Liontrust UK Growth R

Large and mid cap UK equity fund focusing on companies with sustainable competitive edge.

  • 439.82p
    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).

  • 1.65%
    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.

  • 1.40%
    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 11 December 2019, fund data last updated 27 July 2012

The fund targets long-term capital growth through investment mainly in UK equities. The focus is on FTSE 100 and FTSE 250 companies, but some overseas stocks and smaller companies may also be included. Managers Julian Fosh and Anthony Cross look for companies with what they call Economic Advantage - durable competitive advantages such as intellectual property that enable them to sustain above average profitability. As a result banks, miners and retailers are typically excluded from the portfolio.

Fund summary

Sector UK All Companies
Structure UNIT TRUST
Launched March, 1993
Size £355m
Yield 1.40%
Charging basis Income
Dividends paid 28 Feb

Charges

Standard initial charge 5.00%
Initial charge via Bestinvest 0.00%
Additional bid/offer spread -4.32%
Annual management charge 1.50%
Ongoing charges figure 1.65%

Allocation

Proportion (%)

  • {{chartDataItem.text}}
    {{chartDataItem.value}}

Allocation

Proportion (%)

  • {{chartDataItem.text}}
    {{chartDataItem.value}}

Allocation

Proportion (%)

  • {{chartDataItem.text}}
    {{chartDataItem.value}}

Investment process

Both managers work from home but meet regularly to discuss the fund. They invest in companies with what they describe as “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. Typically these are more defensive stocks, but some cyclical businesses may also be included. 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.

Star fund manager Jeremy Lang rocked Liontrust when he departed the group in 2009, but his replacements Fosh and Cross have stepped admirably into his shoes on this fund. The fund’s focus on larger companies distinguishes it from their other mandates, the multi cap Liontrust Special Situations and the small cap Liontrust UK Smaller Companies. The focus on resilient business models typically provides a degree of protection in falling 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.

Allocation

Proportion (%)

  • {{chartDataItem.text}}
    {{chartDataItem.value}}

Allocation

Proportion (%)

  • {{chartDataItem.text}}
    {{chartDataItem.value}}

Allocation

Proportion (%)

  • {{chartDataItem.text}}
    {{chartDataItem.value}}

Top 10 holdings

Data accurate as at 31 August 2019

6.1502% Royal Dutch Shell
5.0416% Diageo
4.8979% Astrazeneca Plc
4.7714% Bp
4.4675% British American Tobacco
4.3179% Glaxosmithkline
3.629% Unilever
3.3443% Halma
3.0912% Compass Group Plc
2.8429% Relx Plc
Source: Trustnet

Sector breakdown

Industrials 27.00%
Consumer Goods 17.00%
Consumer Services 16.00%
Oil & Gas 13.00%
Health Care 10.00%
Money Market 6.00%
Financials 6.00%
Technology 3.00%
Basic Materials 1.00%

Portfolio

Around 50 stocks, with approximately 90% from the FTSE 100 and Mid 250 Indices.

Constraints

Maximum 10% in smaller companies including AiM.

Key Investor Information

Download