At the heart of what Liontrust stands for are the rigorous and distinct processes of each of the investment teams. We believe remaining true to and focused on these processes, even when the economic and market environment is against them, is key to long-term performance and effective risk control.

Liontrust is a specialist asset manager with a focus on those areas of investment where we have expertise and our purpose is to enable investors to enjoy a better financial future. Liontrust is headquartered in the UK, having been launched in 1995 and listed on the London Stock Exchange in 1999, and we currently have the 6th strongest asset manager brand in the UK (Source: Broadridge, April 2023).

Each of Liontrust’s teams has differentiated investment processes and is truly active in applying them in managing funds and portfolios. Such processes have never been more important given the need to help clients navigate the current political, economic and market environments.

While performance can never be predictable, processes must be. Documenting an investment process means investors know exactly how each team manages their money. Liontrust ensures that appropriate and prudent levels of risk are taken to meet the investment objective and policy of its funds.

Liontrust has a Portfolio Risk Committee (PRC) to oversee the management of portfolio risk throughout the business and uses a formal, documented Risk Management Process (RMP) to monitor and measure the risk of a fund’s investments and their contribution to the overall risk profile of a fund.

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

  • by the investment process
  • by predetermined risk controls and limits

Liontrust has seven investment teams that invest in global equities, sustainable investments, fixed income and multi-asset fund of funds with a total of 30.5 billion pounds (34.8 billion francs) in assets under management and administration (AuMA) as of 16 June 2023.

A third of the AuMA is in sustainable investments. Here are short process descriptions for some of the teams.

Sustainable Investment: The investment process seeks to generate strong returns from investing in companies aiming to deliver profits through positive social and environmental impacts. The fund managers look at the world through the prism of three mega trends – Better resource efficiency (cleaner), Improved health (healthier) and Greater safety and resilience (safer) – and then 20 themes within these.

Cashflow Solution (European equities, long and long/short): The fund managers focus on the historic cash flows generated and invested by companies to support their forecast profit growth. As forecasts are often unreliable, the scale of cash invested to support forecasts is key.

The fund managers seek to own companies that generate significantly more cash than they need to sustain their planned growth yet are lowly valued by investors on that measure and are run by managers committed to intelligent use of capital. They short companies that are both expensive and with the weakest cash flow.

Economic Advantage (UK equities): The process seeks to identify companies that possess intangible assets which produce barriers to competition and provide a durable competitive advantage that allows the companies to defy industry competition and sustain a higher-than-average level of profitability for longer than expected.

Global Fixed Income: The process is designed to take advantage of inefficiencies in fixed-income markets through a thorough understanding of the economic environment and detailed bottom-up stock analysis. As a company, we believe strongly in community engagement. Liontrust’s community engagement program has three objectives: raise financial awareness and literacy throughout society, provide opportunities for young people and wildlife conservation.

Liontrust partners with organizations to raise financial awareness and literacy in primary and secondary schools.

  • More information about Liontrust here.

This is an advertising document approved and issued by Liontrust International (Luxembourg) S.A. (18, Val Sainte Croix, L-1370 Luxembourg), authorized and regulated in Luxembourg by the Commission de Surveillance du Secteur Financier (B.238295) and Liontrust Fund Partners LLP (2 Savoy Court, London, WC2R 0EZ), authorized and regulated in the UK by the Financial Conduct Authority (FRN 518165). Relevant documentation may be obtained free of charge from the Swiss Representative and Paying Agent in Switzerland: RBC Investor Services Bank S.A., Esch-sur-Alzette, Zurich Branch, Bleicherweg 7, CH-8027 Zurich.