Trading Update

RNS Number : 8666Y

Liontrust Asset Management PLC

19 January 2022

 

LEI: 549300XVXU6S7PLCL855

For immediate release

19 January 2022

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 its trading update for the period 1 October to 31 December 2021.  

Highlights

· Net inflows of £0.8 billion in the three months ended 31 December 2021 and £2.9 billion for the nine months ended 31 December 2021.

· Assets under management and advice ("AuMA") were £37.2 billion as at 31 December 2021, an increase of 20% over the financial year.

· Proposed acquisition of Majedie Asset Management Limited ("Majedie") was announced on 7 December 2021 which will add £5.8 billion of AuMA (as at 30 November 2021) and will complete in April subject to regulatory approval.

· Liontrust announced earlier today the appointment of Emma Howard Boyd CBE as new Non-executive Director.

· AuMA as at 14 January 2022 were £36.0   billion.

Commenting, John Ions, Chief Executive, said:

" We have generated another quarter of impressive sales with net flows reaching £832 million, taking the total for the nine months of the financial year to £2.9 billion. This growth is the result of our continued focus on meeting client expectations. 

At a time of increased market volatility, strong investment processes are even more critical to long-term performance. The Economic Advantage team have now been applying their investment process for more than 24 years and their four UK equity funds are all in the first quartile since they started managing them. The Liontrust UK Micro Cap Fund, for example, was the second best performing fund in the IA UK Smaller Companies sector in 2021 and is first over three years and third over five years¹.

The acquisition of Majedie Asset Management will bring a seventh team, with their Global Fundamental process, to Liontrust upon completion of the transaction, which is expected to be in April (subject to regulatory approval). This will enhance our distribution among institutional investors and consultants, adding a highly regarded investment team with excellent relationships. The acquisition is expected to bring strong synergies and be earnings enhancing for the financial year ending 31 March 2023 and in future years. The positive reaction we have had to the announcement of the agreed deal from clients of both Liontrust and Majedie has been very pleasing.

Liontrust won the ESG Advocate (Asset Management) Award at the Portfolio Adviser Wealth Partnership Awards in December, demonstrating the quality of our existing service and communications.

We are continually focused on how best to communicate with our clients and provide investment insights to as broad an audience as possible. We have had great success with creating new-style videos in recent months and are developing our digital communications to ensure they are as relevant and engaging as possible to each recipient. 

I want to welcome Emma Howard Boyd CBE who has joined the Board as a new independent Non-executive Director today. Emma brings extensive commercial and financial services experience, as well as a background in governance and stewardship and will provide great insights to the Board.

I am confident about maintaining our growth given the strength of Liontrust's investment capability, distribution and communications and therefore continuing to deliver for our clients and investors."

¹ Source: Financial Express to 31 December 2021 as at 17 January 2022, bid-bid, total return, income reinvested, net of fees, based on the primary share class.

Assets under management and advice

On 31 December 2021, our AuMA stood at £37,239 million and were broken down by type and investment process as follows:

Process	Total	Institutional	UK Retail	Multi-Asset	Offshore
	(£m)	(£m)	(£m)	(£m)	(£m)
Sustainable Investment	14,569	158	13,314	-	1,097
Economic Advantage	10,181	481	9,288	-	412
Multi-Asset	7,375	-	-	7,375	-
Global Equity	3,243	195	3,048	-	-
Cashflow Solution	1,062	701	301	-	60
Global Fixed Income	809	-	353	-	456
Total	37,239	1,535	26,304	7,375	2,025

AuMA as at 14 January 2022 were £36,039 million.

Flows

The net inflows over the three months to 31 December 2021 were £832 million (2020: £792 million). A reconciliation of fund flows and AuMA over the three months to 31 December 2021 is as follows:

	Total	Institutional	UK Retail	Multi-Asset	Offshore
	(£m)	(£m)	(£m)	(£m)	(£m)
Opening AuMA - 1 October 2021	35,659	1,504	24,892	7,357	1,906
Net flows	832	(25)	903	(117)	71
Market and Investment performance	748	56	509	135	48
Closing AuMA - 31 December 2021	37,239	1,535	26,304	7,375	2,025

The net inflows over the nine months to 31 December 2021 were £2,920 million (2020: £2,203 million). A reconciliation of fund flows and AuMA over the nine months to 31 December 2021 is as follows:

	Total	Institutional	UK Retail	Multi-Asset	Offshore
	(£m)	(£m)	(£m)	(£m)	(£m)
Opening AuMA - 1 April 2021	30,929	1,488	20,627	7,139	1,675
Net flows	2,920	(88)	2,941	(143)	210
Market and Investment performance	3,390	135	2,736	379	140
Closing AuMA - 31 December 2021	37,239	1,535	26,304	7,375	2,025

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	2	2	1	25/03/2009
Liontrust Special Situations Fund	1	1	1	1	10/11/2005
Liontrust UK Smaller Companies Fund	1	1	1	2	08/01/1998
Liontrust UK Micro Cap Fund	1	1	1	1	09/03/2016
Sustainable Future funds
Liontrust Monthly Income Bond Fund	2	2	3	1	12/07/2010
Liontrust SF Managed Growth Fund	1	1	1	1	19/02/2001
Liontrust SF Corporate Bond Fund	1	2	2	3	20/08/2012
Liontrust SF Cautious Managed Fund	1	1	1	3	23/07/2014
Liontrust SF Defensive Managed Fund	1	1	1	3	23/07/2014
Liontrust SF European Growth Fund	2	1	1	4	19/02/2001
Liontrust SF Global Growth Fund	2	1	1	3	19/02/2001
Liontrust SF Managed Fund	1	1	1	1	19/02/2001
Liontrust UK Ethical Fund	2	1	1	4	01/12/2000
Liontrust SF UK Growth Fund	2	1	1	4	19/02/2001
Global Equity funds1
Liontrust Balanced Fund	1	1	1	1	31/12/1998
Liontrust China Fund	4	3	3	3	31/12/2004
Liontrust Emerging Market Fund	3	3	4	4	30/09/2008
Liontrust Global Smaller Companies Fund	1	1	1	4	01/07/2016
Liontrust Global Alpha Fund	1	1	1	1	31/12/2001
Liontrust Global Dividend Fund	2	1	1	3	20/12/2012
Liontrust Global Innovation Fund	1	1	2	4	31/12/2001
Liontrust Global Technology Fund	3	2	3	2	15/12/2015
Liontrust Income Fund	1	1	3	2	31/12/2002
Liontrust India Fund	3	4	2	1	29/12/2006
Liontrust Japan Equity Fund	3	3	2	4	22/06/2015
Liontrust Latin America Fund	1	1	4	4	03/12/2007
Liontrust US Opportunities Fund	1	1	1	2	31/12/2002
Cashflow Solution funds
Liontrust European Growth Fund	1	1	1	1	15/11/2006
Global Fixed Income funds
Liontrust Strategic Bond Fund	3	-	3	3	08/05/2018

Source: Financial Express to 31 December 2021 as at 7 January 2022, bid-bid, total return, net of fees , based on primary share classes. The Liontrust Asia Income Fund and funds previously managed by the European Income investment team are excluded.   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).

¹ Liontrust Russia Fund is not included as they are in IA sectors that are not rankable (e.g. Specialist) as it would not be a fair comparison to make. Liontrust US Income Fund is not included as it merged into Liontrust Global Dividend Fund on 8 October 2021, and Liontrust Japan Opportunities Fund is not included as it merged into Liontrust Japan Equity Fund on 8 November 2021.

For further information please contact:

Liontrust Asset Management Plc (Tel: [phone], Website: liontrust.co.uk)

John Ions: Chief Executive

Vinay Abrol: Chief Financial Officer & Chief Operating Officer

Simon Hildrey: Chief Marketing Officer

David Boyle: Head of Corporate Development

Singer Capital Markets (Tel: [phone])

Corporate Broking: Tom Salvesen

Corporate Finance: Justin McKeegan

Panmure Gordon (Tel: [phone])

Corporate Broking: Charles Leigh-Pemberton

Corporate Advisory: Antoine Dupont-Madinier

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

 

 

TSTFLFSRLTITLIF