Liontrust’s Russ eyeing significant AUM growth and third fund

Added 1st August 2016

Liontrust’s newly installed head of European income, Olly Russ, is setting his sights on significant growth for his two income funds and is mulling the launch of a third.

Liontrust’s Russ eyeing significant AUM growth and third fund

“We have £300m split across the European Income and European Enhanced Income funds. It is a nice sum to be managing, but £500m would be nicer,” said Russ.

“Nearly all my investors came over with me to Liontrust. As we grow assets I intend to build a team. If there is appetite, we may look at a pan-European income fund which includes the UK. That would likely be an offshore Dublin-based vehicle.”

Russ joined Liontrust in July from Argonaut, the firm he formed alongside fellow ex- Neptune manager Barry Norris in 2005.

Russ said the move to Liontrust was not the result of any personal issue between him and long-time colleague Norris but due to the emergence of a mutually beneficial opportunity.

“Liontrust wanted to buy in some assets and it seemed like a better fit for the income funds I manage. AUM had been pretty static at Argonaut on the income side for some time, and the company wanted to focus on absolute return and alpha products using a separate process. “It is a better home for an income suite as there are much deeper resources in terms of sales and marketing. The specific opportunity Liontrust presented prompted the decision. These sort of deals do not come around often."

“Barry has his own investment process based on earnings upgrades, which is not how I run income funds," Russ continued. “There wasn’t a commonality of process there, which made things difficult for the sales team” he said. Russ added: “I could see the potential benefits of being at Liontrust straightaway. There is an opportunity at this company to hit new markets, which I am very excited about.”

Russ thinks there is work to be done in communicating the merits of European income funds relative to their UK counterparts, and this could be key to the AUM growth he seeks.

“Many people are familiar with UK equity income funds and they have done well for investors for decades. There is absolutely no reason why you can’t do the same thing with continental Europe and it may even be a little easier than in the UK right now. He concluded: “Many European companies have lots of free cashflow and there is a very good culture among management of returning cash to shareholders. There is a strong diversification story for us to tell UK investors.”

Kames Income Hub


Vincent McEntegart, manager of the Kames Diversified Monthly Income Fund, explains how he aims to deliver a stable and sustainable income of 5% p.a.*, paid monthly, by investing in a range of asset classes

Square Mile Research

Lazard Emerging Markets
Lazard Emerging Markets

Talking Factsheets is a video service for users...

Visitor's Comments Add your comment

Add Your Comment

We won't publish your address

About Author

Alex Sebastian

News editor

Alex joined Portfolio Adviser in April 2014 and has been a financial journalist since 2008. He has previously held editorial positions at the Financial Times Group and Euromoney Institutional Investor. Alex is NCTJ qualified and has a degree in economics from the University of Sussex.



Investment Strategy




PA Channel Island 2016
PA Channel Island 2016

8th November 2016
The Royal Yacht, Jersey


17th November 2016
The Andaz

PA Emerging Markets 2016
PA Emerging Markets 2016

1st December 2016
The Mayfair, London

Sponsored Content

Investment Strategy