Liontrust Assessment of Value Report - Flipbook - Page 106
Liontrust MA Active Dynamic Fund
The Fund, which is managed by the Multi-Asset team, seeks to
achieve capital growth and income with a high level of volatility
(risk), having a risk profile of 7, 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. While the Fund
has received an Amber for
comparable market rates,
we have concluded that
the Fund has performed
in line with expectations
for the remaining criteria,
delivering overall value to
investors including through
the investment performance.
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 59.1% over the past five years. Although not
an official benchmark, the Fund sits in the IA Flexible Investment sector, which
returned 46.3% over the same period.*
The Fund has seen positive returns across all equity markets. The strong
performance of US equities provided the biggest contribution while other
markets, including the UK, Japan, Emerging Markets and Europe, were also
positive contributors. Overall, the Fund benefited from a higher allocation to
equities compared to those funds in the range at the lower end of the risk scale
and a significant exposure to US equities.
The Fund also has a very small exposure to UK property, which provided
positive returns, and alternatives, which was the only negative asset class during
the period. This was due to the issues faced by two holdings: aircraft leasing
and catastrophe reinsurance. We still believe in the diversification benefits of
these assets, but the former was significantly impacted by a virtual halt to air
travel during the pandemic while the latter has struggled in the face of extreme
weather conditions.
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.
106 - Liontrust Assessment of Value Report