REG - Liontrust Asset Mgmt - Trading Statement
14/07/2023 07:15
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RNS Number : 9955F Liontrust Asset Management PLC 14 July 2023
LEI: 549300XVXU6S7PLCL855
For immediate release
14 July 2023
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
three months ended 30 June 2023 (the "Period").
Highlights
· Net outflows of £1.6 billion(1) in the Period.
· Assets under management and advice ("AuMA") were £29.5 billion as at
30 June 2023, a decrease of 6% over the Period.
· At the 7 July 2023 general meeting to approve the proposed
acquisition of GAM Holding AG ("GAM"), the resolutions proposed were passed
with 83.7% votes in favour.
· On 29 June 2023, GAM announced that it had agreed to sell its
third-party Fund Management Services business to Carne Group, a material step
towards fulfilling the FMS Exit condition of our offer for GAM.
· Silchester International Investors LLP has informed GAM that it will
tender its shares (approximately 17.3% of GAM's share capital) into the
Liontrust offer.
· AuMA as at 12 July 2023 were £29.0 billion.
(1) Includes £516 million related to the Tortoise funds following the
previously announced resignation of the lead manager, Matt Smith.
Commenting, John Ions, Chief Executive, said:
"The last quarter continued to show the importance and benefits of having a
broad product range with diversification across investment styles as well as
asset classes. In a risk-off environment, our strong focus on equities has
proved to be challenging, especially when the UK market has been out of
favour. This is demonstrated by equities having had net negative retail sales
in the UK in 10 of the last 12 months to the end of May 2023, according to the
Investment Association.
Our business is in robust health despite the current market environment. This
provides a strong platform for future growth with the proposed acquisition of
GAM bringing us the benefits of increasing investment talent; diversifying
funds, asset classes and investment styles to offer more solutions to clients;
broadening distribution across the world; and expanding the client base.
The support for the proposed acquisition of GAM by Liontrust's shareholders is
a vindication of our belief this deal will accelerate our strategic aims. We
have also gained the support of GAM's largest shareholder, Silchester
International Investors LLP, who announced they are tendering approximately
17.3% of GAM's share capital as they believe it is in the best interests of
their clients to do so.
The excellence of our investment teams and investor service has been
illustrated again during this period. The Liontrust European Dynamic Fund has
won the award for Best Europe Fund at the Fund Manager of the Year Awards for
the second year running. The Liontrust GF European Strategic Equity Fund, also
managed by the Cashflow Solution team, was nominated as the Best Absolute
Return Fund at the same awards.
We were also awarded Best Website at the Investment Marketing and Innovation
Awards and named Best Investment Trust Group at the Online Money Awards, with
the latter voted for by retail investors.
In response to client demand, we have launched the Liontrust GF Sustainable
Future US Growth Fund, which will seek to take advantage of the opportunities
for sustainable investment in the US. The fund applies the Sustainable Future
investment process that has been investing in the US through the team's global
growth strategies for more than two decades.
We continue to apply the right processes to managing the business day in, day
out and have full confidence in the investment teams' processes. These will
ensure Liontrust delivers for clients and shareholders over the long term."
Update on the proposed acquisition of GAM Holding AG
Rationale for the proposed acquisition of GAM
The proposed acquisition of GAM will accelerate Liontrust's strategic progress
and growth through its broader investment capability and global distribution.
· Deliver market leading investment performance over the longer term:
GAM's investment teams have delivered strong performance over the long term
across asset classes, and nine fund managers are rated A to AAA by Citywire.
Liontrust has created an environment in which fund managers can focus on
investment and their distinctive investment processes; in taking this
approach, there is cultural alignment between Liontrust and GAM.
· Diversify the fund range: GAM's broad range of funds and asset
classes will enhance Liontrust's product range. The expanded range will offer
the potential to grow the combined client base and provides Liontrust with
differentiated performance across the fund range through the market cycle.
· Expand distribution and the client base: GAM will enhance
distribution globally and provide the opportunity to increase sales and market
share. GAM's largest markets are Switzerland, Germany, Iberia, Italy and the
US, compared with the UK for Liontrust, and therefore the two companies have
limited overlap in distribution by source of AuMA. The Proposed Acquisition
also presents the opportunity to access and develop nascent markets such as
the Americas and Asia-Pacific, where GAM has a presence.
Liontrust general meeting
At the 7 July 2023 general meeting, the resolutions to approve the proposed
acquisition of GAM and to authorise the Directors to allot new ordinary shares
in the Company up to an aggregate nominal amount of £94,053.03 were passed
with 83.7% votes.
GAM Fund Management services business
On 29 June 2023, GAM announced that it had entered into definitive asset
purchase agreements to sell its loss-making third-party fund management
services businesses in Luxembourg and Switzerland ("FMS Businesses") to Carne
Group (the "FMS Sale"). The Board understands that the FMS Sale includes the
transfer of relevant employees, fund contracts and other agreements relating
to the FMS Businesses and is a material step towards fulfilling the FMS
Exit(2) condition of our offer for GAM.
(2) As defined in paragraph 3 of Part 5 of the circular in relation to the
proposed acquisition of GAM dated 13 June 2023.
Support from GAM's largest shareholder
On 13 July 2023, GAM announced that its largest shareholder, Silchester
International Investors LLP, had informed GAM that, in recognition of the
strategic review carried out by GAM and in the absence of viable alternatives,
Silchester confirmed it will tender its shareholding of approximately 17.3% of
GAM's share capital into the Liontrust offer.
Assets under management and advice
On 30 June 2023, our AuMA stood at £29,507 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 10,831 354 0 9,989 0 488
Economic Advantage 7,443 433 0 6,806 0 204
Multi-Asset 4,792 0 0 4,603 189 0
Global Innovation 652 0 0 652 0 0
Cashflow Solution 1,488 540 0 829 113 6
Global Fundamental 4,025 913 1,098 1,757 216 41
Global Fixed Income 276 0 0 87 0 189
Total 29,507 2,240 1,098 24,723 518 928
AuMA as at 12 July 2023 were £28,975 million.
Flows
The net outflows over the Period were £1,629 million(2) (2022: £541
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 April 2023 31,430 2,394 1,139 25,721 1,084 1,092
Net flows(3) (1,629) (177) (9) (793) (521) (129)
Market and Investment performance (294) 23 (32) (205) (45) (35)
Closing AuMA - 30 June 2023 29,507 2,240 1,098 24,723 518 928
(3) Includes £516 million related to the Tortoise funds following the
previously announced resignation of the lead manager, Matt Smith..
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 2 3 25/03/2009
Liontrust Special Situations Fund 1 1 3 3 10/11/2005
Liontrust UK Smaller Companies Fund 1 1 2 2 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 2 2 3 12/07/2010
Liontrust SF Managed Growth Fund 2 1 3 1 19/02/2001
Liontrust SF Corporate Bond Fund 1 3 3 2 20/08/2012
Liontrust SF Cautious Managed Fund 2 3 4 4 23/07/2014
Liontrust SF Defensive Managed Fund 1 2 4 4 23/07/2014
Liontrust SF European Growth Fund 3 4 4 4 19/02/2001
Liontrust SF Global Growth Fund 3 1 4 2 19/02/2001
Liontrust SF Managed Fund 1 1 4 1 19/02/2001
Liontrust UK Ethical Fund 3 4 4 4 01/12/2000
Liontrust SF UK Growth Fund 3 4 4 4 19/02/2001
Global Innovation funds
Liontrust Global Dividend Fund 2 1 3 1 20/12/2012
Liontrust Global Innovation Fund 1 3 4 1 31/12/2001
Liontrust Global Technology Fund 2 2 2 1 15/12/2015
Global Fundamental Global Equity funds(4)
Liontrust Balanced Fund 1 1 3 1 31/12/1998
Liontrust China Fund 4 4 3 2 31/12/2004
Liontrust Emerging Market Fund 3 4 3 3 30/09/2008
Liontrust Global Smaller Companies Fund 1 3 4 2 01/07/2016
Liontrust Global Alpha Fund 1 1 4 1 31/12/2001
Liontrust India Fund 4 3 1 2 29/12/2006
Liontrust Japan Equity Fund 2 2 1 3 22/06/2015
Liontrust Latin America Fund 3 4 4 4 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 2 08/05/2018
Global Fundamental funds(5)
Liontrust UK Equity Fund 1 3 2 1 27/03/2003
Liontrust UK Focus Fund 1 3 3 1 29/09/2003
Liontrust Income Fund 1 1 2 1 31/12/2002
Liontrust UK Equity Income Fund 2 4 3 1 19/12/2011
Liontrust US Opportunities Fund 2 3 3 4 31/12/2002
Edinburgh Investment Trust Plc(6) 1 - 1 1 27/03/2020
Liontrust Global Equity Fund 2 1 2 2 30/06/2014
Liontrust Global Focus Fund 2 2 2 2 30/06/2014
Liontrust GF US Equity Fund 2 2 2 1 26/06/2014
Liontrust GF UK Equity Fund 4 3 3 1 03/03/2014
Liontrust GF International Equity Fund 3 - 4 4 17/12/2019
Source: Financial Express to 30 June 2023 as at 5 July 2023, 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.
(4) 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.
(5) The onshore and offshore Tortoise funds are not included as they are not
in IA sectors.
(6) 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
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: David Watkins
Corporate Advisory: Atholl Tweedie
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
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