Liontrust Assessment of Value Report - Flipbook - Page 148
Liontrust Diversified Real Assets Fund
The Fund, which is managed by Mayank Markanday, invests
in a diverse range of assets. The process is unconstrained with
a focus on listed private assets that can help diversify against
traditional equities and bonds. The Fund invests at least 80% of its
Overall value
assessment
We have evaluated the Fund
against all seven criteria in
our assessment of the value
it provides to investors.
While the Fund has received
Amber for Performance, we
understand why and have
explained the reasons for this
in the Performance section
on this page. Given the Fund
had Amber for Performance
last year, we continue to
keep it under close review.
The Fund has performed in
line with expectations for the
remaining criteria, and the
Fund charges are justified
given the overall value
that has been delivered to
investors.
Go back to the Summary
of the Assessment of
Value table
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.
148 - Liontrust Assessment of Value Report
net asset value in a portfolio of real assets (including investments
in infrastructure, renewables. commodities, inflation linked assets
and specialist property). The Fund can only invest up to 10% of its
assets in other open-ended collective investment schemes.
Class A
Class D
Wholesale*
Direct Retail
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 both its
stated investment objective as well as against the benchmarks that are 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 delivered a negative return of -1.8% over the five years but a yield of
5.6% met its positive income objective. It provided diversification away from
equities and bonds with lower annualised volatility of 8.7% versus 19.8% for
the FTSE All-Share index and 7.5% for IBOXX Sterling Corporates**.
Many of the main asset classes in which the Fund invests delivered positive
returns over the five-year period, with cyclical real assets providing the
strongest contribution. Within cyclical real assets, global infrastructure equity
provided the largest contribution and commodities also performed well.
Diversifiers were a positive contributor to returns, while offering protection
during periods of market volatility. Gold led the way as the strongest contributor
within this class, followed by development bonds, asset backed securities and
cash. However, core property weighed heavily on returns, with specialist
real estate investment trusts, such as those investing in social housing and
commercial property, dragging down returns.
2022 and 2023 were challenging for the Fund, with interest rate increases
significantly impacting the returns from real assets. Higher interest rates
reduced demand for alternative income investment trusts as well as impacting
their capital values as investors demanded higher yields. This meant these
holdings moved from pricing at a premium to a discount to net asset value. The
Fund fell 15% in the 12 months to June 2023, in line with the UK Gilts return of
-14.1%. Performance has improved in the last 12 months with a 3.5% return.
