The Sustainable Future Process | What we offer | Liontrust Asset Management PLC
Liontrust - Sustainable Future

The Sustainable Future process


The process is based on the belief that in a fast-changing world, the companies that will survive and thrive are those which:

  • Improve people’s quality of life, be it through medical, technological or educational advances.
  • Drive improvements in the efficiency with which we use increasingly scarce resources.
  • Help to build a more stable, resilient and prosperous economy.

The process seeks to generate strong returns while benefiting society through identifying long-term transformative developments, such as technological and medical advancements, and investing in companies exposed to these powerful trends that have a positive impact and can make for attractive and sustainable investments.

The process starts with a thematic approach in identifying the key structural growth trends that will shape the global economy of the future. The team currently invests in three transformative trends and 21 themes within these trends.

Companies identified by the process exhibit three characteristics: excellent management and core products or services that are making a positive contribution to society; strong growth prospects; and a business model that enables them to grow profitably from these trends and generate competitive returns.

Key to the process is the fact that every team member is responsible for all aspects of financial and environmental, social and governance (ESG) relating to an investment decision.

Fixed Income

The fund managers aim to produce an income yield, with the prospect of some capital growth, by investing predominantly in corporate bonds and by actively managing the interest rate exposure.

Macroeconomic analysis is used to determine the managers’ top-down view of the world and this helps to shape all aspects of portfolio construction and appetite for risk. After this, the managers aim to focus on high-quality issuers and believe this can reduce bond-specific risk. Their assessment of quality is a distinctive part of their process, in which they combine traditional credit analysis with a detailed sustainability assessment based on their proprietary model.

The fund managers assess individual bonds for whether they believe the bonds offer attractive long-term returns and for absolute and relative valuations. There is no point in investing in a bond merely because it is cheap relative to others in the sector if the fund managers believe the total returns are not attractive to the end investor.

The fund managers seek the best value bonds issued by high-quality issuers across the capital structure, along the maturity curve and that have been issued in the primary credit markets (UK, US and Europe).

The Sustainable Investment team - Equities
The Sustainable Investment team - Equities
Peter Michaelis (left) & Simon Clements (right)

Peter Michaelis & Simon Clements are the lead managers of the Liontrust Sustainable Future Equities Process. The team transferred to Liontrust from Alliance Trust Investments (ATI) in April 2017 and were previously running the Sustainable Future Fund range at Aviva Investors.

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The Sustainable Investment team - Fixed Income
The Sustainable Investment team - Fixed Income
Stuart Steven (centre), Kenny Watson (left) & Aitken Ross (right)

Stuart Steven, Kenny Watson, Aitken Ross, and Jack Willis transferred to Liontrust from ATI in April 2017. Stuart was previously Investment Director at Scottish Widows Investment Partnership. Kenny was formerly at Ignis Asset Management where he was responsible for the sub investment grade bond portfolios. Aitken and Jack started their careers in the graduate scheme at ATI.

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Good COP or bad COP – energy transition will still power on

Mike Appleby

While expectation is rising for the imminent... Read more

Awards and ratings

Fund Manager of the Year Awards 2021
IW FM of the Year Awards 2021
Managed 40-85% Shares - Winner
Liontrust SF Managed Fund
Fund Manager of the Year Awards 2021
IW FM of the Year Awards 2021
Global Growth - Winner
Liontrust SF Global Growth Fund
Fund Manager of the Year Awards 2021
IW FM of the Year Awards 2021
Managed - Flexible Investment - Winner
Liontrust SF Managed Growth Fund
PA AWARDS 21 Best ESG Solution
Professional Adviser Awards 2021
Best ESG Solution for Advisers
Liontrust SF Managed Funds
Women in Finance Awards 2020
Women in Finance Awards 2020
ESG Fund Manager of the Year
Harriet Parker
SF Cautious Managed Fund Fund Manager of the Year Awards 2020
IW FM of the Year Awards 2020
Managed Balanced
Liontrust SF Cautious Managed Fund
SF Managed Fund Fund Manager of the Year Awards 2020
IW FM of the Year Awards 2020
Managed Growth
Liontrust SF Managed Fund
Winner £ Corporate Bond
IW FM of the Year Awards 2018
£ Corporate Bond
Liontrust Monthly Income Bond Fund

Latest fund updates

The Sustainable Investment team

Read the latest fund updates from the Sustainable Investment team. Read more

Portfolio Adviser Fund Awards 2020 Best ESG Fund 70x70
Portfolio Adviser Fund Awards 2020
Best ESG Fund
Liontrust Sustainable Future Global Growth Fund
FT Adviser 100 Club Awards 2019
FT Adviser 100 Club Awards 2020
Mixed Asset Fund of the Year
Liontrust Sustainable Future Managed Growth Fund
FT Adviser 100 Club Awards 2019
FT Adviser 100 Club Awards 2019
Mixed Asset Fund of the Year
Liontrust Sustainable Future Managed Growth Fund
Best Active Ethical/Sustainable Fund at the AJ Bell Fund and Investment Trust Awards 2019
AJ Bell Fund and IT Awards 2019
Best Active Ethical/Sustainable Fund
Liontrust Sustainable Future Global Growth Fund
Citywire rated AAA
Peter Michaelis
Citywire Manager rating: AAA
Citywire rated AAA
Simon Clements
Citywire Manager rating: AAA
RSMR Rated Fund Range
Liontrust Managed Funds
RSMR Rated Fund Range
RSM SRI rated fund
Liontrust Sustainable Investment
RSM Responsible Rated

Liontrust SF Managed Growth, SF Cautious Managed,
SF Corporate Bond, SF Defensive Managed,
SF European Growth, SF Global Growth,
SF Managed & SF UK Growth Funds


Liontrust Sustainable Investment - Investing in a Changing World



Further information on the Sustainable Investment team's screening criteria, policies, governance engagement and voting can be found below.

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Key Risks

Past performance is not a guide to future performance. Do remember that the value of an investment and the income generated from them can fall as well as rise and is not guaranteed, therefore, you may not get back the amount originally invested and potentially risk total loss of capital. The majority of the Liontrust Sustainable Future Funds have holdings which are denominated in currencies other than Sterling and may be affected by movements in exchange rates. Some of these funds invest in emerging markets which may involve a higher element of risk due to less well regulated markets and political and economic instability. Consequently the value of an investment may rise or fall in line with the exchange rates. Liontrust UK Ethical Fund, Liontrust SF European Growth Fund and Liontrust SF UK Growth Fund invest geographically in a narrow range and has a concentrated portfolio of securities, there is an increased risk of volatility which may result in frequent rises and falls in the Fund’s share price. Liontrust SF Managed Fund, Liontrust SF Corporate Bond Fund, Liontrust SF Cautious Managed Fund, Liontrust SF Defensive Managed Fund and Liontrust Monthly Income Bond Fund invest in bonds and other fixed-interest securities - fluctuations in interest rates are likely to affect the value of these financial instruments. If long-term interest rates rise, the value of your shares is likely to fall. If you need to access your money quickly it is possible that, in difficult market conditions, it could be hard to sell holdings in corporate bond funds. This is because there is low trading activity in the markets for many of the bonds held by these funds. Mentioned above five funds can also invest in derivatives. Derivatives are used to protect against currencies, credit and interests rates move or for investment purposes. There is a risk that losses could be made on derivative positions or that the counterparties could fail to complete on transactions.


The information and opinions provided should not be construed as advice for investment in any product or security mentioned, an offer to buy or sell units/shares of Funds mentioned, or a solicitation to purchase securities in any company or investment product. Always research your own investments and (if you are not a professional or a financial adviser) consult suitability with a regulated financial adviser before investing.


Citywire information is proprietary and confidential to Citywire Financial Publishers Ltd ('Citywire'), may not be copied and Citywire excludes any liability arising out of its use. © 2021 Morningstar. All Rights Reserved. The information contained herein: (1) is proprietary to Morningstar and/or its content providers; (2) may not be copied or distributed; and (3) is not warranted to be accurate, complete or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information.  Past performance is no guarantee of future results.

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