The Fund
The Fund has been managed by Stuart Steven since its launch in June 2010, with Aitken Ross joining him in 2012 and Kenny Watson in 2013. 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). While the Fund has been structurally short duration since launch, it has the flexibility to revert to a standard duration fund as and when yields normalise. All investments will be expected to conform to our ESG criteria.
Awards and Ratings
Citywire Manager Rating: A
Morningstar Rating: 5
Morningstar Sustainability Rating: 4
RSMR Rated Fund
Fund Calibre Elite Rated Fund
Square Mile Responsible Rating: A
3D Investing Certified Fund
Meet the team
Fixed Income investments for the Liontrust Sustainable Investment team are headed by Stuart Steven, who has been involved in managing multi-currency fixed income portfolios since 1994, including at Britannic Asset Management, Legal & General and Scottish Widows Investment Partnership. Stuart and the rest of the team joined Liontrust in April 2017 as part of the acquisition of Alliance Trust Investments (ATI). Stuart’s co-managers are 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 ATI.
Performance
Performance since manager inception date (%)
Discrete performance (%)
| As at previous quarter 12 months ending: | Jun 22 | Jun 21 | Jun 20 | Jun 19 | Jun 18 |
|---|---|---|---|---|---|
| Liontrust Sustainable Future Monthly Income Bond | -12.3 | 7.1 | 3.6 | 4.0 | 0.1 |
| Markit iBoxx GBP Corporates 5-15 | -14.6 | 3.6 | 5.8 | 7.1 | 0.7 |
| IA Sterling Corporate Bond | -12.9 | 3.3 | 5.8 | 5.6 | 0.6 |
| Quartile Ranking | 2 | 1 | 4 | 4 | 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 | -3.8 | -7.3 | -10.9 | -10.6 | -11.5 | -2.7 | 2.1 | 51.1 | 63.4 |
| Markit iBoxx GBP Corporates 5-15 | -3.1 | -8.0 | -12.7 | -13.3 | -14.2 | -7.3 | 1.3 | 48.8 | 70.6 |
| IA Sterling Corporate Bond | -2.7 | -7.0 | -11.4 | -11.7 | -12.2 | -5.1 | 2.1 | 36.2 | 51.3 |
| Quartile Ranking | 4 | 2 | 2 | 2 | 2 | 1 | 2 | 1 | - |
Current positioning
Top 10 Holdings (%)
| HM TREASURY UNITED KINGDOM DMO 6% GILT 2028 | 4.36 |
|---|---|
| COOPERATIEVE CENT RFFISEN BA/NL 4.625% BDS 23/05/29 GBP100000 | 4.00 |
| HSBC HOLDINGS PLC 7% SUBORD NTS 07/04/38 GBP50000 | 3.52 |
| LLOYDS BANKING GROUP PLC 2.707% DTD SUB RST NT 03/12/35 GBP100000 | 3.10 |
| STANDARD CHARTERED 5.125% DTD SUBORD NTS 06/06/34 GBP100000 | 2.78 |
| AT&T INC 7% BDS 30/04/40 GBP(VAR) | 2.68 |
| VODAFONE GROUP 6.15% NTS 27/02/37 USD1000 | 2.65 |
| ROTHESAY LIFE PLC 8% NTS 30/10/25 GBP100000 | 2.64 |
| ORANGE SA 8.125% BDS 20/11/28 GBP1000 | 2.41 |
| SEVERN TRENT UTILITIES FINANCE PLC 6.25% GTD BDS 07/06/29 GBP(VAR)(BR) | 2.37 |
Sector Breakdown (%)
| Financials | 43.00 | |
|---|---|---|
| Telecommunications | 15.30 | |
| Utilities | 13.71 | |
| Real Estate | 5.81 | |
| Government Bonds | 4.36 | |
| Financial Services | 4.31 | |
| Property | 4.26 | |
| Consumer Services | 3.33 | |
| Health Care | 2.22 | |
| Mortgage & Secured Bonds | 2.11 | |
| Money Market | 1.54 |
Geographic Breakdown (%)
| UK |
70.58
|
|---|---|
| Netherlands |
8.57
|
| France |
7.01
|
| USA |
6.32
|
| Luxembourg |
2.91
|
| Spain |
2.02
|
| Money Market |
1.54
|
| Ireland |
1.00
|
Credit Rating *
Source: UBS Delta and Liontrust as at 28/02/2022. Aggregate credit rating exposure includes the effect of credit default swaps held.
Additional resources
The Sustainable team’s Annual Review covers the Sustainable Future process, performance, and work across impact measurement and engagement during 2021.
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.
How to invest in Liontrust funds
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 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. The Distribution Yield is higher than the Underlying Yield because the fund distributes coupon income and the fund’s expenses are charged to capital. This has the effect of increasing dividends while constraining the fund’s capital appreciation. 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.
A performance fee is calculated and accrued at each valuation point. Performance Fee Rate: 20% for outperformance of Performance Benchmark Index (iBoxx 5-15 Year Sterling Corporates Index) on an annual basis. Outperformance Cap Level: 6.25% for the purpose of calculating the Performance Fee payable in respect of any performance period meaning the maximum performance fee that can be paid in a given year is 1.25%. Details of the Fund's performance fee in the last financial year can be found in the Key Investor Information Document (KIID) which can be obtained free of charge from the Liontrust website.
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.