Liontrust Assessment of Value Report - Flipbook - Page 90
Liontrust Russia Fund
The Fund is managed by Thomas Smith and aims to generate
capital growth over the long term (5 years or more). The Fund
invests at least 80% in shares of Russian companies. These are
companies which, at the time of purchase, are incorporated,
domiciled, listed or conduct significant business in Russia.
Performance
Overall value
assessment
We have evaluated the Fund
against all seven criteria in
our assessment of the value
it provides to investors. We
have concluded that the
Fund has performed in line
with expectations, delivering
overall value to investors.
Go back to the Summary
of the Assessment of
Value table
We have assessed the investment performance of the Fund against both its
stated investment objective, as well as against the benchmarks that are set out
in its prospectus. We considered whether the Fund has performed how we and
investors would expect it to, given the market conditions it has been operating
under, and its investment philosophy, strategy and process.
The Liontrust Russia Fund returned 122.9% over five years to 31 August 2021,
outperforming the MSCI Russia 10-40 Index (comparator benchmark) return
of 92.8%.*
The Liontrust Russia Fund focuses on Emerging Leaders, which are companies
well positioned to prosper in a world of rapid change. Importantly, given
that many disruptive products and business models have arisen in developed
markets, their introduction and adoption rates across emerging markets are
driving considerable growth at a consumer and commercial level.
Therefore, the team believes emerging leaders alone have the resources and
capabilities to survive and prosper given the huge levels of disruption seen
across the whole economy. Emerging leaders must have an attractive industry
structure and the management vision and financial resources to generate outsize
economic returns. They can be both established businesses that dominate their
given sectors or can be companies that have the ability to challenge incumbents.
A common feature is their ability to create value for customers (either via a
lower price and/or higher quality product and management that are focused on
driving continuous improvement) and capture value for itself and its shareholders
via a sustaining moat (such as unique assets, efficient sca le, technology
leadership, R&D investment and customer switching costs).
Stock selection rather than macro or factor exposures has driven performance
over the five-year period, with key contributions over this timeframe coming from
miner Norilsk Nickel, technology companies Yandex and EPAM, and emerging
liquified natural gas giant Novatek.
This document is intended to be for information purposes only. It is not
marketing material.
*Source: Financial Express, as at 31.08.21, total return, net of fees, income reinvested.
90 - Liontrust Assessment of Value Report