Liontrust Sustainable Future Funds - Annual Review 2017 - Page 17

Safer and more resilient
Safer and more resilient focuses on companies
making our lives safer and the systems we rely on
more resilient. It covers themes such as Enhancing
digital security, Improving auto safety, and Increasing
financial resilience.
Top performers across these themes over the last three
years include:
•• Sophos (Enhancing digital security)
•• Infineon (Improving auto safety)
•• Visa (Increasing financial resilience)
Case study:
Case study:
••Sophos, which benefits from our Enhancing digital
security theme, has continued to perform well based
on strong growth in new business for its cyber
security software.
•• Accelerated by new developments and the
electrification of vehicles, it is estimated the market
for Advanced Driver Assistance Systems will reach
€58bn by 2025, with Automatic Emergency Braking
(AEB) expected to be standard on virtually all new
cars by this date.
••As IT networks grow in complexity, the company has
focused on keeping IT security simple and reliable. Its
strategy is that a proper security strategy must include
networks, servers and devices, managed easily
through the cloud.
••Sophos sells to the SME market worldwide: cyberattacks there may not attract the kind of headlines
that recent assaults on WPP and Reckitt Benckiser
received but are just as significant for the businesses
in question.
16 Liontrust Sustainable Future Funds: Annual Review 2017
•• This requires a significant increase in the semiconductor material in a car. On average, there is
£230 of semiconductor content in a current internal
combustion engine car but this trebles to around
£700 for a full electric vehicle.
The purpose of analysing these investment
themes is to find structural growth.
This is integrated into our investment decisions to
help us to identify companies that are undervalued
and have the potential to outperform on a three to
five-year time horizon.
The previous examples show how aligned strong
investment performance can be with positive
structural growth trends.
•• Infineon Technologies is a German analogue
semiconductor manufacturer, playing a key role in
providing the chips for auto safety systems.
Liontrust Sustainable Future Funds: Annual Review 2017 17

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