Liontrust is to launch a sustainable multi-asset fund, after pulling its ESG trust launch in July over insufficient demand.
The fund, which will be domiciled in Ireland and called Liontrust GF Sustainable Future Multi-Asset Global Fund, will be launched on October 13 and is approved for distribution across Europe.
In a statement released yesterday (September 1), the fund manager said the fund will identify firms that help to create ‘a cleaner, safer and healthier society for the future and aims to generate attractive returns for investors’.
The fund will be managed by head of sustainable investment Peter Michaelis, alongside Simon Clements.
Michaelis said: "We believe the equities and bonds of companies whose products and operations capitalise on the transformative changes that our process identifies will experience stronger growth and have better quality management than the market gives them credit for. We use this underappreciated advantage to seek to deliver superior performance.
“We are excited to bring this new multi-asset fund to our European clients, with an opportunity to seek strong returns while benefiting society.”
The managers will invest 40 to 60 per cent of the fund in equities, 20 to 50 per cent in bonds and up to 20 per cent in cash.
The split is the same as that used in the UK-domiciled Liontrust SF Cautious Managed strategy, but with geographical exposures adjusted for non-UK investors.
In July Liontrust pulled the IPO of its sustainable investment trust, saying it had received significant support from private investors but the demand did not reach the minimum investment of £100m, as set out in the prospectus.
Liontrust had announced the IPO in May, and planned to invest in 25 to 35 companies around the world that it deemed sustainable.
The trust’s portfolio would have been managed by Peter Michaelis, Simon Clements and Chris Foster, currently part of Liontrust’s sustainable investment team.