Liontrust Sustainable Future Funds - Annual Review 2019 - Page 27



Decent work and economic growth (SDG #8)
Industry, innovation and infrastructure (SDG #9)
We have three themes aligned to this development goal to promote
sustained, inclusive and sustainable economic growth, full and
productive employment and decent work for all.
We have three themes aligned with this SDG to build resilient
infrastructure, promote inclusive and sustainable industrialisation
and foster innovation.
Increasing financial resilience: We believe a resilient financial
services sector is necessary for economic well-being through
utility-like provision of banking, lending and effective ways of
appropriately saving for the future, as well as mitigating risks through
insurance. This does not mean that any company in the financial
sector is automatically investable, but we do see positive ways
that these companies contribute to society when appropriately and
proactively managed. This is aligned with the SDG Key Performance
Indicator 8.3 to encourage growth of business through access to
financial services.
PayPal is a US-based company that makes transacting online easier
and safer for consumers and businesses. Identity theft and fraudulent
transactions are significantly lower on PayPal than its competitors
and the value we see from this business should come from a long
runway of growth amplified by the excellent position the company
has created for itself.
Insuring a sustainable economy: We believe insurance can spread
the risk faced by an individual or corporation and makes a beneficial
contribution to society.
Prudential is predominantly a life and health insurer, listed in the
UK and focusing on growth in Asian markets. As such, it is bringing
insurance to those who have not had access to it before and to those
unlikely to be supported by the state.
Saving for the future: We believe there is a real need for people
to be able to get good advice and choose appropriate investments
to ensure they have saved up for their retirement. Failing to invest for
the future and relying on state-funded pension schemes will result in a
significant drop in quality of life as government finances come under
increasing pressure, exacerbated by demographic shifts towards a
higher proportion of people past working age. Again, not every
company involved in financial services is exposed to this theme, but
we look for what we consider the best-managed businesses catering
for people’s needs.
Hargreaves Lansdown is a UK investment platform through
which individuals can manage their investments. Our view is that
Hargreaves democratises investing and provides a low-cost way
for individuals to manage their savings. There is an increasing shift
of responsibility of retirement funding to individuals. In this context,
we feel that businesses helping individuals to take charge of their
own finances, whether it be through structured advice or investment
platforms, will help people as well as benefit from this shift.
Improving industrial and agricultural processes: We like
companies that provide products or services which help to make
industrial processes more resource efficient, as well as safer for
workers and users. These improved industrial processes help to
reduce the negative impacts on people and the environment and
are making a positive contribution. We see investment opportunities
in software and systems that help to implement life-cycle design
(including disposal of products) and manage supply chains, and
opportunities in automation of factory processes to remove repetitive
or dangerous mechanical tasks. These all help to modernise industry
and meet this SDG.
Enhancing digital security: As more and more of our lives and
critical services are carried out online, we need to protect the data
from theft. Digital security helps to make this growing area of the
economy secure.
Palo Alto Networks provides technology to protect our digital way
of life. Its firewall product is consistently rated the best by Gartner,
and the company achieves very high customer satisfaction scores,
giving us confidence it will succeed in making online information
only available to those permitted to see it.
Connecting people: We believe access to easy communication
tools and information, increasing amounts of which are online, is a
positive requisite in a more sustainable economy.
Autodesk is a leading software business, listed in the US, which
serves the global construction and manufacturing industries. It is
bringing technology to areas of the global economy that have been
nascent in terms of adoptions, such as manufacturing design and
particularly construction and building sites. The global construction
industry is in the midst of an inflection point, as traditional paper
architectural designs are replaced by digital designs on devices. This
avoids costly construction errors and wasting resources used in the
construction process.
Helios Towers is the UK-listed owner and operator of telecom
infrastructure assets. The company’s assets are in high-growth African
markets with its strategy being to grow assets in underserved markets
and contribute to providing reliable access to communications in
these countries. This will enable telecom operators to make their
networks denser to offer the greater capacity necessary to meet
increased demand for mobile data services.
All use of company logos, images or trademarks in this presentation are for reference purposes only.
26 - Liontrust Sustainable Investment: Annual Review 2019
Liontrust Sustainable Investment: Annual Review 2019 - 27

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