Liontrust GF SF European Corporate Bond Impact Report Q2 2020 - Page 3



Exposure to positive sustainability investment trends
We look to invest in companies which are making a
positive contribution to our economy by making our
economy either cleaner, healthier or safer. Exposure to
14 of our 20 investment themes is shown below.
Consistent with the available opportunities in investment grade corporate
bonds and our approach that seeks to invest in resilient companies, our
fixed income funds typically have a high allocation to the “Greater safety
and resilience” mega trend.
Within the Greater safety and resilience mega trend the two sub themes
with the greatest exposure are Increasing financial resilience and Insuring
a sustainable economy. The Fund’s exposure to both Banks and Insurance
Exposure to sustainable themes
3%
1%
Theme
9%
7%
7%
Better
Resource
Efficiency
21%
14%
Greater
Safety and
Resilience
50%
6%
Improved
Health
29%
24%
3%
1% 2% 2%
3%
companies generally sit within these themes and is a significant component
of the Fund. Typically, the exposure within the Increasing financial resilience
theme is to banks that are well capitalised and have a focus on retail and
SME lending coupled with resilient and prudent lending practices. We
believe that high quality lending and banking activities are important to a
resilient economy. Typically, the exposure within the Insuring a sustainable
economy theme is to insurance companies. Insurance facilitates economic
growth by giving people the confidence to invest in themselves, their lives
or their businesses. The leading insurance companies expend time and
resources researching the issues such as climate change in order to make
them more efficient when it comes to pricing risk. Through this research
they become better underwriters with a greater ability to advise their clients
on potential risks, whilst also fully integrating their analysis in order to make
better investments. We believe that these leading companies again create
more resilient, sustainable economies.
17%
9%
Increasing electricity from renewable sources
7%
Improving the efficiency of energy use
6%
Increasing waste treatment and recycling
17%
Connecting people
3%
Building better cities
3%
Enabling healthier lifestyles
2%
Providing affordable healthcare
2%
Enabling innovation in healthcare
1%
Providing education
24%
Increasing financial resilience
14%
Insuring a sustainable economy
7%
Leading ESG management
3%
Insuring a sustainable ecsonomy
1%
Delivering healthier foods
Source: Liontrust / Factset, 31 July 2020. Chart is thematic exposure to corporate bonds only, Government bonds and cash excluded and
rebased to 100%.
Liontrust GF Sustainable Future European Corporate Bond Fund - 3

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