Liontrust Assessment of Value Report - Flipbook - Page 20
Liontrust UK Growth Fund
The Fund has been managed by Anthony Cross and Julian Fosh
since March 2009 and aims to deliver capital growth over the
long term (5 years or more) through using the Economic Advantage
investment process. The process seeks to identify companies with
a durable competitive advantage that allows them to defy industry
competition and sustain a higher than average level of profitability
for longer than expected. The Fund invests at least 90% of the
portfolio in companies incorporated, domiciled or which conduct
significant business in the UK.
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.
We have concluded that the Fund has met or exceeded expectations.
Quality of service
Our assessment has considered the range and quality of services experienced by investors.
We have concluded that the quality of services provided by Liontrust is better than or in
line with expectations across all the UK-domiciled funds. This has been evaluated through a
detailed review of the services we provide, our engagement with investors, communications
and governance, and confirmed through our investor survey.
General costs of authorised fund manager
We have reviewed the breakdown of the charges of the Fund’s Ongoing Charges Figure (OCF)
and our explicit transaction costs. Our assessment has concluded that the costs of services
provided to the Fund are being appropriately managed. The costs and charges of the Fund are
reviewed on an ongoing basis. Our annual review of this Fund’s charges has led to a reduction
in its Administration Fee of 0.01% and we are seeking to move investors in the retail unit class
of this fund free of charge into an alternative unit class with a lower fee. Where we can, we will
transfer investors to the alternative unit class on a compulsory basis. Where further information is
required, we will be writing to investors to explain how we will be proceeding. Research costs
have been absorbed by Liontrust and are not charged to the Fund. We will continue to review
the costs and charges of the Fund at least annually.
Comparable market rates
We have assessed the charges of this Fund against comparable funds in the market. Our assessment
has concluded that the charges of this Fund are in line with other comparable funds available in
the market. Furthermore, as a result of our annual review of fund charges, the Administration Fees
of the Fund were recently reduced. Additionally, we are seeking to move investors in the retail unit
class of this Fund to an alternative unit class with a lower OCF.
Economies of scale
Our assessment has considered whether we are able to generate efficiencies to achieve
economies of scale and if such cost savings have been passed onto our investors. The Fund
benefits from a fixed Administration Fee model, which, as well as providing clarity in relation to
fund costs to investors, allows cost savings achieved from an increase in the Fund’s size to be
directly passed to investors through the application of a discount. As the Fund grows in assets
above £500 million, the fixed Administration Fees are reduced by up to a maximum of 0.06%
above £5 billion in assets. Overall, with the growth in Liontrust’s assets under management over
the past few years, our investors have been able to benefit from the savings created.
Comparable services
We have assessed the charges of this fund against other Liontrust funds and segregated
mandates that have a similar investment objective, strategy and policy. Our assessment has
concluded that investors in this Fund are charged appropriately relative to investors in other,
similar Liontrust funds and segregated mandates.
Classes of shares or units
Our assessment has considered whether investors are invested in the most appropriate share or unit
class that is available to them. Based on the information available to us, our review concluded that
it is appropriate for investors in this Fund to be invested in the unit class they are currently invested
in. Additionally, as noted above, we are seeking to move investors in the retail unit class of this fund
free of charge into an alternative unit class with a lower fee. The OCF of the Institutional class of
this fund is higher than some of its peers but our assessment has concluded that the pricing of this
unit class is appropriate given the intended investors and terms of the unit class. We will continue
to monitor the charges of our classes to ensure they meet the needs of our investors.
20 - Liontrust Assessment of Value Report
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
or exceeded expectations,
delivering overall value to
investors.