Liontrust Assessment of Value Report - Flipbook - Page 154
Liontrust Diversified Global Income Fund
The Fund, which is managed by the Multi-Asset team, seeks to
provide income together with capital growth. The underlying
funds primarily (meaning at least 70%) invest in shares, bonds and
alternative assets such as infrastructure and specialist property
(examples of which are transport facilities, telecommunication
networks and water supplies). The Fund was closed on 18
October 2021 following regulatory approval.
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 delivered a return of 18.8% over the past five years, meeting its
stated investment objective of delivering income together with capital growth
in absolute terms.* It has, however, lagged the average returns of its peers in
the IA Mixed Investment 20-60% Shares sector, with the benchmark returning
27.5%, although these peers are not all income focused.
More recently, performance had improved, with the Fund outperforming its
benchmark over one year.
While returns from UK gilts were muted, the relatively higher risk areas of bonds,
such as high yield, helped to provide more positive returns.
The inclusion of some equity exposure within the Fund also boosted performance.
The biggest contributions were from UK and global equities, although European,
US and Emerging Market equities were all positive.
Alternative assets also performed relatively well, providing positive returns
overall, especially exposure to asset backed securities, renewable energy and
property. This was somewhat offset by the issues facing our holding in aircraft
leasing, which was significantly impacted by a virtual halt to air travel during
the pandemic.
The Fund delivered one of the highest yields for a global fund as well as capital
growth over five years and met its investment objective. Investors were aware
of the Fund’s positioning and those looking for the high yield would have been
aware that this may come at the expense of the total return.
The redemption of the largest investor earlier this year triggered a review of the
Fund and it was decided to close it and offer investors the ability to transfer to
a larger fund with a similar objective.
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.
154 - Liontrust Assessment of Value Report