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Sustainable Future Monthly Income Bond Fund

Single Price 82.130p as of 19/07/2024
Fund launch date 13/06/2010
Fund size £577,619,294.34
Number of holdings 65

The Fund

The aim of the Fund is to produce monthly income payments together with capital growth using the Sustainable Future investment process and investing at least 80% of the portfolio in investment grade corporate bonds that are sterling denominated or hedged back to sterling. The Fund targets a net total return of at least the IBOXX GBP Corporates (5-15Y) Index over the long term (rolling 5-year periods). The Fund has the flexibility to change duration depending on movements in interest rates. All investments will be expected to conform to our ESG criteria.

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

Read latest fund update
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
12/07/2010
Managed by Current Team for
14 years
Class Launch Date
12/07/2010
ISIN code
GB00B44MQ015
Comparator Benchmark 1
Markit iBoxx GBP Corporates 5-15
Comparator Benchmark 2
IA Sterling Corporate Bond

Awards and Ratings

Professional Pensions Investment Awards Sustainable Corproate Bond Manager of the Year Professional Pensions Investment Awards 2023 Sustainable Corporate Bond Manager of the Year
Professional Pensions Investment Awards 2022 Sustainable Corporate Bond Manager of the Year
Citywire fund manager rating Citywire Manager Rating: A
Morningstar Fund Rating: 5 Morningstar Rating: 5
Morningstar Sustainability rated 4 Morningstar Sustainability Rating: 4
Rayner Spencer Mills RSMR Rated Fund
Fund Calibre Elite Rated Fund Calibre Elite Rated Fund
Square Mile Responsible A Square Mile Responsible Rating: A
3D Investing 3D Investing Certified Fund

Meet the team

Fixed Income investments for the Liontrust Sustainable Investment team are managed by Kenny Watson (formerly at Ignis Asset Management for 15 years where he was responsible for sub-investment grade bond portfolios), along with Aitken Ross and Jack Willis who also started their careers in the graduate scheme at Alliance Trust Investments (ATI). The team joined Liontrust in April 2017 as part of the acquisition of ATI.

Meet the tea

Our Investment Process

Macroeconomic analysis is used to determine the team’s top-down view of the world and this helps shape all aspects of portfolio construction and appetite for risk. After this, the managers aim to focus on high-quality issuers and believe this can reduce bond specific risk.
The fund managers’ assessment of quality is a distinctive part of the process, in which they combine traditional credit analysis with a detailed sustainability assessment based on the proprietary model. The managers assess individual bonds for whether they believe they offer attractive long-term returns and for absolute and relative valuations. 
The managers seek the best value bonds issued by the high-quality issuers identified, looking at bonds issued across the capital structure, along the maturity curve, or issued into the primary credit markets (UK, US and Europe). 
Sustainability analysis is fully integrated into the investment process, helping to identify high-quality companies that the managers believe will both enhance returns and reduce issuer specific tail-risk. 
Periods of rising interest rates and inflation would typically present a performance headwind to the SF Fixed Income strategies due to the likelihood of an increase in government bond yields (and falling prices). Meanwhile a deterioration in the outlook for corporate profits is also likely to have a negative impact through a widening of corporate bond spreads – the additional yield at which corporate bonds trade relative to ‘risk-free’ government bonds.
Periods of falling yields and tightening credit spreads present a much more benign backdrop for bond investors.
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.

Performance

Performance since manager inception date (%)

Discrete performance (%)

As at previous quarter 12 months ending: Jun 24 Jun 23 Jun 22 Jun 21 Jun 20
Liontrust Sustainable Future Monthly Income Bond 14.0 -6.0 -12.3 7.1 3.6
Markit iBoxx GBP Corporates 5-15 12.3 -7.5 -14.6 3.6 5.8
IA Sterling Corporate Bond 10.5 -4.6 -12.9 3.3 5.8
Quartile Ranking 1 3 2 1 4

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 Sustainable Future Monthly Income Bond 1.4 3.3 3.4 0.8 11.7 -4.5 4.9 34.0 76.3
Markit iBoxx GBP Corporates 5-15 1.2 3.0 3.5 0.9 10.7 -11.2 -3.0 30.7 78.4
IA Sterling Corporate Bond 0.9 2.6 3.1 1.4 9.1 -8.1 0.3 26.5 59.6
Quartile Ranking 1 1 2 4 1 2 1 1 -

Source: FE fundinfo as at 19/07/2024. 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 (%)

HIS MAJESTY`S TREASURY 6% GILT 2028
3.97
NATWEST GROUP PLC FXD TO FXD RT RST NTS 06/06/33 GBP100000 T2
3.09
AT&T INC. 7% BDS 30/04/40 GBP(VAR)
2.75
ZURICH FINANCE (IRELAND) DESIGNATED ACTIVITY COMPANY VAR MTN 23/11/52 GBP100000
2.63
HSBC HOLDINGS (reg. -S-) S. 12 7%/08-07.04.2038
2.59
Barclays Plc 6.369% 31/01/2031 EMTN
2.18
PENSION INSURANCE 8% 11/13/2033
2.10
VERIZON COMMUNICATIONS INC. 4.75% MTN 17/02/34 GBP100000
2.04
LEGAL & GENERAL GROUP 4.5% RST SUB NTS 01/11/50 GBP100000
2.02
BLACKSTONE PROPERTY PARTNERS EUROPE HOLDINGS S.A.R.L 4.875% BDS 29/04/32 GBP100000
2.01

Sector Breakdown (%)

Financials
41.64
Telecommunications
13.62
Utilities
13.38
Real Estate
9.77
Financial Services
6.72
Government Bonds
3.97
Money Market
3.14
Consumer Services
2.85
Industrials
2.77
Property
2.10

Geographic Breakdown (%)

UK
68.51
France
7.95
USA
6.15
Netherlands
5.76
Luxembourg
3.47
Cash & Cash Equivalents
3.14
Ireland
2.63
Spain
1.36
Germany
1.00

Credit Rating *

Source: FE fundinfo
Additional Information
Minimum initial investment
£1,000
Minimum additional investment
£500
Ex-dividend date
Last day of the month
Distribution date
Last day of the month, 1 month trailing
Sedol code
B44MQ01
Charges
Initial charge
-
Ongoing Charges Figure
0.56%
Included within the OCF is the Annual Management Charge
0.50%

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

Additional resources

The Sustainable team’s Annual Review covers the Sustainable Future process, performance, and work across impact measurement and engagement during 2022

Download >

The Sustainable team’s latest Engagement and Voting Review covers the work done to drive improvement in the businesses held across the Sustainable Future funds and progress made on proactive engagement initiatives during 2021.

Download >

2021

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2020

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2019

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2018

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2017

Q1

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2016

Q1

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2015

Q1

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Liontrust Sustainable Future Funds

Download >

 

Liontrust UK Ethical Fund

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Fund Manager Insights

See all related
Lionesses Kenny Watson, Aiken Ross & Jack Willis
Looking forward with optimism after a strong 2023 The Sustainable Investment Fixed Income team saw strong performances in 2023 despite an eventful year. So what lies ahead? They explain why they believe there are reasons to be bullish about investor’ returns in 2024.
icon 31 January 2024
Green city
Lionesses Sustainable Fixed Income team
Are bond yields attractive or could they rise further? Have bond yields peaked? Or could there be further to go and is now the time to invest?
icon 20 June 2023
Wind wheel
Aitken Ross Aitken Ross
The investment grade sectors offering the best value With corporate bond credit spreads rising to levels rarely seen before, the Sustainable Investment Fixed Income team pick out the investment grade sectors offering the best opportunities for attractive yields.
icon 2 November 2022
Insights 12

How to invest in Liontrust funds

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Through a financial adviser
Direct with Liontrust

Key Risks 

Past performance does not predict future returns. You may get back less than you originally invested. All investments will be expected to conform to our social and environmental criteria. Overseas investments may carry a higher currency risk. They are valued by reference to their local currency which may move up or down when compared to the currency of the Fund. Bonds are affected by changes in interest rates and their value and the income they generate can rise or fall as a result; the creditworthiness of a bond issuer may also affect that bond's value. Bonds that produce a higher level of income usually also carry greater risk as such bond issuers may have difficulty in paying their debts. The value of a bond would be significantly affected if the issuer either refused to pay or was unable to pay. The Fund can invest in derivatives. Derivatives are used to protect against currency, credit or interest rate moves or for investment purposes. There is a risk that losses could be made on derivative positions or that the counterparties could fail to complete on transactions. The Fund uses derivative instruments that may result in higher cash levels. Cash may be deposited with several credit counterparties (e.g. international banks) or in short-dated bonds. A credit risk arises should one or more of these counterparties be unable to return the deposited cash. The Fund may encounter liquidity constraints from time to time.  Participation rates on advertised volumes could fall reflecting the less liquid nature of the current market conditions. Counterparty Risk: any derivative contract, including FX hedging, may be at risk if the counterparty fails. The level of targeted income is not guaranteed. ESG Risk: In reference to any component (where applicable) of a fund's investment process that uses external ESG data, there may be limitations to the availability, completeness or accuracy of ESG information from third-party providers, or inconsistencies in the consideration of ESG factors across different third party data providers, given the evolving nature of ESG. There is no guarantee that an absolute return will be generated over a three year time period or within another time period.

 

Disclaimer

This is a marketing communication. Before making an investment, you should read the relevant Prospectus and the Key Investor Information Document (KIID) and/or PRIIP/KID, which provide full product details including investment charges and risks. It 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. This information and analysis 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, no representation or warranty is given, whether express or implied, by Liontrust as to its accuracy or completeness, including for external sources (which may have been used) which have not been verified.

Fund literature
Sustainable Future Monthly Income Bond Fund
View latest fund update
Thematic breakdowns Thematic breakdown
Holdings Holdings