Trading Statement

RNS Number : 6389J

Liontrust Asset Management PLC

15 April 2020

 

Embargoed until 7am on 15 April 2020

Stock Exchange Announcement

LIONTRUST ASSET MANAGEMENT PLC

Trading Update

Liontrust Asset Management Plc ("Liontrust", or the "Company"), the specialist independent fund management group, today issues a trading update for the period from 1 January to 31 March 2020.

Highlights

· Assets under management and advice ("AuMA") were £16.1 billion as at close of business on 31 March 2020, an increase of 27% over the year.

· Net inflows of £492 million in the three months ended 31 March 2020 and £2,695 million for the year ended 31 March 2020, an increase of 52% compared to last year.

· Net inflows of £136 million for the period 1 April to 9 April 2020 and AuMA of £16.8 billion as at close of business on 9 April 2020.

Commenting, John Ions, Chief Executive, said:

"I want to start by acknowledging our gratitude to all the emergency services and key workers who are being so selfless and brave in trying to keep everyone safe and well. Our hearts go out to everyone who is suffering at the moment.

I also want to thank everyone at Liontrust for all their work and dedication in ensuring that our business continues to operate as normal, without the obvious physical presence.

We are incredibly proud of the way in which the people at Liontrust have adapted to the challenges presented by COVID-19 and what we have been able to deliver.

Liontrust went into the pandemic in a strong position, and by maintaining the processes we have put in place over the past decade, we have been able to replicate how we work normally. This includes our fund managers and traders along with continuing to provide first-class service and communication. We have said many times in the past that performance is never predictable but process should always be.

It is against this backdrop that we announce sales of £492 million for the last three months and £2.7 billion for the financial year to 31 March 2020. Whilst this is an incredibly short period, net inflows from 1 to 9 April were £136 million.

Key to this success has been the outstanding performance by many of our funds over the long term and since the pandemic impacted global markets in late February.

All four funds managed by the Economic Advantage team are in the 1st quartile of their respective IA sectors over 1 and 3 years and three of them are 1st quartile over 5 years (UK Micro Cap Fund was launched in March 2016)¹.

All eight of the equity and managed funds run by the Sustainable Investment team are 1st quartile over one, three and five years¹.

Our strong net inflows, even in the first few days of April, are testament to the belief of our clients in Liontrust and our funds, the power of our brand, sales and marketing and the assurance of our administration. We adapted our communications following the imposition of the lockdowns in the UK and continental Europe, hosting 11 webinars with fund managers from 19 March to 8 April. We have constructed a new content portal called Liontrust Insights to host the myriad views and ideas of all our fund management teams.

COVID-19 is taking a terrible toll on human and economic life. It is showing, however, the ability to meet and then eventually overcome challenges through the will, ingenuity and collaboration of people and great businesses.

Sustainability has been rising up the agenda, and when we emerge from the lockdown there will be even more focus on investing in companies that contribute to and benefit from making the world cleaner, healthier and safer. 

This month, the Sustainable Investment team celebrated three years at Liontrust. The AuM of the team has more than doubled over this period and they have delivered the market leading performance you would expect from a well-established team that has been managing sustainable funds for nearly 20 years.

As a business, we are focused on integrating sustainability throughout Liontrust. This period has reiterated the responsibility we have as investors and guardians of people's savings. 

We also have a responsibility to the wider community. During the current lockdown, Liontrust will be giving extra support to our existing partners to provide enhanced help to the homeless, those people requiring foodbanks, young unemployed seeking jobs, the elderly and animal welfare.

Our robust investment and working processes give me great confidence that Liontrust will navigate the pandemic successfully.

I wish for you, your families and friends to be safe and well."

¹ Financial Express to 31 March 2020 as at 6 April 2020, bid-bid, total return, net of fees , based on primary share classes.  Past performance is not a guide to future performance, investments can result in total loss of capital.

COVID-19 Operational update

The move to working from home (" WFH ") has been relatively smooth for Liontrust. We have always had a culture of WFH, with a number of staff doing so successfully for a number of years.

Over the past few weeks, Liontrust has moved from the initial stage of setting up/testing WFH capabilities, to 50% or more of departments WFH, and then to full WFH for all members of staff, other than a small technology group located at our 2 Savoy Court office. We are now in the position where it is business as usual other than having the physical presence in the office.

We have been able to make this move so successfully because flexible working has always been one of the attractions of Liontrust to fund managers and other members of staff. This has been based on the belief that if we want to attract the best talent available, we need to offer them the best working environment possible.

Assets under management and advice

On 31 March 2020, our AuMA stood at £16,078 million and were broken down by type and process as follows:

Process	Total	Institutional	UK Retail	Multi-Asset	Offshore Funds
	(£m)	(£m)	(£m)	(£m)	(£m)
Economic Advantage	6,316	190	5,956	-	170
Sustainable Investment	5,060	33	4,643	-	384
Global Equity	2,099	229	1,870	-	-
Multi-Asset	840	-	-	840	-
Cashflow Solution	815	536	209	-	70
Global Fixed Income	668	-	330	-	338
European Income	107	-	107	-	-
Macro Thematic	88	-	88	-	-
Asia Income	85	-	72	-	13
Total	16,078	988	13,275	840	975

On 9 April 2020, our AuMA stood at £16,765 million.

Flows

The net inflows over the three months to 31 March 2020 are £492 million (2019: £581 million). A reconciliation of fund flows and AuMA over the three months to 31 March 2020 is as follows:

	Total	Institutional	UK Retail	Multi-Asset	Offshore Funds
	(£m)	(£m)	(£m)	(£m)	(£m)
Opening AuMA - 1 January 2020	19,105	1,313	15,772	990	1,030
Net flows	492	1	413	-	78
Market and Investment performance	(3,519)	(326)	(2,910)	(150)	(133)
Closing AuMA - 31 March 2020	16,078	988	13,275	840	975

Liontrust has recorded net inflows over the twelve months to 31 March 2020 of £2,695 million (2019: £1,775 million). A reconciliation of fund flows and AuMA over the year to 31 March 2020 is as follows:

	Total	Institutional	UK Retail	Multi-Asset	Offshore Funds
	£m	£m	£m	£m	£m
Opening AuMA - 1 April 2019	12,655	845	10,317	844	649
Net flows	2,695	74	2,129	102	390
Market and Investment performance	(2,005)	(270)	(1,565)	(106)	(64)
Acquisitions (Global Equity team)	2,733	339	2,394	-	-
Closing AuMA - 31 March 2020	16,078	988	13,275	840	975

Net inflows were £136 million for the period 1 April to 9 April 2020.

UK Retail Fund Performance (Quartile ranking)

	Quartile ranking - Since Launch/Manager Appointed	Quartile ranking - 5 year	Quartile ranking - 3 year	Quartile ranking - 1 year	Launch Date/Manager Appointed
Economic Advantage funds
Liontrust UK Growth Fund	1	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 UK Micro Cap Fund	1	-	1	1	09/03/2016
Sustainable Future funds
Liontrust Monthly Income Bond Fund	3	2	4	4	12/07/2010
Liontrust SF Managed Growth Fund	2	1	1	1	19/02/2001
Liontrust SF Corporate Bond Fund	2	2	4	4	20/08/2012
Liontrust SF Cautious Managed Fund	1	1	1	1	23/07/2014
Liontrust SF Defensive Managed Fund	1	1	1	1	23/07/2014
Liontrust SF European Growth Fund	1	1	1	1	19/02/2001
Liontrust SF Global Growth Fund	3	1	1	1	19/02/2001
Liontrust SF Managed Fund	2	1	1	1	19/02/2001
Liontrust UK Ethical Fund	2	1	1	1	01/12/2000
Liontrust SF UK Growth Fund	2	1	1	1	19/02/2001
Global Equity funds2
Liontrust Balanced Fund	1	1	1	1	31/12/1998
Liontrust China Fund	3	3	3	2	31/12/2004
Liontrust Emerging Market Fund	2	2	3	3	30/09/2008
Liontrust European Opportunities Fund	2	4	4	4	29/11/2002
Liontrust Global Smaller Companies Fund	1	2	1	3	01/07/2016
Liontrust Global Alpha Fund	1	1	1	1	31/12/2001
Liontrust Global Dividend Fund	2	2	1	1	20/12/2012
Liontrust Global Equity Fund	1	2	1	1	31/12/2001
Liontrust Global Technology Fund	2	-	1	3	15/12/2015
Liontrust Income Fund	1	1	1	2	31/12/2002
Liontrust Japan Equity Fund	3	-	4	3	22/06/2015
Liontrust Japan Opportunities Fund	1	4	4	4	30/09/2002
Liontrust UK Mid Cap Fund	1	4	4	4	15/12/2008
Liontrust UK Opportunities Fund	2	4	4	3	29/12/2006
Liontrust US Income Fund	3	3	3	3	30/09/2010
Liontrust US Opportunities Fund	1	3	1	2	31/12/2002
Macro Thematic, Cashflow, Asia Income and European Income funds
Liontrust Macro Equity Income Fund	1	4	3	3	31/10/2003
Liontrust Macro UK Growth Fund	2	4	4	4	01/08/2002
Liontrust European Growth Fund	1	1	3	2	15/11/2006
Liontrust Global Income Fund	4	4	4	4	03/07/2013
Liontrust Asia Income Fund	2	3	4	3	05/03/2012
Liontrust European Income Fund	4	4	4	3	15/12/2005
Liontrust European Enhanced Income Fund (Hedged)	4	4	4	3	30/04/2010

Source: Financial Express to 31 March 2020 as at 6 April 2020, bid-bid, total return, net of fees , based on primary share classes.  Past performance is not a guide to future performance, investments can result in total loss of capital. The above funds are all UK authorised unit trusts or UK authorised ICVCs (primary share class).

² Liontrust Latin America Fund, Liontrust Russia Fund and Liontrust India Fund are not included as they are in IA sectors that are not rankable (e.g. Specialist and Unclassified) as it would not be a fair comparison to make.

Full year results

Liontrust confirms that it will be announcing its full year results for the financial year ended 31 March 2020 on Wednesday, 8 July 2020.

For further information please contact:

Liontrust Asset Management Plc       020 7412 1700

John Ions                                                                       www.liontrust.co.uk

Vinay Abrol

Simon Hildrey - Chief Marketing Officer

N+1 Singer Advisory LLP  020 7496 3000

Corporate Broking- Tom Salvesen

Numis Securities Limited  020 7260 1000

Corporate Broking & Advisory - Charles Farquhar

Forward Looking Statements

This announcement contains certain forward-looking statements with respect to the financial condition, results of operations and businesses and plans of Liontrust. 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 Liontrust'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 Conduct 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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