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GF Sustainable Future European Corporate Bond Fund

Fund launch date 28/05/2018
Fund size €32,181,884.34
Number of holdings 59
Managed by current team for 5 years
Currently viewing:

The Fund

The Fund aims to maximise total returns (a combination of income and capital growth) over the long term (5 years or more). The Fund seeks to achieve this objective predominantly through investing in euro denominated investment grade corporate bonds or non-euro denominated corporate bonds hedged back into euros. All investments will be expected to conform to our ESG criteria.

SFDR Article 9

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
29/05/2018
Class Launch Date
29/05/2018
Price
Single Price
€9.690
Offer Price
-
Price Date
24/04/2024

Awards and Ratings

Citywire fund manager rating Citywire Manager Rating: A
Morningstar Rating Morningstar Rating: 4
Morningstar Sustainability rated 4 Morningstar Sustainability Rating: 4
3D Investing 3D Investing Fund Rating: A

Meet the team

Fixed Income investments for the Liontrust Sustainable Investment team are managed by 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 Alliance Trust Investments (ATI). The team joined Liontrust in April 2017 as part of the acquisition of ATI.

Meet the tea

"Many large cap banks are looking to shape the energy transition and we aim to invest in those most committed to improving environmental exposure and demonstrating best practice to deliver on this."

Our Investment Process

Macroeconomic analysis is used to determine the team’s top-down view of the world and this helps shape all aspects of portfolio construction and appetite for risk. After this, the managers aim to focus on high-quality issuers and believe this can reduce bond specific risk.

The fund managers’ assessment of quality is a distinctive part of the process, in which they combine traditional credit analysis with a detailed sustainability assessment based on the proprietary model. The managers assess individual bonds for whether they believe they offer attractive long-term returns and for absolute and relative valuations. 
The managers seek the best value bonds issued by the high-quality issuers identified, looking at bonds issued across the capital structure, along the maturity curve, or issued into the primary credit markets (UK, US and Europe). 
Sustainability analysis is fully integrated into the investment process, helping to identify high-quality companies that the managers believe will both enhance returns and reduce issuer specific tail-risk. 
Periods of rising interest rates and inflation would typically present a performance headwind to the SF Fixed Income strategies due to the likelihood of an increase in government bond yields (and falling prices). Meanwhile a deterioration in the outlook for corporate profits is also likely to have a negative impact through a widening of corporate bond spreads – the additional yield at which corporate bonds trade relative to ‘risk-free’ government bonds.
Periods of falling yields and tightening credit spreads present a much more benign backdrop for bond investors.
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 Sustainable Future European Corporate Bond 9.5 -9.7 -5.9 9.6 -5.1

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 Sustainable Future European Corporate Bond -0.8 -0.3 6.8 -0.4 6.4 -8.6 -5.6 - -3.1

Source: FE fundinfo as at 25/04/2024. Performance figures are shown in EUR. 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 (%)

BUNDESREPUBLIK DEUTSCHLAND 0.5% BDS 15/08/27 EUR0.01
5.89
STANDARD CHARTERED PLC 4.196% 03/04/2032
3.39
BNP PARIBAS UNDATED FLTG RATE NOTES EUR0.01
3.18
SWISS REINSURANCE CO LTD 2.534% BDS 30/04/50 EUR100000
3.09
BARCLAYS PLC 7.09% RST SNR CALL NTS 06/11/29 GBP100000
2.85
BANCO SANTANDER, S.A. FRN 20/10/31 EUR100000
2.58
SOCIETE GENERALE SA FRN 30/06/31 EUR100000
2.51
BRITISH TELECOMMUNICATIONS PLC 3.375% NTS 30/08/32 EUR100000
2.10
BPCE SA MTN RegS
1.97
LLOYDS BK GR VAR Apr34 EMTN
1.94

Sector Breakdown (%)

Financials
43.61
Utilities
15.33
Telecommunications
13.38
Real Estate
7.06
Government Bonds
5.89
Consumer Services
5.43
Money Market
3.46
Health Care
2.60
Industrials
1.89
Financial Services
1.30

Geographic Breakdown (%)

UK
31.85
Netherlands
13.43
France
12.29
Germany
8.46
Luxembourg
8.17
Spain
7.21
USA
5.40
Italy
4.26
Cash & Cash Equivalents
3.46
Denmark
2.78
Ireland
2.64

Credit Rating (%) *

Source: FE fundinfo

Key features of the Fund

The Fund aims to maximise total returns (a combination of income and capital growth) over the long term (five years or more) through investment in sustainable securities, primarily consisting of European investment grade fixed income securities. The Fund invests at least 80% of its assets in bonds issued by companies which are denominated in Euro or non-Euro corporate bonds that are hedged back into Euros. The focus is on investment grade corporate bonds (i.e. those which meet a specified level of creditworthiness). The Fund invests in companies that provide or produce more sustainable products and services as well as having a more progressive approach to the management of environmental, social and governance (ESG) issues. Although the focus is on investment grade corporate bonds, the Fund may also invest in government bonds, high yield bonds, cash or assets that can be turned into cash quickly. Where the Fund invests in non-Euro assets, the currency exposure of these investments will generally be hedged back to Euro. Up to 10% 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 10% 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.
5 years or more.
3 (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 IBOXX Euro Corporate All Maturities (the "Benchmark") by virtue of the fact that it uses the benchmark(s) for performance comparison purposes. The benchmark(s) are 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 9 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
Sedol code
BYWSTD5
ISIN code
IE00BYWSTD52
Charges
Initial charge
-
Ongoing Charges Figure
1.07%
Included within the OCF is the Annual Management Charge
1.00%

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

Additional resources

The Sustainable team’s Annual Review measures the impact of their investments and analyses the success of their engagement initiatives. 

Download >

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.

Download >

Learn more about how Liontrust is complying with the SFDR requirements.

Download >

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Liontrust Sustainable Future Funds

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Fund Manager Insights

See all related
Fund updates
Liontrust GF SF European Corporate Bond Fund Q1 2024 review
icon 26 April 2024
Commentaries Sustainable Equity
Lionesses Multiple authors
Sustainable Fixed Income: Q1 2024 review
icon 11 April 2024
Kenny Watson and Jack Willis Q1 2024 review
Fund updates
Liontrust GF SF European Corporate Bond Fund Q4 2023 review
icon 17 January 2024
Commentaries Sustainable Equity
Fund updates
Liontrust GF SF European Corporate Bond Fund Q3 2023 review
icon 23 October 2023
Commentaries Sustainable Equity
Fund updates
Liontrust GF SF European Corporate Bond Fund Q2 2023 review
icon 19 July 2023
Commentaries Sustainable Equity
Fund updates
Liontrust GF SF European Corporate Bond Fund Q1 2023 review
icon 20 April 2023
Commentaries Sustainable Equity

How to invest in Liontrust funds

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Direct with Liontrust

Key Risks 

Past performance does not predict future returns. You may get back less than you originally invested. All investments will be expected to conform to our social and environmental criteria. Overseas in-vestments 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. Bonds that produce a higher level of income usually also carry greater risk as such bond issuers may have difficulty in paying their debts. 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 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. Counter-party 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 Sustainable Future European Corporate Bond Fund
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Thematic breakdowns Thematic breakdown
Holdings Holdings
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