Liontrust Monthly Income Bond Impact Report Q2 2020 - Page 3



Exposure to positive sustainability investment trends
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 companies generally sit within these themes
and are 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 is 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.
Exposure to sustainable themes
4.2%
Theme
7.5%
1.4%
6.3%
Better
Resource
Efficiency
17%
24.5%
Greater
Safety and
Resilience
51%
2.3%
4.7%
2.2%
2.8%
Improved
Health
27%
17.5%
23.1%
1.0%
1.0%
1.6%
7%
Improving the efficiency of energy use
1%
Increasing electricity from renewable sources
6%
Improving management of water
2%
Making transport more efficient
5%
Building better cities
2%
Providing education
3%
Enabling healthier lifestyles
17%
Connecting people
2%
Better monitoring of supply chains and quality control
1%
Leading ESG management
1%
Saving for the future
23%
Insuring a sustainable economy
25%
Increasing financial resilience
4%
Portfolio construction_diversification
Data as at 31 July 2020. Chart is thematic exposure to corporate bonds only, Government bonds and cash excluded and rebased to 100%
Liontrust Monthly Income Bond Fund - 3

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