The Sustainable Future Process | What we offer | Liontrust Asset Management PLC
Liontrust - Sustainable Future

The Sustainable Future process


In a fast changing world, we believe the companies that will survive and thrive are those which improve people’s quality of life, be it through medical, technological or educational advances; driving improvements in the efficiency with which we use increasingly scarce resources; and helping to build a more stable, resilient and prosperous economy.

The process, which has been developed and honed over more than 15 years, seeks to invest in high-quality organisations with robust business fundamentals, strong management and attractive valuations; adaptors and innovators capitalising on change, accessing new markets and opportunities and outperforming their competitors; and companies that are creating real and lasting value for shareholders and society, now and in the future.

There are two main stages to the process:

  1. 1

    Identifying superior stocks

    Our assessment of quality is a distinctive part of our process. For us, high-quality companies must exhibit the following three characteristics: excellent management and core products or services that are making a positive contribution to society; strong growth prospects; and the ability to translate these into leading returns on equity.

  2. 2

    Constructing resilient portfolios

    We select a portfolio of what we believe is the best combination of 40 to 60 stocks to diversify risk and reduce volatility of returns relative to the benchmark. We seek to generate outperformance come from the stocks we choose, while disciplined portfolio construction is designed to minimise the volatility of returns.

Fixed Income

We invest in a focused portfolio of corporate bonds that are attractively valued and take into consideration environmental, social and governance (ESG) factors by investing in companies that manage these exposures to minimise risk. As active managers, we believe in a high conviction approach to ensure we develop a thorough understanding of our holdings and the factors that influence their long-term value.

There are two main stages to the process: 

  1. 1

    Identifying superior bonds

    Our assessment of quality is a distinctive part of our process. We combine credit analysis with in-depth analysis of issuer specific factors, including ESG and macro-economic analysis.

  2. 2

    Constructing resilient portfolios

    We aim to select the best combination of 60 to 100 bonds for inclusion in a focused portfolio that is designed to try to safeguard against sustained downside risk.

Liontrust - Sustainable Investment team
Peter Michaelis, Simon Clements, Neil Brown, Stuart Steven, Kenny Watson and Aitken Ross
The Sustainable Investment team

The 14-strong Sustainable Investment team, which is headed by Peter Michaelis, transferred to Liontrust from Alliance Trust Investments (ATI) in April 2017 and was previously running the Sustainable Future Fund range at Aviva Investors. Peter, with 16 years’ experience in investing, was previously Head of SRI at Aviva Investors and has been running the funds since their launch in 2001.

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Further information relating to the Sustainable Future process can be found in the documents available for download below.

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• Past performance is not a guide to future performance. • Do remember that the value of an investment and the income from it can fall as well as rise and you may not get back the amount originally invested. • The majority of the Liontrust Sustainable Future Funds have holdings which are denominated in currencies other than Sterling and may be affected by movements in exchange rates. Some of these funds invest in emerging markets which may involve a higher element of risk due to less well regulated markets and political and economic instability. Consequently the value of an investment may rise or fall in line with the exchange rates. Liontrust UK Ethical Fund, Liontrust SF European Growth Fund and Liontrust SF UK Growth Fund invest geographically in a narrow range and has a concentrated portfolio of securities, there is an increased risk of volatility which may result in frequent rises and falls in the Fund’s share price. • Liontrust SF Managed Fund, Liontrust SF Corporate Bond Fund, Liontrust SF Cautious Managed Fund, Liontrust SF Defensive Managed Fund and Liontrust Monthly Income Bond Fund invest in bonds and other fixed-interest securities - fluctuations in interest rates are likely to affect the value of these financial instruments. • If long-term interest rates rise, the value of your shares is likely to fall. If you need to access your money quickly it is possible that, in difficult market conditions, it could be hard to sell holdings in corporate bond funds. This is because there is low trading activity in the markets for many of the bonds held by these funds. Mentioned above five funds can also invest in derivatives. Derivatives are used to protect against currencies, credit and interests rates move or for investment purposes. • There is a risk that losses could be made on derivative positions or that the counterparties could fail to complete on transactions.

• The information and opinions provided should not be construed as advice for investment in any product or security mentioned.  • Always research your own investments and consult with a regulated investment adviser before investing.
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