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Liontrust First Income - downgrade

By MARK HINTON 10/10/2006

Liontrust First Income - downgrade by mark hinton

Jeremy Lang has managed this fund since 1996 in accordance with his investment process known as The Value Dynamic. This seeks to exploit investors’ over-reaction to stocks, where the share price of stocks has suffered and, as a consequence, the yield has risen.

The fund has had periods of out-performance in the past and whilst we believe Lang is an excellent fund manager, our level of conviction is somewhat diminished. We feel Lang has had to adapt his approach with fund assets now over £1.3bn and for liquidity reasons the fund now has lower exposure to small and medium sized companies, often a source of out-performance.

The fund has been downgraded to 3 stars.

 
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