Liontrust Assessment of Value Report - Flipbook - Page 6
How to use this Report
Why we have produced this Report?
What is the assessment of value?
As part of a move to strengthen fund governance, our regulator, the
FCA, has required asset managers to conduct an annual review
of UK-domiciled funds to evaluate the value provided to investors.
We welcome this as a positive development for asset managers
and investors.
The assessment of whether each of our funds is providing value
to investors has been evaluated through seven criteria. These
criteria are the following and are explained in the table below:
Performance, Quality of service, Authorised Fund Manager (AFM)
costs, Comparable market rates, Economies of scale, Comparable
services, and Classes of units.
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FCA Value Criteria
FCA Value Criteria Description
1
Performance
The performance of the scheme, after deduction of all payments out of scheme property as set out in the
prospectus. Performance should be considered over an appropriate timescale having regard to the scheme’s
investment objectives, policy and strategy
2
Quality of service
The range and quality of services provided to unitholders
3
AFM costs – general
In relation to each charge, the cost of providing the service to which the charge relates, and when money is
paid directly to associates or external parties, the cost is the amount paid to that person
4
Comparable market rates
In relation to each service, the market rate for any comparable service provided: (a) by the AFM; or (b) to
the AFM or on its behalf, including by a person to which any aspect of the scheme’s management has been
delegated
5
Economies of scale
Whether the AFM is able to achieve savings and benefits from economies of scale, relating to the direct and
indirect costs of managing the scheme property and taking into account the value of the scheme property and
whether it has grown or contracted in size as a result of the sale and redemption of units
6
Comparable services
In relation to each separate charge, the AFM’s charges and those of its associates for comparable services
provided to clients, including for institutional mandates of a comparable size and having similar investment
objectives and policies
7
Classes of units
Whether it is appropriate for unitholders to hold units in classes subject to higher charges than those applying
to other classes of the same scheme with substantially similar rights
6 - Liontrust Assessment of Value Report