Liontrust Responsible Capitalism Report 2024 - Flipbook - Page 79
MULTI-ASSET TEAM
INVESTMENT PHILOSOPHY/BELIEFS
TEAM FACTS
Investment markets are not fully efficient and the degree of
inefficiency varies between them
Liontrust’s Multi-Asset team manages around 16% of Liontrust’s
AuMA (as at the end of December 2023)
Sentiment can cause market prices to move away from their
fundamental value over the short term
The team manages a variety of target risk funds and portfolios,
returns focused funds, and income funds and portfolios
Over the long term, markets tend to revert towards levels
justified by their fundamentals
The team is led by John Husselbee
Active management of asset allocation can add value through
exploiting mispricing and their subsequent return to normal
The team believes that equity markets remain the key driver of
long term real returns
MORE INFORMATION
Multi-Asset team https://www.liontrust.co.uk/fund-managers/
multi-asset
But the team acknowledges that the volatility of the equity
market is not suitable for all investors
Within equity markets, factors such as value, growth, quality
and size have inherent tailwinds due to either behavioural
or market structure inefficiencies. Each of these factors in
isolation can be volatile but a combination of these factors
should outperform the broader index over time
The team believes that, with time horizon and budget
allowing, active management will, on average, outperform
passive exposures. Exceptions to this are deep, liquid and
efficient markets such as government bonds and indices with
low cross-sectional volatility or high concentration
Asset allocation is the means by which the team combines
complementary asset classes together to create a risk and
return profile that is appropriate for different investor cohorts
The team believes that an appropriate time horizon is
essential and as a result, a long-term, disciplined, robust and
repeatable process will give investors the best chance of longterm outperformance
Responsible Capitalism Report 2023 - 79