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Liontrust UK Growth Class I - Income (GBP)

Sell:392.61p Buy:395.58p Change: 2.87p (0.74%)
Prices as at 13 July 2020
Sell:392.61p
Buy:395.58p
Change: 2.87p (0.74%)
You can buy or sell holdings in this fund through a Stocks and Shares ISA, Lifetime ISA, SIPP or Fund and Share Account
Prices as at 13 July 2020
Sell:392.61p
Buy:395.58p
Change: 2.87p (0.74%)
Prices as at 13 July 2020
You can buy or sell holdings in this fund through a Stocks and Shares ISA, Lifetime ISA, SIPP or Fund and Share Account
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 the wider stock market 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. Remember the value of your investments 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.

question mark Manager Track Record Based on HL Quantitative Research

This information is currently unavailable.

Fund Track Record

13/07/15 to 13/07/16 13/07/16 to 13/07/17 13/07/17 to 13/07/18 13/07/18 to 13/07/19 13/07/19 to 13/07/20
Annual return 12.73% 13.47% 12.16% 2.73% -11.04%

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

manager photo
Manager Name: Anthony Cross
Manager start date: 25 March 2009
Manager located in: 2 Savoy Court, London, WC2R 0EZ, United

Anthony Cross joined Schroder Investment Management as a graduate trainee. He spent his first three years as an equity analyst before joining the Smaller Companies team in 1994. During this time, Anthony identified a number of characteristics common to successful companies and on joining Liontrust in 1997 he was able to develop his thoughts further and create a documented investment process. This process, called Liontrust Economic Advantage, was applied to the Liontrust UK Smaller Companies Fund from the start of 1998. Its success and relevance to the broader market led to the launch of the Liontrust Special Situations Fund in 2005 and the management of the Liontrust UK Growth Fund in 2009. Awards for the funds that Anthony co-manages with Julian Fosh include Liontrust being named Best UK Equity Group by Money Observer magazine, the Liontrust Special Situations Fund being named: Best UK Growth fund at the Investment Week Fund Manager of the Year Awards in 2011 and 2012; Best UK Growth Fund at What Investment magazine; Best Fund in the UK All Companies Sector at the Moneywise Fund Awards 2012; and won the UK Equity Gold Award 2012 from Portfolio Adviser. The fund is also member of the 2012 100 club. Anthony graduated in 1990 from Exeter University with a degree in politics.

manager photo
Manager Name: Julian Fosh
Manager start date: 25 March 2009
Manager located in: 2 Savoy Court, London, WC2R 0EZ, United

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. Julian has worked with Anthony to develop the Liontrust Economic Advantage process. Awards for the funds that Julian co-manages with Anthony Cross include Liontrust being named the Best Smaller Companies Group at the Professional Adviser Awards in 2009 and the Liontrust Special Situations Fund being named as the Best UK Growth fund at the Investment Week Fund Manager of the Year Awards in 2011 and 2012. From 2004 to 2008, Julian was the co-manager of Saracen Growth Fund, a top quartile performing UK equities portfolio. Before this, Julian headed up 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 his eight years at Scottish Friendly, six of Julian's nine funds were in the top quartile of their respective sectors. In a career going back to 1984, Julian has also worked at Britannia Investment Managers and Scottish Amicable. Julian graduated in 1994 from Merton College Oxford with an MA in Jurisprudence.

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