Best In Class  

Best in Class: Liontrust Monthly Income Bond

The focus on high quality means any BBB exposure is towards safer areas, like highly-regulated utilities names and big players in the telecoms space. There is little exposure to cyclicals and miners, which are often screened out.

The team currently have their largest sector exposures in banks (23.5 per cent) and insurance (16.8 per cent), according to the December 2018 fund fact sheet.

Mr Steven says the insurance sector is an area he believes can benefit from a “soft” Brexit.

“Their valuations look really cheap compared to banks. If you like banks, look at L&G and Prudential, which have a better credit rating with higher credit spread and lower leverage,” he adds.

Since launch, the fund has returned 62.04 per cent, based on total returns in sterling data from FE Analytics from July 12 2010 to February 28 2019, outperforming the IA Sterling Corporate Bond sector average of 50.92 per cent.

Importantly for investors seeking an income, the yield has consistently been above 5 per cent per calendar year and currently stands at 5.32 per cent as at February 28 2019 – the highest in the sector.

Darius McDermott is managing director of FundCalibre