Liontrust Sustainable Future Corporate Bond Class 2 Inc
Report And Accounts
Simplified Prospectus / KIID
Private Investor Factsheet
Professional Investor Factsheet
Performance
Discrete performance - to last month end
| 31/03/19 to 31/03/20 |
31/03/20 to 31/03/21 |
31/03/21 to 31/03/22 |
31/03/22 to 31/03/23 |
31/03/23 to 31/03/24 |
|
|---|---|---|---|---|---|
| Fund | -1.4% | 12.9% | -5.7% | -10.6% | 10.2% |
| Sector | 0.8% | 9.0% | -4.2% | -9.1% | 7.4% |
| Rank | 78/87 | 6/92 | 79/92 | 62/95 | 6/97 |
| Quartile | 4 | 1 | 4 | 3 | 1 |
Annualised performance
| Annualised | ||||
|---|---|---|---|---|
| 3 Years to 31/03/24 |
5 Years to 31/03/24 |
10 Years to 31/03/24 |
||
| Fund | -2.4% | 0.7% | 2.9% | |
| Sector | -2.2% | 0.5% | 2.5% | |
| Rank | 45/92 | 34/87 | 11/68 | |
| Quartile | 2 | 2 | 1 | |
Top 10 Holdings
| Stock | % Weight |
|---|---|
| ⅞% Green Gilt 2033 | 3.81 |
| NATIONAL WESTMINSTER BANK PLC | 2.72 |
| ZURICH FINANCE (IRELAND) DAC | 2.38 |
| AT&T INC | 2.36 |
| LEGAL & GENERAL GRP PLC | 2.19 |
| VERIZON COMMUNICATIONS INC | 2.10 |
| STANDARD CHARTERED PLC | 1.96 |
| ROTHESAY LIFE LTD | 1.95 |
| RABOBANK NEDERLAND | 1.71 |
| ING GROEP NV | 1.59 |
| Total | 22.78 |
Fund Aims
The Fund aims to deliver income with capital growth over the long term (5 years or more).
Fund Manager
Jack Willis joined Liontrust in April 2017 as part of the company's acquisition of Alliance Trust Investments. He started his career on the Alliance Trust Management training programme in September 2014 after graduating with First Class Honours in Mathematics with Finance from the University of Leeds and subsequently completing an MSc in Finance and Investment with Distinction, also at the University of Leeds. Following a successful period as a credit analyst within the team, he is now Co-manager on the Liontrust Monthly Income Bond Fund, Sustainable Future Corporate Bond Fund and GF Sustainable Future European Corporate Bond Fund. Jack is a CFA Charterholder.
Kenny Watson joined Liontrust in April 2017 after more than three years at Alliance Trust Investments. He is a Co-manager of the Liontrust Monthly Income Bond, Sustainable Future Corporate Bond Fund and GF Sustainable Future European Corporate Bond Fund. Prior to this, he worked for Ignis Asset Management for 15 years, specialising first in UK smaller companies, before moving to the fixed income team in 2004 where he was responsible for the sub-investment grade bond portfolios including the High Income Bond Fund. Prior to focusing on sub-investment grade bonds, he was part of the team managing investment grade life company mandates. He started his career at KPMG, after qualifying as a chartered accountant, before joining Murray Johnstone as a trainee fund manager in UK equities in 1994. Kenny has a BA in Accounting & Economics from the University of Strathclyde and is a chartered accountant.
Aitken Ross joined Liontrust in April 2017 as part of the company's acquisition of Alliance Trust Investments. He started his career on the Alliance Trust Management training programme in September 2010 after graduating in Accountancy and Finance (First Class Honours) from Dundee University and subsequently completing an MA in International Financial Analysis (Distinction) at Newcastle University. Following a successful period as an analyst within the team, he is now Co-manager on the Liontrust Monthly Income Bond Fund, Sustainable Future Corporate Bond Fund and GF Sustainable Future European Corporate Bond Fund. Aitken is a CFA Charterholder.
Fund Overview
| Mid (18/04/2024) | 70.51p |
| Distribution yield | 4.16% |
| Underlying yield | - |
| Fund size (31/03/2024) | £666.56m |
| Number of holdings | 78 |
| Entry Charge | 0.00% |
| Ongoing Charges | 0.56% |
| Launch date | 19/02/2001 |
Asset Allocation
| UK Corporate Bonds | 40.50% | |
| International Bonds | 35.21% | |
| Cash and Equivalents | 7.48% | |
| UK Gilts | 3.81% | |
| UK Equities | 1.96% | |
| Other Assets | 11.04% |
Commentary
Corporate bond markets ended the year on a positive note, and continued their outperformance of government bonds. New issue activity was relatively light as the holiday season approached, and investors focused their attention on the US. The Federal Reserve’s decision to maintain its asset purchase programme, at least until US unemployment falls back to 6.5 per cent, was welcomed by investors. In view of protracted negotiations between president and congress to avert the looming ‘fiscal cliff’ of tax hikes and spending cuts in the New Year, we actively managed the interest rate sensitivity of the portfolio during the month. At the end of December, the portfolio was positioned for an anticipated period of weakness in the gilt market in the early weeks of 2013. Activity was relatively light last month. We sold down our holding in US telecoms operator AT&T after a review of the company’s rating on SRI criteria highlighted concerns over its corporate governance record and caused us to downgrade its sustainability rating. We participated in a new issue of 20-year bonds from Notting Hill Housing Association, which came to the market on an attractive valuation and provides significant exposure to the affordable accommodation sector.
Important Information
Source of portfolio data: Broadridge. Source of performance data: FE fundinfo. Please remember that past performance is not a reliable indicator of future performance. The figures shown are intended only to demonstrate performance history of the fund and take no account of product charges. Fund performance is based upon the movement of the daily price and is shown as total return in GBP with net income reinvested. The value of your client's investment may go down as well as up and the fund value may be less than the payments your client has made. Please also note that our charges may vary in the future and may be higher than they are now.
This factsheet is for investment professionals and is for information purposes only. You should refer to your client's policy documentation and supporting brochures for fund availability, investment strategy, any product information and charges. Every care has been taken in populating this output, however it must be appreciated that neither Broadridge, Prudential nor their sources guarantee the accuracy, adequacy or completeness of this report or make any warranties regarding results from its usage.
Asset Allocation
| UK Corporate Bonds | 40.50% | |
| International Bonds | 35.21% | |
| Cash and Equivalents | 7.48% | |
| UK Gilts | 3.81% | |
| UK Equities | 1.96% | |
| Other Assets | 11.04% |
Bond Sector Breakdown
| Industry | Supersector | Sector | Subsector | ||
|---|---|---|---|---|---|
| Bonds | 79.51% | - | - | - | |
| Non-Classified | 13.00% | - | - | - | |
| Cash and Equivalents | 7.48% | - | - | - | |
Regional Allocation
| UK | 46.26% | |
| Non-Classified | 22.53% | |
| Developed Europe - Excl UK | 17.59% | |
| Cash and Equivalents | 7.48% | |
| North America | 6.14% |
Fixed Interest Currencies
| Pound Sterling | 67.26% | |
| Non-Fixed Interest Assets | 17.15% | |
| Euro | 7.29% | |
| US Dollar | 4.97% | |
| Cash | 3.33% |
Regional Breakdown
| Region | Country | ||
|---|---|---|---|
| UK | 46.26% | - | |
United Kingdom
|
- | 46.26% | |
| Non-Classified | 22.53% | - | |
| Developed Europe - Excl UK | 17.59% | - | |
France
|
- | 6.65% | |
Netherlands
|
- | 6.33% | |
Ireland
|
- | 1.53% | |
Denmark
|
- | 1.10% | |
Spain
|
- | 1.00% | |
Germany
|
- | 0.97% | |
| Cash and Equivalents | 7.48% | - | |
| North America | 6.14% | - | |
United States
|
- | 6.14% | |
Fixed Interest Maturity Profile
| < 5Yr Maturity |
|
4.75% |
| 5Yr - 10Yr Maturity |
|
41.92% |
| 10Yr - 15Yr Maturity |
|
11.37% |
| > 15Yr Maturity |
|
21.48% |
| Cash And Equivalents |
|
7.48% |
| Unknown Maturity |
|
11.04% |
| Other Asset Types |
|
1.96% |
Fixed Interest Quality Profile
| AA |
|
5.04% |
| A |
|
19.70% |
| BBB |
|
37.38% |
| Unknown Quality |
|
17.40% |
| Cash and Equivalents |
|
7.48% |
| Other Asset Types |
|
13.00% |
Top 10 Holdings
| Stock | % Weight | Sector | Country | |
|---|---|---|---|---|
| 1 | ⅞% Green Gilt 2033 | 3.81% | Bonds | United Kingdom |
| 2 | NATIONAL WESTMINSTER BANK PLC | 2.72% | Non-Classified | Non-Classified |
| 3 | ZURICH FINANCE (IRELAND) DAC | 2.38% | Bonds | Non-Classified |
| 4 | AT&T INC | 2.36% | Bonds | United States |
| 5 | LEGAL & GENERAL GRP PLC | 2.19% | Bonds | United Kingdom |
| 6 | VERIZON COMMUNICATIONS INC | 2.10% | Bonds | United States |
| 7 | STANDARD CHARTERED PLC | 1.96% | Non-Classified | United Kingdom |
| 8 | ROTHESAY LIFE LTD | 1.95% | Bonds | United Kingdom |
| 9 | RABOBANK NEDERLAND | 1.71% | Bonds | Netherlands |
| 10 | ING GROEP NV | 1.59% | Bonds | Netherlands |
Important Information
The Industry Classification Benchmark is a product of FTSE International Limited and has been licensed for use. This factsheet is for investment professionals and is for information purposes only. Should you wish to present any of this content to your client, please refer to similar pages on pru.co.uk. You should refer to your client’s policy documentation and supporting brochures for fund availability, investment strategy, any product information and charges. Every care has been taken in populating this output, however it must be appreciated that neither Broadridge, Prudential nor their sources guarantee the accuracy, adequacy or completeness of this information or make any warranties regarding results from its usage.
Identification Codes
| Sedol Code | 3002906 |
| Mex Code | NUSCB2 |
| Isin Code | GB0030029069 |
| Citi Code | CU97 |
Fund Charges
| Entry Charge | 0.00% |
| Ongoing Charges | 0.56% |
Aims and Benchmark
| Aims | The Fund aims to deliver income with capital growth over the long term (5 years or more). |
| Benchmark | IBOXX GBP Corporate All Maturities |
| Benchmark Category | Comparator |
| IA Sector | £ Corporate Bond |
Fund Background
| Valuation frequency | Daily |
| Valuation point | 12:00 |
| Fund type | OEIC |
| Launch price | £0.50 |
| Fund currency | Pound Sterling |
| Fund domicile | United Kingdom |
| ISA allowable | Yes |
| SIPP allowable | Yes |
Distribution Details
| Income frequency | Quarterly |
| Distribution Type | Interest |
| Distribution Payment Basis | Net |
Distribution Dates
| Ex dividend date(s) | Income payment date(s) |
|---|---|
| 01 February | 31 March |
| 01 May | 30 June |
| 01 August | 30 September |
| 01 November | 31 December |
Ratings
| FE Crown |  |
Effect of Deductions
| Assuming a growth rate of 6.00% | Assuming a growth rate of 7.00% |
|---|---|
| 4.50% | 5.50% |
Fund Administration
| Fund Trustee/Depository | The Bank of New York Mellon (International) Limited |
| Fund Administrator | The Bank of New York Mellon (International) Limited |
| Fund Registrar | The Bank of New York Mellon SA/NV |
| Fund Custodian | The Bank of New York Mellon (International) Limited |
Group Details
| Group name | Liontrust Fund Partners LLP |
| Group address | 2 Savoy Court London WC2R 0EZ |
| Group telephone | 020 7412 1766 |
| Dealing telephone | 020 7964 4774 |
| info@liontrust.co.uk | |
| Homepage | www.liontrust.co.uk |
| Fax number | 020 7412 1779 |
Dealing
| Minimum Investment | £500000 |
| Minimum Top Up | £25000 |
| Minimum Regular Saving | - |
| Settlement Period: Buy | 4 days |
| Settlement Period: Sell | 4 days |
| Pricing Basis | Forward |
| Dealing Decimals | 3 |
Important Information
Ongoing charges may vary in the future and may be higher than they are now.
This factsheet is for investment professionals and is for information purposes only. You should refer to your client's policy documentation and supporting brochures for fund availability, investment strategy, any product information and charges. Every care has been taken in populating this output, however it must be appreciated that neither Broadridge, Prudential nor their sources guarantee the accuracy, adequacy or completeness of this report or make any warranties regarding results from its usage.
Risk Analysis
| Ratio | Value |
|---|---|
| Alpha | 1.04 |
| Beta | 1.34 |
| Sharpe | -0.01 |
| Standard Deviation | 12.06 |
| Info Ratio | 0.00 |
Risk Factors
| Risk Factor | Yes / No |
|---|---|
| Charges to Capital | Yes |
| Emerging Markets | Yes |
| Concentrated Portfolio | No |
| Smaller Companies | No |
| High Yield Bonds | No |
| Sector Specific | No |
| Geared Investments | No |
| Value of Investments | Yes |
| Investments Long Term | Yes |
| Property | No |
| Exchange Rate | Yes |
| Higher Risk | No |
| Performance Charges | No |
| Derivative Exposure | Yes |
| Offshore | No |
| Income Eroding Capital Growth | Yes |
| Umbrella Liabilities | Yes |
| New Fund | No |
| Solvency of Depository | No |
| Solvency of Bond Issuers | Yes |
| Ethical Restrictions | Yes |
| Liquidity | No |
| Returns Are Not Guaranteed | Yes |
| Inflation | Yes |
| Taxation and Tax Relief | Yes |
Fund Specific Risks
Charges to Capital
Part, or all of the periodic annual management fee(s) and expenses may be charged to capital which could increase the potential for the capital value of your investment to be eroded. Your capital could also decrease if income withdrawals exceed the growth rate of the fund(s).
Emerging Markets
The fund invests in emerging markets. Generally less well regulated than the UK. There is an increased chance of political and economic instability with less reliable custody, dealing and settlement arrangements. The market(s) can be less liquid. If a fund investing in markets is affected by currency exchange rates, the investment could either increase or decrease. These investments therefore carry more risk.
Value of Investments
The value of investments, and any income can fall, as well as rise, so you could get back less than you invested. Neither capital nor income is guaranteed.
Investments Long Term
Investments should be regarded as long term and are not suitable for money which may be needed in the short term, you should always have a sufficient cash reserve.
Exchange Rate
This fund invests in securities outside the UK. The value of investments and any income from them may therefore decrease or increase as a result of changes in exchange rates between currencies.
Derivative Exposure
The fund invests in derivatives as part of its investment strategy, over and above their use for Efficient Portfolio Management (EPM). Investors should be aware that the use of these instruments can, under certain circumstances, increase the volatility and risk profile of the Fund beyond that expected of a fund that only invests in equities. The fund may also be exposed to the risk that the company issuing the derivative may not honour their obligations which in turn could lead to losses arising.
Income Eroding Capital Growth
The fund focuses on providing an income, which can reduce the prospects for capital growth, and in some cases the capital value may fall.
Umbrella Liabilities
If the liabilities of one fund were to exceed its assets, the other funds within the scheme might have to transfer across money to cover the liabilities.
Solvency of Bond Issuers
If the fund you choose invests in bonds there is a risk that the issuer may default, resulting in a loss to the portfolio.
Ethical Restrictions
The fund is unable to invest in certain sectors and companies due to the ethical criteria used to select investments for the fund.
Returns Are Not Guaranteed
What you receive when you sell your investment is not guaranteed; it depends on how your investments perform.
Inflation
Inflation will reduce the real value of your investments in future.
Taxation and Tax Relief
Levels of taxation and tax relief are subject to change.
Important Information
The risk factor definitions are provided by Broadridge. These definitions may differ from those of Prudential or any underlying fund manager. The data itself is provided by Prudential or the underlying fund manager. This factsheet is for investment professionals and is for information purposes only. Should you wish to present any of this content to your client, please refer to similar pages on pru.co.uk. You should refer to your client’s policy documentation and supporting brochures for fund availability, investment strategy, any product information and charges. Every care has been taken in populating this output, however it must be appreciated that neither Broadridge, Prudential nor their sources guarantee the accuracy, adequacy or completeness of this information or make any warranties regarding results from its usage.
Important Information
Source of performance data: FE fundinfo. We can’t predict the future. Past performance isn’t a guide to future performance. The figures shown are intended only to demonstrate performance history of the fund, after allowing for the impact of ongoing charges, but take no account of product charges. Ongoing charges may vary in the future and may be higher than they are now. Fund performance is based upon the movement of the daily price and is shown as total return in GBP with income reinvested. The value of your client’s investment can go down as well as up and the amount your client gets back may be less than they put in. This factsheet is for investment professionals and is for information purposes only. Should you wish to present any of this content to your client, please refer to similar pages on pru.co.uk. You should refer to your client’s policy documentation and supporting brochures for fund availability, investment strategy, any product information and charges. Every care has been taken in populating this output, however it must be appreciated that neither Broadridge, Prudential nor their sources guarantee the accuracy, adequacy or completeness of this information or make any warranties regarding results from its usage. "Prudential" is a trading name of The Prudential Assurance Company Limited, which is registered in England and Wales. Registered office at 10 Fenchurch Avenue, London EC3M 5AG. Registered number 15454. Authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority.