Liontrust Assessment of Value Report - Flipbook - Page 76
Liontrust Global Innovation Fund
The Fund is managed by James Dowey and Storm Uru. James
started managing the Fund in July 2019 and was joined by
Storm 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 Innovation Fund.
The Fund aims to generate capital growth over the long term (5
years or more). The Fund invests in global equities on the basis of
James and Storm’s disruption investing philosophy. In constructing
the portfolio, the managers seek companies that are disruptors,
enablers and embracers.
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.
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 Liontrust Global Innovation Fund returned 122.4% over the five years to 31
August 2021, outperforming the MSCI AC World Index and IA Global sector
(both comparator benchmarks) respective returns of 85.6% and 84.9%.*
Following a Fund Manager and investment process change on 1 July 2019, the
Fund returned 56.4% to 31 August 2021, outperforming the MSCI AC World
Index and IA Global sector respective returns of 34.0% and 36.2%.*
The Fund’s investment process was enhanced in 2019 to focus on investing
in innovative businesses based on the managers’ belief that innovation is the
biggest driver of shareholder returns. This approach to investing is especially
effective in an era such as the present one where innovation and disruptive
change are the central features of the economy. In these conditions, those
businesses that can innovate stand the best chance of succeeding over time.
In assessing an innovative business as an investment, it is essential to judge it
not by its novelty or technological sophistication but by the value it creates for
its customers and its ability to capture an adequate share of this value for its
shareholders.
Due to the ‘bottom-up’ nature of the Fund’s investment process, the Fund’s
performance is best viewed in terms of individual stock selection.
Go back to the Summary
of the Assessment of
Value table
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.
76 - Liontrust Assessment of Value Report