Liontrust Sustainable Investment Annual Review 2021 - International - Report - Page 26
Decent work and economic growth (SDG #8)
We have three themes aligned to this development goal to promote
sustained, inclusive and sustainable economic growth, full and
productive employment and decent work for all.
Insuring a sustainable economy: We believe insurance can spread
the risk faced by an individual or corporation and makes a beneficial
contribution to society.
Increasing financial resilience: We believe a resilient financial
services sector is necessary for economic well-being through
utility-like provision of banking, lending and effective ways of
appropriately saving for the future, as well as mitigating risks through
insurance. This does not mean that any company in the financial
sector is automatically investable, but we do see positive ways
that these companies contribute to society when appropriately and
proactively managed. This is aligned with the SDG Key Performance
Indicator 8.3 to encourage growth of business through access to
financial services.
Prudential is predominantly a life and health insurer, listed in the
UK and focusing on growth in Asian markets. As such, it is bringing
insurance to those who have not had access to it before and to those
unlikely to be supported by the state.
PayPal is a US-based company that makes transacting online easier
and safer for consumers and businesses. Identity theft and fraudulent
transactions are significantly lower on PayPal than its competitors
and the value we see from this business should come from a long
runway of growth amplified by the excellent position the company
has created for itself.
Saving for the future: We believe there is a real need for people
to be able to get good advice and choose appropriate investments
to ensure they have saved up for their retirement. Failing to invest for
the future and relying on state-funded pension schemes will result in a
significant drop in quality of life as government finances come under
increasing pressure, exacerbated by demographic shifts towards a
higher proportion of people past working age. Again, not every
company involved in financial services is exposed to this theme, but
we look for what we consider the best-managed businesses catering
for people’s needs.
Hargreaves Lansdown is a UK investment platform through
which individuals can manage their investments. Our view is that
Hargreaves democratises investing and provides a low-cost way
for individuals to manage their savings. There is an increasing shift
of responsibility of retirement funding to individuals. In this context,
we feel that businesses helping individuals to take charge of their
own finances, whether it be through structured advice or investment
platforms, will help people as well as benefit from this shift.
All use of company logos, images or trademarks in this presentation are for reference purposes only.
26 - Liontrust Sustainable Investment: Annual Review 2019
