Trading Statement

RNS Number : 3040A

Liontrust Asset Management PLC

29 March 2012

 

Embargoed until 7am on 29 March 2012

Stock Exchange Announcement

LIONTRUST ASSET MANAGEMENT PLC

Year End Trading Update

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

Highlights

·     Net positive inflows of £72 million in the current quarter;

·     Net positive inflows of £146 million in the financial year to 27 March 2012;

·     Assets under management increased to £1,547 million as at 27 March 2012 from £1,343 million on 31 March 2011;

·     Performance fees of £1.4 million earned in the financial year to 27 March 2012;

·     Five out of six of our actively managed UK retail unit trusts are in the first quartile of their respective IMA sectors over one year and since launch or manager inception to 29 February 2012.

Funds under Management

On 27 March 2012, our assets under management ("AuM") stood at £1,547 million and were broken down by type and process as follows:-

Process	Total (£m)	Institutional (£m)	UK Retail (£m)	Offshore Funds (£m)
Cashflow Solution	852	395	427	30
Economic Advantage	616	-	616	-
Asia	15	-	2	13
Emerging Markets	11	-	-	11
Indexed	53	-	53	-
Total	1,547	395	1,098	54

Funds Flows

Liontrust has recorded positive net sales of £72 million in the current quarter to 27 March 2012. The positive net sales for the financial year to 27 March 2012 are £146 million.

A reconciliation of fund flows and AuM over the current quarter to 27 March 2012 is as follows:-

	Total	Institutional	UK Retail	Offshore Funds
	(£m)	(£m)	(£m)	(£m)
Opening AuM - 1 Jan 2012	1,364	384	910	70
Inflows	186	13	163	10
Outflows	(114)	(29)	(57)	(28)
Net flows	72	(16)	106	(18)
Market movement	111	27	82	2
Closing AuM - 27 Mar 2012	1,547	395	1,098	54

Performance fees

Performance fees of £1.4 million were earned in the financial year to 27 March 2012. Further accounts fall due for calculation of performance fees on 31 March 2012.

Fund Performance (Quartile ranking)

Retail Funds	1 Year	3 Year	5 Year	Since Launch or Manager Inception	Launch or Manager Inception
Liontrust Income Fund	3	2	4	1	25/03/2009
Liontrust UK Growth Fund	1	1	1	1	25/03/2009
Liontrust Special Situations Fund	1	1	1	1	11/11/2005
Liontrust UK Smaller Companies Fund	1	2	1	1	06/01/1998
Liontrust European Absolute Return Fund	1	-	-	4	09/07/2009
Liontrust European Growth Fund	1	1	1	1	15/11/2006

Source: Financial Express, total return, bid to bid, to 29 February 2012.  The above funds are all UK authorised unit trusts (retail share class).  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.

Summary

John Ions, Chief Executive of Liontrust, said: "We have made good progress during the financial year. The Group generated positive fund flows in every quarter, which has led to a second successive financial year of net positive flows and Liontrust's assets under management rising from £1.34 billion on 31 March 2011 to £1.55 billion on 27 March 2012.

"Given the excellent fund performance across our UK and European products and the momentum we have generated on the distribution side of the business, we are focusing on the opportunities to drive strong sales in all our core products.  This is evidenced by our increasing market share with fund distributors.

"In October 2011, we completed the purchase of Occam Asset Management and I am delighted with the speed of integration and the calibre of people that have joined us. The recent launch of the Liontrust Asia Income Fund has been well received and I am confident we will grow assets strongly in the fund going forward. A high quality emerging markets team also joined us from Occam, which is another asset class for which there will be strong demand in the future. 

"We have announced two other transactions this year. The sale of our Credit business to Avoca Capital Holdings for 3.75% of assets under management and we ended the year by announcing the proposed acquisition of Walker Crips Asset Managers Limited.

"They will add a further complementary investment team to Liontrust. Stephen Bailey and Jan Luthman are highly rated managers with an excellent track record and a strong pedigree in the key UK Equity Income sector. The feedback from the client base following the announcement has been extremely encouraging. We are confident they will benefit from stronger distribution at Liontrust with access to platforms, and other fund distributors they are not currently available on thereby making their funds accessible to a wider audience. On completion of the proposed acquisition, which we expect to be in April, Liontrust's assets under management will be more than £2.1 billion and gives us one of the strongest ranges of UK equity funds and teams. 

"Going forward, the environment remains challenging but there are opportunities for groups with strong investment processes and performance. We are not only well placed for the changes to the distribution market following the implementation of RDR (Retail Distribution Review) at the start of 2013 but see it as an opportunity for Liontrust.

"The focus remains on capitalising on these opportunities to maximise the potential of through our strong fund performance, broadened product range and enhanced distribution capability."

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

Jonathan Marren

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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