Liontrust MA Blended and Passive explainer - Flipbook - Page 1
Liontrust Multi-Asset
LIONTRUST MULTI-ASSET BLENDED
AND PASSIVE FUND RANGES
Liontrust is making changes to its Multi-Asset (MA) Blended and Passive
range of funds.
Liontrust believes these changes will enhance the investment
proposition, including through strengthening the inputs into the
investment process, bringing consistency across the ranges and
ensuring 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 successful
investing over the next 10 years will be different from the previous
decade. This requires the team to have greater flexibility over
asset allocation and access to more asset classes. Asset classes
are groupings of investment that share similar characteristics such
as equities, bonds and property.
Funds affected by the changes
Prospectus
Fund Name
Liontrust MA Blended Reserve Fund
Liontrust MA Blended Moderate Fund
Liontrust Multi-Asset
Investments ICVC II
Liontrust MA Blended Intermediate Fund
Liontrust MA Blended Progressive Fund
Liontrust MA Blended Growth Fund
Liontrust MA Passive Prudent Fund
Liontrust MA Passive Reserve Fund
Liontrust MA Passive Moderate Fund
Liontrust Multi Asset
Global Solutions ICVC
Liontrust MA Passive Intermediate Fund
Liontrust MA Passive Progressive Fund
Liontrust MA Passive Growth Fund
Liontrust MA Passive Dynamic Fund
Change of Strategic Asset Allocation and risk profile oversight
services
Determining the Strategic Asset Allocation (SAA) is the first stage
in the Liontrust Multi-Asset investment process used to manage
the funds. The SAA is essentially the default asset allocation for a
fund, designed to provide the best chance of the fund achieving
its objectives over the long term regardless of any shorter term
fluctuations in relative valuations of the different asset classes.
The changes are:
• Hymans Robertson and Defaqto will be
providing Strategic Asset Allocation (SAA) and risk
profile oversight services
• Change of names of the one fund range and one fund
• Change the distribution of income to dividends rather than interest
for the Liontrust MA Blended Reserve Fund
• This document sets out the details of these changes, the reasons for
them and their timings. For more information about the changes,
please visit www.liontrust.co.uk/multi-asset-2023
Numerous studies have demonstrated that the SAA drives the
majority of the risk and return of investment funds over the long
term. Each fund in the Liontrust MA Blended and Passive ranges
has its own SAA.
The SAAs for the Liontrust MA Blended and Passive funds are
updated annually and have a long-term horizon (over five years).
On a quarterly basis, the investment team uses a Tactical Asset
Allocation (TAA) overlay on top of the SAA to increase exposure
to those asset classes that they consider undervalued and reduce
exposure 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 the
leading competitors in the market as part of the company’s ongoing
due diligence on behalf of investors in the Liontrust MA funds.
At the end of this thorough process, Liontrust chose Defaqto as
provider of risk profile oversight and Hymans Robertson to help
develop the range of SAAs for the funds. The changes will occur in
January and March 2023 respectively.
There are a number of reasons why Liontrust chose both Hymans
Robertson and Defaqto, which have a well-established partnership,
working closely together to combine their respective expertise to
deliver risk profiling and asset class models to clients.
• Hymans Robertson has a 100-year history in financial services
and extensive experience of partnering with trustees and financial
companies.
• Hymans Robertson provides access to a large team of professionals
and systems to support Liontrust and therefore investors in the funds.
