Introduction to Liontrust - Flipbook - Page 21
Diversified Real Assets process
The Real Assets investment process seeks to combine asset classes,
sectors and securities that deliver total returns above inflation over the
long term. The process is unconstrained and dynamic, with a focus
on listed private assets that can help diversify against traditional
equities and bonds.
Strong corporate fundamentals – transparent business models,
appropriate leverage and high-quality management
Dividend sustainability – a stable and/or growing dividend cover
for income securities
Valuations – not overpaying for companies
The Fund invests in both growth and defensive assets with the
allocations changing according to the view of the business cycle.
A combination of quantitative and qualitative signals leans the Fund
into areas of the market that provide the best risk-adjusted outcomes.
The process selects securities with:
Real returns – cash flows directly or indirectly linked to inflation and
which benefit from sector trends
The Fund aims to ensure there is no single risk or factor that dominates
the overall risk of the portfolio. The portfolio is constructed to seek to
deliver alternative sources of risk and returns from traditional equities
and bonds.
As a daily-dealing alternative fund, maintaining a high liquid profile
is essential. Individual holding weights are determined by both
conviction and liquidity.
Liontrust investment teams and funds - 21