Liontrust Assessment of Value Report - Flipbook - Page 147
Fund Manager
Mayank Markanday moved to Liontrust in 2020 as part of the
acquisition of the Architas UK Investment Business. Mayank is
a Senior Investment Manager with 15 years’ experience in
managing multi-asset funds. Before Liontrust, Mayank was a
Senior Investment Manager at Architas and a Portfolio Manager
and Analyst at Russell Investments, which he joined in 2007.
Investment process
The Real Asset investment process invests in a diverse range
of assets (including in infrastructure, renewables, commodities,
inflation linked assets and specialist property) that tend to exhibit
lower levels of correlation with equity and bond markets.
The asset classes and their relative weights are primarily selected
on the basis of the consistency of investment returns and the risks
related to each asset class. Investments within each asset class
will be based on the strength and the stability of the issuer as well
as the Investment Adviser’s expectations of their future prospects.
The Fund invests in both growth and defensive assets with the
allocations changing according to the view of the business cycle.
A combination of quantitative and qualitative signals leans the
Fund into areas of the market that provide the best risk adjusted
outcomes.
The process selects securities with:
Real returns – cash flows directly or indirectly linked to inflation
and benefit from secular trends
Strong corporate fundamentals – transparent business models,
appropriate leverage and high-quality management
Dividend sustainability – a stable and/or growing dividend
cover for income securities
Valuations – not overpaying for companies
The fund aims to ensure there is no single risk or factor that
dominates the overall risk of the portfolio. The fund manager
constructs the portfolio to seek to deliver alternative sources of
risk and returns from traditional equities and bonds. As a daily
dealing alternative fund, maintaining a highly liquid profile is
essential. Individual holding weights are determined by both
conviction and liquidity.
As a number of real assets provide critical infrastructure and/
or essential services, their earnings may be less exposed to the
economic cycle versus traditional equities. But other subsectors
such as commodities are more directly linked to the growth cycle.
Some real asset sectors such as listed property companies (REITs)
and infrastructure companies can be relatively more sensitive to
interest rates.
Liontrust Assessment of Value Report - 147
