Rathbone Ethical Bond

A fixed income fund that focuses on the bonds of UK corporates that are engaged in activities with a benefit to society and the environment

The fund will screen UK corporate bonds, removing companies deriving 10% or more of their revenue from controversial activities such as human rights abuses, tobacco and animal testing. Bryn will favour companies impacting society and the environment positively. The fund manager is assisted by an experienced sustainable team which review the ethical impact of the companies. Bryn is supported by an experienced credit analyst together with whom they conduct detailed analysis of company financial statements as well as meeting company management.

We like the fund as Bryn will actively manages the sensitivity of the fund to various risk factors, such as sensitivity to interest rates while offering a solidly integrated ESG research process. The combination of the two has delivered some good downside protection, particularly versus peers.