Fact sheet: Rathbone Ethical Bond

Rated Fund Information
Rated Funds Group
?Money Observer has arranged all its Rated Funds into easy to understand Rated Fund Groups, comprising funds and investment trusts.
STERLING BONDS
Sector
UT Sterling Corporate Bond
Fund type
Unit Trust
Primary aim
INCOME
Why Money Observer Rates Rathbone Ethical Bond

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 ム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 ム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 ムElite' fund, while Whitechurch Securities uses it in its ethical portfolios and points to its ムexceptional' recent performance.<\p>

3 Year Performance
Fund Performance16.2%
Average of Rated Funds Group15.5%
Sector Performance11%
Fund information
Fund name
Rathbone Ethical Bond Inst Acc
Fund manager company
Rathbone Unit Trust Mgmt Ltd
Fund type
Unit Trust
Fund managers
  • Noelle Cazalissince 01/01/2016
  • Bryn Jonessince 01/11/2004
Accolades
Winner - Ethical/SRI - Best Bond Fund
Fund objective
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 strict criteria ethically and financially.
Benchmark
  • IBOXX Non Gilt Index
Investment style
None
Investment method
Fixed Interest
Quick stats
1 Year return
2.6%
1 Year rank in sector
1/94
Sector
UT Sterling Corporate Bond
Yield
3.8%
Ongoing charge (OCF)
?A fund’s ongoing charges figure (OCF) is similar to the old-style total expense ratio. It reflects the annual charge to investors in the fund, in percentage terms, but does not include extra performance-related fees (where these are levied) or the fund’s trading expenses on its underlying investments.
0.68%
Fund size
£1,140m (£654m last year)
FE Risk score
?FE Risk Scores measure the riskiness of instruments relative to the FTSE 100 index of shares. Weekly volatility is measured over three years with recent behaviour counting more heavily than earlier behaviour. Cash-type investments will have scores close to zero. Funds will tend to have scores in the 0-150 range. The FTSE 100 is always scored at 100. There is no upper limit.
23
Bid price
203.79
Offer price
205.07
Top in this sector
Fund name1 Year
Rathbone Ethical Bond2.6%
SJP Inv Grade Corp Bd2.2%
Liontrust Mon Inc Bd2.2%
Close Bond Income Portfolio2%
Schroder Sterling Corp Bd2%
...more in UT Sterling Corporate Bond

Performance snapshot

Holdings snapshot

  • UK73.3%
    France6.7%
    Netherlands4.1%
    Money Market3.7%
    International2.8%
  • Insurance37.1%
    Banks31.4%
    Property6.5%
    Financial Services5.6%
    Fixed Interest4.3%
  • UK Fixed Interest73.3%
    French Fixed Interest6.7%
    Dutch Fixed Interest4.1%
    Money Market3.7%
    Global Fixed Interest2.8%

Performance vs Sector

Cumulative performance
 1 mth3 mth6 mth1 yr3 yr5 yr
Fund-0.8%0.1%-0.2%2.6%16.2%31.5%
Sector-0.8%-0%-0.6%-0.3%11%19.8%
Rank within sector46 / 9548 / 9523 / 951 / 9410 / 836 / 75
Quartile2nd3rd1st1st1st1st
Calendar performance
 YTD - 20182017201620152014
Fund-1.7%10.5%7.1%1.6%10.9%
Sector-2%5.1%9.1%-0.3%10.1%
Rank within sector29 / 951 / 9271 / 851 / 8332 / 79
Quartile2nd1st4th1st2nd
Risk statistics
Alpha
?Alpha is a measure of a fund's over- or under-performance by comparison to its benchmark. If the Alpha is 5, the fund has outperformed its benchmark by 5%; so the greater the Alpha, the greater the outperformance.
2.33
Beta
?Beta estimates a fund's volatility by comparison to that of its benchmark. A fund with a beta close to 1 means that the fund will move generally in line with the benchmark. Higher than 1 and the fund is more volatile than the benchmark and vice versa.
0.77
Sharpe
?This commonly-used measure calculates the level of return over and above the return of a notional risk-free investment, such as cash. The difference in returns is then divided by the fund's volatility. The resulting ratio is an indication of the amount of excess return generated per unit of risk.
0.39
Volatility
?Volatility (or standard deviation), when applied to an investment fund, expresses its risk. It shows how widely a range of returns varied from the fund's average return over a particular period. For example, if a fund had an average return of 5%, and its volatility was 15, this would mean that the range of its returns over the period had swung between +20% and -10%.
4.16
Tracking error
?This measures the standard deviation of a fund's excess returns over the returns of an index or benchmark portfolio. As such, it can be an indication of 'riskiness' in the manager's investment style. A Tracking Error below 2 suggests a passive approach. At 3 and above the the manager will be deploying a more active investment style.
2.09
Information ratio
?This is a useful risk-adjusted measure of actively managed fund performance. It is calculated by deducting the returns of the fund's benchmark from the fund's overall returns, then dividing the result by its tracking error. The higher the Information Ratio the better. It is generally considered that a figure of 0.5 reflects a good performance, 0.75 very good, and 1.00 outstanding.
0.72
R-Squared
?An indication of how closely correlated a fund is to an index or a benchmark. Values for R-Squared range between 0 and 1, with 0 indicating no correlation at all and 1 showing a perfect match. Values upwards of 0.7 suggest that the fund's behaviour is increasingly linked to its benchmark.
0.82
Price movement
52 week high208.42
52 week low198.31
Current bid price203.79
Current offer price205.07
Current mid price-
Region
1UK73.3%
2France6.67%
3Netherlands4.07%
4Money Market3.68%
5International2.83%
6USA2.21%
7Australia1.84%
8Canada1.62%
9Italy1.31%
Industry sector
1Insurance37.06%
2Banks31.35%
3Property6.46%
4Financial Services5.55%
5Fixed Interest4.33%
6Cash & Cash Equivalents3.68%
7Real Estate2.21%
8Retail1.83%
9Telecommunications1.69%
Asset type
1UK Fixed Interest73.3%
2French Fixed Interest6.67%
3Dutch Fixed Interest4.07%
4Money Market3.68%
5Global Fixed Interest2.83%
6US Fixed Interest2.21%
7Australian Fixed Interest1.84%
8Canadian Fixed Interest1.62%
9Italian Fixed Interest1.31%
Individual holdings
1STANDARD LIFE ABERDEEN 6.75% PERP2.34%
2RABOBANK NEDERLAND 6.91% PERP1.9%
3BPCE SA 5.25% BDS 16/04/29 GBP1000001.86%
4HISCOX 6.125% 24/11/20251.76%
5HSBC BANK PLC 5.844% FLTG RTE SUB NTS 11/48 GBP10M1.75%
6ROYAL LONDON 6.125% 13/11/20281.72%
7AXA 5.625% 16/01/20341.7%
8ROYAL LONDON 6.125% 30/11/20431.65%
9PHOENIX GROUP 6.625% 18/12/20251.6%
Management
Fund manager group
Rathbone Unit Trust Management
Fund manager company
Rathbone Unit Trust Mgmt Ltd
Fund type
Unit Trust
Fund objective
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 strict criteria ethically and financially.
Benchmark
  • IBOXX Non Gilt Index
Investment style
None
Investment method
Fixed Interest
Fund managers
NameSinceBiography
Noelle Cazalis01/01/2016Noelle is the assistant fund manager within the Fixed Income Team, assisting Bryn Jones on the Rathbone Ethical Bond Fund, and both Bryn Jones and David Coombs on the Rathbone Strategic Bond Fund and Rathbone Multi-Asset Portfolios, with direct bond selection. Noelle joined Rathbones in July 2011 as a credit analyst working alongside Bryn Jones, providing in-depth credit analysis for Rathbones’ fixed income funds and the Rathbone’s Fixed Income Committee. Having spent some time as a financial analyst for the Bank of France in Paris, Noelle spent five months in Cambodia, where she undertook due diligence on the Cambodian banking sector on behalf of the French Embassy. Noelle has achieved two masters’ degrees with distinction in 2010, from the University of Montesquieu in Bordeaux - a Magistere of International Finance, and a Masters in Banking, Finance and Financial Assets Trading. She holds the Investment Management Certificate and is a CFA (Chartered Financial Analyst) charter-holder.
Bryn Jones01/11/2004Bryn is the Head of Fixed Income for Rathbones, and is lead manager on the Rathbone Ethical Bond Fund and the Rathbone Strategic Bond Fund. 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, and is also a co-opted Trustee for the Trust for London. 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 and a ‘Highly Commended’ at the 2015 Moneywise Awards. His Rathbone Strategic Bond fund was voted best Multi-Asset Fixed Income Strategy at the Investment Week Specialist Investment Awards 2015. Bryn has also been appointed as one of a select number of ethical investors to the UKSIF Impact Investing Reference Group.
Compliance
IA Recognised, UCITS IV Compliant, UCITS V Compliant
Domicile
No data available.
Fund for sale in
United Kingdom
Rathbone Ethical Bond Inst Acc
Initial charge-
Annual charge0.63%
Min single investment£1,000,000
Min regular saving£500
Available in ISANo
Ongoing charge (OCF)0.68%
Total expense ratio (TER)0.75%
Bid price203.79
Offer price205.07
Mid price-
CurrencyGBX
Price updated18/05/2018
TypeAccumulation
Institutional or retail classInstitutional
Domicile-
Citi code0WF6
Rathbone Ethical Bond Inst Acc NAV
Initial charge-
Annual charge0.63%
Min single investment£1,000,000
Min regular saving£500
Available in ISANo
Ongoing charge (OCF)0.68%
Total expense ratio (TER)0.75%
Bid price-
Offer price-
Mid price203.79
CurrencyGBX
Price updated18/05/2018
TypeAccumulation
Institutional or retail classInstitutional
Domicile-
Citi code0WF7
Rathbone Ethical Bond Inst Inc
Initial charge-
Annual charge0.63%
Min single investment£1,000,000
Min regular saving£500
Available in ISANo
Ongoing charge (OCF)0.68%
Total expense ratio (TER)0.75%
Bid price97.77
Offer price98.62
Mid price-
CurrencyGBX
Price updated18/05/2018
TypeIncome
Institutional or retail classInstitutional
Domicile-
Citi code0WF8
Rathbone Ethical Bond Inst Inc NAV
Initial charge-
Annual charge0.63%
Min single investment£1,000,000
Min regular saving£500
Available in ISANo
Ongoing charge (OCF)0.68%
Total expense ratio (TER)0.75%
Bid price-
Offer price-
Mid price97.77
CurrencyGBX
Price updated18/05/2018
TypeIncome
Institutional or retail classInstitutional
Domicile-
Citi code0WF9
Rathbone Ethical Bond R Acc
Initial charge1%
Annual charge1.25%
Min single investment£1,000
Min regular saving£500
Available in ISAYes
Ongoing charge (OCF)1.3%
Total expense ratio (TER)1.36%
Bid price197.04
Offer price200.4
Mid price-
CurrencyGBX
Price updated18/05/2018
TypeAccumulation
Institutional or retail classRetail
Domicile-
Citi codeBS54
Rathbone Ethical Bond R Acc NAV
Initial charge1%
Annual charge1.25%
Min single investment£1,000
Min regular saving£500
Available in ISAYes
Ongoing charge (OCF)1.3%
Total expense ratio (TER)1.36%
Bid price-
Offer price-
Mid price197.04
CurrencyGBX
Price updated18/05/2018
TypeAccumulation
Institutional or retail classRetail
Domicile-
Citi codeD8C4
Rathbone Ethical Bond R Inc
Initial charge1%
Annual charge1.25%
Min single investment£1,000
Min regular saving£500
Available in ISAYes
Ongoing charge (OCF)1.3%
Total expense ratio (TER)1.36%
Bid price93.55
Offer price95.41
Mid price-
CurrencyGBX
Price updated18/05/2018
TypeIncome
Institutional or retail classRetail
Domicile-
Citi codeBS55
Rathbone Ethical Bond R Inc NAV
Initial charge1%
Annual charge1.25%
Min single investment£1,000
Min regular saving£500
Available in ISAYes
Ongoing charge (OCF)1.3%
Total expense ratio (TER)1.36%
Bid price-
Offer price-
Mid price93.55
CurrencyGBX
Price updated18/05/2018
TypeIncome
Institutional or retail classRetail
Domicile-
Citi codeD8C5
Rathbone Ethical Bond S Acc
Initial charge-
Annual charge0.49%
Min single investment£1,000,000
Min regular saving£0
Available in ISANo
Ongoing charge (OCF)-
Total expense ratio (TER)-
Bid price99.9455
Offer price100.6909
Mid price-
CurrencyGBX
Price updated18/05/2018
TypeAccumulation
Institutional or retail classInstitutional
Domicile-
Citi codeOW0W
Rathbone Ethical Bond S Acc NAV
Initial charge-
Annual charge0.49%
Min single investment£1,000,000
Min regular saving£0
Available in ISANo
Ongoing charge (OCF)-
Total expense ratio (TER)-
Bid price-
Offer price-
Mid price99.9455
CurrencyGBX
Price updated18/05/2018
TypeAccumulation
Institutional or retail classInstitutional
Domicile-
Citi codeOW0X
Rathbone Ethical Bond S Inc
Initial charge-
Annual charge0.49%
Min single investment£1,000,000
Min regular saving£0
Available in ISANo
Ongoing charge (OCF)-
Total expense ratio (TER)-
Bid price99.9451
Offer price100.6905
Mid price-
CurrencyGBX
Price updated18/05/2018
TypeIncome
Institutional or retail classInstitutional
Domicile-
Citi codeOW0Y
Rathbone Ethical Bond S Inc NAV
Initial charge-
Annual charge0.49%
Min single investment£1,000,000
Min regular saving£0
Available in ISANo
Ongoing charge (OCF)-
Total expense ratio (TER)-
Bid price-
Offer price-
Mid price99.9451
CurrencyGBX
Price updated18/05/2018
TypeIncome
Institutional or retail classInstitutional
Domicile-
Citi codeOW0Z
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