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Liontrust may close funds to new money

Liontrust is set to slam the door on new investment into its existing funds after admitting that rocketing inflows could seriously impede their performance within a matter of months.

Chairman Ellen Winser told shareholders last week that the fast-rising boutique&#39s four investment processes can cope with £6bn before the chances of further outperformance are dramatically diminished. Given that Liontrust&#39s assets under management shot up by 96 per cent to more than £5bn in the 12 months to March 31, this ceiling is likely to be hit before the end of the year.

Liontrust is expected to attempt to counter its capacity problems by launching three hedge funds to sit alongside the existing long-short product run by Jeremy Lang, manager of its flagship first income fund. The new funds, likely to be based on the firm&#39s existing product range, would not eat into capacity, offering Liontrust one solution to its inflow difficulties.

Winser said: “We firmly believe there is a limit to the amount of money we can run. It is not in shareholders&#39 interest for us to continue to grow funds under management willy-nilly.”


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AMI calling for code of practice on buy to let

The Association of Mortgage Intermediaries is keen to work with the Association of Residential Letting Agents to put in place a code of practice for the buy-to-let market. The AMI believes a code of practice would bolster confidence in the buy-to-let sector, which will not be regulated by the FSA when mortgages come under its […]

Consumers&#39 Association pressing for return of maximum commission deal

The Consumers&#39 Association wants to see the reintroduction of the maximum commission agreement. The MCA was abandoned in 1988 after the Office of Fair Trading ruled it was significantly anti-competitive but CA senior policy adviser Mick McAteer believes there needs to be some sort of control on charges to get the industry to move away […]


MPAA consultation

By Fiona Tait, pensions specialist The chancellor’s announcement of proposed cuts to the Money Purchase Annual Allowance means it will be more important than ever to be able to tell your PCLS from your UFPLS What was in the statement? Not much. The chancellor spared three sentences to inform us that the Money Purchase Annual Allowance will be reduced […]


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