Liontrust is looking to lower the cost of several of its funds for certain investors as it pledges to keep four of its portfolios under “close review”.
Although the 37-page assessment of value report, published today (December 11), claims Liontrust’s fund range, charges and quality of service delivered ‘value’ for its customers, the asset manager flagged concerns over a number of funds.
Of its 41-strong fund range, Liontrust found investors in 18 of the portfolios could be moved to a cheaper share class and therefore the company actively seeking to ensure investors make this switch.
Liontrust also raised wider concerns about eight of the funds in its range.
The specialist fund house said that while its Japan, India, China and European Opportunities funds delivered value, the performance and comparable price tag of the portfolios were “areas for improvement”.
It pledged to keep the funds under “close review” as a result of the amber warning surrounding their performance criteria.
Liontrust has already taken action on the four other portfolios flagged in the report.
The Liontrust UK Mid Cap and UK Opportunities funds — which the firm said did not deliver value for consumers — have been merged with the Liontrust UK Growth fund.
Meanwhile, the Liontrust Macro Equity Income fund, which was given an amber rating for value, is to be merged with the Liontrust Income fund. Liontrust’s Macro UK Growth fund, also amber, will merge with the UK Growth fund.
John Ions, chief executive at Liontrust, said: “Liontrust takes great pride in the excellence of our investment teams and the performance they have generated over the long term.
“This success is reflected in the growth of our assets under management and advice over the past few years and the independent recognition in the form of awards and ratings that we are regularly awarded.”
Mr Ions thanked Liontrust’s clients and investors for their loyalty, saying he was “incredibly proud” of the development over the firm in the decade he has been at the helm.
Why Liontrust assessed its value for money
As part of the Financial Conduct Authority’s asset management review, fund houses are now required to carry out an annual assessment of whether the firm provides value for their clients.
The value rules — which have been in effect since the start of 2020 — require asset managers to look at their performance, costs, economies of scale, comparable market rates, services and share classes.
The mandated reports have already triggered Artemis, M&G and Aviva Investors to make changes to their fund ranges and charges.
Similarly to Liontrust, others such as SJP, Vanguard and Hargreaves Lansdown have insisted their funds deliver good value.
imogen.tew@ft.com
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