Interim Management Statement

RNS Number : 1632R

Liontrust Asset Management PLC

17 August 2010

 



Embargoed until 7am on 17 August 2010

Stock Exchange Announcement

LIONTRUST ASSET MANAGEMENT PLC

Interim Management Statement

Liontrust Asset Management PLC ("Liontrust", the "Company", or the "Group"), the specialist independent fund management group, is today issuing its Interim Management Statement for the period from 1 April 2010 to 30 June 2010 (the "Interim Period") as required by the FSA's Disclosure and Transparency Rules.

Funds under Management

On 30 June 2010, our assets under management stood at £1.013 billion and were broken down by type and process as follows:-

Process	Total (£m)	Institutional (£m)	Retail (£m)	Offshore Funds (£m)
Cashflow Solution	733	280	412	41
Economic Advantage	201	0	201	0
Fixed Income	30	0	0	30
Indexed	49	0	49	0
Total	1,013	280	662	71

Funds Flows

A reconciliation of fund flows and assets under management over the Interim Period is as follows:-

	Total	Institutional	UK Retail	Offshore Funds
	(£m)	(£m)	(£m)	(£m)
Opening AuM - 1 April 2010	1,149	311	772	66
Inflows	33	8	14	11
Outflows	(77)	(1)	(70)	(6)
Net flows	(44)	7	(56)	5
Market movement	(92)	(38)	(54)	0
Closing AuM - 30 June 2010	1,013	280	662	71

Assets under management have been stabilising over the course of the Interim Period and following the end of the period. For example, Liontrust had net inflows of £10.2 million in July 2010 on gross sales of £25.8 million. On 16 August 2010, our assets under management stood at £1.055 million. 

Liontrust has now completed the rebranding that was highlighted in our announcement on 16 June to provide clear and focused information to clients. This includes the recent launch of our new website (http://www.liontrust.co.uk).   

On Monday 16 August, we started an advertising campaign, both trade press and online, that is designed to raise significantly the profile of Liontrust and our strong fund performance in the intermediary market.  

Performance fees

Performance fees of £152,000 were earned in the Interim Period (1 April 2009 to 30 June 2009: £583,000).

Fund Performance (Quartile ranking)

Fund	3 months	1 year	Manager tenure	Manager appointed
Liontrust First Income Fund	1	1	1	25/03/2009
Liontrust First Growth Fund	1	1	1	25/03/2009
Liontrust First Opportunities Fund	1	1	1	11/11/2005
Liontrust First Large Cap Fund	4	4	4	25/03/2009
Liontrust Intellectual Capital Trust	2	1	1	08/01/1998
Liontrust European Absolute Return Fund	2	N/A	4	09/07/2009
Liontrust Continental Europe Fund	1	1	1	15/11/2006

Source: Financial Express, total return, to 30 June 2010, past performance is not a guide to the future.

Purchase of Shares in Liontrust European Investment Services Ltd ("LEIS")

On 16 August 2010, the Company entered into an agreement to acquire 45,000 C Ordinary Shares held by each of Mr West and Mr Inglis-Jones respectively in LEIS, a subsidiary of the Company, subscribed for by them pursuant to an investment agreement dated 16 June 2006. This represents the entire interests of Mr West and Mr Inglis-Jones in LEIS. The consideration payable to each of Mr West and Mr Inglis-Jones by the Company for such shares is £1,327,108 (such consideration to be satisfied in cash). 

As part of such arrangement, Mr West and Mr Inglis-Jones applied 50% of the consideration received to subscribe for, in aggregate, 1,679,882 new Ordinary Shares of 1p in Liontrust at the prevailing market price and to enter into a three-year lock up agreement. The arrangement is designed to ensure the interests of Mr West and Mr Inglis-Jones are more closely aligned with those of shareholders. It is also part of the process of aligning the incentive schemes for all fund managers, executive directors and staff at Liontrust.

For the purposes of the Listing Rules of the UK Listing Authority (the "Listing Rules"), the UK Listing Authority has confirmed that such arrangements constitute smaller related party transactions under Chapter 11 of those Rules.  The Company has complied with its obligations under paragraph 11.1.10(2)R of the Listing Rules. 

Severance Compensation and Global Equities team closure

On 7 May 2010, the Company announced that Nigel Legge had stood down as Chief Executive with immediate effect and would remain as a consultant until 6 August 2010. The cost of Mr Legge's departure will be £665,000, which will be incurred in the financial year ending 31 March 2011. The cost of Mr Legge's departure includes severance compensation payable to Mr Legge, consultancy fees payable to Mr Legge and related legal expenses, social security costs and VAT (as applicable).

On 1 July 2010, the Company announced that it was closing its Global Equities team. Details of the severance compensation payable and other closure costs will be disclosed with our interim results for the six month period ending 30 September 2010.

Notice of Annual General Meeting

The Company announces that two copies of its Notice of Annual General Meeting 2010 and Form of Proxy have been submitted to the UK Listing Authority.  Copies of all the above documents will shortly be available for inspection at the UK Listing Authority's Document Viewing Facility which is situated at:

The Financial Services Authority

25 The North Colonnade

Canary Wharf

London E14 5HS

Telephone: [phone]

The above document can also be downloaded from the Company's website at:

http://www.liontrust.co.uk 

Long-term Equity Incentivisation

The Board will be proposing a new equity incentive plan, thereby closely aligning the interests of directors, key management and shareholders.  The new incentive plan will also ensure that management are focused on developing sustainable returns and growing the key value drivers of assets under management and revenue whilst reducing the Company's cost base, thereby driving increased shareholder value. Further information regarding the proposals referred to above will be contained in a circular, which is currently expected to be sent to shareholders within the next six weeks for the purposes of approving the proposals.

Six month trading update

A trading update for the six months ending 30 September 2010 will be released on 29 September 2010.

For further information please contact:

Liontrust Asset Management PLC                            020 7412 1700

John Ions                                                                             www.liontrust.co.uk

Vinay Abrol

Simon Hildrey - Marketing & Communications Director

Altium                                                                                  020 7484 4040

Sam Fuller

Paul Chamberlain

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

 

 

IMSGGUUARUPUGMQ