Liontrust Assessment of Value Report - Flipbook - Page 44
Liontrust Global Dividend Fund
Storm Uru has been managing the Fund since August 2017. The
Fund has a formal objective of delivering a net target yield of at
least the net yield of the MSCI World Index every year and the
potential for long term (5 years or more) capital growth. Storm also
seeks to produce annual dividend growth and to maximise the total
return of the Fund over the long term.
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
Manager of the Fund was changed less than five years ago, but based on its performance since
the change, we have concluded that the Fund has met expectations, providing strong capital
growth and outperforming the sector and benchmark since the change.
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 annual review of the
fixed Administration Fee for this Fund completed as part of our normal governance processes
has led to the reduction in its Administration Fee of 0.01%. 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 he charges of this Fund are in line with other comparable funds
available in the market. Furthermore, as a result of our annual reviews of fund charges, the
Administration Fees of the Fund were recently reduced.
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 share
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 class they are currently
invested in. We will continue to monitor the charges of our classes to ensure they meet the
needs of our investors.
44 - 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.