Liontrust Sustainable Future Defensive Managed Fund on Zscaler
Thesis
Liontrust sees Zscaler’s zero-trust cloud-security platform as benefiting from increasing demand for digital protection, including the security of AI workloads and sensitive information. Fiscal fourth-quarter revenue and annual recurring revenue both advanced 25% year on year. That performance reinforced the fund’s confidence in the durability of Zscaler’s long-term growth. The fund also regards cybersecurity as an area that can benefit from AI adoption rather than simply suffer disruption.
“Strong demand for its zero-trust platform, including the protection of AI workloads and sensitive data, reinforced confidence in its long-term growth prospects.”
Key risks
- The risk that AI changes the competitive economics of software and cybersecurity rather than benefiting every incumbent.
- Sharp volatility in AI-related technology shares and investor positioning.
- A material slowdown in AI infrastructure investment that could undermine sentiment toward associated technology beneficiaries.