Liontrust Special Situations I

Concentrated multi-cap UK equity portfolio targeting companies with a durable competitive advantage.

  • 437.46p Price (Inc)
  • 106.26p Price (Acc)
  • 0.00% Initial charge
  • 0.75% Annual management charge
  • 0.87% Ongoing charges
  • 1.80% Yield

Prices as at 05 December 2019, fund data last updated 15 December 2015

The fund targets long-term capital growth from a relatively concentrated portfolio of UK equities. It includes companies of all sizes, but compared to the index it typically has a bias to mid and small caps. The managers have a quality growth investment style, looking for companies with an “Economic Advantage” such as intellectual property that enables them to produce sustained profits growth. This typically leads them to less economically sensitive sectors and away from areas such as banking and mining.

Fund summary

Sector UK All Companies
Structure UNIT TRUST
Launched November, 2010
Size £4,729m
Yield 1.80%
Charging basis Income
Dividends paid 31 Jul

Charges

Standard initial charge 0.00%
Initial charge via Bestinvest 0.00%
Additional bid/offer spread 0.84%
Annual management charge 0.75%
Ongoing charges figure 0.87%

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Investment process

The investment process focuses on companies that offer “Economic Advantage” - competitive strengths that allow them to sustain a higher than average level of profitability for longer than expected. The managers believe Economic Advantage is most durable in businesses with three categories of intangible assets: (1) Intellectual property; (2) Strong distribution channels; (3) Significant recurring business. Companies with durable Economic Advantage are also screened for the market’s appreciation of their potential earnings growth – the managers believe under-appreciated companies have the strongest potential for share price growth. This results in a portfolio of more dependable companies with less cyclicality. The investment style is not solely defensive - more cyclical stocks can be included, but banks, miners and retailers tend not to be represented. The fund is a dual priced unit trust so new investors will incur a small bid-offer spread on purchase.

Manager Anthony Cross has a track record of strong performance on the Liontrust UK Smaller Companies fund going back to 1998, and since 2005 he has brought similar success to the multi-cap Liontrust Special Situations fund. This is a best ideas fund for Cross and co-manager Julian Fosh, combining the highest conviction ideas from their small cap fund and their large-cap focused UK Growth fund. Their distinct, "Economic Advantage" approach provides some diversification from more mainstream UK funds, and also tends to give the fund some resilience in weaker markets.

Manager research

Average monthly relative returns

  • 14/15 0.56%
  • 15/16 0.55%
  • 16/17 0.01%
  • 17/18 0.37%
  • 18/19 0.02%

Bestinvest MRI

  • 3 years 0.13%
  • 5 years 0.30%
  • Career 0.41%
  • 3 years 86.20%
  • 5 years 99.80%
  • Career 100.00%

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

Anthony Cross / Julian Fosh

•Cross graduated in 1990 with a degree in politics from Exeter University and began his investment career at Schroders. In 1994 he became a member of their smaller companies team where he assisted Andy Brough with the Schroder UK Smaller Companies fund. In September 1997 he joined Liontrust. •Fosh has an MA in Jurisprudence from Merton College Oxford and began his career with Scottish Amicable Investment Managers in 1984. In 1997 he briefly joined Britannia Investment Managers, moving onto the Scottish Friendly Assurance Society Ltd in the same year where he managed a range of funds including UK equity OEICs, life and pension funds. In 2004 he joined Saracen to aid in the management of their Growth fund. In June 2008 he moved to Liontrust.

Track record

Anthony Cross / Julian Fosh has 11.3 years experience of managing mutual funds in this sector. Over this period the average monthly return relative to the benchmark index has been +0.41%. During the worst period of relative performance (from September 2008 - December 2008) there was a decline of 6% relative to the index. The worst absolute loss has been 29%. Statistically, we estimate the probability that this fund manager is adding value, rather than being lucky, is more than 99%.

Periods of worst performance

Absolute -29.00% (June 2008 - February 2009)
Relative -6.00% (September 2008 - December 2008)

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.

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Top 10 holdings

Data accurate as at 31 August 2019

4.2611% Unilever
4.1792% Diageo
4.1464% Glaxosmithkline
4.0644% Relx Plc
4.0145% Compass Group Plc
3.9496% Bp
3.9444% Reckitt Benckiser Group Plc
3.7842% Royal Dutch Shell
3.4132% Sage Group
3.0071% Spirax-Sarco Engineering
Source: Trustnet

Sector breakdown

Industrials 27.00%
Consumer Services 15.00%
Consumer Goods 14.00%
Technology 9.00%
Oil & Gas 9.00%
Money Market 8.00%
Financials 8.00%
Health Care 7.00%
Telecommunications 2.00%

Portfolio

Around 50 stocks, weighted in accordance with risk.

Constraints

There are no sector limits. Small cap stocks must have at least 3% directors' equity ownership. Typical max 10% of any company's shares.

Key Investor Information - Income

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Key Investor Information - Accumulation

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