REG - Liontrust Asset Mgmt - Trading Statement
17/04/2024 07:01
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RNS Number : 8716K Liontrust Asset Management PLC 17 April 2024
LEI: 549300XVXU6S7PLCL855
For immediate release
17 April 2024
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 both
the financial year ended 31 March 2024 (the "Financial Year") and the three
months ended 31 March 2024 (the "Period").
Highlights
· Net outflows of £1.2 billion in the Period.
· Assets under management and advice ("AuMA") were £27.8 billion as at
31 March 2024, a marginal increase over the Period and a decrease of 11.5%
over the Financial Year.
· AuMA as at 12 April 2024 were £27.6 billion.
Commenting, John Ions, Chief Executive Officer, said:
"We start the new financial year with confidence to drive the business forward
after the challenges of the last 18 months.
Liontrust has improving investment performance in the short term as well as
excellent performance over the long term and it appears the UK and other
developed economies have reached peak interest rates. This follows a period in
which many of our core investment strategies, notably quality growth,
small/mid-caps and UK equities, have been out of favour, impacting both
performance and flows. This led to outflows of £1.2 billion over the three
months to 31 March 2024.
Of our product range, we have seen continuous flows into the European Dynamic
Fund - with its AuMA increasing from £747 million as at 31 March 2023 to more
than £1.4 billion as at 31 March 2024 - and positive net sales by the Global
Innovation team in the Period.
We have made continued progress against our strategic objectives, enabling us
to seek to generate growth through an expanding product range, distribution
and client base.
Investment performance
The European Dynamic Fund is the best performer in its IA sector over three
years and is ranked 2(nd) over five years to 31 March 2024(1). The Global
Technology Fund is the best performer in its IA sector over one year and
ranked 7(th) over three years(1).
We are also seeing stronger performance across other funds. For example, of
the 10 UK-domiciled funds managed by the Sustainable Investment team, five are
now in the 1(st) quartile of their respective IA sectors over one year and
another two are in the 2(nd) quartile(1).
Of the eight Sustainable Investment team's funds with a 10-year tracked
record, four are in the 1(st) quartile and three are in the 2(nd) quartile(1).
Strategic objectives
The investment focus of Liontrust - long-term active management with
distinctive processes - remains as relevant as ever and are the foundations
for future growth. Rigorous and robust processes deliver for clients over the
long term and we believe they will continue to do so.
Our four strategic objectives will also be drivers of future growth:
1) Continue to enhance the client experience and outcomes;
2) Diversify the product range and investment offering;
3) Further broaden distribution and the client base; and
4) Strengthen our technological, data and digital capability to advance
investment management, client service and business efficiencies.
I am pleased with the progress we are making against these objectives.
In-line with these objectives, we successfully launched the Ireland-domiciled
Liontrust GF Pan-European Dynamic Fund at the end of February 2024, which is
managed by the Cashflow Solution team. The fund is already around £130
million in AuMA and we are confident it will continue to grow with the demand
we have seen and strong long-term performance of the institutional strategy.
Our investment capability will be diversified further when Mark Hawtin and his
team join Liontrust next month. They manage both long only and long/short
global equity funds and have historically attracted assets from European-based
clients. Mark, who has 37 years of investment experience, previously managed
one of Europe's largest technology, media and telecoms hedge funds.
The arrival of Jeremy Roberts last month as Head of Global Distribution ex-UK
will enhance our capability to expand distribution internationally. He will
focus on building out the client base and sales platform we already have in
Europe and Latin America in particular.
We have also restructured the UK sales team, including the appointment of
Kristian Cook as Head of UK Distribution, Mark Wright as Head of UK Regional
Distribution and Sophie Andrews joining in June from Franklin Templeton as
Head of Strategic Partners and Consolidators. Since the start of 2024, there
has been substantial activity with clients for the Economic Advantage,
Sustainable Investment, Global Innovation and Multi-Asset investment teams in
particular and strong client engagement with our communications.
The leadership team at Liontrust has been strengthened to help drive the
future growth of the business. David Boyle, Edward Catton, Martin Kearney and
Sally Buckmaster have all taken on greater responsibility to support Vinay and
I and the rest of the senior leadership team.
Liontrust is investing in our technology, data and digital infrastructure
which will improve the efficiency of the business and operations and enhance
the experience of our clients. These projects will start bearing fruit during
2024.
Outlook
We believe our focus on active management can deliver both for clients and the
Company. Liontrust has excellent investment teams with proven processes and
strong long-term performance. As market sentiment changes, Liontrust is well
positioned to benefit.
We have put in place the structure to drive sales in the UK over the next few
years and are investing in the expansion of our distribution globally.
Liontrust has a strong brand in the UK and is seeking to build the same
profile internationally. The broadening of our investment capability will also
help to increase the client base.
Along with strengthening the infrastructure of the business, these
developments give me great confidence for the future."
(1) Source: Financial Express to 31 March 2024 as at 15 April 2024, bid-bid,
total return, net of fees, based on primary share classes.
Directorate and leadership changes
Miriam Greenwood succeeded George Yeandle as Chair of the Remuneration
Committee on 1 April 2024. Mr Yeandle remains a member of the Remuneration
Committee and as previously announced will retire from the Board at the 2024
AGM.
Commenting on the Remuneration Committee changes, Alastair Barbour,
Non-executive Chair, said: "I would like to thank George for his outstanding
leadership of the Remuneration Committee over the last nine years and to
welcome Miriam as the new Chair of our Remuneration Committee. Miriam brings
great experience and expertise to the Committee."
Liontrust announces the appointment of Katherine Damsell as an Independent
Non-executive Director of Liontrust Fund Partners LLP ("LFP"), the authorised
corporate director of our UK funds, with effect from 1 April 2024. In due
course and subject to appropriate regulatory approvals, Katherine will be
appointed as Independent Chair of LFP. Katherine was CEO of The Bank of New
York Mellon International UK between 2018 and 2022 and held a number of senior
positions during 20 years at Bank of New York Mellon. Prior to joining Bank of
New York Mellon, Katherine spent 18 years at Barclays Global Investors.
Liontrust has also made four appointments to strengthen the leadership team to
help drive the future growth of the Company:
· David Boyle becomes Chief Strategy Officer, reporting to John Ions.
David was previously our Head of Corporate Development;
· Edward Catton becomes Chief Operating Officer, reporting to Vinay
Abrol. Edward was previously our Chief Risk Officer;
· Martin Kearney takes on additional responsibilities as our Chief Risk
Officer, reporting to Vinay Abrol, while retaining responsibility for
compliance; and
· Sally Buckmaster, our Company Secretary, takes on additional
responsibilities as our General Counsel.
Assets under management and advice
On 31 March 2024, our AuMA stood at £27,822 million and were broken down by
type and investment process as follows:
Process Total Institutional Accounts & Funds Investment Trusts UK Retail Funds & MPS Alternative Funds International Funds & Accounts
(£m) (£m) (£m) (£m) (£m) (£m)
Sustainable Investment 10,433 323 - 9,624 - 486
Economic Advantage 6,571 450 - 5,998 - 123
Multi-Asset 4,344 - - 4,220 124 -
Global Innovation 827 - - 827 - -
Cashflow Solution 2,184 556 - 1,404 112 112
Global Fundamental 3,267 412 1,135 1,706 - 14
Global Fixed Income 196 - - 36 - 160
Total 27,822 1,741 1,135 23,815 236 895
AuMA as at 12 April 2024 were £27,583 million.
Flows
The net outflows over the Period were £1,206 million (2023: £2,024 million).
A reconciliation of fund flows and AuMA over the Period is as follows:
Total Institutional Accounts & Funds Investment Trusts UK Retail Funds & MPS Alternative Funds International Funds & Accounts
(£m) (£m) (£m) (£m) (£m) (£m)
Opening AuMA - 1 January 2024 27,812 1,723 1,115 23,824 259 891
Net flows (1,206) (270) (26) (872) (24) (14)
Market and Investment performance 1,216 288 46 863 1 18
Closing AuMA - 31 March 2024 27,822 1,741 1,135 23,815 236 895
The net outflows over the Financial Year were £6,083 million (2023: £4,842
million). A reconciliation of fund flows and AuMA over the Financial Year is
as follows:
Total Institutional Accounts & Funds Investment Trusts UK Retail Funds & MPS Alternative Funds International Funds & Accounts
(£m) (£m) (£m) (£m) (£m) (£m)
Opening AuMA - 1 April 2023 31,430 2,394 1,139 25,721 1,084 1,092
Net flows (6,083) (925) (92) (3,999) (821) (246)
Market and Investment performance 2,475 272 88 2,093 (27) 49
Closing AuMA - 31 March 2024 27,822 1,741 1,135 23,815 236 895
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 3 25/03/2009
Liontrust Special Situations Fund 1 2 3 4 10/11/2005
Liontrust UK Smaller Companies Fund 1 1 2 3 08/01/1998
Liontrust UK Micro Cap Fund 1 1 1 2 09/03/2016
Sustainable Future funds
Liontrust SF Monthly Income Bond Fund 1 1 2 1 12/07/2010
Liontrust SF Managed Growth Fund 2 1 2 1 19/02/2001
Liontrust SF Corporate Bond Fund 1 2 2 1 20/08/2012
Liontrust SF Cautious Managed Fund 2 3 4 3 23/07/2014
Liontrust SF Defensive Managed Fund 1 3 4 2 23/07/2014
Liontrust SF European Growth Fund 3 4 4 4 19/02/2001
Liontrust SF Global Growth Fund 3 2 3 2 19/02/2001
Liontrust SF Managed Fund 1 1 3 1 19/02/2001
Liontrust UK Ethical Fund 3 4 4 3 01/12/2000
Liontrust SF UK Growth Fund 3 4 4 2 19/02/2001
Liontrust GF SF US Growth Fund 2 - - - 07/07/2023
Global Innovation funds
Liontrust Global Dividend Fund 2 1 2 1 20/12/2012
Liontrust Global Innovation Fund 1 2 4 1 31/12/2001
Liontrust Global Technology Fund 2 2 1 1 15/12/2015
Global Fundamental Global Equity funds
Liontrust Balanced Fund 1 1 1 1 31/12/1998
Liontrust China Fund 4 3 4 3 31/12/2004
Liontrust Emerging Market Fund 3 4 3 1 30/09/2008
Liontrust Global Smaller Companies Fund 1 3 3 1 01/07/2016
Liontrust Global Alpha Fund 1 3 4 2 31/12/2001
Liontrust India Fund 4 2 1 1 29/12/2006
Liontrust Japan Equity Fund 2 1 2 1 22/06/2015
Liontrust Latin America Fund 3 4 4 3 03/12/2007
Cashflow Solution funds
Liontrust European Dynamic Fund 1 1 1 1 15/11/2006
Global Fixed Income funds
Liontrust Strategic Bond Fund 3 3 3 3 08/05/2018
Global Fundamental funds
Liontrust UK Equity Fund 1 3 2 1 27/03/2003
Liontrust UK Focus Fund 1 4 3 1 29/09/2003
Liontrust Income Fund 1 1 1 1 31/12/2002
Liontrust US Opportunities Fund 1 3 3 1 31/12/2002
Liontrust GF US Equity Fund 2 1 3 1 26/06/2014
Liontrust GF UK Equity Fund 4 3 2 1 03/03/2014
Liontrust GF International Equity Fund 4 - 4 4 17/12/2019
Edinburgh Investment Trust Plc 1 - 1 1 27/03/2020
Source: Financial Express to 31 March 2024 as at 4 April 2024, 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,
OEICs, Irish authorised OEICs (primary share class) or UK listed investment
trusts. Liontrust Russia Fund is not included as it is currently suspended and
in an IA sector that is not rankable (e.g., Specialist) so it would not be a
fair comparison to make. Liontrust GF Tortoise fund is not included as it is
not in an IA sector. Edinburgh Investment Trust Plc uses the IT UK Equity
Income sector.
For further information please contact:
Teneo (Tel: 020 7353 4200, Email: liontrust@teneo.com)
Tom Murray, Colette Cahill, Jessica Pine
Liontrust Asset Management Plc (Tel: 020 7412 1700, Website:
liontrust.co.uk)
Stephen Corbett: Head of Investor Relations
Simon Hildrey: Chief Marketing Officer
Singer Capital Markets (Tel: 020 7496 3000)
Corporate Broking: Charles Leigh-Pemberton
Corporate Finance: James Moat
Panmure Gordon (Tel: 020 7886 2500)
Corporate Broking: David Watkins
Corporate Advisory: Atholl Tweedie
HSBC Bank plc (Tel: 020 7991 8888)
Corporate Broking: Sam McLennan, James Hopton
Corporate Advisory: Alexander Paul
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.
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