Introduction to Liontrust - Flipbook - Page 24
Sustainable Investment team
Investment process
The investment process seeks to generate strong returns from
investing in companies aiming to deliver profits through positive
social and environmental impacts. The fund managers look at the
world through the prism of three mega trends – Better resource
efficiency (cleaner), Improved health (healthier) and Greater safety
and resilience (safer) – and then 20 themes within these.
If a company has significant exposure to one of the themes, the fund
managers verify how sustainable the rest of its activities are. For
each company, the fund managers determine the ESG factors that
are important indicators of future success and assess how well these
are managed, via the proprietary Liontrust Sustainability Matrix.
Companies in which the fund managers invest will have robust
business fundamentals with a proven ability to deliver high returns
on equity (RoE) through sustaining margins and asset turnover.
Typically, these companies have a maintainable competitive
advantage through scale, technology or business model.
The fund managers invest in well-run companies whose products
and operations capitalise on the transformative changes the
Liontrust Sustainable Investment team has highlighted, may benefit
financially from them and score well on ESG, business fundamentals
and valuation. The managers believe identifying these powerful
themes and investing in exposed companies can make for attractive
and sustainable investments.
Identifying superior stocks
01
02
03
Thematic analysis
Sustainability analysis
Identifies companies with
strong and dependable
growth prospects due to
alignment with our themes
Focuses on those companies
with excellent management
and core products or services
that contribute to society or
the environment
Analysis of business
fundamentals
24 - Liontrust investment teams and funds
Selects only those companies
positioned to deliver high
returns on equity
04
Valuation analysis
Determining that the shares
of the company will be worth
significantly more in the future