Rathbone Ethical Bond Fund Institutional Acc

Sterling Bonds

Rated Fund 2013-20. Offers competitive yield from ethical investment-grade bonds        

Rathbone Ethical Bond is our go-to ethical fund for UK bond investors. It has been named Money Observer's Best Ethical/SRI Bond Fund for the past five years. It has a higher income target than most of its peers and currently yields 3.5%. Income is paid quarterly.

Managers Bryn Jones and Noelle Cazalis mainly invest in investment-grade bonds. They consider economic and political trends, company analysis and thematic ideas. The managers use a "four Cs plus" process to help them choose bonds: character (management's ability to react to events); capacity (sources of liquidity and cash-flow analysis); collateral (assets that are pledged); and covenants. The "plus" is conviction - Jones believes that in order to achieve long-term, above-average performance, he must think differently from the market.

Then Rathbone Greenbank, the company's ethical investment unit, applies an ethical screen that excludes firms involved in mining, arms, gambling, pornography, animal testing, nuclear power, alcohol or tobacco. All positions must also have at least one positive environmental, social or corporate governance quality.  Jones welcomes this ethical overlay, regarding it as an extra level of investment diligence. FundCalibre, the fund ratings and research provider, rates this as an "elite" fund able "to outperform regardless of its ethical constraints".

Narrative and ratings content all as of January 2020.

See all Money Observer rated funds
Name
Rathbone Ethical Bond Fund Institutional Acc
Manager
Rathbone Unit Trust Management Limited
Type
Unit Trust
ISIN
GB00B77DQT14
Sector
£ Corporate Bond
Launched
01/03/2012
OCF
0.66 %
Risk Rating
3
3 Year Sharpe
0.62
3 Year Alpha
0.81
Yield
3.6 %
Benchmark
IA Sterling Corporate Bond
The objective of the fund is to deliver a greater total return than the IA Sterling Corporate Bond sector, after fees, over any rolling five-year period.To meet the objective, the fund manager will invest at least 80% of our fund in corporate bonds with an investment-grade rating (AAA to BBB-). The remaining 20% of the fund is invested in corporate bonds with a credit rating below BBB- or with no rating at all. Up to 10% of the fund can be invested directly in contingent convertible bonds.
Holding %
Lloyds Bank plc 13% 2.44 %
Nationwide Building Society 1.26% 2.27 %
Aviva Plc 5.9% 1.93 %
Bank of Scotland Plc 7.28% 1.74 %
RSA Insurance Group Plc 5.12% 1.61 %
RL Finance Bonds No. 3 plc 6.12% 1.60 %
AXA 5.62% 1.57 %
Legal & General Group plc 5.5% 1.56 %
AXA 5.45% 1.55 %
HSBC Capital Funding (Sterling 1) L.P. 5.84% 1.52 %
Region %
United Kingdom 100.00 %
Sector %
Financial Services 100.00 %
Name
Rathbone Unit Trust Management Limited
Address
W1J 5FB, London, United Kingdom
UCITS
Yes
Legal Structure
Unit Trust

Managers

Bryn Jones
Joined 11/01/2004

Bryn is the Head of Fixed Income for Rathbones, and is lead manager on the Rathbone Ethical Bond Fund, the Rathbone Strategic Bond Fund and manager of intuitional mandates. He joined Rathbones in November 2004 from Merrill Lynch, where he managed $2 billion of fixed income assets. Bryn is a member of the Rathbone Strategic Asset Allocation Committee, Non-Executive Chairman of Rathbones' Fixed Income Committee, and an adviser to the Rathbone Banking Committee. He is a WMA representative for the HMT DMO’s (Her Majesty’s Treasury - Debt Management Office) Gilt market consultation process. He has been a guest speaker at the Euromoney Bond Conference in London, and at the Euromoney Bank Capital Conference in Amsterdam. Bryn appears regularly on CNBC and Bloomberg TV. He also sits on the IA Fixed Income Committee. Bryn graduated from Birmingham University with a Bachelor of Arts degree in Geography in 1995. Bryn’s Rathbone Ethical Bond Fund was awarded Best Sterling Corporate Bond Fund at the Morningstar UK Fund Awards 2014; Best SRI Bond Fund at the Money Observer 2015 Fund Awards; the Rathbone Ethical Bond Fund is also a top performer in the Bond Pound Sterling – Corporates sector over 3 and 5 years in the UK (Lipper Fund Award 2015) and was ‘Highly Commended’ at the 2015 Moneywise Awards. In 2018 the Ethical bond fund won the prestigious Judge’s Choice fixed Income fund award at the Investment Week awards. His Rathbone Strategic Bond fund was voted best Multi-Asset Fixed Income Strategy at the Investment Week Specialist Investment Awards 2015.

Data provided by Morningstar.

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