Liontrust Assessment of Value Report - Flipbook - Page 112
Liontrust MA Active Moderate Income Fund
The Fund, which is managed by the Multi-Asset team, seeks to
achieve income with a below median level of volatility (risk),
having a risk profile of 3, 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 providing income to the investor.
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 income to investors in as well as a total return of 20.3%
over the past five years. Although not an official benchmark, the Fund sits in the
IA 0-35% sector, which returned 18.3% over the same period.*
The diversified mix of alternative assets, UK property, equities and bonds
helped to provide positive returns for the Fund while limiting the level of volatility
experienced during the period.
While returns from UK and global government bonds were muted, we still
believe in their diversification and capital preservation benefits. The relatively
higher risk areas of bonds, including high yield, corporate and convertibles,
helped provide more positive returns.
The inclusion of some equity exposure within the Fund also boosted
performance. The biggest holdings were in UK and US equities, which both
provided positive returns.
Alternative assets were broadly flat over the period as their more defensive nature
means they are less likely to benefit from a rising market. Most of the holdings
in this asset class did perform relatively well and provided positive returns,
including renewable energy and infrastructure. This was offset, however, by
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.
112 - Liontrust Assessment of Value Report