How we manage your money | Who we are | Liontrust Asset Management PLC
How we manage your money

How we manage your money

How we manage your money

We believe investment processes are key to long-term performance and effective risk control. Our processes are robust, scaleable and repeatable and are documented, which has advantages for Liontrust, fund managers and, most importantly, our investors.

Staying true to a documented process helps to create an in-built risk control, especially in more challenging environments, by preventing managers from buying stocks for the wrong reasons.

Documenting an investment process and having it reviewed internally on a regular basis at Liontrust is a good discipline to go through. This prompts fund managers to review all aspects of how they manage money.  

This also means you, as an investor in our funds, know exactly how each team will manage your money. This helps you in blending our funds with others within your investment portfolio. We believe that good and robust processes have the potential to deliver excellent long-term returns.

Risk management of our funds

Liontrust ensures that appropriate and prudent levels of risk are taken to meet the investment objective and policy of our funds. Liontrust has a Portfolio Risk Committee (PRC) to oversee the management of portfolio risk throughout the business and uses a Risk Management Process (RMP) to monitor and measure the risk of a fund’s positions and their contribution to the overall risk profile of a fund. 

In general, risk within a fund is controlled and monitored in two ways:

  1. the Investment Process 
  2. Predetermined risk controls and limits

Every Liontrust fund goes through a formal product approval process to ensure all necessary considerations are made, which include ensuring that all investment products have an appropriate risk profile for the typical investor and there is adequate disclosure in the fund documentation so investors can make informed choices concerning risks. Liontrust will consider appropriate limits to ensure a fund’s exposures are consistent with the regulations and its investment objectives. 

For each fund, a profile of a typical investor is considered and the fund must be managed with the profile in mind. The profile will include an investment style, a recommended minimum holding period and an expected volatility range. 

The PRC meets at least monthly to ensure that all the monitored risk controls are in place, the risk limits are appropriate and reports on the various aspects and activities discussed.

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