Rathbone Ethical Bond Fund Institutional Acc

Sterling Bonds

Rated Fund 2013-2018. A competitive yield from ethical, investment-grade bonds

This fund has scooped a hat-trick of Money Observer awards, being named the Best Ethical Bond Fund in 2015, 2016 and 2017. It has a higher income target than most of its peers and currently yields almost 4 per cent. Income is paid quarterly.

Bryn Jones has run this fund since 2004 and was joined by assistant manager Noelle Cazalis in 2016. They invest predominantly in investment-grade bonds. They use an approach that takes into account economic and political trends, company analysis and thematic ideas. Once investment themes have been developed, Jones and his team look for the best bonds to buy within the thematic framework.

When assessing which companies' bonds to buy, Jones uses the 'four Cs plus' process to help make his selections. These are: 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. Exclusions are simple: no mining, arms, gambling, pornography, animal testing, nuclear power, alcohol or tobacco, which rules out about one third of their universe. 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, while Whitechurch Securities uses it in its ethical portfolios and points to its �exceptional' recent performance.

Narrative and ratings content all as of 01 January 2018.

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
0.68 %
Risk Rating
2
3 Year Sharpe
1.08
3 Year Alpha
2.22
Yield
4.1 %
Benchmark
Markit iBoxx GBP NonGilts TR
The objective of the fund is to provide a regular, above average income through investing in a range of bonds and bond market instruments that meet a strict criteria ethically and financially.
Holding %
Standard Life Aberdeen Plc 6.75% 2.41 %
Cooperatieve Rabobank U.A. 6.91% 2.02 %
RL Finance Bonds No. 3 plc 6.12% 1.97 %
Hsbc Cap Fdg(Stg1) 5.84% 1.93 %
HBOS Sterling Finance (Jersey) 7.88% 1.86 %
AXA 5.45% 1.83 %
RSA Insurance Group Plc 5.12% 1.78 %
BPCE SA 5.25% 1.72 %
Lloyds Bank plc 13% 1.63 %
Rothesay Life PLC 6.88% 1.60 %
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 joined Rathbones in November 2004. He is co-manager of the Rathbone Ethical Bond Fund. Prior to joining Rathbones, he was Portfolio Manager (Assistant Vice President) – Fixed Income at Merrill Lynch Investment Managers. He has over 10 years investment industry experience in equity and fixed income markets and has a BA Honours in Geography. Bryn holds the Investment Management Certificate. He holds the IAQ Merit Award and the IAQ Introduction to Securities and Investments examination. As a footballer, he has represented London Banks against the Marines in the Southern Amateur League, and has played hockey in National Division two.

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.