Multi-Asset team

The Liontrust Multi-Asset investment process is based on a number of core beliefs. These beliefs have been accumulated over the long combined careers of the Liontrust Muti-Asset team and have developed over many years. The Liontrust Multi-Asset team believes that:

• Investment markets are inefficient
• Some are less efficient than others
• Sentiment can cause market prices to move away from their fundamental value over the short term
• Over the long term, markets tend to revert towards levels justified by their fundamentals
• Active management of asset allocation can add value through exploiting mispricing and their subsequent return to normal
• We believe that equity markets remain the key driver of long term real returns
• But we acknowledge 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
• We believe 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 we combine complementary asset classes together to create a risk and return profile that is appropriate for different investor cohorts
• We believe 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 long-term outperformance

Download the process document to read more.

MULTI-ASSET PROCESS DOCUMENT