Liontrust Assessment of Value Report - Flipbook - Page 43
Liontrust Global Alpha Fund
The Fund is managed by Robin Geffen and aims to generate
capital growth over the long term (5 years or more). The Fund
invests in global equities and has the ability to hold fixed income
and alternatives.
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 expectations, providing strong capital growth and
outperforming the sector, although we note that one of the fund’s classes has underperformed
the benchmark over five years due to its higher fees. This is addressed in the Comparable
market rates assessment below.
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. 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
share class of this fund free of charge into an alternative share class with a lower fee. Where we
can, we are transferring investors on a compulsory basis and have notified them accordingly.
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. The OCF
of the highest charging unit class of this Fund is higher than those of many comparable funds
and we have therefore undertaken a detailed evaluation. As a result of our annual reviews of
fund charges, the Administration Fees of the Fund were recently reduced. Additionally, we are
seeking to move investors in the retail share class of this Fund to an alternative share class with
a lower OCF.
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 an
Amber for comparable market
rates, we are seeking to move
investors to a share class with
a lower charge and we have
concluded that the Fund
has performed in line with
or exceeded expectations,
delivering overall value to
investors including through its
investment performance.
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
There are no Comparable Services provided for this Fund.
Classes of shares or units
Our assessment has considered whether investors are invested in the most appropriate 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 share or unit class they are
currently invested in. Additionally, as noted above, we are seeking to move investors in the
retail share class of this fund free of charge into an alternative share class with a lower fee. The
OCF of the Institutional class of this fund is cheaper than many of its peers. We will continue to
monitor the charges of our classes to ensure they meet the needs of our investors.
Liontrust Assessment of Value Report - 43