Liontrust - Cut and Run?

RandAMS

I've been looking at my dad's investments and he has a sum of money invested in a Liontrust ISA. Its performance is appalling (to my mind) - the value is at its lowest level in 14 years. It peaked a few years ago but then lost a large whack in the post-COVID crash. However, it has since continued to deteriorate further. I've read that Liontrust share prices are suffering as other investors are pulling out, and I don't know whether to follow suit. I suppose I'm worried that he might eventually lose the lot.

masonic

The company's share price has no bearing on the performance of the investments under management. The first question to establish an answer to is in what fund(s) is the ISA invested? Very few investments will be at a lower level today than 14 years ago.

wmb194

RandAMS said:

I've been looking at my dad's investments and he has a sum of money invested in a Liontrust ISA. Its performance is appalling (to my mind) - the value is at its lowest level in 14 years. It peaked a few years ago but then lost a large whack in the post-COVID crash. However, it has since continued to deteriorate further. I've read that Liontrust share prices are suffering as other investors are pulling out, and I don't know whether to follow suit. I suppose I'm worried that he might eventually lose the lot.

An Isa is just a tax wrapper, what's it actually invested in? Lots of things haven't done well in recent years.

I haven't heard of anyone worrying about Liontrust's solvency but even if it did go bust he wouldn't lose his investments as they'll be segregated from Liontrust's own assets and won't be used to settle its liabilities.

dunstonh

the value is at its lowest level in 14 years.

Most investments are back some years because of 2022/23 falls but 14 years would only likely be possible with a gilt fund.

It peaked a few years ago but then lost a large whack in the post-COVID crash. 

That suggests it is not gilts as Gilts didnt start their massive fall until late 2021.

Maybe you could tell us the investment as it would need to be something quite niche from what you have told us.

edit:   I thought I would take a look at Liontrust funds:

here are the bottom 5 over the last 14 years:


just for balance, here are the top 5


So, only one fund is negative after 14 years.  Liontrust Russia

jimjames

Sounds like there is info we're not being told. Maybe he withdrew 50% of the value some years ago which is why it's lower

Linton

RandAMS said:

I've been looking at my dad's investments and he has a sum of money invested in a Liontrust ISA. Its performance is appalling (to my mind) - the value is at its lowest level in 14 years. It peaked a few years ago but then lost a large whack in the post-COVID crash. However, it has since continued to deteriorate further. I've read that Liontrust share prices are suffering as other investors are pulling out, and I don't know whether to follow suit. I suppose I'm worried that he might eventually lose the lot.

Do you have PoA for your father? Does your father have significant, say £50k+, money invested? I am asking the question as investing on behalf of someone else is a heavy responsibility and can seriously damage relationships if things go wrong. If the answer to both my questions is “yes” and you are not confident you have sufficient investment experience I suggest you and/or your father consider paying for professional advice.

RandAMS

Thanks for your replies.

It's not a significant amount, currently about £18k. It's the Liontrust MA Blended Reserve Fund Class A Inc.

No withdrawals but it looks like dividends are paid into his bank, so that might explain the performance. Can't tell how much has been paid out without going through the mountain of paper all over again.

dunstonh

No withdrawals but it looks like dividends are paid into his bank, so that might explain the performance. 

Those are withdrawals effectively as its taking a key part of the portfolio return away from the portfolio.  ie. if the yield is three quarters of the return and the yield is being drawn rather than being reinvested, then the portfolio value will not grow as much (or at all with the highest yield funds) and could be subject to greater volatility in negative periods.



Upper line is income reinvested.  Lower line is income drawn out leaving the unit price.

If £20k was invested 14 years ago it would be over £29k with income reinvested but £21.7k if income drawn)