Rathbone Ethical Bond Fund

Income with a conscience

Document Library

Factsheet KIID
Interim report Annual report
Holdings report Monthly note
Quarterly note Assessment of value
Screening criteria TCFD Report
Case study Prospectus

For additional fund documents and share classes visit our literature library

Awards and Ratings

 

Why invest in the Ethical Bond Fund?

  • One of the UK’s oldest ethically managed bond funds, run by Bryn Jones since 2004
  • Our independent Greenbank ethical, sustainable and impact research team has a veto on holdings, minimising the risk of greenwashing 
  • A portfolio of higher-yielding investment grade UK bonds offers a compromise of risk and return that doesn’t compromise on its values
  • Identifying big, long-term themes about new technologies, consumer trends or macroeconomic changes and investing accordingly

 

Fund Overview

We predominantly buy sterling bonds issued by companies, charities, the UK government and non-governmental organisations. The objective of our fund is to deliver a greater total return than the IA Sterling Corporate Bond sector, after fees, over any rolling five-year period. There is no guarantee that this investment objective will be achieved over five years, or any other time period. We use the IA sector as a target for our fund's return because we aim to consistently outperform the average return of our competitors. You can find our fund’s full objective and investment policy in our Key Investor Information Document (KIID), here.

At the same time, we avoid investing in activities that make the planet or its inhabitants worse off, and actively support those projects that are doing good in the world. You can read our ethical screening criteria in depth here.

Greenbank, an ethical, sustainable and impact research division of Rathbones that can’t be influenced by our fund managers, assesses all our investments on these positive and negative social and environmental criteria. Greenbank has a veto over all our investments to ensure profits never override sustainability. Our fund managers then compare prices to determine the best value bonds to include in our fund. You can view our latest case studies document here.

When picking UK corporate bonds, we make three assessments. First, we look at the economic environment to determine which industries we want to own and the duration, or sensitivity to interest rates, of our investments. Then we use the Four Cs Plus 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
  • The Plus: We think differently to the market; sometimes contrarian, sometimes sceptical of orthodox thinking, but always opinionated

These twin processes of investment and ethics mean all our investments have a sound investment case and a solid sustainability record.

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 31.03.2023
0.66%

Transaction costs
0.11%

Total MiFID II charges
0.77%
 

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

Performance
Prices and dividends
Breakdown
Downloads

I-Class Single Strategy application form (Individual Investor)

8 July 2024

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I-Class Single Strategy application form (Corporate Investor)

8 July 2024

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Single Strategy ISA application form (I-Class) 2024/2025

8 July 2024

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S-Class Single Strategy application form (Individual Investor)

8 July 2024

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Single Strategy ISA application form (S-Class) 2024/2025

8 July 2024

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Rathbone Ethical Bond Case Study Brochure

3 July 2024

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Ethical Bond Fund TCFD Product Report

30 June 2024

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Rathbone Ethical Bond Fund Factsheet (I class)

31 May 2024

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Rathbone Ethical Bond Fund Factsheet (S class)

31 May 2024

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Rathbone Ethical Bond Fund - full fund holdings information

31 May 2024

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Rathbone Ethical Bond Fund - Investment commentary

31 May 2024

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Meet the fund manager

Bryn Jones

Head of fixed income and fund manager

Bryn Jones

Head of fixed income and fund manager

Bryn is head of fixed income at Rathbones and is lead manager of the Rathbone Ethical Bond, the Rathbone Strategic Bond and the Rathbone Greenbank Global Sustainable Bond funds. He joined Rathbones in November 2004 from Merrill Lynch Investment Managers, 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 Rathbones Banking Committee. He also sits on the Investment Association’s Fixed Income Committee. Bryn appears regularly on CNBC and Bloomberg TV to discuss bond markets. Bryn graduated from Birmingham University with a Bachelor of Arts degree in Geography in 1995.  

Bryn is head of fixed income at Rathbones and is lead manager of the Rathbone Ethical Bond, the Rathbone Strategic Bond and the Rathbone Greenbank Global Sustainable Bond funds. He joined Rathbones in November 2004 from Merrill Lynch Investment Managers, 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 Rathbones Banking Committee. He also sits on the Investment Association’s Fixed Income Committee. Bryn appears regularly on CNBC and Bloomberg TV to discuss bond markets. Bryn graduated from Birmingham University with a Bachelor of Arts degree in Geography in 1995.