Liontrust Assessment of Value Report - Flipbook - Page 140
Liontrust MA Monthly High Income Fund
The Fund, which is managed by the Multi-Asset team, seeks to
generate a monthly income. The underlying funds will primarily
(meaning at least 70%) invest in bonds and debt instruments which
can easily be converted into cash (money market instruments).
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 has delivered a return of 13.1% over the past five years and achieved
an annual historic yield of 3.35% over the last 12 months.* It has therefore met
its stated investment objective of generating a monthly income. It has, however,
lagged the average returns of its peers in the IA Mixed Investment 0-35% Shares
sector, with the benchmark returning 18.3%, although these peers are not all
income focused. Recently this has improved, with the Fund now outperforming
its benchmark over one year.
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 strategic, helped
provide more positive returns.
The inclusion of some equity exposure within the Fund also boosted performance.
The biggest contribution was from UK and US equities, although this was slightly
offset by our holdings in global equities.
Alternative assets also performed relatively well, providing positive returns
overall, in particular our exposure to asset backed securities and property. The
only drag on performance within the asset class was from our holding that
acquires and leases aircraft, which was significantly impacted by a virtual halt
to air travel during the pandemic.
The Fund has delivered a high yield with monthly payments as well as capital
growth over the previous five years and met its investment objective. Investors
are aware the Fund’s focus on monthly income may come at the expense of total
return and that the fund may lag a total return benchmark.
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.
140 - Liontrust Assessment of Value Report