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Strategic Bond Fund

Fund launch date 07/05/2018
Fund size £278,282,494.20
Number of holdings 86
Managed by current team for 4 years
Currently viewing:

The Fund

The Fund has been managed by Phil Milburn and Donald Phillips since launch in May 2018. The aim of the Fund is to maximise its total return over the long term (5 years or more) through a combination of income and capital growth by investing in government bond and credit securities globally. The Fund may invest up to 40% of its net assets in 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.

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.
Key Information
Manager Inception Date of Fund
08/05/2018
Class Launch Date
08/05/2018
Comparator Benchmark 1
IA Sterling Strategic Bond
Price
Single Price
104.940p
Offer Price
-
Price Date
27/05/2022

Awards and Ratings

Sauren Fondsmanager rating Sauren Fund Manager Rating: Double Gold David Roberts
Square Mile Rated A Square Mile Rating: A Liontrust 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.

View team
Meet the tea

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
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.

Performance

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 Strategic Bond -3.8 12.5 -3.0 - -
IA Sterling Strategic Bond -2.2 12.4 -1.4 - -
Quartile Ranking 4 2 3 - -

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 Strategic Bond -1.2 -3.8 -7.6 -8.2 -8.2 0.5 - - 4.5
IA Sterling Strategic Bond -1.4 -3.4 -6.9 -7.0 -6.0 4.5 - - 7.6
Quartile Ranking 2 2 3 3 3 3 - - -

Source: FE fundinfo as at 26/05/2022. Performance figures are shown in GBX. 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 OF AMER TREAS NOTES 0% UNDATED NTS USD100 7.64
NEW ZEALAND(GOVERNMENT OF) 2% BDS 15/05/32 NZD10000 3.48
NEW ZEALAND(GOVERNMENT OF) 1.5% BDS 15/05/31 NZD1000 3.13
SANTANDER HLDGS USA INC 4.5% BDS 17/07/25 USD2000 1.75
NEW YORK LIFE GLOBAL FUNDING 0.25% BDS 23/01/27 EUR100000 1.65
DELL INTERNATIONAL LLC 8.1% BDS 15/07/36 USD2000 1.60
ABBVIE INC 4.5% BDS 14/05/35 USD1000 1.59
ZURICH FINANCE IRELAND 3% MTN 19/04/51 USD200000 1.58
LLOYDS BANKING GROUP PLC 4.65% NTS 24/03/26 USD2000 1.58
PERSHING SQUARE HLDGS LTD 3.25% BDS 15/11/30 USD250000REG S 1.54

Sector Breakdown (%)

Government Bonds 15.57
Health Care 15.42
Telecommunications 14.88
Banks 13.00
Insurance 8.86
Financial Services 7.44
Real Estate 5.80
Cash Derivatives 3.54
Utilities 3.29
Electronics 3.20
Services 2.61
Media 2.58
Automotive 1.30
Capital Goods 1.14
Energy 0.67
Fixed Interest 0.64

Geographic Breakdown (%)

USA
35.39
UK
13.71
Netherlands
8.51
New Zealand
6.61
Germany
6.17
France
5.41
Luxembourg
4.88
Australia
4.27
Ireland
3.88
Money Market
3.54
Sweden
1.91
Hong Kong
1.44
Switzerland
1.34
Japan
1.13
Spain
0.80
Venezuela
0.64
Austria
0.30

Source: Liontrust as at 29/04/2022.

Credit Rating *

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

Source: FE fundinfo
Additional Information
Minimum initial investment
£1,000
Minimum additional investment
£1,000
Ex-dividend date
1 January, 1 April, 1 July, 1 October (Final)
Distribution date
28 February, 31 May, 31 August, 30 November (Final)
Sedol code
BFX14R9
ISIN code
GB00BFX14R94
Charges
Initial charge
-
Ongoing Charges Figure
0.63%
Included within the OCF is the Annual Management Charge
0.55%
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How to invest in Liontrust funds

Through a fund platform
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Direct with Liontrust

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 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 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.

Fund literature
Strategic Bond Fund
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