Multi-Asset Explorer Funds | Liontrust Asset Management PLC

About the MA Explorer Funds

The primary objective of the six MA Explorer funds is to generate capital growth and/or income over the long term, which we define as five years or more. To achieve this, the funds explore the best investment opportunities across a range of asset classes, geographies, sectors and funds. The names of the funds represent the maximum exposure they can each have to equities: 35%, 45%, 60%, 70%, 85% and 100%.

In managing these funds, the Multi-Asset investment team selects the most appropriate underlying vehicles to enable each fund to achieve its objective. The decision on whether to use passive or actively managed funds is determined by availability and suitability. The funds use passive funds where it is appropriate to do so and they are available and use actively managed funds where we believe the opportunity to deliver higher returns is greatest or where passive funds are not an option.

While unlike the MA Blended and MA Dynamic Passive ranges, the MA Explorer funds do not target risk, the latter are risk profiled.

Past performance does not predict future returns. You may get back less than you originally invested. Reference to specific securities is not intended as a recommendation to purchase or sell any investment.

Reasons to invest

Experience: One of the most experienced and highly regarded multi-asset multi-manager investment teams in the UK market, headed by John Husselbee
Diversification: Each portfolio provides diversification across a range of different funds, fund managers, geographical regions and asset classes
Long-term flexibility: Investors can switch between the range of funds as their risk profile and objectives change during the accumulation and decumulation phases of their lives
Rigorous process: The investment process is designed to deliver the outcome expected by investors and aims to generate maximum returns for each target risk fund within the pre-determined volatility ranges
Added value: We seek to add value through each of strategic and quarterly asset allocation, fund selection and portfolio construction
Costs: We aim to keep costs to a minimum and are often able to invest in underlying funds on better terms than those commonly available

Our Investment Process

Strategic asset allocation (SAA)

The SAA is the primary determinant of suitability and long-term risk and returns for investors. To determine the SAA, historical returns and volatilities of a range of asset classes, as well as their correlations with each other, and other market dynamics are collated and studied. The SAA is updated annually and have a 15-year time horizon.

Tactical asset allocation (TAA)

TAA determines the overweight or underweight exposure to asset classes compared to the SAA. Each asset class, sub-asset class and the overall market environment are given a score from 1 to 5. The quants data provide a quantitative perspective on, for example, the relative attractiveness of an equity market both against other markets and against its own history. The scorecard informs the over and underweights that the team expresses through portfolio construction.

Portfolio construction

We test the performance and interaction of factors, such as value, growth, quality or size, over the long term and identify a blend that will provide the most effective risk-adjusted exposure. The decision on the use of passive vehicles depends on availability and suitability. The combination of the target manager allocations and TAA weights provides a target holding size for every manager. The team ensures the new targets comply will portfolio rules and restrictions.

Manager selection

Managers are subjected to quantitative analysis of current and past positioning. We analyse the drivers of performance, particularly the stylistic exposure of managers. The team considers manager philosophy and process, team structure, business structure and incentivisation, stock selection process, portfolio construction, historical and current positioning as well as ESG considerations. We also ensure selected funds are suitable from an operational and compliance perspective.

Implementation

The team implements the process in a manner that treats customers fairly, creates consistency across the fund and portfolio ranges wherever possible, finding an optimal balance between trading and portfolio turnover, and ensuring the implemented holdings reflect the team’s views. Underpinning all of this is the need to remain suitable for investors from a risk and mandate perspective.

The broad allocation of assets means that the Fund should perform well on a relative basis when diversification is rewarded by markets. The Fund will likely perform relatively less well when investment markets are being strongly driven by a particular asset class, theme, sector or region.

Our Multi-Asset Explorer Funds

Factsheet

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Performance of the Liontrust Explorer fund range

Source: FE Analytics, as at 31.12.23. Since inception data runs 10.04.07 to 31.12.23. Primary share class, total return figures are calculated on a single pricing basis with net income (dividends) reinvested. Performance figures are shown in sterling. Transaction costs are included for the period shown but may differ in the future as these costs cannot be determined with precision in advance.

Past performance does not predict future returns. You may get back less than you originally invested.

Fund insights

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Key literature

Liontrust Levels of Diversification - MA Active Funds

"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."

Meet the team

Headed by John Husselbee since joining Liontrust in 2013, the team comprises of four investment managers and two fund analysts, and has combined experience of more than 80 years. Deputy Head James Klempster joined from Momentum Global Investment Management while Mayank Markanday was previously at Architas. Anthony Chemla joined from atomos (previously Sanlam Investments), David Salisbury joined from 4 Shires Asset Management and Victor Alabrune joined Liontrust after completing an internship in the Portfolio & Data Insights team.

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