Liontrust to launch UK micro cap fund in 2016

Liontrust has confirmed it is planning to launch a UK Micro Cap fund in the first quarter of next year.

Subject to FCA approval, the fund will be managed by fund manager Anthony Cross, recent hire and former journalist Victoria Bates and Matt Tonge, who has recently joined from the firm’s trading desk.

Cross says: “Having strengthened the Liontrust smaller companies team this year with the hire of Victoria and Matt, we see significant opportunities within the micro-cap end of the market and are excited about the launch of our fund next year.”

Cross currently runs the group’s £1.5bn Special Situations, £215m UK Growth and £391m UK Smaller Companies funds, helped by Bates on the small-cap portfolio.

The firm decided to launch the fund as micro caps are an “attractive area” as they are less researched than the rest of the market and have companies that can outperform in a low-growth environment.

The new fund will be run using the same economic advantage process as the rest of the small-cap range, which includes only investing in companies where management own at least 3 per cent of the equity in the company, Liontrust said.

Other details on the new fund were not available yet.

In a trading update, published in July, Liontrust Asset Management saw £7m in total net outflows between April and June following a period of continued market volatility.

The company said assets under management remained relatively flat at £4.46bn as at the end of June.