Assessment of Value | Liontrust Asset Management PLC

Liontrust Assessment of Value report

Liontrust Assessment of Value Report

We are conducting our first annual Assessment of Value for all Liontrust UK-domiciled funds in 2020.


Why are we doing this?

As part of a move to strengthen fund governance, our regulator, the Financial Conduct Authority (FCA), has mandated asset managers to conduct an annual review of UK-domiciled funds to evaluate the value provided to investors. We welcome this as a positive development for asset managers and investors.


How will we assess value?

The assessment of whether each of our funds is providing value for money to investors is being evaluated through seven criteria. These criteria are: Quality of service, Performance, AFM costs, Economies of scale, Comparable market rates, Comparable services, and Classes of units.  

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FCA Value Criteria

FCA Value Criteria Description

1

Performance

The performance of the scheme, after deduction of all payments out of scheme property as set out in the prospectus. Performance should be considered over an appropriate timescale having regard to the scheme’s investment objectives, policy and strategy

2

Quality of service

The range and quality of services provided to unitholders

3

AFM costs – general

In relation to each charge, the cost of providing the service to which the charge relates, and when money is paid directly to associates or external parties, the cost is the amount paid to that person.

4

Comparable market rates

In relation to each service, the market rate for any comparable service provided: (a) by the AFM; or (b) to the AFM or on its behalf, including by a person to which any aspect of the scheme’s management has been delegated

5

Economies of scale

Whether the AFM is able to achieve savings and benefits from economies of scale, relating to the direct and indirect costs of managing the scheme property and taking into account the value of the scheme property and whether it has grown or contracted in size as a result of the sale and redemption of units

6

Comparable services

In relation to each separate charge, the AFM’s charges and those of its associates for comparable services provided to clients, including for institutional mandates of a comparable size and having similar investment objectives and policies

7

Classes of units

Whether it is appropriate for unitholders to hold units in classes subject to higher charges than those applying to other classes of the same scheme with substantially similar rights

 

Value of Assessment Report

Once the assessment work has been completed, we will be producing an Assessment of Value Report that will provide the results of the evaluation into each fund and any actions that have subsequently been taken for the benefit of investors. 


When will the Value of Assessment Report be published?

The Liontrust funds have a variety of year ends, and because of this we have decided it is better for investors if we combine all the assessments into one composite report rather than issue individual reports throughout the year. 

The date of assessment we have chosen for all our funds this year will be 30 September 2020, and this date will remain the same in every subsequent year.

The Assessment of Value Report will be published no later than four months after 30 September 2020. The Report will be available on this dedicated web page.

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