We’re always reviewing our Favourite funds list to make sure we’re confident in our picks, and ready to make changes if needed. Following a recent review, we’ve made a couple of updates – adding the Rathbone Ethical Bond fund and removing the CT Responsible Sterling Corporate Bond fund.
We’ve added the Rathbone Ethical Bond fund as we think it’s a highly credible sterling corporate bond offering, with a long-established approach to ethical investing. In Bryn Jones the fund has an extremely experienced lead manager, who’s supported by a small but dedicated team of fixed income investment analysts. The fund usually takes on more credit risk compared to others in its sector, while interest rate risk is actively managed within two years of mainstream indices.
When it comes to sustainability, the team exclude companies associated with armaments, animal welfare issues, tobacco, nuclear power, alcohol, predatory lending and environmental or high-carbon impact. And they seek out companies with well-developed practices and policies in managing environmental impacts, human rights, provision of beneficial products and services, corporate community investment and employment opportunities.
To make room for the Rathbone Ethical Bond fund on our list, we’ve removed the CT Responsible Sterling Corporate Bond fund. Compared to the Rathbone fund, the CT fund’s duration and credit risk are managed within much narrower bands versus a mainstream index. This conservative approach has led the CT fund to post some underwhelming relative returns over time.
Written by:
Paul Angell
Head of Investment Research
Paul Angell is AJ Bell's Head of Investment Research. Paul began his investment career with a global investment bank in 2010, holding various roles across London and Hong Kong over the following years. He joined AJ Bell in 2023.
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