Liontrust Assessment of Value Report - Flipbook - Page 74
Liontrust Global Dividend Fund
The Fund is managed by Storm Uru and James Dowey. Storm
started managing the Fund in August 2017 and was joined by
James in February 2021. They have jointly developed the Global
Innovation approach to the Global Equity investment process that
is applied to the management of the Global Dividend Fund. The
Fund has a formal objective of delivering a net target yield of
at least the net yield of the MSCI World Index every year and
the potential for long term (5 years or more) capital growth. The
managers also seek to produce annual dividend growth and to
maximise the total return of the Fund over the long term.
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 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 Manager of the Fund was changed less than five years ago, but based on
its performance since the change, we have concluded that the Fund has met
expectations, providing strong capital growth and outperforming the sector and
benchmark since the change.
Following the Fund Manager and investment process change on 31 August
2017, the Fund has returned 72.8% to 31 August 2021, outperforming both
the MSCI World Index and IA Global Equity Income sector respective returns
of 60.9% and 34.0%. The Fund has also consistently yielded more than the
comparator index, meeting its income objective.*
The Fund’s investment process was overhauled to focus on investing in innovative
businesses for both capital growth and income, believing that innovative
businesses represent the best investments to meet either of these objectives. The
managers believe that the traditional approach to income investing, focused on
investing in companies with relatively high current yields, is challenged in today’s
highly disruptive economy where many high yield companies face significant
risks from disruptive change. Investing in innovative businesses presents a
superior approach to income investing in these conditions. But not every great
innovation is a great investment. In assessing an innovative business as an
investment, it is essential to judge it not by its cleverness or novelty but simply by
the value it creates for its customers and its ability to capture an adequate share
of this value for its shareholders. Innovative businesses have the potential to
deliver high investment returns because they can grow at a low cost of growth.
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, net of fees, income reinvested.
74 - Liontrust Assessment of Value Report