Liontrust Multi-AssetLIONTRUST MULTI-ASSET BLENDEDAND PASSIVE FUND RANGESLiontrust is making changes to its Multi-Asset (MA) Blended and Passiverange of funds.Liontrust believes these changes will enhance the investmentproposition, including through strengthening the inputs into theinvestment process, bringing consistency across the ranges andensuring the funds are best placed to meet their objectives.These changes are also being made because the Liontrust MultiAsset investment team believes that the drivers of successfulinvesting over the next 10 years will be different from the previousdecade. This requires the team to have greater flexibility overasset allocation and access to more asset classes. Asset classesare groupings of investment that share similar characteristics suchas equities, bonds and property.Funds affected by the changesProspectusFund NameLiontrust MA Blended Reserve FundLiontrust MA Blended Moderate FundLiontrust Multi-AssetInvestments ICVC IILiontrust MA Blended Intermediate FundLiontrust MA Blended Progressive FundLiontrust MA Blended Growth FundLiontrust MA Passive Prudent FundLiontrust MA Passive Reserve FundLiontrust MA Passive Moderate FundLiontrust Multi AssetGlobal Solutions ICVCLiontrust MA Passive Intermediate FundLiontrust MA Passive Progressive FundLiontrust MA Passive Growth FundLiontrust MA Passive Dynamic FundChange of Strategic Asset Allocation and risk profile oversightservicesDetermining the Strategic Asset Allocation (SAA) is the first stagein the Liontrust Multi-Asset investment process used to managethe funds. The SAA is essentially the default asset allocation for afund, designed to provide the best chance of the fund achievingits objectives over the long term regardless of any shorter termfluctuations in relative valuations of the different asset classes.The changes are:• Hymans Robertson and Defaqto will beproviding Strategic Asset Allocation (SAA) and riskprofile oversight services• Change of names of the one fund range and one fund• Change the distribution of income to dividends rather than interestfor the Liontrust MA Blended Reserve Fund• This document sets out the details of these changes, the reasons forthem and their timings. For more information about the changes,please visit www.liontrust.co.uk/multi-asset-2023Numerous studies have demonstrated that the SAA drives themajority of the risk and return of investment funds over the longterm. Each fund in the Liontrust MA Blended and Passive rangeshas its own SAA.The SAAs for the Liontrust MA Blended and Passive funds areupdated annually and have a long-term horizon (over five years).On a quarterly basis, the investment team uses a Tactical AssetAllocation (TAA) overlay on top of the SAA to increase exposureto those asset classes that they consider undervalued and reduceexposure to those that are considered overvalued.Having worked with its previous provider - EV - for many years,in 2022 Liontrust conducted a periodic review of them and theleading competitors in the market as part of the company’s ongoingdue diligence on behalf of investors in the Liontrust MA funds.At the end of this thorough process, Liontrust chose Defaqto asprovider of risk profile oversight and Hymans Robertson to helpdevelop the range of SAAs for the funds. The changes will occur inJanuary and March 2023 respectively.There are a number of reasons why Liontrust chose both HymansRobertson and Defaqto, which have a well-established partnership,working closely together to combine their respective expertise todeliver risk profiling and asset class models to clients.• Hymans Robertson has a 100-year history in financial servicesand extensive experience of partnering with trustees and financialcompanies.• Hymans Robertson provides access to a large team of professionalsand systems to support Liontrust and therefore investors in the funds.
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