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LIONTRUST SF EUROPEAN GROWTH 2

LIONTRUST SF EUROPEAN GROWTH 2 - Overview

Overview of LIONTRUST SF EUROPEAN GROWTH 2

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.

  • Standard Initial Charge 0.00%
  • Initial charge via Bestinvest 0.00%

Fund summary

Sector Europe Excluding UK
Structure OEIC
Launched February, 2001
Size £584m
Yield 0.6%
Charging basis Income
Dividends paid Acc units only

Charges

Standard initial charge 0.00%
Initial charge via Bestinvest 0.00%
Additional bid/offer spread 0.00%
Annual management charge 0.75%
Ongoing charges figure 0.90%

Risks

Before investing make sure you have understood the risks relevant to the fund by reviewing our Risk Warnings section. Further information on the risks are contained in the fund's Key Investor Information Document, which we make available to you before you make a decision to invest, alternatively it is available on request.

Bestinvest view

The fund benefits from the leadership of managers Martyn Jones and Peter Michaelis who have an established track record in sustainable investing. Their investment process and philosophy are clear and consistent, based on finding quality companies whose strong growth prospects are linked to key sustainability themes. They want to find well-run companies which are set up to capitalise on the transformative changes happening at pace in the environment and society. Indeed, the team’s key mantra is "Investing for tomorrow, today". They are seeking early adaptors or innovators in their respective sectors. The fund has consistently outperformed its benchmarks. This is an attractive fund for investors looking for exposure to ethical/ sustainable European stocks.

Portfolio

Allocation Proportion(%)
Equity 98
High yield bonds 0
Quality bonds 0
Property 0
Commodities 0
Hedge 0
Fund cash 2
Allocation Proportion(%)
UK 6
Europe 90
North America 4
Japan 0
Pacific 0
Emerging Markets 0
Allocation Proportion(%)
Large Caps 66
Mid Caps 24
Small Caps 10

View all performance data for this fund

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.

Live feed

Bid price(inc) 321.46p
Accum units 353.14p
Fund commentary 03/12/21
Fund data updated on 09/12/21

Asset allocation

Allocation Proportion(%)
Equity 98
High yield bonds 0
Quality bonds 0
Property 0
Commodities 0
Hedge 0
Fund cash 2

Equity Geographic

Allocation Proportion(%)
UK 6
Europe 90
North America 4
Japan 0
Pacific 0
Emerging Markets 0

Equity Capitalisation

Allocation Propor
tion(%)
Large Caps 66
Mid Caps 24
Small Caps 10

Top 10 holdings

As at: 29/10/2021
4.8031%Nagarro Se
4.0664%Asml Holding Nv
3.643%Avanza Bank Hldg Ab
3.5492%Svenska Handelsbanken Ab
3.4557%Dnb Bank Asa
3.4231%Lifco Ab
3.38% Puma Se
3.3364%Sap Se
3.1173%Roche Hldg Ag
2.9671%Unilever Plc
Source: Trustnet

Sector breakdown

Information Technology 26%
Health Care 19%
Financials 17%
Industrials 15%
Consumer Discretionary 7%
Communications 6%
Consumer Staples 5%
Money Market 3%
Materials 2%

Portfolio details

40-60 stocks.

Constraints

This fund is managed within tight constraints which are likely to lead to performance closely in line with the benchmark.

Average monthly relative returns Bestinvest MRI
17/18 18/19 19/20 20/21 21/22   3 years 5 years Career 3 years 5 years Career
0.07%   0.32%
Performance figures are based on the average of monthly percentage returns relative to the benchmark index.

Martyn Jones / Peter Michaelis

Manager. Jones is the Lead Fund Manager of the Liontrust Sustainable Future European Growth Fund and Pan-European Growth Fund and co-manager of SF UK Growth and Ethical Funds. He joined Liontrust in 2017 following the acquisition of Alliance Trust Investments and became a fund manager in 2019. Prior to Liontrust Jones spent five years at Alliance Trust Investments initially as a Graduate Trainee and then as an Investment Analyst with the Sustainable Investment Team. Michaelis joined Liontrust in April 2017 as part of the acquisition of Alliance Trust Investments, where he was Head of Investment. He has been managing money in Sustainable and Responsible Investment for over 20 years. JHe started his career working for the Steel Construction Institute as an Environmental Engineer. He then moved to Henderson Global Investors where he was able to use his experience as a Sustainable & Responsible Investment Analyst and Assistant Portfolio Manager. In 2001, he moved to Aviva Investors where he was promoted to lead portfolio manager on a number of its Sustainable and Responsible Investment funds, before being made Head of Sustainable and Responsible Investment.

Track record

The track record of Martyn Jones / Peter Michaelis in managing mutual funds in this sector is still too short for us to draw any meaningful conclusions and so our assessment is based largely on qualitative aspects.

Periods of worst performance
Absolute -5% (September 2020 - October 2020)
Relative -5% (February 2021 - May 2021)

Other funds managed

Sector record since May 2020 (2 yr)




About the MRI

Our unique indicator: the Bestinvest Manager Record Index (MRI) measures the likelihood that the fund manager is adding value through their decisions. It is based on their performance record over the course of their career, adjusted for the amount of risk taken. MRI is an important contributor to our fund rating system but it is also vital to take account of qualitative factors. It is also very important to select funds to form a cohesive portfolio with an appropriate overall risk level.

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