Liontrust Assessment of Value Report - Flipbook - Page 155
The most significant factor in the Fund’s underperformance
versus its benchmark was its overweight position in
consumer discretionary stocks, which were adversely
affected in 2022 by the combination of significant
inflation in supply chains, squeezed consumer budgets
and a broader unwind of Covid pandemic demand
trends.
Comparable market rates
The UK Equity Income Fund has not met its investment
objective over the five years with negative total returns
behind both the sector and the index, although it has
met its income objective. Due to a similar investment
process and better opportunities to grow assets to
produce economies of scale, the Fund is being merged
into the Liontrust Income Fund, which has provided
better performance over five years as well as met its
income objectives.
Economies of scale
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 or by the
companies we work with to deliver services to our investors
is in line with expectations. This has been assessed
through a detailed review of the services we provide,
our engagement with investors, communications, and
governance, and confirmed through our investor survey.
We have assessed the charges of this Fund against
comparable funds in its peer group. Our assessment has
concluded that the ongoing charges figure (OCF) is less
than, or in line with, other comparable funds in its peer
group.
Our assessment has considered whether we are able to
generate efficiencies to achieve economies of scale and if
benefits have been passed on to our investors. The OCF
of the Fund is limited to the rate of the annual management
charge (AMC) out of which the fund expenses are paid on
behalf of investors.
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. This Fund has one share class and,
based on the information available to us, our review
concluded this is appropriate for investors in this Fund.
General costs of authorised fund manager
We have reviewed the costs that investors pay as part
of the operation and management of the fund they are
invested in. Our assessment has concluded that the costs
of services provided to the Fund remain appropriate.
Liontrust Assessment of Value Report - 155