ESG Fund Factsheet

For adviser use only

Liontrust Sustainable

Classification: Sustainable
Management style: Active

Introduction

Liontrust have a range of five equity targeted multi-asset funds that are mapped to several risk ratings agencies. The range will cover the risk appetite for most medium to higher risk clients. There is also a Corporate Bond and UK Equity fund applying the same ESG criteria within the range.

Name Launch Date IA Sector Portfolio OCF Fund Size (m)
Liontrust Sustainable Future Defensive Managed 2 Acc 23/07/2014 Mixed Investment 20-60% 0.93% £1,175.7
Liontrust Sustainable Future Cautious Managed 2 Acc 23/07/2014 Mixed Investment 40-85% 0.94% £1,137.6
Liontrust Sustainable Future Managed 2 Acc 19/02/2001 Mixed Investment 40-85% 0.86% £2,824
Liontrust Sustainable Future Managed Growth 2 Acc 19/02/2001 Flexible 0.87% £1,010.9
Liontrust Sustainable Future Global Growth  Acc 19/02/2001 Global 0.86% £1,766
Liontrust Sustainable Future Corporate Bond 2 Inc 10/02/2001 Sterling Corporate Bond 0.57% £669.5
Liontrust Sustainable Future UK Growth 2 Acc 19/02/2001 UK All Companies 0.90% £889.4

About Liontrust

Liontrust is a specialist fund management company that takes pride in having a distinct culture and approach to running money. Our purpose is to have a positive impact on our investors, stakeholders and society. We aim to achieve this by providing the environment which enables our fund managers and employees to flourish, helping our investors achieve their financial goals, supporting companies in generating sustainable growth, and empowering and inspiring the wider community.

The company launched in 1995 and was listed on the London Stock Exchange in 1999.

Assets under management*

£9,473.1bn

Total Assets in listed funds:

*As at 31/08/2022

ESG Process

Liontrust believe the companies that will survive and thrive are those which:

  • Improve people’s quality of life (e.g. medical, technological or educational advances.)
  • Drive improvements in the efficiency with which we use increasingly scarce resources.
  • Help to build a more stable, resilient and prosperous economy.

Liontrust Sustainable Futures funds primarily focus on sustainability as opposed to being a ‘traditional’ ethical fund but still exclude some sin stocks such as tobacco, gambling, armaments manufacturers etc.

Positive Screening

Sustainability factored into all other stock selection decisions. Actively selecting stocks which contribute to improved health, better resource efficiency, and greater safety and resilience. The team initially start with a thematic approach identifying growth themes and investing in companies whose products/operations make an active contribution into these areas.

Sustainability is then consider further, looking into the product sustainability – the extent to which the product harms/helps society. This is followed by Management quality – assess the companies structures, policies & practices in place for managing ESG.

Finally the Business fundamentals and valuation analysis is considered, the companies must be competitive and have good expectations over the medium term.

Exclusion Policies

Liontrust focus on sustainability rather than a traditional negative screening ethical portfolio. Excluded sectors include:

Animal Testing Alcohol Production
Tobacco Production Gambling
Armaments Manufacturers Pornography

Cost

The average OCF over the full range and share classes is 0.85%. This is at the higher end of fund charges for active funds.

Key themes

The process starts with a thematic approach in identifying the key structural growth trends that will shape the global economy of the future and then invests in well-run companies whose products and operations capitalise on these transformative changes and, therefore, may benefit financially. The Sustainable Investment team invests in three transformative trends:

  • Resource Efficiency
  • Improved Health
  • Greater Safety & Resilience

Investment Performance

Investment Performance

The fund range performance is measured against sector average.  Measuring cumulative performance, all funds in the range are consistently underperforming over shorter-term periods.  However annualised returns over longer periods are above average, excluding the Corporate Bond fund which is still underperforming the sector average over 5 years.   Performance was measured up to 14th September 2022.

Past performance is not a guide to future performance.

Platform availability

Liontrust Multi-Asset funds are available on the following platforms:

Abrdn Wrap Embark
Abrdn Elevate Fidelity
Advance – Embark Hubwise
AEGON James Hay
AJ Bell Novia
Ascentric Nucleus
Aviva Transact

Risk tools

Liontrust Multi-Asset funds are mapped to the following risk tools:

  • Dynamic Planner
  • Defaqto
  • Evalue
  • Oxford Risk
  • Synaptic
  • Finametrica

Supporting documents

Tenet Opinion

This is a range of established funds run by a very experienced sustainable investing team who have also developed a robust ESG/sustainable policy.

Exclusions are limited in this portfolio and wouldn’t be suited to clients with strong preferences to negative screening. For example, they won’t automatically exclude an alcohol production company with good governance, water management processes and robust recycling process.

Clients who are wanting to invest positively and in companies who are improving processes should consider these funds.

Information approved for Professional Adviser use only and should not be relied upon by private investors (this is not for Retail Clients).