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The Macro-Thematic process

Investment philosophy

At the core of the investment philosophy lies the belief that Macro-Thematic analysis – the identification and interpretation of major economic, political, social and cultural developments affecting the UK and the rest of the world – offers scope to add long-term investment value. A Macro-Theme is defined as an undiscounted, structural change in the process of realisation, and the related passage to theme-maturity, is the macro-trend. Macro-Thematic analysis tends to identify long duration investment opportunities that persist beyond market cycles.

Investment process

The fund managers believe a “top-down” approach is the most appropriate in identifying episodes of change, their drivers and the resultant investment opportunities. In their view, this objective cannot be attained with a “bottom-up” or company specific approach.

Macro-Thematic investment opportunities exist because investors are bad at discounting the kind of change that defines Macro-Themes. Investors suffer from behavioural biases including herding, forecasting bias and cognitive bias. This leads to a gap between investment theory – based on the idea that investors are rational in aggregate and that asset prices efficiently discount all available information – and practice.

Importantly, a Macro-Theme may be expressed in both positive and negative terms. The fund managers have courage in their convictions: positive themes are supported by large absolute portfolio weightings whereas negative themes may result in the complete absence from the portfolio of certain stockmarket sectors.

The Macro-Thematic investment process consists of four stages:

  1. 1

    Theme discovery

  2. 2

    Identification of theme-assisted and theme-impaired companies

  3. 3

    Bottom-up analysis of prospective investments

  4. 4

    Portfolio construction and management

Process document

Further information can be found in the Liontrust Macro-Thematic Process document.

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The Liontrust Macro team
Stephen Bailey & Jamie Clark
The Macro-Thematic team

Stephen Bailey and Jamie Clark have 46 years of combined investment experience. Stephen started his career in the mid-1980s, joining Walker Crips in 1987 as investment director. Jamie joined Walker Crips in 2003 and the team moved to Liontrust in 2012.

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Jamie Clark

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Ratings

FE Alpha Manager 2017 - Stephen Bailey
Stephen Bailey
FE Alpha Manager 2017
Citywire Selection
Liontrust Macro funds
Citywire Selection

Liontrust Macro Equity Income & Macro UK Growth funds

Fund Calibre Elite Provider - Equities
Liontrust Macro funds
FundCalibre Elite Provider for equities
Liontrust Macro Equity Income & Macro UK Growth funds

Latest fund updates

The Macro-Thematic team

Read the latest fund updates from the Macro team.

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Morningstar Sustainability rated 4
Liontrust Macro Equity Income Fund
Morningstar Sustainability Rating: 4
Morningstar Sustainability rated 4
Liontrust Macro UK Growth Fund
Morningstar Sustainability Rating: 4
Rayner Spencer Mills - R Rated Fund
Liontrust Macro UK Growth Fund
Rayner Spencer Mills rated

Disclaimer:
• Past performance is not a guide to future performance. • Do remember that the value of an investment and the income from it can fall as well as rise and you may not get back the amount originally invested.  Investment in Funds managed by the Macro-Thematic Team involves foreign currencies and may be subject to fluctuations in value due to movements in exchange rates. • The Funds' expenses are charged to capital. This has the effect of increasing dividends while constraining capital appreciation. • The performance of the Liontrust GF Macro Equity Income Fund may differ from the performance of the GF Macro Equity Income Fund and will be lower than its corresponding Master Fund due to additional fees and expenses. 

• The information and opinions provided should not be construed as advice for investment in any product or security mentioned.  • Always research your own investments and consult with a regulated investment adviser before investing.


© 2017 Morningstar. All Rights Reserved. The information contained herein: (1) is proprietary to Morningstar and/or its content providers; (2) may not be copied or distributed; and (3) is not warranted to be accurate, complete or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information.  Past performance is no guarantee of future results.

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