Liontrust Assessment of Value Report - Flipbook - Page 113
Quality of service
Economies of scale
Our assessment has considered the range and quality of
services experienced by investors. We have concluded
that the quality of services provided by Liontrust or by
a third party is in line with expectations. 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.
Our assessment has considered whether we are able to
generate efficiencies to achieve economies of scale and
if benefits 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 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. The Fund has also benefited from the growth
in Liontrust’s assets under management over the past few
years. Overall, our investors have been able to benefit
from the savings created and an improvement in service
as a result of re-investment in the business.
General costs of authorised fund manager
We have reviewed the breakdown of the charges of the
Fund’s Ongoing Charges Figure (OCF), including the
Annual Management Charge (AMC), and Administration
Fee. We have also reviewed our transaction costs. Our
assessment has concluded that the costs of services
provided to the Fund remain appropriate. 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 0.02%. 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 its peer group. The OCF of the
Direct Retail class of this Fund is higher than those of
comparable classes in its peer group, and we have
therefore undertaken further analysis. Following this
analysis, we conclude that the higher fees reflect the
active, high conviction approach adopted by this
Fund, and the fees charged for this level of service are
reasonable given the Fund’s investment objective and
strategy.
Additionally, we assessed charges of the Wholesale
class of this Fund, and the OCF is below, or in line
with, comparable classes in its peer group. A substantial
portion of assets under management are in the
Wholesale class which has lower attached fees than the
Direct Retail class. Please go to pages 23 and 25 for an
explanation of the different share classes.
As a result of our annual reviews of fund charges, the
Administration Fees of the Fund were recently reduced.
We will continue to monitor the charges of the Fund to
ensure these remain appropriate on an ongoing basis.
Comparable services
We have assessed the charges of this Fund against other
Multi-Asset funds managed for a third party with similar
investment objectives, policies and target risk range. Our
assessment has concluded that investors in this Fund are
charged appropriately relative to investors in other, similar
Multi-Asset funds managed by Liontrust for a third party.
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.
Where possible, we have moved investors that were in
the Legacy Retail share class of this Fund free of charge
into an alternative share class with a lower fee.
In cases where we did not have sufficient information
or comfort that a compulsory conversion would be in
their best interests, we have written to certain investors
who remain in the Legacy Retail share class of the Fund,
offering them the opportunity to convert into an alternative
share class with a lower fee on an elective basis.
We will continue to monitor the charges of our classes to
ensure they meet the needs of our investors.
Liontrust Assessment of Value Report - 113