Liontrust GF Sustainable Future Pan-European Growth Fund on Arm Holdings plc
Thesis
Liontrust added Arm under its Improving the efficiency of energy use theme. Arm develops semiconductor intellectual property that connects chip hardware with the software directing it. The manager highlights the reduced complexity of calculations under Arm's reduced-instruction-set architecture as the efficiency mechanism. The investment is intended to capture the role of efficient processor architecture in reducing computation and energy requirements.
“ARM was added under our Improving the efficiency of energy use theme.”
Key risks
- The manager has reduced AI-hardware exposure elsewhere after strong share-price gains made valuations less attractive.
- Higher interest rates could pressure growth-company valuations.