Ethical bond milestone as Bryn Jones fund hits £1bn

Jones Bryn Rathbones 700

Bryn Jones’ Rathbones Ethical Bond fund has passed a milestone for sustainable fixed income products surpassing £1bn in assets under management.

The fund, managed by Jones with assistant manager Noelle Cazalis, is first quartile over every period over the last five years, according to FE data.

Fund Strategy understands the fund has just passed the milestone and Rathbones confirms as of today the fund holds £1,011m. It is the only ethical bond fund with more than £1bn, FE data shows.

The fund now holds more than double the assets of the next largest ethical funds in the IA Sterling Corporate Bond sector – the £458m Kames Ethical Corporate Bond fund and £451.1m Liontrust Sustainable Future Corporate Bond fund.

The £4.8bn Pictet Water fund is the largest ethical fund across sectors, according to FE data. The thematic equities fund, managed by Hans Peter Portner and Arnaud Bisschop, invests in companies operating in water supply, processing services, water technology and environmental services.

After Jones’ fund the M&G Global Select fund is the next largest across sectors with £787.4m.

M&G and Candriam both announced last week they would be launching responsibly invested high yield funds.

However, the UK lags its European rivals for the availability of environmentally-sustainable equity fund products.

Largest ethical/sustainable funds in IA Sterling Corporate Bond sector (performance %)

Fund 1 year 3 years 5 years
Rathbone
Ethical Bond
10.6 20.3 40.9
Kames
Ethical Corporate Bond
5.1 15.1 26.4
Liontrust
Sustainable Future Corporate Bond
8.7 19.5 32.2
Source: FE

Largest ethical funds across IA sectors (performance %)

Fund IA sector 1 year 3 years 5 years
Pictet
Water
Global 14.8 52.9 109.3
Rathbone
Ethical Bond
Sterling Corporate Bond 10.6 20.3 40.9
M&G Global Select Global 12 48.1 91.5
Source: FE