Liontrust has entered into an agreement with Alliance Trust to purchase the entire issued share capital of Alliance Trust Investments Limited (ATI).
The proposed acquisition is expected to increase Liontrust’s assets under management by around £2.3bn to more than £8bn and to complete in April 2017.
The ATI investment team, which is headed by Peter Michaelis and manages 11 sustainable investment funds, will join Liontrust as part of the acquisition.
The funds will continue to be managed according to the same investment process, in which the Team looks for well managed companies that have good business fundamentals and which it believes the market undervalues.
Over five years, ATI’s nine equity and fixed income funds are in the first or second quartile of their respective sectors.
“There is strong demand for sustainable investment in the UK and internationally. Increasingly, consumers expect the companies they use to be socially responsible and the demand for sustainable investment will only grow with the rise of millennials,” John Ions, chief executive of Liontrust, said.
“The acquisition of ATI puts us in a very strong position to meet this demand. We look forward to promoting the team and the sustainable investment funds in the UK and across continental Europe,” Ions said.
Peter Michaelis added: “It is a good time to make the move to Liontrust because of the opportunities that the UK retail, institutional and European markets offer sustainable investment funds.”