Liontrust Assessment of Value Report - Flipbook - Page 75
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.
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. We will continue to
monitor the charges of our classes to ensure they meet
the needs of our investors.
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.
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