Liontrust Assessment of Value Report - Flipbook - Page 122
Liontrust MA Blended Progressive Fund
The Fund, which is managed by the Multi-Asset team, seeks to
achieve capital growth and income with an above median level
of volatility (risk), having a risk profile of 5, in a range from 1 to 7
where 1 is the lowest risk and 7 the highest. The underlying funds
will be a blend of active funds, whose managers aim to beat the
performance of a benchmark, and passive funds, which aim to
track the performance of an index. Active funds will be selected
over passive funds where the investment managers believe the
potential returns from active funds outweigh any additional cost.
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 42.0% over the past five years.*
The Fund has seen positive returns across both equities and bonds. The strong
performance of US equities provided the biggest contribution while other
markets, including UK, Japan, Emerging Markets and Europe, were also positive
contributors. Overall, the Fund benefited from a higher allocation to equities,
including significant exposure to US equities, compared to those Multi-Asset
Blended funds at the lower end of the risk scale.
Although returns from bonds were not as significant, they continue to meet four
roles: providing some income, capital preservation, inflation protection and
diversification from equities. The best performing bond sectors over the five
years were corporate bonds followed by UK government bonds.
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, infrastructure and gold. 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.
122 - Liontrust Assessment of Value Report