Fund Focus: Liontrust Sustainable Futures UK Growth
This month, we are focusing on a fund used our Harmonic portfolios which target risk levels 4-8. The fund represents between 2-3% of the asset spread within these portfolios.
Socially responsible investments have become more popular with investors over the last few years appealing to investors who have a preference towards avoiding investing in companies that produce or sell addictive substances (such as alcohol, gambling and tobacco) in favour of companies that are engaged in social justice, environmental sustainability and alternative/clean energy and technology.
We feel that this fund compliments other UK equity-based funds within our Harmonic portfolios by giving the investor a wider spread of asset exposure, resulting in increased diversification.
Liontrust launched in 1995 and were listed on the London Stock Exchange in 1999. Their main office is on the Strand in London and since their launch they have opened offices in Edinburgh and Luxembourg.
The fund itself launched in 2001 and invests in companies incorporated, domiciled or which conduct significant business in the United Kingdom. As with many ethical or socially responsible funds the fund managers do not expose the capital to sectors deemed unethical, such as alcohol and tobacco. This fund uses a thematic approach to identify the key structural growth trends that will shape the global economy of the future and the fund managers then seek to invest in well run companies whose products and operations capitalise on these transformative changes.
The fund currently has £1.375 Billion invested over 44 holdings with a cumulative 5-year annualised performance of 13.04% (as at August 2021)
The top ten holdings in the fund represents 31% of the capital and provides exposure to GlaxoSmithKline (3.44%) as the highest holding, you will also have exposure to the following companies;
Softcat PLC (3.23%) – Softcat are a leading provider of IT solutions and services who offer bespoke, innovative end to end technology solutions. Their environmental sustainability practices span not only their own business but their entire supply and the solutions they create. They innovate in ways that reduce emissions using science-based targets, eliminating the use of single-use plastics across the business and offsetting carbon emissions to help support the fight against global warming. Softcat have also become supporters of the UN Sustainability Goals.
Countryside Properties PLC (3.07%) – Countryside Properties create communities for people to live in across London, The South East, North West, Yorkshire and West midlands. They build their homes with a focus on energy efficiency and green living, with the view to make the environment a better place to be. Last year they received awards for best construction and materials amongst many others.
Overall this fund is well performing and it has done better than its Sector Average in four of the last five years. The Harmonic Portfolios are not constrained and funds are chosen on their asset allocation, being ‘Rated’ by Raynor Spencer Mills and of course, providing consistent investment returns.
The information provided in this report is based on our own opinion and offers no guarantee that our expectations will be met. Past performance is no guide to future results. As always, should you have any concerns you wish to raise, please do contact us.
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