Stellar performance from British companies
Earning a decent return from British stocks has been far from easy - a fact that makes this fund's achievements all the more impressive.
With the Diamond Jubilee and the Olympics fixing the limelight firmly on London this year, backing British companies seems patriotic. However, with the recession battering many British-based firms, achieving decent returns can be tough. So the "star performance" of the Liontrust Special Situations Fund looks all the more impressive, says Katie Morley in the Investors Chronicle.
The fund has returned 30% over one year and 81.9% over three. But the best could be yet to come. If you want to "cash in on recent weakness in the stockmarkets, now is the time to invest", notes Morley. Managers Anthony Cross and Julian Fosh look for companies that should be "robust performers in a low-growth environment".
These firms operate in sectors with high barriers to competition, and enjoy strong intellectual property protection and high pricing power as Fosh and Cross put it: "intangible strengths that competitors struggle to reproduce".
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
As Cross notes on Liontrust's blog, they will invest in firms facing temporary headwinds as long as they have these other qualities. Domino's Pizza and Wilmington, both facing tough trading conditions, are two such examples. Other holdings include BP and Diageo.
The fund could also benefit from increased takeover activity. IT services provider Tikit, for example, recently received an offer from BT. Up to 30% of the fund is invested in potentially risky small-cap companies and it also has a relatively high annual management fee of 1.75%. However, investors may sleep better at night knowing that both managers have their own pensions invested in the fund.
Contact: 020-7412 1777.
Liontrust Special Situationstop ten holdings
Diageo | 4.06% |
GlaxoSmithKline | 3.97% |
Unilever | 3.94% |
Compass Group | 3.93% |
BP | 3.90% |
Royal Dutch Shell | 3.78% |
AstraZeneca | 3.27% |
BG Group | 3.14% |
Reed Elsevier | 2.72% |
Intertek | 2.71% |
Sign up to Money Morning
Our team, led by award winning editors, is dedicated to delivering you the top news, analysis, and guides to help you manage your money, grow your investments and build wealth.
-
Best funds to add to your ISA or SIPP before the Budget
With Labour expected to increase taxes, ISAs and SIPPs could be a great way to protect yourself from CGT hikes. We look at the best funds to buy now
By Katie Williams Published
-
Starling Bank slapped with £29 million fine over ‘shockingly lax’ financial crime controls
The Financial Conduct Authority has fined Starling Bank £29 million over failings related to financial crime and its financial sanctions screenings
By Kalpana Fitzpatrick Published