Liontrust Sustainable Future Corporate Bond Fund Class 2 Gross Income
New for 2020. A core choice for committed ethical investors
Liontrust Sustainable Future Corporate Bond entered interactive investor's inaugural ACE 30 list of rated ethical funds in 2019 and our Rated Funds for 2020. The fund considers a wide range of ethical, environmental, social and governance (ESG) themes and balances positive and negative factors. It is run by Stuart Steven, Kenny Watson and Aitken Ross. The trio also manage Liontrust Monthly Income Bond. There is some overlap between the two portfolios. Both have around 70% of assets in the UK, a preference for BBB-rated stock and greatest sector exposure to banks, insurance and telecoms. But the sustainable fund is more diversified, with around 70 holdings, and its average duration is higher at around six years. Its yield is lower at 2.9% and its income distributions are less frequent, paid quarterly.
The managers start with macroeconomic analysis to determine their top-down view of the world - this helps shape all aspects of their portfolio construction and appetite for risk. After this they combine traditional credit analysis with a detailed sustainability assessment based upon a proprietary model focusing on ESG that may impact the issuer. The focus is often around longer-term societal and environmental trends.
Narrative and ratings content all as of January 2020.See all Money Observer rated funds
|United Kingdom of Great Britain and Northern Ireland||3.10 %|
|Standard Chartered plc 5.12%||2.95 %|
|AT&T Inc 7%||2.95 %|
|Orange S.A. 8.12%||2.68 %|
|DWR Cymru (Financing) UK Plc||2.61 %|
|Vodafone Group plc 5.9%||2.51 %|
|Verizon Communications Inc. 3.38%||2.51 %|
|AXA 5.45%||2.43 %|
|M&G PLC 5.62%||2.42 %|
|Lloyds Bank plc||2.34 %|
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 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 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.
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