Liontrust Monthly Income Bond Fund Class B Gross Accumulation

Sterling Bonds

New for 2019. A high and regular income

­Liontrust Monthly Income Bond is high up the performance list and has a reasonably high yield.­ This is paid monthly, making the fund an attractive option for those looking for a regular income from their investments.

Its managers, Stuart Steven, Kenny Watson and Aitken Ross, have more than 57 years of combined investment experience in managing fixed-income investments. Although the team is relatively new to Liontrust, having joined after its acquisition of Alliance Trust Investments in 2017, they have worked together on this strategy for a number of years. Steven has run the fund since its launch in 2010, with Ross joining the team in 2012 and Watson in 2013.

They aim to produce a high monthly income and some capital growth through investing mainly in corporate bonds, while also holding some government bonds.

Since launch, the fund has invested in shorter-dated bonds to lower the portfolio’s sensitivity to rising interest rates, but the managers have the flexibility to invest in longer-dated bonds as and when rates normalise.

FundCalibre rates this as an ‘Elite’ fund on the strength of the managers’ highly analytical and flexible process.

Th­ey focus on high-quality issues, which they believe can enable them to reduce bond-specific risk. ­They analyse a number of factors – from credit quality and the macroeconomic backdrop to environmental, social and governance concerns – to find high-quality companies. ­

They had a preference for bonds issued by banks, insurers and telecoms companies at the end of 2018, supported by attractive valuations and higher credit quality in these sectors.

Narrative and ratings content all as of 01 January 2019.

See all Money Observer rated funds
Name
Liontrust Monthly Income Bond Fund Class B Gross Accumulation
Manager
Liontrust Fund Partners LLP
Type
Open Ended Investment Company
ISIN
GB00B3Y38F63
Sector
£ Corporate Bond
Launched
06/10/2010
OCF
0.65 %
Risk Rating
3
3 Year Sharpe
1.33
3 Year Alpha
2.67
Yield
5 %
Benchmark
Markit iBoxx GBP Corp 5-15 TR
The Fund aims to produce a monthly income yield which together with capital growth will be in excess of the IBOXX GBP Corporates (5-15Y) index over the long term (rolling 5 years periods). The Fund will invest in a portfolio of assets which predominantly comprises corporate bonds, and also includes government bonds, whilst at the same time actively managing the interest rate exposure of the Fund. The Fund will pay interest distributions monthly. The Fund will hold investment-grade sterling corporate bonds, government bonds, non-sterling investment-grade corporate bonds and relevant derivative instruments. In addition the Fund may also invest from time to time in sub-investment grade bonds, covered bonds and preference shares. The Fund may also invest in collective investment schemes, other transferable securities and other debt instruments, cash and near cash deposits, warrants and money-market instruments.
Holding %
HSBC Bank plc 2.81% 5.06 %
Lloyds Bank plc 13% 4.89 %
United Kingdom of Great Britain and Northern Ireland 8% 4.76 %
Prudential plc 5.62% 3.14 %
AT&T Inc 7% 2.99 %
Standard Chartered plc 5.12% 2.98 %
Orange S.A. 8.12% 2.95 %
Cooperatieve Rabobank U.A. 4.62% 2.82 %
Deutsche Telekom International Finance B.V. 9.25% 2.71 %
British Telecommunications plc 9.12% 2.68 %
Name
Liontrust Fund Partners LLP
Address
NULL, London, United Kingdom
UCITS
Yes
Legal Structure
Open Ended Investment Company

Managers

Aitken Ross
Joined 03/01/2014

Aitken Ross transferred to 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 a fully qualified portfolio manager and is a named fund manager on the Liontrust Monthly Income Bond and Liontrust Sustainable Future Corporate Bond funds.

Kenny Watson
Joined 10/01/2013

Kenny Watson transferred to Liontrust in April 2017 after more than three years at Alliance Trust Investments. He is a co-manager of the Liontrust Monthly Income Bond and Liontrust Sustainable Future Corporate Bond funds. 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.

Stuart Steven
Joined 06/14/2010

Stuart Steven moved to Liontrust through the acquisition of Alliance Trust Investments in 2017, remaining the Head of the Sustainable Future Fixed Income team and also the Co-Fund Manager of Monthly Income Bond Fund and the SF Corporate Bond Fund. After working in 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 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. Stuart has been involved in managing multi-currency fixed income portfolios since 1994, with experience in managing teams and marketing fixed income funds. He has an additional five years’ related investment experience.

Data provided by Morningstar.

The Content is only for your general information and use and is not intended to address your particular requirements. The Content does not constitute any form of advice, recommendation or arrangement by Money Observer and is not intended to be relied upon by you in making (or refraining from making) any specific investment or other decisions. Appropriate independent advice should be obtained before making any such decision.

This information is sourced from our partner Morningstar. We believe the data to be correct however you should take care in using any information.

You should be aware that prices may fall as well as rise and that the income derived can go down as well as up. When buying or selling any investment that fluctuates in price or value you may get back less than you invested. Past performance is not necessarily a guide to future performance.