Liontrust Global Income R

Formerly a UK income fund, converted to a global mandate in July 2013.

  • 150.59p
    Price (Inc)

    These are the shares in the fund that pay out an income to clients. The income is made up of the total dividends – the money a company can pay out to its investors – from the companies in the fund.

  • -
    Price (Acc)

    These are the shares in the fund that don’t pay out an income to clients. Any dividends – the money a company can pay out to its investors – are reinvested into companies in the fund. Despite no income, the shares should be worth more over time. Good incentive, eh?

  • 5.00% 0.00%

    Initial charge

    Some funds charge you when you first invest, which is aptly known as the initial charge. They’re usually between 3-5% but at Bestinvest, we usually don’t charge you a penny!

  • 1.50%
    Annual management charge

    This is how much the fund management company charges to run the fund. It’s like paying a babysitter, dog sitter or house sitter (that makes well-informed, heavily researched changes to improve your baby/dog/house when needed).

  • 1.66%
    Ongoing charges

    This stands for Ongoing Charges Figure. It’s the cost of running a fund and includes admin fees, manager fees, administration costs, etc.

  • 5.00%
    Yield

    How much the fund is currently paying out in income to investors. It’s NOT to be confused with the overall growth of a fund – a very different thing indeed. It’s also NOT a guarantee of future pay-outs, just a snapshot. This is more what it’s not than what it is…

Prices as at 13 December 2019, fund data last updated 03 August 2012

The fund’s objective is to provide a high level of income, with capital values keeping pace with inflation. The fund converted to a global mandate in July 2013, having previously invested primarily in UK stocks. The management duo James Inglis-Jones and Samantha Gleave eschew meeting company management in favour of a forensic analysis of company accounts, in particular their cash flow, to find around 30 high yielding stocks.

Fund summary

Sector Global Equity Income
Structure UNIT TRUST
Launched July, 1990
Size £148m
Yield 5.00%
Charging basis Capital
Dividends paid 28 Feb, 31 Aug

Charges

Standard initial charge 5.00%
Initial charge via Bestinvest 0.00%
Additional bid/offer spread -4.65%
Annual management charge 1.50%
Ongoing charges figure 1.66%

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Investment process

The process is based on the managers’ belief that the profit forecasts of company managers and stockmarkets are inaccurate, and that historic cash flows provide a better guide to future performance. They do not meet company management or use broker research, instead relying on forensic analysis of companies’ annual reports and accounts. They start by screening the market based on proprietary definitions of two ratios, cash flow relative to operating assets (which gives an idea of profitability) and cash flow relative to market value (to give an idea of valuation). Within this universe they target companies with higher yields – the overall yield target for the portfolio is 2% above that of long dated gilts. They then undertake due diligence on the individual stocks using company accounts, looking to verify that the cash flow figures accurately reflect the investment opportunity. Once bought, stocks are held for an average of 2-2.5 years.

Gary West and James Inglis-Jones took over this fund in 2009 following the departure from Liontrust of the highly regarded Jeremy Lang. Samantha Gleave replaced West as co-manager in 2013 following the latter's retirement.

Manager research

Average monthly relative returns

  • 14/15 -0.76%
  • 15/16 -0.30%
  • 16/17 -0.33%
  • 17/18 -0.82%
  • 18/19 -0.40%

Bestinvest MRI

  • 3 years -0.52%
  • 5 years -0.52%
  • Career -0.51%
  • 3 years 5.60%
  • 5 years 2.60%
  • Career 1.50%

Performance figures are based on the average of monthly percentage returns relative to the benchmark index.

James Inglis-Jones / Samantha Gleave

Inglis-Jones graduated in 1990 with a first class degree in Modern History from York University and in 1994 gained a DPhil in History from Oxford University. He began his career at Unilever before joining JPMF in 1997 as an investment analyst within the UK research department. In 1999 he began managing UK equity portfolios and he became a senior portfolio manager in the European equity group before moving to Polar Capital in 2003, where he managed a European market neutral fund. He joined Liontrust in March 2006. Gleave graduated from Aberdeen University in 1995 with an MA Honours degree in Economics & Management. She began her career at Sutherlands as a Consumer Analyst before moving on to Fleming Investment Management as senior Investment Analyst covering Pan Europe where she worked with Gary West and James Inglis-Jones. Samantha moved to Credit Suisse First Boston (Europe) in 2000 and was in their equity research sector team. In 2005 she moved to Bank of America Merrill Lynch and became a Senior Equity Analyst and Director. Samantha joined Liontrust in 2012 as Fund Manager to work with Gary and James in managing the European equity investment process - the Cashflow Solution.

Track record

James Inglis-Jones / Samantha Gleave has 6.1 years experience of managing mutual funds in this sector. Over this period the average monthly return relative to the benchmark index has been -0.51%. During the worst period of relative performance (from September 2013 - August 2019) there was a decline of 32% relative to the index. The worst absolute loss has been 13%.

Periods of worst performance

Absolute -13.00% (April 2015 - January 2016)
Relative -32.00% (September 2013 - August 2019)

About the MRI

Our unique indicator: the Bestinvest Manager Record Index (MRI) measures the likelihood that the fund manager is adding value through their decisions. It is based on their performance record over the course of their career, adjusted for the amount of risk taken. MRI is an important contributor to our fund rating system but it is also vital to take account of qualitative factors. It is also very important to select funds to form a cohesive portfolio with an appropriate overall risk level.

Allocation

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Top 10 holdings

Data accurate as at 31 August 2019

3.7842% Genworth Mi Canada Inc
3.7775% Endesa Sa
3.6637% Rio Tinto
3.6454% Lukoil Pjsc
3.3523% Energias De Portugal Sa
3.0188% Lundin Petroleum Ab
2.9552% Severstal Pjsc
2.8607% Kimberly-Clark Corp
2.8553% Axfood Ab
2.851% Glaxosmithkline
Source: Trustnet

Sector breakdown

Financials 17.00%
Energy 12.00%
Real Estate 12.00%
Materials 12.00%
Money Market 8.00%
Health Care 8.00%
Utilities 7.00%
Communications 6.00%
Consumer Staples 6.00%
Industrials 4.00%

Portfolio

Around 30 stocks, broadly equally weighted.

Constraints

Minimum market capitalisation of £250m. There are no sector constraints.

Key Investor Information

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