Liontrust Assessment of Value Report - Flipbook - Page 103
Multi-Asset team
The Liontrust Multi-Asset investment team is one of the most
experienced and highly regarded in the UK market. The
Multi-Asset team comprises John Husselbee (Head of the
Multi-Asset Investment team), James Klempster (Deputy
Head), Paul Kim, Mayank Markanday, Jen Causton and
Shayan Ratnasingam, along with a four-strong Multi-Asset
investment support team headed by Adrian Holmes. The
team has more than 100 years of investment management
experience between them, with extensive knowledge and
insights. The team manages multi-asset target risk portfolios
and funds, specialist and income generating funds.
Investment process
There are five key stages to the investment process for the
target risk funds. The specialist and income generating
funds use the fund selection, portfolio construction and
monitoring, review and risk management stages of the
investment process only.
Strategic asset allocation
Among the factors they analyse, the fund managers collate
and study historical returns and volatilities of a range of
asset classes, as well as their correlations with each other,
and the pathway of future interest rates to determine the
SAA that should meet the volatility target of the fund or
portfolio over the long-term. The SAA is essentially the
default asset allocation should the fund managers have
no views about the relative attractiveness of different asset
classes.
unintended risk. Therefore, they consider how each
holding interacts with each other in terms of correlation,
risk and return to ensure the benefits identified at the
holding and sector levels are not diversified away when
grouped together at the fund level.
Monitoring, review and risk management
The Liontrust Multi-Asset team is given regular updates,
including in-depth data, on the underlying funds to
ensure they are being managed according to their
stated objectives and investment processes. This includes
attribution analysis to show the underlying funds do not
experience style drift and remain within their stated risk
parameters. We gain access to the underlying fund
managers to probe their thinking and evaluate their
continued commitment.
Funds
• Liontrust MA Active Reserve Fund
• Liontrust MA Active Dynamic Fund
• Liontrust MA Active Growth Fund
• Liontrust MA Active Intermediate Income Fund
• Liontrust MA Active Moderate Income Fund
• Liontrust MA Active Progressive Fund
• Liontrust MA Blended Growth Fund
• Liontrust MA Blended Intermediate Fund
Tactical asset allocation
The primary aim of the tactical asset allocation (TAA) is to
increase exposure to an asset class when it looks cheap
and reduce exposure when it appears expensive; the
fund managers’ focus is on valuations rather than market
timing. They believe it is important to supplement the
long-term benefits of the SAA with the flexibility to take
advantage of valuation opportunities in the shorter term.
• Liontrust MA Blended Moderate Fund
Fund selection
We hold a range of funds and fund managers, including
active, passive and alternative investment strategies.
The fund managers believe the key elements that should
underpin fund selection are: investment process, fund
manager experience, fund manager knowledge and fund
manager incentive (including remuneration).
• Liontrust MA Passive Moderate Fund
Portfolio construction
The fund managers want to ensure the underlying funds
are exposed to the segment of the market they feel has
the most potential for outperformance while reducing
• Liontrust MA Blended Progressive Fund
• Liontrust MA Blended Reserve Fund
• Liontrust MA Passive Dynamic Fund
• Liontrust MA Passive Growth Fund
• Liontrust MA Passive Intermediate Fund
• Liontrust MA Passive Progressive Fund
• Liontrust MA Passive Prudent Fund
• Liontrust MA Passive Reserve Fund
• Liontrust MA Monthly High Income Fund
• Liontrust MA Strategic Bond Fund
• Liontrust MA UK Equity Fund
• Liontrust Diversified Real Assets Fund
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