Meet the team
Our investment process
There are five key stages to the investment process for the target risk funds.
Strategic asset allocation
Among the factors they analyse, the fund managers collate and study historical returns and volatilities of a range of asset classes, as well as their correlations with each other, and the pathway of future interest rates to determine the SAA that should meet the volatility target of the fund or portfolio over the long-term. The SAA is essentially the default asset allocation should the fund managers have no views about the relative attractiveness of different asset classes.
Tactical asset allocation
The primary aim of the tactical asset allocation (TAA) is to increase exposure to an asset class when it looks cheap and reduce exposure when it appears expensive; the fund managers’ focus is on valuations rather than market timing. They believe it is important to supplement the long-term benefits of the SAA with the flexibility to take advantage of valuation opportunities in the shorter term.
Fund selection
We hold a range of funds and fund managers, including active, passive and alternative investment strategies. The fund managers believe the key elements that should underpin fund selection are: investment process, fund manager experience, fund manager knowledge and fund manager incentive (including remuneration).
Portfolio construction
The fund managers want to ensure the underlying funds are exposed to the segment of the market they feel has the most potential for outperformance while reducing unintended risk. Therefore, they consider how each holding interacts with each other in terms of correlation, risk and return to ensure the benefits identified at the holding and sector levels are not diversified away when grouped together at the fund level.
Monitoring, review and risk management
The Liontrust Multi-Asset team is given regular updates, including in-depth data, on the underlying funds to ensure they are being managed according to their stated objectives and investment processes. This includes attribution analysis to show the underlying funds do not experience style drift and remain within their stated risk parameters. We gain access to the underlying fund managers to probe their thinking and evaluate their continued commitment.
Funds managed by the team
We offer target risk funds, income generating funds and specialist funds. They are suitable for all types of investors, from basic to experienced, depending on their risk profile, objective and time horizon.
MPS Portfolios managed by the team
A broad range of 22 target risk model portfolios designed to meet most investors' risk and return objectives. They are designed for clients of financial advisers and are available on most major platforms.
WSS Portfolios managed by the team
A white label service for financial advisers, offering a broad range of 26 target risk portfolios and a partnership between Liontrust, advisers and their clients, including dedicated sales, marketing and operational support.
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John Husselbee
"A key objective in terms of performance is to strive to 'win over the long term by not losing.' We aim to achieve this by seeking to manage risk and limit losses in falling markets to enhance long-term returns in each risk target."
Awards and ratings
Moneyfacts Awards 2014-2021
Best Multi Manager Provider
Professional Adviser Awards 2021
Multi-Asset Group of the Year
Online Personal Wealth Awards 2021
Best Multi-Manager Fund Provider
