Liontrust Special Situations Fund I Inc

UK Growth

Rated Fund 2013-14 and 2018-19. A great core holding for most types of investor.

In 2018 we swapped Liontrust UK Growth for the award-winning Liontrust Special Situations fund, which is run by the same managers, as the latter had been performing better with lower volatility. This proved to be a good move over 2018.

Liontrust Special Situations is managed by Anthony Cross and Julian Fosh using their ‘economic advantage’ approach to investing. It was highly commended in the Best Larger UK Growth Fund category in our 2013 awards and took top spot for the first time in 2017.

Cross has managed the fund since its inception in 2005. Fosh joined him in 2008. The fund’s assets have grown to almost £4 billion spread across 53 holdings.

The fund is typically very different from the UK stockmarket. It has a significant underweight to large companies, and a big part of the portfolio is invested in small and medium-sized companies.

The managers look for businesses with intellectual property, which includes strong distribution networks, recurring revenue streams and products with no obvious substitutes. Cross and Fosh also favour companies with strong brands and good customer relationships, in the belief that these attributes give a business the power to produce higher levels of profitability for longer than might be expected.

Another important consideration for them is how key employees are motivated. They prefer the board of directors to directly own shares in a company.

Darius McDermott, managing director at fund ratings and research provider FundCalibre, says: “The resulting portfolio consists of businesses that can grow their earnings independently of the wider economy, making this a great core holding for most types of investor.

Narrative and ratings content all as of 01 January 2019.

See all Money Observer rated funds
Name
Liontrust Special Situations Fund I Inc
Manager
Liontrust Fund Partners LLP
Type
Unit Trust
ISIN
GB00B57H4F11
Sector
UK All Companies
Launched
01/11/2010
OCF
0.87 %
Risk Rating
1
3 Year Sharpe
1.03
3 Year Alpha
4.19
Yield
1.8 %
Benchmark
FTSE AllSh TR GBP
The investment objective of Liontrust Special Situations Fund is to provide long-term (at least 5 years) capital growth. To achieve this aim, the Fund will invest primarily in a concentrated portfolio of UK companies’ shares. The Fund will invest where the fund manager believes there are the greatest opportunities to provide long term capital growth. The Fund will not be restricted in choice of investment by either size or sector. The Fund may also invest in transferable securities, money market instruments, warrants, cash and near cash and deposits. The Fund may also invest up to 10% of its property in units or shares in collective investment schemes. The Fund is permitted to use derivatives for the purposes of efficient portfolio management and for investment purposes.
Holding %
RELX PLC 4.04 %
Royal Dutch Shell PLC B 4.03 %
Diageo PLC 4.01 %
BP PLC 3.99 %
Unilever PLC 3.98 %
GlaxoSmithKline PLC 3.95 %
Compass Group PLC 3.82 %
Reckitt Benckiser Group PLC 3.81 %
Sage Group (The) PLC 3.57 %
Spirax-Sarco Engineering PLC 3.45 %
Region %
United Kingdom 100.00 %
Sector %
Industrials 22.62 %
Technology 19.11 %
Consumer Cyclical 17.14 %
Consumer Defensive 12.89 %
Energy 10.48 %
Healthcare 7.47 %
Financial Services 6.78 %
Name
Liontrust Fund Partners LLP
Address
NULL, London, United Kingdom
UCITS
Yes
Legal Structure
Unit Trust

Managers

Julian E C Fosh
Joined 06/02/2008

Julian Fosh joined Liontrust in 2008 from Saracen Fund Managers Ltd to work as portfolio manager 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.

Anthony Cross
Joined 11/10/2005

Anthony Cross joined Liontrust in 1997, forming the Liontrust Economic Advantage process. 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.

Data provided by Morningstar.

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