Liontrust will acquire Argonaut Capital's European Income and European Enhanced Income funds, with current manager Oliver Russ moving to the group. The transition is expected to be completed in early June 2016.
Liontrust will launch the Liontrust European Income and Liontrust European Enhanced Income funds and merge the FP Argonaut European Income and FP Argonaut European Enhanced Income funds into these two funds on completion of the acquisition. Oliver Russ will manage the two new funds using the same investment process as he does in managing the FP Argonaut funds.
We do not anticipate significant changes to the portfolios as a result of the move. We believe existing investors do not need to take any action providing the funds continue to meet their objectives.
Our view on these funds
Oliver Russ has managed the FP Argonaut European Income Fund since its launch in December 2005. Over this time it has grown by 76.6%, underperforming the 82.2%* delivered by the IA Europe ex UK sector, although please remember past performance is not a guide to future returns. Our research suggests the fund’s sector and geographical positioning has detracted value over the manager's tenure. We feel stock selection has improved in recent years, however, it has been inconsistent over the longer term.
The FP Argonaut European Enhanced Income Fund was launched in April 2010, over which time it has performed in line with the sector average.
We currently believe there are superior alternatives in the European sector and, therefore, these funds do not feature on the Wealth 150 list of our favourite funds across the major sectors.
|Annual percentage growth|
| April 11 -
| April 12 -
| April 13 -
| April 14 -
| April 15 -
|FP Argonaut European Enhanced Income||-8.5%||16.8%||18.8%||19%||-8.5%|
|FP Argonaut European Income||-11.4%||19%||13.7%||10.3%||-2.4%|
|IA Europe ex UK||-10.2%||19.2%||16.3%||6.9%||-3.1%|
Source: Lipper IM to *01/04/2016. Past performance is not a guide to future returns.