Interim Management Statement

RNS Number : 4900M

Liontrust Asset Management PLC

17 August 2011

 



Embargoed until 7am on 17 August 2011

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 2011 to 30 June 2011 (the "Interim Period") as required by the FSA's Disclosure and Transparency Rules.

Funds under Management

On 30 June 2011, our assets under management ("AuM") stood at £1,309 million and were broken down by type and process as follows:-

Process	Total (£m)	Institutional (£m)	Retail (£m)	Offshore Funds (£m)
Cashflow Solution	874	414	448	12
Economic Advantage	379	-	379	-
Indexed	56	-	56	-
Total	1,309	414	883	12

AuM as at 16 August 2011 were £1,216 million, a decrease of 7.1% since the end of the Interim Period. The fall in AuM has been mainly caused by market movements.  Over the same period, the FTSE All-Share Index (total return) has fallen by 9.7% and the STOXX Europe 600 Index has fallen by 15.0% on a GBP-adjusted basis.

Funds Flows

Liontrust recorded positive net sales of £13 million (excluding credit business related flows post the 13 April 2011 announcement of the sale of the credit business) in the Interim Period, the fourth successive quarter in which the Company has had positive net sales. In the current quarter from 1 July 2011 to 15 August 2011, Liontrust has recorded positive net sales of £28 million.

A reconciliation of fund flows and assets under management over the Interim Period is as follows:-

	Total	Institutional	UK Retail	Offshore Funds
	£m	£m	£m	£m
Opening AuM - 1 April 2011	1,343	395	843	105
Inflows	101	7	90	4
Outflows	(88)	(5)	(76)	(7)
Net flows *	13	2	14	(3)
Sale of the credit business **	(85)	0	0	(85)
Market movement	38	17	26	(5)
Closing AuM - 30 June 2011	1,309	414	883	12

 * - Excludes credit business related flows post 13 April 2011 announcement of the sale of the credit business.

** - Includes credit business related net outflows (including seed money redemptions) of £19m over the period 13 April 2011 to 30 June 2011.

Performance fees

Performance fees of £128,000 were earned in the Interim Period (1 April 2010 to 30 June 2010: £151,000).

Fund Performance (Quartile ranking)

Retail Funds	3 months	1 year	Manager tenure	Manager appointed
Liontrust Income Fund	1	2	1	25/03/2009
Liontrust UK Growth Fund	1	1	1	25/03/2009
Liontrust Special Situations Fund	1	1	1	11/11/2005
Liontrust UK Smaller Companies Fund	3	3	1	08/01/1998
Liontrust European Absolute Return Fund	1	1	4	09/07/2009
Liontrust European Growth Fund	3	1	1	15/11/2006

The past few weeks have been a challenging period for fund managers but Liontrust has continued to deliver strong absolute and relative performance. For the current quarter from 1 July 2011 to 15 August 2011, the Liontrust European Absolute Return Fund returned +3.4%. Over the same time period, the Liontrust Special Situations Fund returned -6.6% and the Liontrust UK Growth Fund returned -7.4% compared to -9.7% by the FTSE All Share index and -9.8% by the average IMA UK All Companies fund.

Source: Financial Express, total return, bid to bid, to 30 June 2011 unless otherwise stated.  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.

Sales & Marketing

Liontrust has continued to broaden its client base through fund manager presentations, meetings with intermediaries around the UK and in continental Europe and marketing activities to raise further the awareness of the strong performance across our range of funds. The marketing activities have included extending our advertising campaign into the consumer press to complement our advertising in the trade media, regular email communications to our client base and positive press coverage.

The accomplishment of these campaigns is shown by the success Liontrust has been achieving with clients. Liontrust Special Situations Fund, for example, has grown from £13.5 million in June 2010 to £138 million as at 16 August 2011. The Fund was also independently voted Best UK Growth Fund in the Investment Week Fund Manager of the Year Awards 2011. 

Skandia Investment Group has awarded Liontrust's James Inglis-Jones and Gary West a mandate for its Skandia UK Best Ideas Fund in addition to the mandate the two fund managers already run for the Skandia European Best Ideas Fund.     

Liontrust was also named a 5 Star Winner (Investment Provider and Packager) and Most Improved Investment Company of the Year at FT Advisor's Online Service Awards 2011. 

Sale of the credit business

As previously announced, in April 2011 Liontrust entered into a conditional business purchase agreement for the sale of its credit business to Avoca Capital Holdings for 3.75% of the credit business's AuM, payable in cash. This transaction completed, subject only to determination of the consideration, on 30 June 2011. The credit business AuM on completion was £66 million.

Acquisition of the fund management business of Occam

On 2 August 2011, Liontrust announced that it had entered into a conditional agreement to purchase (the "Acquisition") the fund management business of Occam Investment Management (Malta) Limited, Occam Asset Management LLP and Occam Investment Services Limited (together, "Occam").

The announcement has been well received by investors, there has been a great deal of positive press coverage and preparations for integration have begun. Highlights of the Acquisition include:

-      Highly complementary acquisition enhancing Liontrust and Occam in fund management, distribution and operations. Occam brings a number of experienced and talented individuals to Liontrust.

-      Occam provides Liontrust with two of the faster growing asset classes by adding Asia and Global Emerging Markets funds to Liontrust's existing UK and European range and two experienced and highly respected fund management teams.

-      Occam brings a Dublin range of funds and established distribution capability in continental Europe, the Middle East and other international markets to supplement Liontrust's traditional focus on UK-based investors. Occam also enhances Liontrust's marketing and operations teams.

-      The transaction marks the latest step in a successful 16 month phase of growth for Liontrust and the start of the Company's next stage of expansion.

Six month trading update

A trading update for the six months ending 30 September 2011 will be released on 28 September 2011.

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

Altium                                                                                  020 7484 4040

Sam Fuller

Paul Chamberlain

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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