You launched a unit trust a year ago called, somewhat mysteriously, MMV.
Can you tell me what the thinking was behind this launch and what the fund does?

Liontrust MMV Fund is so called as it recalls the year (2005) in which it was launched. The fund invests in what can be described as our best stock picks. The portfolio is equally weighted among approximately 40 to 50 stocks selected from the FTSE 100 and FTSE
Mid 250 Indices.

There were two principal reasons why we decided a year ago that it was an appropriate moment to launch this fund. First, in the summer of 2005 we saw that the investment
environment was improving for growth stocks; their valuations were more reasonable than they had been for some time and we believed they should start to do well. This presented
an opportunity for Liontrust. But often when the time is right from an investment point of
view it is a poor time from a marketing point of view. We knew that a growth product would
not be easy to sell after an extended period of underperformance, hence the low-key launch.

I had a strong conviction, though, that this was the right time to be launching an aggressively managed large cap. growth portfolio, just like it was the right time for Liontrust First Income Fund five years ago.

Second, we felt that investors were becoming more interested in absolute returns – they were looking for investments that beat inflation, not just the market. A focused absolute return growth product added to our armoury of funds, meaning we had a product for all stages of the economic cycle: this fund for growth, Liontrust First Income Fund for ‘value’.

How has the fund done in its first year?
I haven’t looked at its performance. Although its portfolio is reviewed each quarter, stock activity has been fairly quiet. I will review the overall positioning of the portfolio at the December 2006 year end review and will reposition the portfolio accordingly. Throughout
the year we have remained fully invested with an equally weighted portfolio of approximately
50 stocks.

I haven’t looked at its performance. Although its portfolio is reviewed each quarter, stock activity has been fairly quiet. I will review the overall positioning of the portfolio at the December 2006 year end review and will reposition the portfolio accordingly. Throughout
the year we have remained fully invested with an equally weighted portfolio of approximately
50 stocks.

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