Rathbone High Quality Bond Fund

Lower-risk income from companies with strong credit

Document Library

Factsheet KIID
Interim report Annual report
Holdings report Monthly note
Quarterly note Prospectus
Assessment of value  

For additional fund documents and share classes visit our literature library

Awards and Ratings

 

 

Why invest in the High Quality Bond Fund Fund?

  • A defensive bond fund taking limited credit and interest rate risk
  • At least 80% of the portfolio has a credit rating of at least A- or above – the very best of investment grade
  • Aims to keep its sensitivity to interest rate changes low
  • Targets a return of Bank of England’s benchmark interest rate + 0.5% 

 

We buy predominantly sterling bonds with very strong credit ratings issued by companies, the UK government and non-governmental organisations. At least 80% of our portfolio must be in bonds with a credit rating of A- or higher – four grading notches above high-yield. While we can buy bonds with longer maturities, we aim to keep our overall portfolio’s duration, or sensitivity to interest rates, below five years.  

When picking our investments, there are three assessments we make. First, we look at the economic environment to determine which industries we want to own and the duration of our investments. Then we use the Four C approach to evaluate creditworthiness. We assess:

  • Character: Whether a company's managers have integrity and competence
  • Capacity: Ensuring a company isn't over-borrowing and has the cash to pay its debts
  • Collateral: Are there assets backing the loan, which reduces the risk of a loan
  • Covenants: These loan agreements set out the terms of the bond and restrictions on the company

Finally, we compare prices to determine the best value bonds to include in our fund. We aim to preserve capital and deliver a return higher than the Bank of England's benchmark interest rate + 0.5%, after fees, over any rolling three-year period. There is no guarantee that this investment objective will be achieved over three years, or any other time period. We use this target because we aim to provide a return above what you would receive in a UK savings account. Although, this is an investment product, not a cash savings account, so your capital is at risk. You can find our fund’s full objective and investment policy in our Key Investor Information Document (KIID).

Click here for the latest assessment of our performance.

Fund overview
Costs and charges

MiFID II charges

I class

Ongoing charges figure (OCF) as at 30.04.2023
Inc: 0.40%/Acc: 0.39%

Transaction costs
Inc: 0.08%/Acc: 0.08%

Total MiFID II charges
Inc: 0.48%/Acc: 0.47%

The MiFID II charges include the Ongoing Charges Figure (OCF) and transaction costs.

Performance
Prices and dividends
Breakdown
Downloads

Rathbone High Quality Bond Fund, Key Investor information document (S class)

16 February 2024

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Prospectus (High Quality Bond Fund only)

16 February 2024

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Rathbone High Quality Bond Fund, I class, key investor information document

16 February 2024

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Rathbone High Quality Bond Fund, I class factsheet

31 January 2024

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Rathbone High Quality Bond Fund - full fund holdings information

31 January 2024

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Investment commentary - Rathbone High Quality Bond Fund

31 January 2024

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Rathbones Asset Management Assessment of Value 2023 Report (Consolidated)

30 January 2024

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I-Class Single Strategy application form (Individual Investor)

25 January 2024

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I-Class Single Strategy application form (Corporate Investor)

25 January 2024

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S-Class Single Strategy application form (Corporate Investor)

25 January 2024

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Single Strategy - Supplementary Information Document

9 January 2024

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Meet the fund manager

Stuart Chilvers

Fund manager

Stuart Chilvers

Fund manager

Stuart is lead fund manager of the Rathbone High Quality Bond Fund and co-manager of the Rathbone Greenbank Global Sustainable Bond Fund. He works with our head of fixed income, Bryn Jones, assisting in the management of the Rathbone Ethical Bond and the Rathbone Strategic Bond funds as well. Stuart joined Rathbones in September 2017 and was made an assistant fund manager in January 2020, then fund manager in January 2022. Previously, he spent three years at Brown Shipley. He is a Chartered Financial Analyst (CFA) charterholder and holds the Chartered Institute for Securities & Investment (CISI) Chartered Wealth Manager Qualification, having won the CISI Financial Markets & CISI Chartered Wealth Manager Qualification awards at the annual CISI awards in 2016 and 2017 respectively. He was named in the 2018 Citywire Top 30 under 30 investment management awards. He graduated from Bath University with a first-class Bachelor’s degree in Mathematics.  

Stuart is lead fund manager of the Rathbone High Quality Bond Fund and co-manager of the Rathbone Greenbank Global Sustainable Bond Fund. He works with our head of fixed income, Bryn Jones, assisting in the management of the Rathbone Ethical Bond and the Rathbone Strategic Bond funds as well. Stuart joined Rathbones in September 2017 and was made an assistant fund manager in January 2020, then fund manager in January 2022. Previously, he spent three years at Brown Shipley. He is a Chartered Financial Analyst (CFA) charterholder and holds the Chartered Institute for Securities & Investment (CISI) Chartered Wealth Manager Qualification, having won the CISI Financial Markets & CISI Chartered Wealth Manager Qualification awards at the annual CISI awards in 2016 and 2017 respectively. He was named in the 2018 Citywire Top 30 under 30 investment management awards. He graduated from Bath University with a first-class Bachelor’s degree in Mathematics.  

IN CONVERSATION JANUARY 2024

Manager Stuart Chilvers explains how his fund is positioned, given current interest rates expectations, and sets out the outlook for UK inflation. He also reflects on the outlook for yields in shorter-duration, high-quality bonds after their meteoric rise in 2022 and 2023, and explains why these bonds can still make for exciting opportunities, despite cash offering attractive yields for the first time in 15 years.

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