Liontrust Assessment of Value Report - Flipbook - Page 104
Liontrust MA Active Reserve Fund
The Fund, which is managed by the Multi-Asset team, seeks to
achieve capital growth and income with a low level of volatility
(risk), having a risk profile of 2, in a range from 1 to 7 where
1 is the lowest risk and 7 the highest. The underlying funds will,
where practicably possible, be active funds, which aim to beat
the performance of various financial indices.
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 its stated
investment objective that is 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 Fund’s objective is to target a specific level of long-term volatility (15 years)
while trying to maximise the total return to the investor which may be in the form
of either income or capital growth.
We have reviewed the positioning of the portfolio and the expected future
volatility of the portfolio over the last year and can confirm that the Fund stayed
within its targeted risk band and is on track to meet the expected level of
volatility over the long term.
The Fund has delivered a return of 11.2% over the past five years.*
With its zero per cent weighting in equities, the fund is likely to deliver lower
returns in comparison to relatively riskier funds in rising markets. The diversified mix
of alternative assets, UK property and bonds helped to provide positive returns for
the Fund while limiting the level of volatility experienced during the period.
Alternative assets, including gold, infrastructure and renewable energy, all
helped the performance of the Fund although this was slightly offset by the issues
faced by the catastrophe reinsurance market with severe weather conditions
and events in recent years reducing the potential for positive returns. The only
other area to have a negative impact on the fund was asset backed securities,
which are pools of loans packaged up and sold as investments.
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.
104 - Liontrust Assessment of Value Report