Liontrust Sustainable Future Funds - Annual Review 2017 - Page 14



More efficient
Healthier and with higher quality of life
More efficient focuses on companies helping the
world make better use of scarce resources, driving
improvements in areas as diverse as energy, industrial
processes and transport. Key contributors to returns
over the last three years across our efficiency themes
have included:
••Kingspan (Increasing the efficiency of energy use)
••Arm, Equinix and ASML (energy efficiency in technology)
••Kyudenko (Increasing energy generation from
renewable sources)
Case study:
Case study:
KYUDENKO
ASML

The Japanese company specialises in the outsourcing
of electrical engineers and is benefiting from demand
for contractors in infrastructure and large-scale
renewable energy projects.

Dutch business ASML sells the machines that make
semiconductors and is the world’s largest supplier of
photolithography systems. Current estimates claim the
Internet of Things will connect 50 billion devices by
2020, each containing at least one chip.

This demand is supported by the need to rebuild
Japan’s energy infrastructure system in the wake of the
2011 nuclear disaster, replacing nuclear capacity
with safer and cleaner solar and wind.

Kyudenko has a strong competitive advantage,
as it sources graduates from Kyushu University
and trains them through its internal programme,
supplying labour into a market that remains in need
of skilled contractors.
14 Liontrust Sustainable Future Funds: Annual Review 2017

Faster, smaller, greener are ASML’s guiding principles,
continuing Moore’s Law towards smaller, cheaper,
more powerful and
energy-ef ficient
semiconductors.

We believe its focus on
next generation EUV (extreme
ultraviolet lithography)
technology
puts
the company in a
dominant position
out to 2030.
Within Healthier and with higher quality of life, we are
seeking to invest in companies helping to extend life
expectancy and enabling people to be fit and healthy
enough to reap the benefits of an improving world.
epidemic, tripling since 1975 and set to rise further still.
The World Health Organisation (WHO) projects that by
2030 more than one billion adults around the world will
be obese.
Among our best-performing stocks are three linked to
Delivering healthier foods: Kerry, Whitewave (known
as DanoneWave since last year) and Wessanen. The
consumption of calorie-dense food and lower levels
of physical activity have led to a global obesity
People are increasingly aware that the food we consume
needs to better fit our lifestyles, with more natural and
healthy characteristics, and we believe the theme
of Delivering healthier food represents a significant
investment opportunity.
Case study:
Case study:
WESSANEN
KERRY

Wessanen manufactures and distributes organic food
products. Its portfolio includes dairy alternatives,
bread and biscuit replacers, vegetarian meals,
breakfast cereals and hot drinks.

One of our key long-term holdings is Irish-based food
technology company Kerry Group. Consumers are
demanding more from their food, wanting healthier
and more natural ingredients while still retaining an
appealing taste and texture. It can be difficult to
achieve these competing characteristics and food
manufacturers and hospitality companies come to
Kerry for its expertise in ingredients and flavourings.

The company’s brands include Bjorg, Zonnatura,
Clipper, Tartex, Bonneterre, Whole Earth, Kallo, Alter
Eco, Allos, Gayelord Hauser and Isola Bio.
•Wessanen is relatively small
but doing a lot given its
size, including an
explicit recognition of
the UN’s Sustainable
Development Goals, a
move to 100% renewable
energy
and
sustainable
sourcing policies.

Kerry enables what it calls the ‘Three Rs’: reduce,
remove and replace. For example, this includes
reducing calories, removing artificial chemicals and
replacing them with natural alternatives.

We also like Kerry because it is managed for the
long term and consistently invests in research and
development to maintain leadership in the food
technology space.
Liontrust Sustainable Future Funds: Annual Review 2017 15





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