Liontrust Assessment of Value Report - Flipbook - Page 142
Liontrust MA Monthly High Income Fund
The Fund seeks to generate a monthly income by investing in
a global portfolio of funds covering a wide range of countries
and asset classes, including equities, corporate and government
bonds, and property.
Overall value
assessment
We have evaluated the Fund
against all seven criteria in
our assessment of the value
it provides to investors. We
have concluded that the Fund
has performed in line with
expectations, and the Fund’s
charges are justified given
the overall value that has
been delivered to investors.
Go back to the Summary
of the Assessment of
Value table
Class A
Class R
Class S
Direct Retail
Legacy Retail
Wholesale*
Performance
Quality of service
AFM costs – general
Comparable market rates
Economies of scale
Comparable services
Classes of units
*This is the representative share class for Performance and Comparable market rates.
Performance
We have assessed the investment performance of the Fund against its stated
investment objective of paying monthly income, as set out in its prospectus.
We considered whether the Fund has performed how we and investors would
expect it to given the market conditions it has been operating under and its
investment philosophy, strategy and process.
The Fund has delivered a return of 1.8% over the last five years and achieved
an annual historic yield of 4.2% over the last 12 months which it has paid out
monthly. It has therefore met its stated investment objective of generating a
monthly income. It has, however, lagged the average returns of its peers in the
IA Mixed Investment 0-35% Shares sector, which returned 5.6%. This is not an
official benchmark, however, and not all these peers are income focused**.
A significant majority of the Fund is invested in fixed income, which struggled
in the rising interest rate environment of 2022 and 2023 as central banks
tightened monetary policy to tackle soaring inflation. Exposure to UK
government bonds (gilts) and emerging market debt detracted the most from
overall performance while corporate bonds also weighed. High yield, strategic
and global government bonds delivered positive performance.
The inclusion of some equity exposure within the Fund helped performance,
with the strongest contribution delivered by US equities followed by emerging
markets, European and UK equities. Asset-backed securities, renewable energy
and infrastructure also contributed positively, while global equities performed
poorly and holdings in alternatives delivered mixed results.
This document is intended to be for
information purposes only. It is not
marketing material.
**Source: Financial Express, as at 30.06.24,total
return, bid-to-bid, net of fees, income reinvested.
142 - Liontrust Assessment of Value Report
While the Fund has met its investment objective, its focus on monthly income
may come at the expense of capital returns and the Fund may lag a total return
benchmark.
