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Sustainable Future Corporate Bond Fund

Single Price 70.680p as of 20/12/2024
Fund launch date 19/02/2001
Fund size £578,171,539.84
Number of holdings 78

The Fund

The Fund aims to deliver income with capital growth over the long term (5 years or more) through using the Sustainable Future investment process. At least 80% of the Fund is invested in investment grade corporate bonds that are sterling denominated or hedged back to sterling. The Fund can also invest in government bonds and other fixed income securities. 

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

Read latest fund update
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
20/08/2012
Managed by Current Team for
12 years
Class Launch Date
19/02/2001
ISIN code
GB0030029069
Comparator Benchmark 1
Markit iBoxx GBP Corporates
Comparator Benchmark 2
IA Sterling Corporate Bond

Awards and Ratings

Professional Pensions Investment Awards Sustainable Corproate Bond Manager of the Year Professional Pensions Investment Awards 2023 Sustainable Corporate Bond Manager of the Year
Professional Pensions Investment Awards 2022 Sustainable Corporate Bond Manager of the Year
Citywire fund manager rating Citywire Manager Rating: A
Morningstar Sustainability rated 4 Morningstar Sustainability Rating: 4
Rayner Spencer Mills RSMR Responsible Rated Fund
Square Mile Responsible A Square Mile Responsible Rating: A
3D Investing 3D Investing Certified Fund

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

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: Sep 24 Sep 23 Sep 22 Sep 21 Sep 20
Liontrust Sustainable Future Corporate Bond 14.3 11.3 -26.1 2.4 4.0
Markit iBoxx GBP Corporates 10.7 8.7 -23.6 0.3 4.3
IA Sterling Corporate Bond 10.9 7.3 -20.5 1.3 4.2
Quartile Ranking 1 1 4 1 2

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 Sustainable Future Corporate Bond 0.6 -1.7 1.6 2.1 2.5 -7.6 -2.1 26.8 130.5
Markit iBoxx GBP Corporates 0.8 -0.4 2.1 2.2 2.5 -9.6 -4.0 24.7 184.5
IA Sterling Corporate Bond 0.5 -0.8 1.9 2.4 2.7 -7.0 -0.7 22.6 127.9
Quartile Ranking 2 4 3 3 3 2 3 1 -

Source: FE fundinfo as at 20/12/2024. Performance figures are shown in GBX. 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 (%)

AT&T INC. 7% BDS 30/04/40 GBP(VAR)
2.29
HIS MAJESTY`S TREASURY 0.875% GREEN GILT 31/07/33 GBP0.01
2.23
LEGAL & GENERAL GROUP 4.5% RST SUB NTS 01/11/50 GBP100000
2.18
VERIZON COMMUNICATIONS INC. 3.375% BDS 27/10/36 GBP100000
2.10
STANDARD CHARTERED PLC ADS EACH REPR 1 NON-CUM RED PRF SH`REGS`
2.08
ROTHESAY LIFE 7.734%
2.01
ZURICH FINANCE (IRELAND) DESIGNATED ACTIVITY COMPANY VAR MTN 23/11/52 GBP100000
1.90
SEVERN TRENT WATER 5.875 38-24 31/07S
1.81
NATWEST GROUP PLC FXD TO FXD RT RST NTS 06/06/33 GBP100000 T2
1.76
BUNZL FINANCE PLC 3.375% 09/04/2032
1.64

Sector Breakdown (%)

Financials
41.47
Utilities
13.77
Telecommunications
10.47
Real Estate
8.25
Cash & Cash Equivalents
5.51
Financial Services
5.43
Industrials
5.21
Property
4.16
Government Bonds
2.23
Consumer Services
1.93
Mortgage & Secured Bonds
1.01
Asset/Mortgage-Backed Securities
0.50

Geographic Breakdown (%)

UK
67.27
France
6.21
USA
5.57
Cash & Cash Equivalents
5.51
Netherlands
4.62
Luxembourg
3.06
Ireland
2.92
Spain
1.92
Denmark
1.11
Germany
0.98
Italy
0.79

Credit Rating *

Source: FE fundinfo
Additional Information
Minimum initial investment
£500,000
Minimum additional investment
£25,000
Ex-dividend date
1 February, 1 May, 1 August, 1 November (Final)
Distribution date
31 March, 30 June, 30 September, 31 December (Final)
Sedol code
3002906
Charges
Initial charge
-
Ongoing Charges Figure
0.56%
Included within the OCF is the Annual Management Charge
0.50%

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

Sustainable Investment: Annual Review 2023

Read about the team’s investment performance and investee company engagement in 2023 and their 22 sustainable investment themes.

Meet the tea

Fund Manager Insights

See all related
Lionesses Kenny Watson, Aiken Ross & Jack Willis
Looking forward with optimism after a strong 2023 The Sustainable Investment Fixed Income team saw strong performances in 2023 despite an eventful year. So what lies ahead? They explain why they believe there are reasons to be bullish about investor’ returns in 2024.
icon 31 January 2024
Green city
Lionesses Sustainable Fixed Income team
Are bond yields attractive or could they rise further? Have bond yields peaked? Or could there be further to go and is now the time to invest?
icon 20 June 2023
Wind wheel

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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 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. 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 short-dated 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. 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. 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
Sustainable Future Corporate Bond Fund
View latest fund update
Holdings Holdings
Thematic breakdowns Thematic breakdown