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Samantha Gleave, Cashflow Solution: A world of opportunities

We have made a number of changes to the portfolio of stocks held in the Liontrust Income Fund, not only to reflect the results of our annual review of company reports and accounts, but also following the expansion of the geographical remit of the Fund to now allow us to select stocks from a global universe of companies. This expansion should enable us to achieve greater diversification of stocks and sectors, and therefore improve the quality of returns from our portfolio of holdings. In recent weeks, we have been able to increase our weighting in existing overseas holdings such as Total, the French integrated oil & gas company, as well as adding a selection of new international holdings including US-based RR Donnelley, which we provide further details of below.

We are not intending to affect a dramatic shift in the Fund’s geographic exposure. Prior to July’s expansion of the geographical remit we adhered to the 20% limit on non-UK equities demanded by the IMA (Investment Management Association) categorisation of the UK Equity Income sector. Following the removal of this geographic restriction, which saw the Fund move to the IMA Global Equity Income sector, we anticipate a gradual increase in international exposure of the Fund beyond this level. The region of the world today that contains the greatest proportion of strongly cash generative high yielding companies, however, is western Europe. Our expectation therefore is that the portfolio will continue to have a significant exposure to western Europe until such time as more compelling relative valuations occur in other parts of the globe.

Disclaimer

Any opinions expressed should not be construed as advice for investment in any [product or] security mentioned or which may form the underlying content of any topics discussed in this blog.  The information and opinions provided in this blog take no account of the investors’ individual circumstances and should not be taken as specific advice on the merits of any investment decision.   Any opinions or information provided has been based on sources we believe to be reliable at the time of this blog’s preparation: no representation or warranty, express or implied, is made as to the accuracy, reliability or completeness of such information.  Neither Liontrust, nor any of its partners, employees, representatives or agents accepts any liability whatsoever for any direct or consequential loss howsoever arising, directly or indirectly, from any use of our research or its contents.

Liontrust, its partners and/or employees may have had, have or will have positions in the securities (or related financial instruments) which are those referred to, or those underlying the content discussed in this blog.

Any individual who chooses to invest in any securities should do so with caution. Investing in securities is speculative and carries a high degree of risk; you may lose some or all of the money that is invested.  Always research your own investments and consult with a regulated investment advisor or licensed stock broker before investing.

Shares in companies referred to may be relatively illiquid and hard to trade, therefore riskier than other investments and there could be a large bid/offer spread, so if you need to sell soon after you’ve bought, you might get less back than you paid. This can make them riskier than other investments.