REG - Liontrust Asset Mgmt - Trading Update

Liontrust Asset ManagementAnnouncement

19/01/2022 07:05

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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 years(1).

 

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 funds(1)
 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: 020 7412 1700, 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: 020 7496 3000)

Corporate Broking: Tom Salvesen

Corporate Finance: Justin McKeegan

 

Panmure Gordon (Tel: 020 7886 2500)

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.

 

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