Liontrust Sustainable Future European Growth Fund on IMCD NV
Thesis
Liontrust added IMCD under its theme of improving the resource efficiency of industrial and agricultural processes. The specialty-chemicals and ingredients distributor provides technical expertise to manufacturers across personal care, pharmaceuticals, coatings and industry. The manager points to IMCD's role in helping customers create lower-impact formulations, use biodegradable and renewable materials and adopt circular practices. It therefore sees the company as an enabler of cleaner production and sustainable product development.
“IMCD enables cleaner production processes and more sustainable product innovation”
Key risks
- Currency movements could reduce returns from overseas equities.
- The fund warns that liquidity constraints can widen the dealing spread of underlying shares.