Trustnet Magazine Issue 19 June 2016 | Page 20

Whether you are retirement planning, investing for your children, looking to take advantage of dynamic global markets or want a cautious investment approach, our managed companies offer a wide range of investment objectives and strategies professionally managed by regional experts. If your priority is high income, long term capital growth or a mixture of both, Henderson Global Investors has a range of solutions which aims to meet your investment needs. 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. For more information visit www.hendersoninvestmenttrusts.com 0800 856 5656 @HGiTrusts Find us on Facebook 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. Pension Take a global view of investment trusts, expertly managed by Henderson ARE INVESTOR? It’s a global marketplace / FUND, PENSION, TRUST / Investment Trusts, managed by Henderson Source: FE Analytics trustnetdirect.com 19