Bringing Income Home - Liontrust Monthly Income Bond Fund

Bringing Income Home - Liontrust Monthly Income Bond Fund

 

The Fund has been managed by Stuart Steven since its launch in June 2010, with Aitken Ross joining the team in 2012 and Kenny Watson in 2013. The fund managers aim to produce a high monthly income yield and some capital growth through investing in corporate bonds predominantly, while also holding some government bonds, and by actively managing the interest rate exposure.

The Fund was named the best £ Corporate Bond Fund at the Investment Week Fund Manager of the Year Awards on 5 July 2018.

Investment Week Fund Manager of the Year Awards 2018 - Winner - £ Corporate Bond

Liontrust Monthly Income Bond Fund - Investment Week Fund Manager of the Year Awards 2018 winner


"In a sector like this, investors are looking for consistency and a low-risk portfolio for security of capital, and the winning fund has a team behind it who have worked together for a long time with this mentality behind it."

The judges’ reason for naming Liontrust Monthly Income Bond as the best £ Corporate Bond Fund at the Investment Week Fund Manager of the Year Awards on 5 July 2018

How the Liontrust Monthly Income Bond Fund is differentiated

  • The average credit rating of issuer and portfolio has been A since launch. While the average credit rating for each bond is BBB+, this is synthetically enhanced through the use of derivatives
  • The income paid out by the Fund has consistently been above 5% per calendar year since launch in June 2010. The current distribution yield of the Fund is 5.56%*
  • The fund managers believe this focus on income will result in strong long-term returns
  • The Fund has achieved above-median total returns since launch and top-quartile performance over three years (in the IA Sterling Corporate Bond sector), with lower interest rate risk** and volatility*** than its benchmark – the iBoxx Sterling Corporates GBP 5-15 year index
  • The mandate provides the flexibility to change exposure and the portfolio to reflect the market and economic environment
  • The stock selection process focuses on identifying the best value bonds issued by high-quality issuers with the aim of maximising returns while reducing default risk 
  • The investment process uses ESG, credit and macro-economic analysis to help shape all aspects of portfolio construction
  • Sustainability analysis is fully integrated into the investment process, which enhances the credit process by helping to identify high-quality companies and reduce issuer specific tail-risk


Past performance is not a guide to future performance, investments can result in total loss of capital. Please refer to the Key Risks section for more information.

Download sales aid for further information

 

 

*Source: BNY Mellon, as at 31.07.18. The Distribution yield is an estimate of the income that may be expected to be paid by the Fund over the next 12 months divided by the current unit price.

**Source: Financial Express, to 31.07.18. Primary share class, total return (net of fees, interest reinvested). Inception date for this share class was 12.07.10. 

*** Source: Liontrust, as at 31.07.18.

The Sustainable Investment team - Fixed Income
Meet the experienced fund management team

Stuart Steven, Kenny Watson and Aitken Ross have more than 50 years of combined investment experience in managing fixed income. They transferred to Liontrust from ATI in April 2017. Stuart was previously Investment Director at Scottish Widows Investment Partnership. Kenny was formerly at Ignis Asset Management where he was responsible for the sub investment grade bond portfolios. Aitken started his career in the graduate scheme at ATI.

Read more

Recent insights from the team

Opportunities continue to come down the line in telecoms
Jack Willis
With the telecoms sector returning to growth, Jack Willis explains why this is one of the favoured areas for the Liontrust Monthly Income Bond Fund and where they are finding investment opportunities. Read more
What does the new environment for bonds mean for investors?
Kenny Watson
With central banks finally tightening after a decade of loose policy, Kenny Watson examines this much-changed and more challenging backdrop for bonds and what investors can expect from the asset class. Read more
Why flexibility is key in current bond markets
Stuart Steven & Aitken Ross
With interest rates rising and bonds facing a more challenging environment, Stuart Steven and Aitken Ross outline how a flexible fund mandate will be key – especially with short-dated bonds looking unappealing. Read more

Performance of the Liontrust Monthly Income Bond Fund

Performance since launch (%)

Liontrust Monthly Income Bond Fund - Performance since launch

Cumulative performance (%)

 

1 year

3 years

5 years

Since inception

Liontrust Monthly Income Bond Fund

0.2

18.3

26.8

61.6

iBoxx Sterling Corporate 5-15 years

0.2

16.5

29.2

70.1

IA Sterling Corporate Bond

-0.2

13.2

21.4

49.2

Quartile ranking

2

1

1

2


Source: Financial Express, as at 30.10.18. Primary share class, total return (net of fees, interest reinvested). Inception date for this share class was 12.07.10.

Discrete years’ performance (%)

To previous quarter 12 months ending

Sep 18

Sep 17

Sep 16

Sep 15

Sep 14

Liontrust Monthly Income Bond Fund

0.8

6.7

10.6

2.2

6.4

iBoxx Sterling Corporate 5-15 years

0.2

1.2

14.1

4.9

8.1

IA Sterling Corporate Bond

0.1

0.6

12.2

2.8

6.4

Quartile ranking

1

1

3

3

3


Source: Financial Express, as at 30.10.18. Primary share class, total return (net of fees, income reinvested). Inception date for this share class was 12.07.10.

Past performance is not a guide to future performance, investments can result in total loss of capital. Please refer to the Key Risks section for more information.

Further information

Private investors

Liontrust sustainable investing - Private investors

Find out how to invest in Liontrust's range of sustainable funds.


How to invest

Professional advisers

Liontrust sustainable investing - Professional advisers

There are a number of ways advisers can invest in Liontrust's sustainable funds on behalf of clients.

How to invest

Key risks

Please remember that past performance is not a guide to future performance and the value of an investment and any income generated from them can fall as well as rise and is not guaranteed, therefore you may not get back the amount originally invested and potentially risk total loss of capital. Investment in Funds managed by the Sustainable Future Fixed Income team 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.
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