fund

The GF High Yield Bond Fund has been managed since launch in June 2018 by Phil Milburn and Donald Phillips. The aim of the Fund is to maximise the total return over a long-term horizon (at least 5 years) through a combination of income and capital. The Fund invests predominantly in high yield and selected investment grade 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

08/06/2018

Class Launch Date

08/06/2018

Comparator Benchmark 1

ICE BofA Global High Yield Hedge USD

Price

Single Price

$11.622

Offer Price

Price Date

28/11/2023

Awards and Ratings

SFDR Article 8

Investment Week Fund Manager of the Year Awards 2022 £ High Yield Bond

Citywire Manager Rating: +

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

Download factsheet Read latest fund update

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 High Yield Bond	12.5	-18.1	9.6	1.9	7.9
ICE BofA Global High Yield Hedge USD	11.4	-16.0	10.2	2.9	7.6

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 High Yield Bond	4.1	2.5	4.7	8.8	8.3	-1.1	16.6	-	16.1
ICE BofA Global High Yield Hedge USD	3.4	2.3	4.9	8.1	8.3	0.7	19.5	-	19.0

Source: FE fundinfo as at 27/11/2023. 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 (%)

UNITED STATES DEPARTMENT OF THE TREASURY 3% TNT 31/07/24 USD100 BE-2024 (WI)	4.07
TRANSDIGM INC	2.36
Cheplapharm Arzneimittel GmbH Anleihe v.23(26/30) Reg.S	2.33
HT TROPLAST AG 9.375% 07/15/2028	2.17
SPA HLDGS 3 4.875% BDS 04/02/28 USD200000	2.10
AVANTOR FUNDING INC 3.875% BDS 15/07/28 EUR100000	2.00
FIRSTCASH, INC. 4.625% BDS 01/09/28 USD1000144A	1.97
IQVIA HOLDINGS INC. 2.875% BDS 15/06/28 EUR1000	1.95
CCO HLDGS LLC/CAP CORP	1.90
ILIAD HLDGS SAS 7% SNR SECD NTS 15/10/28 USD200000144A	1.85

Sector Breakdown (%)

Capital Goods	13.41
Health Care	11.05
Telecommunications	10.97
Financial Services	9.79
Basic Industries	8.64
Banks	7.71
Services	6.21
Automotive	4.62
Insurance	4.56
Electronics	4.43
Real Estate	4.16
Government Bonds	4.07
Money Market	3.70
Media	2.78
Energy	1.57
Utilities	1.15
Consumer Goods	1.10

Geographic Breakdown (%)

Source: Liontrust as at 31/10/2023.
USA	34.19
UK	13.74
Netherlands	8.83
Germany	8.04
Luxembourg	6.28
France	5.73
Italy	3.76
Money Market	3.70
Spain	2.86
Sweden	2.78
Ireland	2.17
Finland	2.10
Japan	1.68
Belgium	1.28
Australia	1.21
Austria	0.97
Switzerland	0.62

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 maximise total returns over the long term through a combination of income and capital growth, through investment in the global fixed income market. The Fund invests at least 50% of its assets in high yield bonds (i.e. bonds classified as below investment grade) issued by companies worldwide which are denominated in US Dollar or non-US Dollar bonds that are hedged back into US Dollar. Although the focus is on high yield corporate bonds, the Fund may also invest in investment grade corporate bonds, government bonds, cash or assets that can be turned into cash quickly. The Fund invests in developed and emerging markets, with a maximum of 20% of its net assets invested in emerging markets. Where the Fund invests in non-US Dollar assets, the currency exposure of these investments will generally be hedged back to US Dollar. Up to 5% 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 5% 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.

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

Active

The Fund is considered to be actively managed in reference to the ICE BofAML Global High Yield Hedge USD Index (the “Benchmark”) by virtue of the fact that it uses the Benchmark for performance comparison purposes. The Benchmark is not used to define the portfolio composition of the Fund and the Fund may be wholly invested in securities which are not constituents of the Benchmark.

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

Additional Information

Minimum initial investment

$1,000

Minimum additional investment

$1,000

Ex-dividend date

1 January, 1 April, 1 July, 1 October

Distribution date

31 January (Final), 30 April, 31 July, 31 October

Sedol code

BFXZFF6

ISIN code

IE00BFXZFF67

Charges

Initial charge

Ongoing Charges Figure

1.17%

Included within the OCF is the Annual Management Charge

1.10%

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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Fund Manager Insights

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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 High Yield 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.