Liontrust Assessment of Value Report - Flipbook - Page 17
Fixed Administration Fees
Liontrust has moved from variable to fixed
Administration Fees for all our fund ranges,
including the Global Equity fund range which was
part of the acquisition of Neptune Investment Management in
October 2019. This has provided investors with greater certainty
about the Ongoing Charges Figure (OCF) they pay regardless
of fluctuations in the underlying costs and charges of the funds they
are invested in. This change means Operating Expenses are paid
directly by Liontrust and we are reimbursed by each fund at a flat rate
(Administration Fee) out of their respective net asset values.
Previously, the Operating Expenses were paid directly out of a fund’s
assets (typically to other service providers) and were levied mainly
as a percentage of the fund size, which meant they fluctuated over
time as the size of each fund increased or decreased.
Investing in the business
This has brought Liontrust into line with what is considered to be
best practice in the fund management industry.
Liontrust continues to invest in the business to broaden your choice
of funds and investment teams, ensure the excellence of the
investment teams and enhance investors’ experience and service.
At the same time as moving to fixed Administration Fees, we also
ensured investors could benefit from economies of scale. As the
funds grow in assets, the fixed Administration Fees are reduced,
starting from £500 million up to a maximum of £5 billion in size.
Over the past year, we have completed the acquisition of Neptune
Investment Management including the Global Equity team and, on
30 October 2020, acquired the Architas UK Investment Business.
Research costs
Prior to the Global Equity team joining Liontrust in October 2019
as part of the acquisition of Neptune Investment Management, all
research costs for the Global Equity team were charged to their
funds. Since the acquisition, we have changed this into line with
our policy and the Global Equity team’s research costs are now
paid by Liontrust.
We have been moving all our funds to one administrator to secure
a solid foundation from which to support our future expansion and
to ensure we and our investors benefit from efficiencies.
Liontrust is investing in developing our online services and digital
communications to enhance client services. This includes the
Liontrust website and will encompass improvements based on
feedback from investors.
Liontrust Assessment of Value Report - 17