Liontrust Assessment of Value Report - Flipbook - Page 81
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 0.01%. 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 this
Fund is higher than those of comparable funds, 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. 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
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. 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.
We will continue to monitor the charges of our classes to
ensure they meet the needs of our investors.
Liontrust Assessment of Value Report - 81