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Liontrust SF Corporate Bond Class 2 - Income (GBP)

Sell:70.68p Buy:70.68p Change: 0.11p (0.16%)
Prices as at 20 December 2024
Sell:70.68p
Buy:70.68p
Change: 0.11p (0.16%)
You can buy or sell holdings in this fund through a Stocks and Shares ISA, Lifetime ISA, SIPP or Fund and Share Account
Invest now
Prices as at 20 December 2024
Sell:70.68p
Buy:70.68p
Change: 0.11p (0.16%)
Prices as at 20 December 2024
You can buy or sell holdings in this fund through a Stocks and Shares ISA, Lifetime ISA, SIPP or Fund and Share Account
Invest now
The selling price currently displayed is higher than the buying price. This can occur temporarily for a variety of reasons; shortly before the market opens, after the market closes or because of extraordinary price volatility during the trading day.

Our view on this Fund

This fund is on the Wealth Shortlist of funds our analysts believe have the potential to outperform their peers over the long term. However, this is not a recommendation to buy.

This fund's managed by a team of four: Kenny Watson, Aitken Ross, Jack Willis and Connor Godsell.

Watson began managing fixed income funds in 2004, and Ross and Willis have researched and analysed fixed income investments since 2012 and 2016 respectively. Godsell has joined from abrdn. He has seven years' experience analysing bonds, including some time managing bond funds.

The four managers, and three other colleagues, form the small but focused Sustainable Future Fixed Income team. We like that the team invests their own money in the fund, and their incentives are aligned with those of investors.

The team can also draw on an Independent Advisory Committee, which is an external panel of sustainability experts who provide feedback on the process, highlight areas for improvement and act as an additional level of oversight.

We've carried out a comprehensive analysis of the universe of responsible fixed income funds and have conviction in the Liontrust SF Corporate Bond fund. Investors should note though that there are also other corporate bond funds on the Wealth Shortlist without strict exclusion criteria that may offer superior performance potential.

Our view on the sector

Funds in the Responsible Investment sector take a variety of approaches. Some invest in companies that are well-managed and take their commitments to the environment and society seriously, others simply look to avoid the worst offenders. Some even try to invest only in companies making a positive impact in the world, like green energy producers, or companies that clean and reuse water.

Responsible investing offers the possibility of making money in a way that's in line with your views and beliefs. And it's becoming more and more popular. But 'responsible' means different things to different people. An industry that seems abhorrent to one person might seem like a necessary evil to others. That's why you'll need to clarify each fund's approach and make sure it's consistent with your views before you invest.

Performance Analysis

The Sustainable Future Fixed Income team began managing the fund in August 2012 and since then it's performed broadly in line with peers in the IA £ Corporate Bond sector. Remember, past performance is not a guide to the future.

The fund's exclusions, and a focus on companies making a positive difference, mean we expect the fund to perform differently to its benchmark and peers at times. When the excluded areas are out of favour and their prices fall, the fund could do well. When they perform well, the fund will miss out. We ultimately think the managers have the potential to reward those who are prepared to take a long-term approach, although there are no guarantees.

Investment Philosophy

The fund is part of Liontrust's Sustainable Future range of funds. These funds aim to help create a cleaner, safer and healthier society for the future and generate attractive returns for investors.

The managers believe investing in sustainable companies provides greater return potential, and less risk, than other companies, and that many other investors fail to value the sustainability of a business correctly.

Process and Portfolio Construction

The team's investment process revolves around a quarterly strategic outlook meeting, where the managers form their views on the future direction of economic growth, interest rates and inflation. This helps shape the way they construct the fund, and how much risk they're willing to take. The team also conducts more frequent meetings to review positioning, discuss new opportunities and identify new risks.

Sustainability and Environmental, Social and Governance (ESG) analysis is fully integrated into the team's investment process. They aim to identify bonds issued by high-quality companies whose core products or services make a positive contribution to society or the environment. This sustainability analysis is completed for every bond issuer in the fund.

The fund also employs negative screening. This means it won't invest in any company that makes more than 5% of its revenues from alcohol, animal testing services, coal, oil & gas, gambling, intensive meat and fish farming, nuclear, ozone depleting substances, pornography, tobacco or weapons systems.

The fund's four managers each have different specialisms, with Watson leading on credit, Ross on portfolio construction and Willis on rates positioning. Godsell has joined the team more recently and has a focus on the interest rate strategy for the fund.

The managers have the flexibility to invest in derivatives and emerging markets which, if used, adds risk.

Please note that charges are taken from capital. This might mean that the income paid is higher, but it could also mean that capital growth is reduced.

question mark Manager Track Record Based on HL Quantitative Research

This information is currently unavailable.

Fund Track Record

20/12/19 to 20/12/20 20/12/20 to 20/12/21 20/12/21 to 20/12/22 20/12/22 to 20/12/23 20/12/23 to 20/12/24
Annual return 6.25% -0.35% -19.09% 11.43% 2.54%

Please remember past performance is not a guide to future returns. Where no data is shown, figures are not available. This information is provided to help you choose your own investments, remember they can fall as well as rise in value so you may not get back the original amount invested.

Information about the fund

Fund manager biography

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Manager Name: Jack Willis
Manager start date: 1 April 2021
Manager located in: Edinburgh, United Kingdom

Jack Willis joined 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 2014 after graduating with First Class Honours in Mathematics with Finance from the University of Leeds and subsequently completing an MSc in Finance and Investment with Distinction, also at the University of Leeds. Following a successful period as a credit analyst within the team, he is now Co-manager on the Liontrust Monthly Income Bond Fund, Sustainable Future Corporate Bond Fund and GF Sustainable Future European Corporate Bond Fund. Jack is a CFA Charterholder.

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Manager Name: Kenny Watson
Manager start date: 1 October 2013
Manager located in: London

Kenny Watson joined Liontrust in April 2017 after more than three years at Alliance Trust Investments. He is a Co-manager of the Liontrust Monthly Income Bond, Sustainable Future Corporate Bond Fund and GF Sustainable Future European Corporate Bond Fund. 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.

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Manager Name: Aitken Ross
Manager start date: 1 March 2014
Manager located in: London

Aitken Ross joined 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 Co-manager on the Liontrust Monthly Income Bond Fund, Sustainable Future Corporate Bond Fund and GF Sustainable Future European Corporate Bond Fund. Aitken is a CFA Charterholder.

Data policy - All information should be used for indicative purposes only. You should independently check data before making any investment decision. HL cannot guarantee that the data is accurate or complete, and accepts no responsibility for how it may be used. Benchmark data provided subject to this disclaimer.
You can buy or sell holdings in this fund through a Stocks and Shares ISA, Lifetime ISA, SIPP or Fund and Share Account
Invest now