Interim Management Statement

RNS Number : 9828H

Liontrust Asset Management PLC

19 July 2012

 



Embargoed until 7am on 19 July 2012

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 to 30 June 2012 (the "Interim Period") as required by the FSA's Disclosure and Transparency Rules.

Highlights

·     Net inflows of £93 million in the Interim Period, the eighth successive quarter in which the Company has had net inflows

·     In the current quarter from 1 July to 17 July 2012, Liontrust has recorded net inflows of £39 million

·     Acquisition of Walker Crips Asset Managers Limited completed on 12 April 2012, with assets under management ("AuM") increasing from £1,529 million to £2,135 million in the Interim Period

·     AuM as at  close of business on 17 July 2012 were £2,190 million

Commenting, John Ions, Chief Executive, said:

"We have maintained the momentum of the past two years, having now recorded eight successive quarters of net inflows to 30 June 2012 including £93 million in the Interim Period. The positive sales have continued into the second quarter of the financial year since we announced our Full Year Results on 20 June.  This has been achieved in spite of the ongoing market volatility and economic uncertainty in the UK and internationally.

"One of the key factors behind these sales has been our strong fund performance over the long term. Of nine unit trust funds, eight are in the first quartile of their respective sectors since launch or since the fund managers were appointed to 30 June 2012. This performance has been reflected in the Economic Advantage team winning three Awards in recent weeks and is testament to the breadth of our fund management capability and the strength of our investment processes.

"The acquisition of Walker Crips Asset Managers Limited was completed on 12 April 2012, giving us one of the strongest ranges of UK equity funds and fund managers and increasing our AuM to £2.2 billion.

"These developments have enabled us to continue to invest in the business, in particular to enhance and expand our fund management and distribution capabilities."

Funds under Management

On 30 June 2012, our AuM stood at £2,135 million and were broken down by type and process as follows:-

Process	Total (£m)	Institutional (£m)	Retail (£m)	Offshore Funds (£m)
Cashflow Solution	776	356	393	27
Economic Advantage	720	-	720	-
Macro Thematic	566	158	408	-
Asia	14	-	3	11
Emerging Markets	10	-	-	10
Indexed	49	-	49	-
Total	2,135	514	1,573	48

AuM as at close of business on 17 July 2012 were £2,190 million.

Funds Flows

Liontrust recorded net inflows of £93 million in the Interim Period, the eighth successive quarter in which the Company has had net inflows.

A reconciliation of fund flows and AuM over the Interim Period is as follows:-

	Total	Institutional	UK Retail	Offshore Funds
	£m	£m	£m	£m
Opening AuM - 1 April 2012	1,529	388	1,088	53
Inflows	193	6	187	0
Outflows	(100)	(13)	(85)	(2)
Net flows	93	(7)	102	(2)
Acquisition of Walker Crips Asset Managers Ltd *	581	160	421	0
Market movement	(68)	(27)	(38)	(3)
Closing AuM - 30 June 2012	2,135	514	1,573	48

* - Completed on 12 April 2012

In the current quarter from 1 July to 17 July 2012, Liontrust has recorded net inflows of £39 million.

Performance fees

Performance fees of £nil were earned in the Interim Period (2011: £128,000, 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 are in the first quartile of their respective sectors since launch or since the fund managers were appointed to 30 June 2012, five out of five funds are in the first quartile over five years and five out of seven funds are in the first quartile over three years.

Over five years, for example, the Liontrust Special Situations Fund (50.9%) has outperformed significantly the FTSE All-Share Index (1.9%). Over the same period, the Liontrust European Growth Fund has returned -2.9% against -16.7% by the MSCI Europe ex-UK index.  

	Quartile ranking - 1 year	Quartile ranking - 3 year	Quartile ranking - 5 year	Quartile ranking - Since Manager tenure	Launch / Manager appointed
Liontrust Income Fund	3	2	-	1	25/03/2009
Liontrust UK Growth Fund	1	1	-	1	25/03/2009
Liontrust Special Situations Fund	1	1	1	1	11/11/2005
Liontrust UK Smaller Companies Fund	1	1	1	1	08/01/1998
Liontrust European Absolute Return Fund	3	-	-	4	09/07/2009
Liontrust European Growth Fund	3	1	1	1	15/11/2006
Liontrust Asia Income Fund	-	-	-	1	05/03/2012
CF Liontrust Macro Equity Income Fund	3	1	1	1	31/10/2003
CF Liontrust Macro UK Growth Fund	3	2	1	1	01/08/2002

Source: Financial Express, total return, bid to bid, to 30 June 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 recent awards for Liontrust:

·     The Liontrust Special Situations Fund won the "Best UK Growth Fund" at the Investment Week Fund Manager of the Year Awards 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 Growth Fund" Award from What Investment magazine.

Outlook

We are confident that we will continue to grow our AuM and maintain positive net inflows despite the challenging market and economic environment. This optimism comes from our strong fund performance, having extended our fund management capability into Asia and Emerging Markets equities, an expanding distribution and client base and being well positioned for the changes to the distribution market following the implementation of RDR.

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 Wylie

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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