Fact sheet: Liontrust UK Growth

Rated Fund Information
Rated Funds Group
?Money Observer has arranged all its Rated Funds into easy to understand Rated Fund Groups, comprising funds and investment trusts.
UK GROWTH
Sector
UT UK All Companies
Fund type
Unit Trust
Primary aim
GROWTH
Why Money Observer Rates Liontrust UK Growth

New for 2017. Looking for companies with economic advantages

Liontrust UK Growth differentiates itself from many of its competitors due to its managers' clear investment process. Managers Anthony Cross and Julian Fosh, who have run the fund since 2009, describe their approach as the 'economic advantage process'.

They believe that the secret to successful investing is to identify those few companies that have a durable economic advantage that allows them to sustain a higher-than-average level of profitability for longer than expected, leading to strong share price appreciation. The economic advantage comes from distinctive characteristics that a company's competitors struggle to reproduce, even if they understand them.

Cross and Fosh say that in their experience the hardest to replicate of these particular characteristics fall into three categories of intangible assets: intellectual property, strong distribution channels and significant recurring business.

They point out that other less-powerful intangible strengths include: franchises and licences; extraction rights; good customer databases and relationships; effective procedures and formats; strong brands and company culture.

They believe that only distinctive and hard-to-replicate intangible assets can form the basis of a sustainable competitive advantage, which they say will deliver pricing power, protect margins, and thus drive sustained profitability.

To pass their screening test, a company must demonstrate that it has one of the three key assets - intellectual property, a distribution channel or repeat business. These and other intangible assets are then scored. This initial screen gives the managers their universe of potential investments.

3 Year Performance
Fund Performance49.6%
Average of Rated Funds Group52.6%
Sector Performance31.6%
Fund information
Fund name
Liontrust UK Growth I Inc
Fund manager company
Liontrust Fund Partners LLP
Fund type
Unit Trust
Fund managers
  • Julian Foshsince 25/03/2009
  • Anthony Crosssince 25/03/2009
Accolades
Highly Commended - UK Growth
Fund objective
The investment objective of Liontrust UK Growth Fund is to provide long-term capital growth through a portfolio of mainly United Kingdom (“UK”) equities but with the option of investing part of the portfolio overseas.
Benchmark
  • FTSE All Share Index
Investment style
Growth
Investment method
Shares
Quick stats
1 Year return
15.4%
1 Year rank in sector
87/273
Sector
UT UK All Companies
Yield
2.2%
Ongoing charge (OCF)
?A fund’s ongoing charges figure (OCF) is similar to the old-style total expense ratio. It reflects the annual charge to investors in the fund, in percentage terms, but does not include extra performance-related fees (where these are levied) or the fund’s trading expenses on its underlying investments.
0.89%
Fund size
£301m (£232m last year)
FE Risk score
?FE Risk Scores measure the riskiness of instruments relative to the FTSE 100 index of shares. Weekly volatility is measured over three years with recent behaviour counting more heavily than earlier behaviour. Cash-type investments will have scores close to zero. Funds will tend to have scores in the 0-150 range. The FTSE 100 is always scored at 100. There is no upper limit.
88
Bid price
422.08
Offer price
425.43
Top in this sector
Fund name1 Year
Elite Webb Cap SmCos Inc&Gth38.3%
MI Chelverton UK Equ Grth34.2%
Unicorn UK Growth32.5%
Slater Recovery31.6%
Blackrock Inst Eq UK Sm Cos31.4%
...more in UT UK All Companies

Performance snapshot

Holdings snapshot

  • UK94.8%
    Money Market5.2%
  • Industrials26.3%
    Consumer Goods16.3%
    Consumer Services16%
    Oil & Gas13.9%
    Health Care9.6%
  • UK Equities94.8%
    Money Market5.2%

Performance vs Sector

Cumulative performance
 1 mth3 mth6 mth1 yr3 yr5 yr
Fund0.3%2.4%1%15.4%49.6%74.1%
Sector0.4%1.7%1.7%14%31.6%62.2%
Rank within sector210 / 27890 / 277185 / 27687 / 27323 / 25677 / 243
Quartile4th2nd3rd2nd1st2nd
Calendar performance
 YTD - 20172016201520142013
Fund11.3%18.1%9.6%1.8%19.8%
Sector11%11.2%3.7%0.6%25.7%
Rank within sector101 / 27327 / 26362 / 25693 / 250208 / 243
Quartile2nd1st1st2nd4th
Risk statistics
Alpha
?Alpha is a measure of a fund's over- or under-performance by comparison to its benchmark. If the Alpha is 5, the fund has outperformed its benchmark by 5%; so the greater the Alpha, the greater the outperformance.
4.35
Beta
?Beta estimates a fund's volatility by comparison to that of its benchmark. A fund with a beta close to 1 means that the fund will move generally in line with the benchmark. Higher than 1 and the fund is more volatile than the benchmark and vice versa.
0.95
Sharpe
?This commonly-used measure calculates the level of return over and above the return of a notional risk-free investment, such as cash. The difference in returns is then divided by the fund's volatility. The resulting ratio is an indication of the amount of excess return generated per unit of risk.
0.98
Volatility
?Volatility (or standard deviation), when applied to an investment fund, expresses its risk. It shows how widely a range of returns varied from the fund's average return over a particular period. For example, if a fund had an average return of 5%, and its volatility was 15, this would mean that the range of its returns over the period had swung between +20% and -10%.
9.51
Tracking error
?This measures the standard deviation of a fund's excess returns over the returns of an index or benchmark portfolio. As such, it can be an indication of 'riskiness' in the manager's investment style. A Tracking Error below 2 suggests a passive approach. At 3 and above the the manager will be deploying a more active investment style.
4.5
Information ratio
?This is a useful risk-adjusted measure of actively managed fund performance. It is calculated by deducting the returns of the fund's benchmark from the fund's overall returns, then dividing the result by its tracking error. The higher the Information Ratio the better. It is generally considered that a figure of 0.5 reflects a good performance, 0.75 very good, and 1.00 outstanding.
0.84
R-Squared
?An indication of how closely correlated a fund is to an index or a benchmark. Values for R-Squared range between 0 and 1, with 0 indicating no correlation at all and 1 showing a perfect match. Values upwards of 0.7 suggest that the fund's behaviour is increasingly linked to its benchmark.
0.79
Price movement
52 week high429.02
52 week low374.84
Current bid price422.08
Current offer price425.43
Current mid price-
Region
1UK94.76%
2Money Market5.24%
Industry sector
1Industrials26.29%
2Consumer Goods16.27%
3Consumer Services15.97%
4Oil & Gas13.93%
5Health Care9.6%
6Financials8.71%
7Money Market5.24%
8Technology4%
Asset type
1UK Equities94.76%
2Money Market5.24%
Individual holdings
1ROYAL DUTCH SHELL7.17%
2BRITISH AMERICAN TOBACCO4.97%
3DIAGEO4.58%
4BP4.53%
5UNILEVER3.61%
6ASTRAZENECA PLC3.51%
7GLAXOSMITHKLINE3.29%
8RECKITT BENCKISER GROUP PLC3.11%
9RELX PLC3.07%
Management
Fund manager group
Liontrust
Fund manager company
Liontrust Fund Partners LLP
Fund type
Unit Trust
Fund objective
The investment objective of Liontrust UK Growth Fund is to provide long-term capital growth through a portfolio of mainly United Kingdom (“UK”) equities but with the option of investing part of the portfolio overseas.
Benchmark
  • FTSE All Share Index
Investment style
Growth
Investment method
Shares
Fund managers
NameSinceBiography
Julian Fosh25/03/2009Julian Fosh joined Liontrust in 2008 from Saracen Fund Managers Ltd to co-manage the Liontrust UK Growth, Special Situations and UK Smaller Companies Funds with Anthony Cross. Julian has worked with Anthony to develop the Liontrust Economic Advantage process. Awards for the funds that Julian co-manages with Anthony Cross include Liontrust being named the Best Smaller Companies Group at the Professional Adviser Awards in 2009 and the Liontrust Special Situations Fund being named as the Best UK Growth fund at the Investment Week Fund Manager of the Year Awards in 2011 and 2012. From 2004 to 2008, Julian was the co-manager of Saracen Growth Fund, a top quartile performing UK equities portfolio. Before this, Julian headed up the investment department at Scottish Friendly Assurance Society Limited where he managed a range of funds including UK equity OEICs, life and pension funds. In his eight years at Scottish Friendly, six of Julian’s nine funds were in the top quartile of their respective sectors. In a career going back to 1984, Julian has also worked at Britannia Investment Managers and Scottish Amicable. Julian graduated in 1994 from Merton College Oxford with an MA in Jurisprudence.
Anthony Cross25/03/2009Anthony Cross joined Schroder Investment Management as a graduate trainee. He spent his first three years as an equity analyst before joining the Smaller Companies team in 1994. During this time, Anthony identified a number of characteristics common to successful companies and on joining Liontrust in 1997 he was able to develop his thoughts further and create a documented investment process. This process, called Liontrust Economic Advantage, was applied to the Liontrust UK Smaller Companies Fund from the start of 1998. Its success and relevance to the broader market led to the launch of the Liontrust Special Situations Fund in 2005, the management of the Liontrust UK Growth Fund in 2009, and the launch of the Liontrust UK Micro Cap Fund in 2016. Awards for the funds that Anthony co-manages with Julian Fosh include Liontrust being named Best UK Equity Group by Money Observer magazine, the Liontrust Special Situations Fund being named: Best UK Growth fund at the Investment Week Fund Manager of the Year Awards in 2011 and 2012; Best UK Growth Fund at What Investment magazine; Best Fund in the UK All Companies Sector at the Moneywise Fund Awards 2012; and won the UK Equity Gold Award 2012 from Portfolio Adviser. The fund is also member of the 2012 100 club. Anthony graduated in 1990 from Exeter University with a degree in politics.
Compliance
IA Recognised, UCITS V Compliant
Domicile
No data available.
Fund for sale in
United Kingdom
Liontrust UK Growth A Inc
Initial charge2%
Annual charge1%
Min single investment£1,000
Min regular saving£1,000
Available in ISAYes
Ongoing charge (OCF)1.14%
Total expense ratio (TER)-
Bid price423.03
Offer price434.92
Mid price-
CurrencyGBX
Price updated13/12/2017
TypeIncome
Institutional or retail classRetail
Domicile-
Citi codeGTUD
Liontrust UK Growth I Inc
Initial charge-
Annual charge0.75%
Min single investment£5,000,000
Min regular saving£100,000
Available in ISANo
Ongoing charge (OCF)0.89%
Total expense ratio (TER)-
Bid price422.08
Offer price425.43
Mid price-
CurrencyGBX
Price updated13/12/2017
TypeIncome
Institutional or retail classRetail
Domicile-
Citi codeLIM3
Liontrust UK Growth R Inc
Initial charge5%
Annual charge1.5%
Min single investment£1,000
Min regular saving£1,000
Available in ISAYes
Ongoing charge (OCF)1.64%
Total expense ratio (TER)-
Bid price415.06
Offer price439.27
Mid price-
CurrencyGBX
Price updated13/12/2017
TypeIncome
Institutional or retail classRetail
Domicile-
Citi codePM04
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