three products will invest in large caps, high-yield stocks and smaller companies that support employee share ownership respectively
Liontrust International (Guern-sey), the offshore funds arm of Liontrust Asset Management, is to add three new sub-funds to its Guernsey Oeic, investing entirely in its onshore funds.
The three new products will be the Liontrust Active 350 Fund, Liontrust Dynamic Income Fund, and Liontrust First Smaller Companies Fund.
The Liontrust Active 350 Fund will invest exclusively in the Liontrust First Large Cap Fund, a £30m unit trust managed by William Pattisson since October 1999.
The Liontrust First Large Cap Fund is managed in the company's large-cap style, which uses three screening tools to identify rising stocks ' rising earnings forecasts, high share price momentum, and newsflow analysis. It is one of only a handful of the 356 funds in the UK All Companies sector that has maintained a position in the first or second decile over three months, six months, one year, two years since its launch in October 1999, according to Nigel Legge, joint chief executive of Liontrust Asset Management.
The Liontrust Dynamic Income Fund will invest in the Liontrust First Income Fund, a £190m UK equity income unit trust that has been managed by Jeremy Lang since August 1996.
The Liontrust First Income Fund is run by the company's value dynamics process.
This seeks to identify stocks with a very high yield and potential share price recovery prospects.
It was the best performing UK equity income unit trust in its sector in 2001, outperforming the FTSE All-Share Index by more than 26%, according to Legge, and dividends paid to investors have increased every year since 1996.
The Liontrust First Smaller Companies Fund will invest exclusively in the Liontrust Intellectual Capital Trust, a £47m UK smaller companies unit trust managed by Anthony Cross since launch in January 1998.
It is run according to Liontrust's cross-report process. This involves looking for companies that have successfully exploited intellectual capital and married it with employee share ownership.
The fund looks for motivation and retention of staff and will not buy shares in a company if less than 3% is owned by the employees.
Under Cross' management, the fund has delivered consistent performance and in the past four years has been positioned in the first or second quartile in its sector each year, said Legge.
Launched in 1998 with two sub-funds, the Liontrust Guernsey Oeic provides offshore investors with the opportunity to invest in Liontrust's range of UK-authorised unit trusts.
The new open-ended products were launched because of investor demand and the good track records of the onshore unit trusts which they will be replicas of, according to Jonathan Harbottle, marketing manager. The sub-funds have the same charges as the UK unit trusts, which rebate their initial and annual fees to the offshore platform to prevent double charging the investor.
Adviser commission is 3% with an initial management charge of 5% and an annual management fee of 1.5%. Currently there are just two sub-funds in the Oeic. They are Liontrust First Equity Fund, linked to its equivalent UK unit trust, the Liontrust First Growth Fund, and Liontrust UK Index Fund, which is linked to the Liontrust Top 100 Fund.
Founded in 1994, Liontrust Asset Management is the holding company of a specialist UK equities fund management group providing process-driven portfolio management services to a range of funds that are targeted primarily at professional investors and advisers.
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