Liontrust Assessment of Value Report - Flipbook - Page 146
Liontrust MA Diversified Real Assets Fund
The Fund, which is managed by the Multi-Asset team, seeks
to achieve growth from a combination of income and capital
growth. The underlying funds mainly (meaning at least 50%) invest
in a range of real asset classes, which may include infrastructure,
commodities, inflation-linked assets and specialist property
(examples of which are transport facilities, telecommunication
networks and water supplies).
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 both its
stated investment objective, as well as against the benchmarks that are 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 delivered a return of 20.4% over the past five years, meeting its stated
investment objective of delivering growth from a combination of income and
capital growth while providing diversification away from traditional equities
and bonds.*
Our exposure to property provided positive returns overall, with our holdings
in specialist real estate investment trusts, such as social housing and industrial
warehouses, performing particularly well. This was slightly offset by our
exposure to UK and global direct property which periodically suffered from
liquidity concerns.
The inclusion of core infrastructure within the Fund also boosted performance.
The largest contributions came from our holdings in renewable infrastructure,
although our social infrastructure holdings also performed well.
Cyclical real assets performed positively, including commodities, private equity
and global property equity. 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.
The Fund also contains several other diversifiers, including gold and asset
backed securities, which contributed positively to the Fund’s performance while
offering protection during periods of market volatility.
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.
146 - Liontrust Assessment of Value Report