Half Year Trading Update

RNS Number : 1375N

Liontrust Asset Management PLC

26 September 2012

 



Stock Exchange Announcement

LIONTRUST ASSET MANAGEMENT PLC

Half Year End Trading Update

Liontrust Asset Management PLC ("Liontrust" or the "Group"), the specialist independent fund management group, is today issuing its half year trading update.

Highlights

·     Net positive inflows of £88 million in the current quarter (three months ending 30 September 2011: £46 million)

·     Net positive inflows of £181 million in the financial year to 24 September 2012 (six months ending 30 September 2011: £59 million)

·     Assets under management increased to £2,364 million as at close of business on 24 September 2012 from £1,529 million on 31 March 2012

John Ions, Chief Executive of Liontrust, says: "Another positive six months of fund flows and performance continues to drive our business forward.  We are in our ninth successive quarter of positive inflows and over that period assets under management have risen from £1.0 billion to £2.4 billion. There is no better endorsement of our strategy than clients continuing to invest. The environment has been mixed for many groups and there are numerous challenges ahead, with some more in our control than others but they all create opportunities to capitalise on.

"The success of the last two years continues to be a testament to our commitment to delivering performance across our investment teams and the tremendous progress made in distribution and the profile of Liontrust. Achieving good long term performance through consistent robust investment processes will always be the core strength of our business. The need for long-term savings has never been greater and thus there is a tremendous opportunity for well managed, focused businesses to provide solutions for investors. 

"The changes brought on by RDR should not be underestimated. There may be much focus on price and consumer outcomes but it has also clearly identified that distribution power is now vital.  An even greater amount of fund flows will be controlled by fewer more powerful distributors. These changes will create tremendous opportunities and pose significant threats to asset managers both big and small. 

"Fund managers who understand their clients' needs and are able to meet them over the long term through clearly defined investment processes have a great opportunity ahead."

Funds under Management

As at close of business on 24 September 2012, our assets under management ("AuM") stood at £2,364 million, an increase of 11% over the quarter, and were broken down by type and process as follows:-

Process	Total (£m)	Institutional (£m)	UK Retail (£m)	Offshore Funds (£m)
Cashflow Solution	836	411	397	28
Economic Advantage	905	-	905	-
Macro	557	165	392	-
Asia	15	-	4	11
Indexed	51	-	51	-
Total	2,364	576	1,749	39

Funds Flows

Liontrust has recorded net positive inflows of £88 million in the current quarter to 24 September 2012 (three months ending 30 September 2011: £46 million). The net positive inflows for the financial year to 24 September 2012 are £181 million (six months ending 30 September 2011: £59 million).

A reconciliation of fund flows and AuM over the current quarter to 24 September 2012 is as follows:-

	Total	Institutional	UK Retail	Offshore Funds
	(£m)	(£m)	(£m)	(£m)
Opening AuM - 1 Jul 2012	2,135	514	1,573	48
Inflows	217	32	185	-
Outflows	(129)	(10)	(110)	(9)
Net flows	88	22	75	(9)
Market movement	141	40	101	-
Closing AuM - 24 Sep 2012	2,364	576	1,749	39

Performance fees

Performance fees of £nil were earned in the financial year to 24 September 2012 (2011: £167,000, of which £119,000 relates to the credit business, the disposal of which completed on 30 June 2011).

Fund Performance (Quartile ranking)

The strength of Liontrust's fund management capability is shown by the fact that all bar one of nine unit trust funds have out-performed their respective IMA sector average since launch or since the fund managers were appointed to 31 August 2012. Liontrust Special Situations Fund was ranked first out of 217 funds in the IMA UK All Companies sector over this period while another five of the funds were in the first quartile of their respective sectors. 

	Quartile ranking - 1 year	Quartile ranking - 3 year	Quartile ranking - 5 year	Quartile ranking - Since Manager tenure	Launch / Manager appointed
Liontrust Income Fund	4	3	-	2	25/03/2009
Liontrust UK Growth Fund	1	1	-	1	25/03/2009
Liontrust Special Situations Fund	1	1	1	1	10/11/2005
Liontrust UK Smaller Companies Fund	1	1	1	1	08/01/1998
Liontrust European Absolute Return Fund	4	4	-	4	08/07/2009
Liontrust European Growth Fund	4	1	1	1	15/11/2006
Liontrust Asia Income Fund	-	-	-	2	05/03/2012
CF Liontrust Macro Equity Income Fund	4	2	1	1	31/10/2003
CF Liontrust Macro UK Growth Fund	4	2	1	1	01/08/2002

Source: Financial Express, total return, bid to bid, to 31 August 2012 unless otherwise stated.  The above funds are all UK authorised unit trusts (retail share class).  Liontrust FTSE 100 Tracker Fund (index fund) and CF Liontrust Macro UK High Alpha Fund (proposed to, subject to appropriate approvals, merge into CF Liontrust Macro UK Growth Fund) not included. Past performance is not a guide to the future; the value of investments and the income from them can fall as well as rise. Investors may not get back the amount originally subscribed.

Awards

We are proud to announce a hat-trick of awards for Liontrust in the financial year to 24 September 2012:

·     The Liontrust Special Situations Fund won the "Best UK Growth Fund" at the Investment Week Fund Manager of the Year Awards in July for the second year running.

·     Liontrust has been named the "Best UK Equity Group" by Money Observer magazine.

·     Liontrust Special Situations Fund won the "Best UK Equity Growth Fund" Award from What Investment magazine.

For further information please contact:

Liontrust Asset Management PLC                            020 7412 1700

John Ions                                                                             www.liontrust.co.uk

Vinay Abrol

Simon Hildrey - Head of Marketing & Communications

Singer Capital Markets Limited                                 020 3205 7500

Jonny Franklin-Adams

Jenny Wyllie

Forward Looking Statements

This announcement contains certain forward-looking statements with respect to the financial condition, results of operations and businesses and plans of the Group. These statements and forecasts involve risk and uncertainty because they relate to events and depend upon circumstances that have not yet occurred. There are a number of factors that could cause actual results or developments to differ materially from those expressed or implied by these forward-looking statements and forecasts. As a result, the Group's actual future financial condition, results of operations and business and plans may differ materially from the plans, goals and expectations expressed or implied by these forward-looking statements.  Liontrust undertakes no obligation publicly to update or revise forward-looking statements, except as may be required by applicable law and regulation (including the Listing Rules of the Financial Services Authority).  Nothing in this announcement should be construed as a profit forecast or be relied upon as a guide to future performance.

Other information

The release, publication, transmission or distribution of this announcement in, into or from jurisdictions other than the United Kingdom may be restricted by law and therefore persons in such jurisdictions into which this announcement is released, published, transmitted or distributed should inform themselves about and observe such restrictions. Any failure to comply with the restrictions may constitute a violation of the securities laws of any such jurisdiction.

ENDS

 

END

 

 

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