GF Strategic Bond Fund | Liontrust Asset Management PLC

Fund launch date 12/04/2018

Fund size $210,158,089.22

Number of holdings 83

Managed by current team for 4 years

The Fund

The Fund has been managed since launch in April 2018 by Phil Milburn and Donald Phillips. The Fund invests in bonds issues by corporates and governments, from investment grade to high yield, on a global basis, including in emerging markets. The 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 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.

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Key Information

Manager Inception Date of Fund

13/04/2018

Class Launch Date

13/04/2018

Price

Single Price

$10.775

Offer Price

Price Date

12/05/2022

Awards and Ratings

Sauren Fund Manager Rating: Double Gold David Roberts

Morningstar Rating: 4 Liontrust GF Strategic Bond Fund

Meet the team

Before joining Liontrust in early 2018, David Roberts and Phil Milburn worked together at Kames Capital for 14 years, where David was Head of the Fixed Income team and Phil 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 David and 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

Performance

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Performance since manager inception date (%)

Discrete performance (%)

As at previous quarter 12 months ending:	Mar 22	Mar 21	Mar 20	Mar 19	Mar 18
Liontrust GF Strategic Bond	-4.0	13.2	-0.4	-	-

Cumulative performance (%)

Source: FE fundinfo as at 13/05/2022. 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.
As at previous day end	1 month	3 months	6 months	YTD	1 year	3 years	5 years	10 years	Since Inception
Liontrust GF Strategic Bond	-2.9	-5.7	-8.8	-8.8	-8.4	3.0	-	-	7.7

Current positioning

Top 10 Holdings (%)

NEW ZEALAND(GOVERNMENT OF) 1.5% BDS 15/05/31 NZD1000	4.06
NEW ZEALAND(GOVERNMENT OF) 2% BDS 15/05/32 NZD10000	3.67
Liontrust GF High Yield Bond B5 Acc	3.57
UNITED STATES OF AMER TREAS NOTES 0.5% TNT 30/06/27 USD100	3.28
PERSHING SQUARE HLDGS LTD 3.25% BDS 15/11/30 USD250000REG S	1.87
NATWEST MARKETS N.V 7.125% BDS 15/10/2093 USD5000	1.77
BARCLAYS PLC 5.2% BDS 12/05/26 USD200000	1.68
SANTANDER HLDGS USA INC 4.5% BDS 17/07/25 USD2000	1.65
ABBVIE INC 4.5% BDS 14/05/35 USD1000	1.64
LLOYDS BANKING GROUP PLC 4.65% NTS 24/03/26 USD2000	1.62

Sector Breakdown (%)

Telecommunications	15.41
Health Care	15.20
Banks	12.83
Government Bonds	11.02
Insurance	8.65
Financial Services	7.46
Real Estate	6.13
Cash Derivatives	5.69
Mutual Funds	3.57
Utilities	3.42
Electronics	2.87
Media	2.40
Services	2.22
Capital Goods	0.95
Automotive	0.84
Fixed Interest	0.69
Energy	0.59

Geographic Breakdown (%)

Source: Liontrust as at 29/04/2022.
USA	29.07
UK	13.66
Netherlands	8.61
New Zealand	7.73
Ireland	7.38
Money Market	5.69
Luxembourg	5.45
France	5.44
Germany	5.06
Australia	4.46
Sweden	2.15
Switzerland	1.30
Hong Kong	1.28
Japan	1.25
Spain	0.71
Venezuela	0.69

Credit Rating *

Source: UBS Delta and Liontrust as at 28/02/2022

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. The Fund will seek to achieve its objective by investing in bond and credit markets worldwide. The Fund invests in a wide range of bonds issued by corporates and governments, from investment grade through to high yield. The Fund invests in developed and emerging markets, with a maximum of 40% of its net assets invested in emerging markets. Investments may be made in "hard" currencies, such as US Dollar, Euro and Sterling, and up to 25% of the net assets of the Fund may be invested in soft currencies, such as those of 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 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). In addition, the Fund may invest in cash or cash equivalents, such as deposits and Money Market Instruments, for cash management purposes. Within the limits stated above, there are no geographical or economic sector restrictions on the Fund's investments. 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.

4 (Please refer to the Fund KIID 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

BYWRQR5

ISIN code

IE00BYWRQR50

Charges

Initial charge

5.00%

Ongoing Charges Figure

0.63%

Included within the OCF is the Annual Management Charge

0.55%

Key fund literature

Factsheet B1 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 Strategic 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 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.