After the acquisition of Neptune in October 2019, the merger will consolidate the former Neptune Fund and the Lion Trust fund.
As part of the change, the £ 146.5m Global Income Fund will be integrated with the £ 103.9 Global Dividend Fund.
Lion Trust’s Global Equity Team began managing its Global Income Fund earlier this May. The Global Equity Team is run by Robin Geffen and James Dowey. The nominated managers of the Global Dividend and Global Income Fund are Dawee and Stormul.
“Because the two funds have similar goals, Liontrust believes it is appropriate to integrate the two strategies,” said a spokeswoman for the business.
“Investors will benefit from the strong track record of the Liontrust Global Dividend Fund and the economies of scale brought about by the integrated fund with approximately £ 250m in assets under management.”
The Global Dividend Fund, formerly a Neptune Fund, has outperformed its sector, the Global Equity Income Retail Sector, over the past five years, while the Global Income Fund has underperformed. According to FE Fund Info figures, the average return for this sector was 66.6%, while dividend funds returned 98.5% and income funds returned 62.9%.
Similarly, the £ 83.6m European Opportunities Fund will merge with the £ 212m European Growth Fund.
The Liontrust Cash Flow Solutions Team took over the management of the European Opportunities Fund in early May. The cash flow solutions team is run by James Inglis-Jones and Samantha Gleave, who also run two European funds.
The European Opportunities fund, formerly a Neptune fund, has outperformed the European Growth fund, while Europe, excluding UK retail, has fallen below that sector for the past five years. According to data from FE Fund Info, the sector returned an average of 74.4% over five years, Opportunity Funds returned 68.5%, and Growth Funds returned 103.5%.
“Lion Trust believes these actions are in the best interests of investors,” a spokesman said.
If the EGM vote is successful, the merger will be effective from June 25th.
Liontrust Consolidates Global Income and European Funds
Source link Liontrust Consolidates Global Income and European Funds