ESG Fund Factsheet

For adviser use only

Rathbone Ethical Bond

Classification: Ethical
Management style: Active

Introduction

The fund applies both positive and negative sustainable screening to it’s investment approach in order to produce a portfolio aligned to it’s underlying themes.

Fund Objective: We aim to deliver a greater total return than the Investment Association (IA) Sterling Corporate Bond sector, after fees, over any rolling five-year period. Total return means the return we receive from the value of our investments increasing (capital growth) plus the income we receive from our investments (interest payments). We use the IA Sterling Corporate Bond sector as a target for our fund’s return because we aim to achieve a better return than the average of funds that are similar to ours.

*As at 19/10/2022

Name Launch Date IA Sector Portfolio OCF Fund Size (m)
Rathbone Ethical Bond 01/03/2012 Sterling Corporate Bond 0.66% £2,023.6*

About Rathbones

Rathbones provides individual investment and wealth management services for private clients, charities, trustees and professional partners. They have been trusted for generations to manage and preserve their clients’ wealth. Their tradition of investing and acting responsibly has been with them from the beginning and continues to lead them forward. Their ambition is to be recognised as the UK’s most responsible wealth manager.

Positive Screening

To qualify for inclusion in the fund’s universe, issuers should demonstrate progressive or well-developed practice or policies in one of the following key areas:

  • Corporate Community Investment.
  • Good Employment Practices.
  • Human Rights
  • Management of Environmental Impacts.
  • Provision of Beneficial Products and Services.
  • Green, Climate, Sustainability, Social Bonds

Issue selection and approval

  1. The fund manager will first identify corporate bonds that represent an attractive investment proposition.

2. Organisations issuing these bonds will then be investigated by Rathbone Greenbank’s ethical researchers.

3. Issuers involved in any activities that fall into the categories outlined by the fund’s published negative criteria will not be considered for inclusion in the fund universe.

Exclusion Policies

The companies screened out of the portfolio fall into the below themes:

Alcohol Animal Welfare
Armaments Pornography
Environmental or High Carbon Impact Gambling
Human Rights Nuclear Power
Predatory Lending Tobacco

Investment Performance

Over 1 year the fund has underperformed the average of it’s sector peers, however it has outperformed over 3 and 5 years.

Source fund factsheet, 30/09/2022

Past performance is not a reliable indicator of future performance.

Platform availability

The fund is available on the following platforms:

Abrdn Wrap M&G Wealth
Abrdn Elevate Fidelity
Advance by Embark Aegon
Aviva Interactive Investor
James Hay Novia
Nucleus Quilter
Transact

Supporting documents

Tenet Opinion

The Rathbone Ethical Bond fund has a long track record and established history in the ethical investing space and is run by a very experienced team and a company committed to sustainable investing.

The fund’s list of exclusions are comprehensive and the screening document gives a good level of insight into what would and wouldn’t be acceptable to hold within the portfolio. It would potentially be suitable for clients who wish to exclude a range of different areas from their portfolios on ethical grounds.

The fund has a clear list of positive themes that it adheres to which helps when looking to match this fund with a clients views and objectives.

Information approved for Professional Adviser use only and should not be relied upon by private investors (this is not for Retail Clients).