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Liontrust SF European Growth 2

Bestinvest LogoInvests in continental European equities screened for social and environmental responsibility.

PRICE (INC)

270.3p

PRICE (ACC)

270.3p

INITIAL CHARGE

0%

ANNUAL MANAGEMENT CHARGE

0.75%

ONGOING CHARGE

0.9%

YIELD

0.7%

1 YEAR
-21.55%

Prices as at 16 Aug 2022.

Fund commentary last updated 03 Dec 2021.

Past performance is not an indication of future performance.

Capital at risk.

The fund aims to deliver capital growth over five years or more by investing in sustainable European companies which can accelerate environmental and social improvements. The management team of Martyn Jones and Peter Michaelis use Liontrust’s Sustainable Future investment process to find “survive and thrive” stocks. These have strong growth prospects, meet Liontrust’s environmental and social criteria and are more resilient than the market gives them credit for. They shun investments in stocks from sectors such as tobacco, gambling, and deforestation. The team seeks to outperform not only ESG funds, but also the mainstream index – the fund’s benchmarks are the MSCI Europe ex-UK and the IA Europe ex-UK. However, they can invest up to 5% in UK stocks. Portfolio holdings include digital product engineer Nagarro and sportswear group Puma.

Fund summary

SectorEurope Excluding UK
StructureOEIC
LaunchedFebruary 2001
Size£407m
Yield0.7%
Charging BasisIncome
Dividends paidAcc units only

Charges

Standard Initial Charge0%
Initial Charge Via BestInvest0%
Additional Bid/Offer Spread0%
Annual Management Charge0.75%
Ongoing Charges Figure0.9%

Investment Process

The investment process begins by identifying whether a company is aligned with sustainable themes including resource efficiency and a healthier & higher quality of life. The Sustainable Futures sustainability matrix is then used by managers Martyn Jones and Peter Michaelis to look at a company’s quality of management and the policies and practices they have put in place for managing its ESG risks. Companies are given a score between one – the best result they can receive - and five. The team also consider the sustainability of a company’s products/services. An A rating means the company contributes to sustainable development such as renewable energy whilst an E rating would be tobacco stocks. Those firms with a C3 score or higher are considered for portfolio inclusion. The managers then take a bottom-up analysis of a company’s business fundamentals such as a high barrier to entry and recurring revenues. In the next stage they look at valuations, measuring companies on free cash flow, return on equity and sales growth. They use historic multiples to create a three-year future predicted stock value. This leaves around 100 to 150 stocks for portfolio construction. The managers select 40-60 stocks of these, aiming to gives the portfolio diversification across sectors, regions, and growth themes. The portfolio is reviewed by an independent advisory committee, which meets at least three times a year to monitor its social and environmental impact.

The information on this website is not intended to be advice or a recommendation to buy, sell or hold any investment mentioned. The value of investments and the income from them can go down as well as up and you may not get back the amount invested.

Past performance is not a guide to future performance. View full risk warning