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GF High Yield Bond Fund

Fund launch date 07/06/2018
Fund size $30,536,130.49
Number of holdings 85
Managed by current team for 5 years
Currently viewing:

The Fund

The Fund was launched in June 2018 and is managed by Phil Milburn, Donald Phillips and Sharmin Rahman. The aim of the Fund is to maximise the total return over a long-term horizon (at least 5 years) through a combination of income and capital. The Fund invests predominantly in high yield and selected investment grade bond and credit markets worldwide (including developed and emerging markets). The fund managers seek to take advantage of market inefficiencies through understanding the economic environment, bottom up stock analysis and flexibility over duration, credit, sector and geographical allocations. The managers only commit cash to the market when they believe investors will receive a return that justifies the risk they are taking.

SFDR Article 8

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

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
08/06/2018
Class Launch Date
08/06/2018
Comparator Benchmark 1
ICE BofA Global High Yield Hedge USD
Price
Single Price
$12.299
Offer Price
-
Price Date
16/04/2024

Awards and Ratings

FMOYA High Yield Bond - Highly commended Investment Week Fund Manager of the Year Awards 2022 £ High Yield Bond
Citywire fund manager rating Citywire Manager Rating: +

Meet the team

Before joining Liontrust in early 2018, Phil Milburn worked at Kames Capital for 14 years, where he was Head of Investment Strategy. Donald Phillips also joined Liontrust in 2018 and was previously an investment manager in the Credit team at Baillie Gifford and worked with Phil at Kames Capital for three years. Sharmin Rahman joined Liontrust in 2022 and was previously a Senior Portfolio Manager and Analyst at AXA Investment Managers.

Meet the tea

Our Investment Process

The process is designed to take advantage of inefficiencies in fixed income markets through a thorough understanding of the economic environment and detailed bottom up stock analysis.
The process uses the same framework to garner a thorough understanding of the economic environment and for bottom up stock analysis: fundamentals, valuations and technicals (FVT). 
These three factors are examined regardless of whether the managers are considering a duration position or an investment in a speculative grade rated company. In judging whether a company is attractive long-term investment, the managers analyse the following factors, which they call PRISM.
  • Protections: operational and contractual, such as structure and covenants
  • Risks: credit, business and market
  • Interest cover: leverage and other key ratios
  • Sustainability: of cash flows and environmental, social and governance (ESG) factors
  • Motivations: of management and shareholders
While the Fund has neutral target levels of duration risk and asset allocation, the investment team takes a high conviction approach which can lead positioning to diverge significantly from neutral levels and benchmark profiles. This results in periods when investment performance diverges from benchmark indices.
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: Mar 24 Mar 23 Mar 22 Mar 21 Mar 20
Liontrust GF High Yield Bond 12.5 -6.2 -2.1 23.8 -7.2
ICE BofA Global High Yield Hedge USD 11.6 -3.1 -3.3 24.2 -7.3

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 GF High Yield Bond -0.6 1.1 9.1 1.6 10.5 1.6 16.2 - 23.0
ICE BofA Global High Yield Hedge USD -0.9 0.7 8.0 0.6 9.3 2.1 17.2 - 24.8

Source: FE fundinfo as at 16/04/2024. Performance figures are shown in USD. 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 (%)

Cheplapharm Arzneimittel GmbH Anleihe v.23(26/30) Reg.S
2.31
SPA HLDGS 3 4.875% BDS 04/02/28 USD200000
2.23
HT TROPLAST AG 9.375% 07/15/2028
2.18
CTEC II GMBH 5.25% BDS 15/02/30 EUR1000REG S
2.17
AVANTOR FUNDING INC 3.875% BDS 15/07/28 EUR100000
2.00
IQVIA HOLDINGS INC. 2.875% BDS 15/06/28 EUR1000
1.94
TRANSDIGM INC
1.93
ILIAD HLDGS SAS 7% SNR SECD NTS 15/10/28 USD200000144A
1.93
ZIGGO BOND CO BV 5% BDS 15/01/32 USD1000144A
1.92
BANCO BILBAO VIZCAYA ARGENTARIA SA MTN RegS
1.76

Sector Breakdown (%)

Capital Goods
11.57
Services
10.49
Basic Industries
10.35
Health Care
9.90
Banks
9.55
Telecommunications
8.54
Financial Services
8.23
Insurance
6.92
Real Estate
4.61
Electronics
4.39
Automotive
3.64
Government Bonds
2.99
Media
2.47
Money Market
1.49
Energy
1.46
Utilities
1.21
Retail
1.06
Consumer Goods
1.06

Geographic Breakdown (%)

USA
28.93
UK
16.13
Netherlands
10.39
Germany
9.92
Luxembourg
6.55
France
6.50
Italy
4.63
Spain
4.29
Sweden
2.53
Finland
2.23
Cash & Cash Equivalents
1.49
Switzerland
1.32
Australia
1.28
Belgium
1.23
Japan
0.94
Ireland
0.90
Austria
0.65

Credit Rating *

Key features of the Fund

The investment objective of the Fund is to maximise total returns over the long term through a combination of income and capital growth, through investment in the global fixed income market. The Fund invests at least 50% of its assets in high yield bonds (i.e. bonds classified as below investment grade) issued by companies worldwide which are denominated in US Dollar or non-US Dollar bonds that are hedged back into US Dollar. Although the focus is on high yield corporate bonds, the Fund may also invest in investment grade corporate bonds, government bonds, cash or assets that can be turned into cash quickly. The Fund invests in developed and emerging markets, with a maximum of 20% of its net assets invested in emerging markets. Where the Fund invests in non-US Dollar assets, the currency exposure of these investments will generally be hedged back to US Dollar. Up to 5% of the Fund's currency exposure may not be hedged (i.e. the Fund may be exposed to the risks of investing in another currency for up to 5% of its assets). The Fund may invest both directly, and through the use of derivatives. The use of derivatives may generate market leverage (i.e. where the Fund takes market exposure in excess of the value of its assets). The Fund has both Hedged and Unhedged share classes available. The Hedged share classes use forward foreign exchange contracts to protect returns in the base currency of the Fund. The fund manager considers environmental, social and governance ("ESG") characteristics of issuers when selecting investments for the Fund.
5 years or more.
5 (Please refer to the Fund PRIIP KID for further detail on how this is calculated)

Active
The Fund is considered to be actively managed in reference to the ICE BofAML Global High Yield Hedge USD Index (the “Benchmark”) by virtue of the fact that it uses the Benchmark for performance comparison purposes. The Benchmark is not used to define the portfolio composition of the Fund and the Fund may be wholly invested in securities which are not constituents of the Benchmark.
The Fund is a financial product subject to Article 8 of the Sustainable Finance Disclosure Regulation (SFDR).
Additional Information
Minimum initial investment
$1,000
Minimum additional investment
$1,000
Ex-dividend date
1 January, 1 April, 1 July, 1 October
Distribution date
31 January (Final), 30 April, 31 July, 31 October
Sedol code
BFXZFF6
ISIN code
IE00BFXZFF67
Charges
Initial charge
-
Ongoing Charges Figure
1.17%
Included within the OCF is the Annual Management Charge
1.10%

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

How to invest in Liontrust funds

Through a fund platform
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. The fund manager considers environmental, social and governance ("ESG") characteristics of issuers when selecting investments for the Fund. 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. Low rated (high yield) or equivalent unrated debt securities of the type in which the Fund will invest generally offer a higher return than higher rated debt securities, but also are subject to greater risks that the issuer will default. 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 shortdated bonds. A credit risk arises should one or more of these counterparties be unable to return the deposited cash. The Fund invests in emerging markets which carries a higher risk than investment in more developed countries. This may result in higher volatility and larger drops in the value of the fund over the short term. 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. 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. The decision to invest in a fund should take into account all the characteristics and objectives of the fund (inclusive of sustainability features) as described in the prospectus. Further information can be found here: https://www.liontrust.eu/sfdr. 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
GF High Yield Bond Fund
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