Liontrust Assessment of Value Report - Flipbook - Page 53
Liontrust Russia 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% in shares of Russian companies. These are companies
which, at the time of purchase, are incorporated, domiciled, listed
or conduct significant business in Russia.
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. Our annual review of this
Fund’s charges has led to a reduction in its Administration Fee by 0.05% 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.
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.
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. Additionally, we are seeking to move
investors in the retail share class of this Fund to an alternative share 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
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. 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. 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. We will continue to monitor the
charges of our classes to ensure they meet the needs of our investors.
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