Interim Management Statement

RNS Number : 7071Y

Liontrust Asset Management PLC

29 January 2014

 



Embargoed until 7am on 29 January 2014

Stock Exchange Announcement

LIONTRUST ASSET MANAGEMENT PLC

Interim Management Statement

Liontrust Asset Management Plc ("Liontrust" or the "Group"), the specialist independent fund management group, is today issuing its Interim Management Statement for the period from 1 October to 31 December 2013 (the "Interim Period") as required by the FCA's Disclosure and Transparency Rules.

Highlights

·     AuM increased by £196 million over the Interim Period to £3.6 billion 

·     AuM in UK Retail funds through £2.5 billion

·     Nearly 200 fund buyers attend Liontrust Annual Investment Conference on 21 January

Commenting, John Ions, Chief Executive, said:

"It is pleasing to report that we continue to grow the business and interest in Liontrust and our funds has risen still further. Assets under management increased a further 6% in the fourth quarter of 2013 and we believe our profitability, excluding performance fee profits, in the current financial year will be in line with expectations. This reflects the robustness of the business and the more diversified fund management capability we have built over the past four years.

"Fund flows were mixed but distorted by two larger client withdrawals that were lower margin institutional-type business and the recruitment of the Multi-Asset team from North. Underlying fund flows excluding these remained positive. AuM in UK retail funds has passed through £2.5 billion and strong interest in our funds is shown by the fact that nearly 200 professional advisers and fund buyers came to our recent Annual Investment Conference. This is double the number of attendees at our first Investment Conference in 2011. These intermediaries witnessed the range and quality of our fund management teams and the initial feedback has been very positive.

"Fund performance in 2013 was not as strong on a relative basis due to the impact of QE in boosting lower quality stocks. Our investment processes have proved their ability to deliver attractive returns to our investors over the long term and we continue to believe that this strict adherence to process will be rewarded as QE is withdrawn and there is a return to an increased focus on company fundamentals.    

"We have maintained our excellent long-term performance, with eight of our UK retail funds in the first quartile of their respective sectors since launch or since the current managers took over the running of the funds. Liontrust Macro Equity Income Fund regaining its place on the White List of Sanlam's influential Income Study is the latest reflection of the quality of our fund range.

"The increasing interest in our range of funds and our very strong long-term performance give us confidence that we will maintain the growth of our business over the coming months and years."

Funds under Management

On 31 December 2013, our AuM stood at £3,570 million (31 March 2013: £3,039 million), an increase of 6% in the Interim Period, and were broken down by type and process as follows:-

Process	Total	Institutional	UK Retail	DPMS*	Offshore Funds
	(£m)	(£m)	(£m)	(£m)	(£m)
Cashflow Solution	801	477	321	-	3
Economic Advantage	1,744	-	1,732	-	12
Macro Thematic	541	81	460	-	-
Global Credit	277	-	-	-	277
Asia	19	-	19	-	-
Multi-Asset	131	28	-	103	-
Indexed	57	-	57	-	-
Total	3,570	586	2,589	103	292

* Discretionary Portfolio Management Service

Funds Flows

Liontrust recorded net inflows of £50 million in the Interim Period (1 October to 31 December 2012: £64 million). Net inflows for the financial year to 31 December 2013 were £365 million (1 April to 31 December 2012: £253 million).

Excluding the £123 million net inflows relating to the Multi-Asset team that joined in October 2013, the flows for the Interim Period would have been a net outflow of £73 million, of which £106 million relates to redemptions from a single investor in the Liontrust Global Strategic Bond Fund and £39 million relates to an institutional investor redeeming from our UK Retail funds.

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

	Total	Institutional	UK Retail	DPMS	Offshore Funds
	£m	£m	£m	£m	£m
Opening AuM - 1 October 2013	3,374	503	2,462	-	409
Net flows*	50	61	(16)	100	(95)
Market and Investment performance	146	22	143	3	(22)
Closing AuM - 31 December 2013	3,570	586	2,589	103	292

* The figures for "Net flows" include £123 million relating to DPMS and Institutional assets that came with the recruitment of the Multi-Asset team and the acquisition of North Investment Partners Limited. Also, the "Net flows" for UK Retail includes redemptions of £39 million from an Institutional client that invested via the UK Retail funds, without these redemptions, the "Net flows" for UK Retail would have been £23 million.

Fund Performance (Quartile ranking)

Our funds continue to deliver strong long-term performance. Eight of our unit trusts are in the first quartile of their respective sectors since launch or since the current managers took over the running of the funds. The Economic Advantage and Cashflow Solution funds have been impacted on a relative basis in the short term by the boost from QE to lower quality stocks. The fund managers expect to benefit from an increased focus on company fundamentals as this exceptional monetary stimulus is withdrawn.   

	Quartile ranking - 1 year	Quartile ranking - 3 year	Quartile ranking - 5 year	Quartile ranking - Since Manager tenure	Launch / Manager appointed
Liontrust Asia Income Fund	1	-	-	1	05/03/2012
Liontrust Macro Equity Income Fund	1	3	1	1	31/10/2003
Liontrust Macro UK Growth Fund	2	3	2	1	01/08/2002
Liontrust UK Growth Fund	4	2	-	1	25/03/2009
Liontrust Special Situations Fund	4	1	1	1	10/11/2005
Liontrust UK Smaller Companies Fund	4	1	2	1	08/01/1998
Liontrust European Growth Fund	4	4	2	1	15/11/2006
Liontrust Global Income Fund	-	-	-	1	03/07/2013

Source: Financial Express, total return, bid to bid, to 31 December 2013 unless otherwise stated.  The above funds are all UK authorised unit trusts (retail share class).  Liontrust Income Funds changed its name to Liontrust Global Income Fund on 21 January 2014. Liontrust FTSE 100 Tracker Fund (index fund) and Liontrust European Absolute Return Fund (merging/closing, subject to appropriate approvals) 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.

*Liontrust Global Income Fund's investment objective and policy changed to allow the fund managers to select companies on a global basis. The fund moved into the IMA Global Equity Income sector on 1 August 2013.

Annual Investment Conference

On 21 January 2014, nearly 200 fund buyers attended the fourth Liontrust Annual Investment Conference at The Savoy where all six of our fund management teams made presentations. The feedback from attendees has been very positive about the Conference and the presentations. 

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

Numis Securities Limited                                             020 7260 1000

Charles Farquhar, Andrew Holloway

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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