Liontrust Sustainable Future Corporate Bond Class 2 Inc

Essentials Portfolio Analysis Background Data Investment Risk Performance View PDF Factsheet
Portfolio data accurate as at:

Performance

Discrete performance - to last month end

31/03/16
to
31/03/17
31/03/17
to
31/03/18
31/03/18
to
31/03/19
31/03/19
to
31/03/20
31/03/20
to
31/03/21
Fund 12.3% 2.6% 2.6% -1.4% 12.9%
Sector 8.9% 1.7% 3.0% 0.8% 9.0%
Rank 10/85 18/93 61/94 85/97 6/99
Quartile 1 1 3 4 1

Annualised performance

Annualised
3 Years to
31/03/21
5 Years to
31/03/21
10 Years to
31/03/21
Fund 4.5% 5.6% 5.9%
Sector 4.2% 4.6% 5.1%
Rank 34/94 14/85 18/65
Quartile 2 1 2

Top 10 Holdings

Stock % Weight
Standard Chartered 2.93
At&t 2.58
Royal Bk Scotlnd Grp 2.39
United Utilities Wat Fin 2.25
1½% Treasury Gilt 2026 2.14
Vodafone Group 2.13
Verizon Communications 1.92
Cellnex Finance Co 1.88
Hsbc Holdings 1.80
Aviva 1.68
Total 21.70

Fund Aims

The Fund aims to deliver income with capital growth over the long term (5 years or more).

Fund Manager

Aitken Ross manager for 7 years and 1 months

Photo of Aitken Ross Aitken transferred to Liontrust in April 2017 from Alliance Trust Investments (ATI). Aitken joined the 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. Aitken is also a CFA charterholder.

Kenny Watson manager for 7 years and 6 months

Photo of Kenny Watson Kenny transferred to Liontrust in April 2017 from Alliance Trust Investments (ATI). Kenny joined ATI in September 2013. 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 the 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, is a chartered accountant and is an Associate of the UK Society of Investment Professionals.

Stuart Steven manager for 8 years and 7 months

Photo of Stuart Steven Stuart Steven has been involved in managing multi-currency fixed income portfolios since 1991, with experience in managing teams and marketing fixed income funds. He has an additional 5 years’ related investment experience. He transferred to Liontrust in April 2017 from Alliance Trust Investments where he had been since December 2009 and was Co-Fund Manager of Alliance Trust Monthly Income Bond Fund and the Alliance Trust Dynamic Bond Fund. Following a period in the industry, Stuart joined Britannic Asset Management in 1994 and became Head of Corporate Bonds with responsibility for managing investment grade portfolios for retail and institutional funds. In 2000 he joined Legal & General as Director, Corporate Bonds, where until 2006, he managed a highly successful team of credit specialists managing multi-currency assets. He joined Scottish Widows Investment Partnership in 2008 as Investment Director, managing a number of funds, including investment grade and absolute return funds.

Fund Overview

Mid (09/04/2021) 87.00p
Distribution yield 2.94%
Underlying yield -
Fund size (28/02/2021) £730.65m
Number of holdings 91
Entry Charge 0.00%
Ongoing Charges 0.59%
Launch date 19/02/2001

Asset Allocation

pie chart
  UK Corporate Bonds 67.59%
  International Bonds 27.30%
  UK Gilts 3.00%
  Cash and Equivalents 2.12%

Performance comment

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.

Portfolio data accurate as at: 28/02/21

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.

Portfolio data accurate as at:

Asset Allocation

pie chart
  UK Corporate Bonds 67.59%
  International Bonds 27.30%
  UK Gilts 3.00%
  Cash and Equivalents 2.12%

Bond Sector Breakdown

Expand allCollapse all
Industry Supersector Sector Subsector
 
Bonds 97.88% - - -
 
Cash and Equivalents 2.12% - - -

Regional Allocation

pie chart
  UK 70.58%
  Developed Europe - Excl UK 20.68%
  North America 4.49%
  Cash and Equivalents 2.12%
  Non-Classified 2.12%

Fixed Interest Currencies

pie chart
  Pound Sterling 78.57%
  US Dollar 14.80%
  Euro 4.51%
  Cash 2.12%

Regional Breakdown

Expand allCollapse all
Region Country
 
UK 70.58% -
 
United Kingdom - 70.58%
 
Developed Europe - Excl UK 20.68% -
 
Netherlands - 4.40%
 
France - 4.01%
 
Italy - 3.37%
 
Luxembourg - 2.12%
 
Denmark - 2.07%
 
Ireland - 1.94%
 
Spain - 1.88%
 
Germany - 0.89%
 
North America 4.49% -
 
United States - 4.49%
 
Cash and Equivalents 2.12% -
 
Non-Classified 2.12% -

Fixed Interest Maturity Profile

< 5Yr Maturity
 
 
4.54%
5Yr - 10Yr Maturity
 
 
33.12%
10Yr - 15Yr Maturity
 
 
20.19%
> 15Yr Maturity
 
 
40.03%
Cash And Equivalents
 
 
2.12%

Fixed Interest Quality Profile

AA
 
 
3.00%
A
 
 
22.62%
BBB
 
 
49.50%
Sub-Investment Grade
 
 
7.12%
Unknown Quality
 
 
15.64%
Cash and Equivalents
 
 
2.12%

Top 10 Holdings

Stock % Weight Sector Country
1 Standard Chartered 2.93% Bonds United Kingdom
2 At&t 2.58% Bonds United States
3 Royal Bk Scotlnd Grp 2.39% Bonds United Kingdom
4 United Utilities Wat Fin 2.25% Bonds United Kingdom
5 1½% Treasury Gilt 2026 2.14% Bonds United Kingdom
6 Vodafone Group 2.13% Bonds United Kingdom
7 Verizon Communications 1.92% Bonds United States
8 Cellnex Finance Co 1.88% Bonds Spain
9 Hsbc Holdings 1.80% Bonds United Kingdom
10 Aviva 1.68% Bonds United Kingdom

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 0.59%

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
Nisa 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 Crown Rating of 2

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
Email 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 -0.64
Beta 1.24
Sharpe 0.14
Standard Deviation 7.58
Info Ratio 0.12

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.