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If your priority is high income, long term capital
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Please remember that past performance is not
a guide to future performance. The value of an
investment and the income from it can fall as
well as rise as a result of market and currency
fluctuations, and you may not get back the
amount originally invested.
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LIONTRUST UK MICRO CAP
This is a newly launched fund with a proven strategy behind it, which could make it
perfect for investors with an ultra long-term horizon
F
E Alpha Manager duo Anthony
Cross and Julian Fosh are
well-known for their stellar
long-term track record, particularly
when it comes to investing in stocks
that are further down the market cap
spectrum.
Their Liontrust UK Smaller
Companies fund, for example, has
delivered a top-quartile return
over one, three, five and 10 years,
while maintaining a top-quartile
annualised volatility and risk-
adjusted return over the same
time frames.
The managers also run Liontrust
UK Growth, which has more of
a large and mid-cap bias, and
Liontrust Special Situations, which
opts for holdings across the market
cap spectrum – both of these funds
have also delivered significant
outperformance.
However, for investors looking for
a higher-octane holding to bolster
the returns of their SIPP over a
longer time frame, the managers’
recently launched Liontrust UK
Micro Cap fund may be their
best bet.
Cross and Fosh joined forces with
Matthew Tonge and Victoria Stevens
to create the portfolio, which was
launched in March this year.
While some investors may have
doubts given the fund’s short track
record, those who are fans of Cross
FILE
Issued in the UK by Henderson Global Investors. Henderson Global Investors is the name under which Henderson Global Investors Limited (reg. no. 906355), Henderson Fund Management Limited (reg. no. 2607112),
Henderson Investment Funds Limited (reg. no. 2678531), Henderson Investment Management Limited (reg. no. 1795354), Henderson Alternative Investment Advisor Limited (reg. no. 962757), Henderson Equity
Partners Limited (reg. no.2606646), Gartmore Investment Limited (reg. no. 1508030), (each incorporated and registered in England and Wales with registered office at 201 Bishopsgate, London EC2M 3AE) are
authorised and regulated by the Financial Conduct Authority to provide investment products and services. Telephone calls may be recorded and monitored.
H021717/0316ad
MANAGERS: Julian Fosh, Anthony
Cross, Victoria Stevens & Matthew
Tonge
FUND SIZE: £11.4m
LAUNCHED: 09/03/2016
OCF: 0.99%
and Fosh’s Economic Advantage
stock-selection process will be
pleased to know that their latest
offering will be run using the same
strategy.
The Economic Advantage process
focuses on stock characteristics
that are particularly difficult for
competitors to replicate. These
typically fall under three categories:
intellectual property, strong
distribution channels and significant
recurring business.
The managers believe that these
competitive advantages lead to
increased pricing power, greater
margin protection and therefore
sustained profitability and high
returns.
While Liontrust UK Micro Cap has
underperformed its sector average
by 3.01 percentage points since
launch, with a return of 1.11 per
cent, it must be noted that the fund
adopts a long-term outlook.
It is also important to note that
smaller companies have endured
a difficult period so far this year,
arguably due to fears surrounding
the impending referendum on the
UK’s membership of the EU and
the preference for larger, global-
facing stocks.
However, the team adopts an
entirely benchmark-agnostic
approach, saying that the fund aims
to deliver attractive returns for the
patient investor regardless of wider
market conditions.
“What we don’t try to do is call the
timing of the market either way,”
co-manager Stevens said.
“A lot of people asked us ‘why
now?’ when we started talking
about the fact we were going to
launch the fund. Actually, the power
of long-term compounding of
earnings is important to us. We’re
looking to get these businesses
right on the way in and hold them
for a very long time to benefit from
that compounding effect.”
PERFORMANCE OF FUND VS SECTOR SINCE LAUNCH
5% IA UK Smaller Companies (4.11%)
4% Liontrust - UK Micro Cap (1.10%)
3%
2%
1%
0%
-1%
For over 80 years, Henderson Global Investors
has been at the forefront of investment trust
innovation and development. Now, with a
diverse and established range of managed
investment trusts and investment companies,
Henderson has a global view of the market.
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Source: FE Analytics
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