Liontrust Asset Management plans to launch a closed-end UK equity fund, investing in the FTSE 350 an...
Liontrust Asset Management plans to launch a closed-end UK equity fund, investing in the FTSE 350 and managed by William Pattisson in March, writes Jenne Mannion.
Jonathan Harbottle, marketing director of Liontrust, said the portfolio is likely to be run along similar lines to the £7m Liontrust First Large Cap unit trust, launched in October 1999 and also run by Pattisson.
Since launch, that fund has already outperformed the FTSE All-Share by 2%, already fulfilling its objective of achieving that level of performance, according to the group.
Liontrust has not decided whether the close-ended vehicle will mirror the unit trust or be a more aggressively run version of the Liontrust First Large Cap fund, which holds a concentrated portfolio of stocks.
The core investment process of Pattisson, who joined Liontrust from Flemings in June 1999, is to seek stocks demonstrating share price momentum as well as positive earnings forecasts.
Harbottle said: "The unit trust holds 75 stocks and some of those hold a neutral position in share price momentum and positive earnings forecasts.
"The new close-ended vehicle will either be an exact replica, or we may create a turbo charged version which would concentrate on the 40 winning stocks from the unit trust's portfolio."
He added that the fund, which is not yet named, would be the first closed-end product managed by Pattisson since he stopped managing the Claverhouse investment trust in June 1999.
Liontrust said it expects strong support for the product because of Pattisson's strong reputation in managing the Claverhouse UK equity-based investment trust.
Harbottle said the fund would be marketed through IFAs and would offer competitive charges and fees.
Service increasingly key
Aiming to be' top three' UK financial planner
Lowest measure since index launched in 1995
Complaints into double figures
Despite lower median annual earnings