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Liontrust UK Growth Class I - Income (GBP)

Sell:503.59p Buy:506.93p Change: 0.81p (0.16%)
Prices as at 21 November 2024
Sell:503.59p
Buy:506.93p
Change: 0.81p (0.16%)
You can buy or sell holdings in this fund through a Stocks and Shares ISA, Lifetime ISA, SIPP or Fund and Share Account
Invest now
Prices as at 21 November 2024
Sell:503.59p
Buy:506.93p
Change: 0.81p (0.16%)
Prices as at 21 November 2024
You can buy or sell holdings in this fund through a Stocks and Shares ISA, Lifetime ISA, SIPP or Fund and Share Account
Invest now
The selling price currently displayed is higher than the buying price. This can occur temporarily for a variety of reasons; shortly before the market opens, after the market closes or because of extraordinary price volatility during the trading day.

Our view on this Fund

This fund is on the Wealth Shortlist of funds our analysts believe have the potential to outperform their peers over the long term. However, this is not a recommendation to buy.

Please note this fund currently holds shares in Hargreaves Lansdown plc.

Anthony Cross and Julian Fosh are joint managers of the Liontrust UK Growth Fund. They both have three decades of experience analysing and investing in UK companies.

The duo also serve as co-managers on three other funds, but they all share the same 'Economic Advantage' investment process that underpins this one (described in more detail in the Process and Portfolio Construction section below). Given the similarities in the way the four funds are managed, we think this is a reasonable workload.

We think this fund could be a good option for the UK section of a broader global investment portfolio. A focus on high-quality companies means the fund could work well alongside other funds investing in unloved UK companies with recovery potential.

Our view on the sector

The UK stock market is home to lots of world-class companies. From international giants to a diverse array of smaller businesses. This provides a rich hunting ground for fund managers in this sector. They all try to grow investors' money over the long term, but each goes about it in a different way. Some focus on larger companies in the FTSE 100 index, others invest in medium-sized or smaller companies, and some have the flexibility to invest in any company, regardless of size. Some aim to match or deliver a return similar to the broader UK stock market. Others have the freedom to try and make as much money as possible for investors and take more risks. That could mean investing in only a small number of companies, for instance. A fund that invests in UK shares is normally the first port of call for UK-based investors. But with such a variety on offer, investors should make sure a fund is right for their circumstances before investing.

Performance Analysis

The fund launched in March 1993 but Cross and Fosh took control and started applying the Economic Advantage investment process from March 2009. Since then, the fund's beaten its peers in the IA UK All Companies sector, although past performance is not a guide to the future. Our analysis suggests returns were boosted by the managers' ability to invest in companies with outstanding prospects, regardless of their size or what sector they're in. The managers' investments in smaller companies add risk. Remember the fund's value will fall as well as rise, so you could get back less than you invest.

Investment Philosophy

When a company comes up with a new product or service, they sometimes initially experience a high level of profitability. But as new competitors enter the market and the company is forced to compete by cutting prices, profits get squeezed. The fund managers think the secret to successful investing is to find the few companies with an economic advantage - a durable edge over the competition that will allow them to earn above-average profits for the long-term.

Process and Portfolio Construction

The managers believe the hardest economic advantages to copy are intellectual property, such as patents and trademarks, strong distribution channels and significant repeat business. That's why a company must have at least one of these attributes before it's considered for the fund. Other less powerful but nonetheless important strengths include franchises and licenses, good customer relationships and a great company culture.

Once companies with a strong competitive edge have been identified, the managers look for proof that it's led to superior financial returns in the past. They also look for evidence of pricing power - the ability to increase prices without affecting demand for the company's product or service.

Finally, they consider the company's valuation. They compare each company's valuation on a variety of measures to try and avoid overpaying. However each investment is made with the long term in mind, so the managers believe the initial price paid is less important to overall returns than the company's ability to grow earnings and profits over the long term.

The managers have the flexibility to invest in derivatives which, if used, adds risk.

question mark Manager Track Record Based on HL Quantitative Research

This information is currently unavailable.

Fund Track Record

21/11/19 to 21/11/20 21/11/20 to 21/11/21 21/11/21 to 21/11/22 21/11/22 to 21/11/23 21/11/23 to 21/11/24
Annual return -3.98% 18.94% 0.88% 0.49% 7.46%

Please remember past performance is not a guide to future returns. Where no data is shown, figures are not available. This information is provided to help you choose your own investments, remember they can fall as well as rise in value so you may not get back the original amount invested.

Information about the fund

Fund manager biography

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Manager Name: Anthony Cross
Manager start date: 25 March 2009
Manager located in: London

Anthony Cross joined Liontrust in 1997 and launched the Liontrust UK Smaller Companies Fund in 1998. Before moving to Liontrust, Anthony joined Schroder Investment Management as a graduate trainee, later becoming an equity analyst before joining the Smaller Companies team in 1994. Anthony Cross graduated in 1990 from Exeter University with a degree in Politics.

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Manager Name: Julian Fosh
Manager start date: 25 March 2009
Manager located in: London

Julian Fosh joined Liontrust in 2008 from Saracen Fund Managers Ltd to co-manage the Liontrust UK Growth, Special Situations and UK Smaller Companies Funds with Anthony Cross and to develop the Liontrust Economic Advantage process. From 2004 to 2008, Julian was the co-manager of Saracen Growth Fund. Before this, Julian headed the investment department at Scottish Friendly Assurance Society Limited where he managed a range of funds including UK equity OEICs, life and pension funds. In a career that started in 1984, Julian has also worked at Britannia Investment Managers and Scottish Amicable. Julian graduated in 1984 from Merton College Oxford with an MA in Jurisprudence.

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Manager Name: Victoria Stevens
Manager start date: 22 May 2023
Manager located in: London

Victoria Stevens joined the Economic Advantage team at Liontrust in June 2015 as a partner and fund manager to help research and analyse investment opportunities primarily across the small cap universe. She previously worked for almost 5 years at the growth company specialist broking and advisory firm finnCap Ltd, latterly as deputy head of corporate broking. Prior to joining finnCap, Victoria was a senior reporter and diary editor at the financial newspaper City AM, having studied Modern Languages at Oxford University.

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Manager Name: Matthew Tonge
Manager start date: 22 May 2023
Manager located in: London

Matthew Tonge joined the Liontrust trading desk in 2003 from Barclays Capital Asset Management, becoming a partner in 2011. Responsible for execution across all the firm's assets, in 2014 he was voted Mid-Tier trader of the year by The Trade magazine for his work in mid and small cap stocks, the inaugural year of the award. Having worked closely with Anthony and Julian for many years, in September 2015 he joined the Economic Advantage team to help research and analyse companies across the small cap universe. Matt graduated from the University of Birmingham in 2000, with First Class Batchelor degrees in Manufacturing Engineering (BENG) & Commerce (BCOM), winning the Gilbert Walker Prize in Engineering and Economics as top student in his year.

Data policy - All information should be used for indicative purposes only. You should independently check data before making any investment decision. HL cannot guarantee that the data is accurate or complete, and accepts no responsibility for how it may be used. Benchmark data provided subject to this disclaimer.
You can buy or sell holdings in this fund through a Stocks and Shares ISA, Lifetime ISA, SIPP or Fund and Share Account
Invest now