Liontrust Sustainable Investment Annual Review 2022 - Flipbook - Page 5
Identifying superior stocks
01
Thematic analysis
– identifies companies with
strong and dependable growth
prospects due to alignment
with our themes
02
03
04
Sustainability analysis
– focuses on those companies
with excellent management
and core products or services
that contribute to society or the
environment
Analysis of business
fundamentals
– selects only those companies
positioned to deliver high
returns on equity
Valuation analysis
– determining that the shares
of the company will be worth
significantly more in the future
Our SF investment process is based on the core belief that sustainable
companies have better growth and are more resilient than the market
gives them credit for. We use this underappreciated advantage as
we look to deliver outperformance across equity, bond and managed
portfolios and, in supporting sustainable companies, accelerate
environmental and societal improvements.
We are seeking to invest in the economy of the future and, to do this,
the team looks at the world through the prism of three mega trends
– Better resource efficiency, Improved health and Greater safety and
resilience – and 20 themes within these, all contributing in different
ways to creating a cleaner, healthier and safer planet:
Cleaner: Using our resources more efficiently (water, increasing
recycling of waste, lower carbon energy sources and energy
efficiency).
Healthier: Improving our quality of life through better education,
healthier lifestyles and diet or better healthcare.
Safer: Making the systems we rely on safer or more resilient.
This includes transport safety, keeping our online data safe with
cyber-security and spreading risk through appropriate insurance
mechanisms.
Understanding these trends helps to identify areas of long-term
structural growth and we then look to invest in companies on the
right side of these transitions, contributing towards a better world
while making profits for our investors.
Liontrust Sustainable Investment: Annual Review 2022 - 5