Asset Group | Asset Sub-Group | Investment Category |
Equities | European equities | Core |
Why we recommend itPeter Michaelis and Martyn Jones are the named co-managers on this strategy. Jones took over from previous co-manager Neil Brown, who left the firm in November 2020 and had run the strategy since April 2011. Jones joined Liontrust as an analyst in 2012 before being promoted to co-manager alongside Brown in November 2019. Jones manages the portfolio on a day-to-day basis with the oversight of Michaelis, which provides additional comfort as he boasts more than two decades of experience in sustainable investing. Michaelis also heads Liontrust’s 17-strong sustainable investment team, which is split into a group managing equity strategies and another focusing on fixed-income products. Michaelis first developed and implemented the approach in 2001 while at Aviva Investors and has applied it consistently and successfully since then. The investment approach is anchored around the team’s thematic framework and its belief that sustainably managed businesses will show better and more resilient growth prospects over time. The thematic framework guides idea generation and has three main sustainable trends (better resource efficiency, improved health, and greater safety and resilience), divided into 20 sub-themes. The focus is on identifying high-quality firms exposed to and benefiting from one of these areas of growth and where the team can build reliable long-term forecasts. Typically, these businesses will exhibit high return on equity, defendable margins, and an ability to maintain their competitive advantages. Additionally, the approach requires companies to offer core products or services that are making a positive contribution to society or the environment. The valuation approach is flexible and the team’s longer-term thinking results in a low portfolio turnover, with holding periods typically exceeding five years. The portfolio is concentrated and tends to have a mid- and small-cap bias and sector bets which deviate significantly from the MSCI Europe ex UK Index. The fund typically also has growth style bias and these factors all contribute to a return profile that can deviate significantly from the index from time-to-time. Opinion The fund benefits from an experienced team and a long-standing strong investment process that has been executed successfully through time. The fund’s mid- and small- cap bias results in a higher risk, more volatile return profile. Sustainability criteriaMorningstar Sustainable Attribute: This fund is considered a sustainable investment product based on its prospectus or other regulatory filings. As a General ESG Investment, the fund uses environmental, social and governance (ESG) criteria as a central part of the security-selection and portfolio-construction process. These strategies endeavour to promote sustainability and minimize negative impact, without focusing on a specific theme or area of action. | ||
Information and data compiled to March 2024. |
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