Liontrust UK Ethical Fund Class 2 Net Accumulation

UK Growth

Rated Fund 2018-19. Strong ethical investment pedigree

On paper, this fund has only been run by Peter Michaelis and Neil Brown since April 2017, but in reality they have been running it for much longer.

Michaelis joined Aviva in 2001 and has managed the Sustainable Future fund range since the launch of its Absolute Growth fund in the same year. Brown joined Aviva in 2008 as an analyst of socially responsible investments. The funds transferred first to Alliance Trust and then to Liontrust in 2017.

In managing Liontrust UK Ethical, they invest in the shares of 40 UK companies with strong long-term return prospects. They only invest in companies that meet their ethical requirements. This entails excluding companies involved in activities such as alcohol production or distribution, animal testing, fossil fuels, gambling, genetic engineering and intensive farming.

It also involves targeting companies that improve people’s quality of life, be it through medical, technological or educational advances; driving improvements in the efficiency with which we use increasingly scarce resources; or helping build a more stable, resilient and prosperous economy.

Their process seeks to invest in three types of companies: high-quality organisations with robust business fundamentals, strong management and attractive valuations; adaptors and innovators capitalising on change, accessing new markets and opportunities and outperforming their competitors; and companies creating real and lasting value for shareholders and society.

The fund’s largest theme is safety and resilience, which includes increasing financial resilience and leadership in governance. Other themes include efficiency, improvements in health and higher quality of life. The fund yields 2%. It is more than 90% different from its MSCI UK benchmark.

Narrative and ratings content all as of 01 January 2019.

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Name
Liontrust UK Ethical Fund Class 2 Net Accumulation
Manager
Liontrust Fund Partners LLP
Type
Open Ended Investment Company
ISIN
GB00B8HCSD36
Sector
UK All Companies
Launched
10/05/1999
OCF
0.86 %
Risk Rating
3
3 Year Sharpe
1.38
3 Year Alpha
7.78
Yield
1.8 %
Benchmark
MSCI United Kingdom NR LCL
The Fund aims for long term capital appreciation. It may invest in any of the following financial instruments in order to achieve its investment objective: transferable securities, money-market instruments, units in collective investment schemes, deposits and derivatives and forward transactions. Diversified investment within the UK equity market. Individual security selections will be based on price and long term total return prospects of companies which meet defined ethical considerations and which will benefit from improvements in environmental standards and a shift towards a more sustainable economic system.
Holding %
Kingspan Group PLC 6.01 %
London Stock Exchange Group PLC 5.33 %
Prudential PLC 5.03 %
Legal & General Group PLC 5.00 %
Compass Group PLC 4.64 %
National Express Group PLC 3.84 %
Smurfit Kappa Group PLC 3.83 %
Intertek Group PLC 3.71 %
Paragon Banking Group PLC 3.61 %
Cineworld Group PLC 3.34 %
Region %
United Kingdom 95.69 %
Sector %
Financial Services 33.35 %
Consumer Cyclical 27.02 %
Industrials 15.31 %
Technology 10.91 %
Basic materials 8.51 %
Name
Liontrust Fund Partners LLP
Address
NULL, London, United Kingdom
UCITS
Yes
Legal Structure
Open Ended Investment Company

Managers

Neil Brown
Joined 02/01/2013

Neil is a co-founder and portfolio manager of Electus Fund Managers Proprietary Limited, a boutique independent fund manager established in 2015. Originally started in 2007 by Neil Brown and Richard Hasson as a fund management boutique within OMIG, Electus was successful in terms of client fund performance, asset growth and profitability. They continue to manage the Electus business and its clients in a 100% independent and staff owned business since 2015. With 25 years of investment experience and an MBA in Finance, Neil has an ability to understand the strategic and financial business plans employed by companies. Having spent eight of these years as a small and mid-cap sector specialist, Neil has an in-depth understanding of this sector in the market which is typically under researched. Neil joined Old Mutual Investment Group (OMIG) in June 2004 as a Senior Portfolio Manager and Small Cap Sector Head and portfolio manager for these institutional and retail funds. Neil has been an institutional analyst and fund manager, managing both pension funds and unit trusts, but primarily focusing on the mid and small cap sectors of the JSE. He has managed two unit trusts, the NIB Emerging Companies Fund (now named Nedgroup investments Entrepreneur Fund) since its inception in 1997, until June 2004, and the NIB Growth Fund (now named Nedgroup Investments Growth Fund) since April 2001 to date. From April 2003, until its closure in June 2004, he worked for Quaystone (previously BOE Asset Management), before joining OMAM in June 2004. From 1996, until its closure in April 2003, Neil worked for Syfrets Managed Assets and its successors, NIB & Franklin Templeton NIB. From 1992 to end 1995, he worked for Syfrets Private Bank, managing segregated private client portfolios.

Peter Michaelis
Joined 12/01/2000

Peter Michaelis transferred to Liontrust in April 2017. Beforehand he was Head of Investment at Alliance Trust Investments. In 2001, he joined Aviva Investors, where he was promoted to Head of Sustainable and Responsible Investment in 2005. Peter has been lead fund manager on both the Sustainable Future (SF) Managed and SF UK Growth funds since April 2005, and the UK Ethical fund since May 2001. He is co-fund manager on SF Pan European, SF European Growth, SF Global and SF Absolute Growth funds. Peter is also responsible for managing the relationship with the Advisory Committee. Peter holds an MA in Physics from Oxford University, an MSc in Energy & Environmental Engineering and a PhD in Environmental Economics.

Data provided by Morningstar.

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