Liontrust Assessment of Value Report - Flipbook - Page 46
Liontrust Global Smaller Companies 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 at
least 80% of the portfolio in shares of small sized companies across
the world. These are companies which, at the time of purchase,
have a market capitalisation of under £10 billion.
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 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 0.25%. 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
market rates of this Fund are 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.
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 or unit
class that is available to them. This Fund has one unit class and, based on the information available
to us, our review concluded this is appropriate for investors in this Fund. We will continue to monitor
the charges of our classes to ensure they meet the needs of our investors.
46 - 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. While
the Fund has received Amber
for comparable market rates,
we have concluded that the
Fund has performed in line with
or exceeded expectations,
delivering overall value to
investors including through its
investment performance.