TIDMLIO
RNS Number : 4426Q
Liontrust Asset Management PLC
18 October 2023
LEI: 549300XVXU6S7PLCL855
For immediate release
18 October 2023
Stock Exchange Announcement
LIONTRUST ASSET MANAGEMENT PLC
Trading Update
Liontrust Asset Management Plc ("Liontrust", the "Company", or
the "Group"), the specialist independent fund management group,
today issues its trading update for the three months ended 30
September 2023 (the "Period").
Highlights
-- Net outflows of GBP1.6 billion in the Period.
-- Assets under management and advice ("AuMA") were GBP27.7
billion as at 30 September 2023, a decrease of 6.3% over the
Period.
-- AuMA as at 12 October 2023 were GBP27.5 billion.
Commenting, John Ions, Chief Executive, said:
"Successful asset management companies are built on the quality
of their people. I am proud to be Chief Executive of Liontrust with
our excellent investment teams and talent across the Group, who
will see the business through tougher times like now and drive it
forward over the long term.
"After more than a decade of significant growth for Liontrust,
the past year or so has been more challenging. Like many other
asset managers, Liontrust continues to face the headwind of current
investor sentiment.
"Liontrust has been impacted by our bias towards equities, the
quality growth style, mid and small caps and the broad negative
sentiment towards the UK. The UK All Companies sector has been the
worst net selling retail sector in the UK for six of the past seven
quarters, according to the Investment Association (IA).
"Investor sentiment continues to be negatively affected by
rising interest rates and the increased yield available on cash.
But holding cash over the long term is not a strategy for
delivering real growth for savers. In time, cash will leave savings
accounts and money market funds to return to investment markets. We
are striving for Liontrust to be in the best position possible to
attract investors' savings and to benefit when sentiment
changes.
"We have full confidence in the investment teams and processes
at Liontrust which have delivered for investors over the long term.
Since launch or fund manager inception, 42% of the UK-domiciled
retail funds (excluding Multi-Asset) are in the first quartile of
their respective Investment IA sectors and 66% are in the first or
second quartile.
"What the last year has shown, however, is the importance of
Liontrust achieving our strategic objectives of broadening the fund
range by asset classes and investment styles and expanding
geographical distribution to enable us to perform through the
cycles of demand. We have seen recently growing demand from markets
outside the UK such as South America, for example.
"The proposed acquisition of GAM would have accelerated our
strategic objectives; without GAM, they do not change and our
belief in them has only strengthened. The knowledge and insight
gained through the GAM process is also helping us shape our future
operating model for the long-term growth of the Liontrust business.
This will lead to restructuring and efficiencies in some areas of
the business. Our flexible remuneration model for fund managers and
other staff remains unchanged in light of the headwinds we are
facing; in particular, the revenue share model for fund managers
ensures they are fully aligned with the business and investors.
"As one leading analyst has said, the absence of a step forward
is not the same as a step backward.
"Liontrust's strategy has never only been solely focused on
M&A activity. Liontrust has successfully grown AuMA over the
long term through attracting inflows for current investment teams
and this will remain a key focus going forward. This organic growth
has been demonstrated most recently with the AuMA of the European
Dynamic Fund increasing from around GBP350 million a year ago to
GBP950 million. Following interest from clients, we intend to
launch, subject to regulatory approvals, an Ireland-domiciled
version of the European Dynamic Fund to be marketed in continental
Europe.
"Central to achieving AuMA growth is strong client engagement.
Liontrust's investment teams will be presenting to hundreds of
clients and potential clients in the UK and internationally at
events throughout the autumn, including our annual virtual
Sustainable Investment conference and an adviser roadshow around
the UK.
"The hard work and dedication of everyone at the Company through
this period will benefit Liontrust over the months and years ahead.
Combining a great level of service and investor experience with
excellent investment teams and processes, a pre-eminent brand,
strong financial position and the ability to attract further talent
continues to give me great confidence about the outlook for
Liontrust."
Assets under management and advice
On 30 September 2023, our AuMA stood at GBP27,650 million and
were broken down by type and investment process as follows:
Process Total Institutional Investment UK Retail Alternative International
Accounts Trusts Funds & Funds Funds
& Funds MPS & Accounts
(GBPm) (GBPm) (GBPm) (GBPm) (GBPm) (GBPm)
Sustainable
Investment 9,985 269 - 9,221 - 495
Economic Advantage 7,181 440 - 6,553 - 188
Multi-Asset 4,466 - - 4,310 156 -
Global Innovation 642 - - 642 - -
Cashflow Solution 1,620 542 - 936 136 6
Global Fundamental 3,518 681 1,122 1,675 - 40
Global Fixed
Income 238 - - 56 - 182
Total 27,650 1,932 1,122 23,393 292 911
AuMA as at 12 October 2023 were GBP27,480 million.
Flows
The net outflows over the Period were GBP1,583 million (2022:
GBP1,646 million). A reconciliation of fund flows and AuMA over the
Period is as follows:
Institutional Investment UK Retail Alternative International
Accounts Trusts Funds Funds Funds
Total & Funds & MPS & Accounts
(GBPm) (GBPm) (GBPm) (GBPm) (GBPm) (GBPm)
Opening AuMA
- 1 July 2023 29,507 2,240 1,098 24,723 518 928
Net flows (1,583) (346) (24) (968) (227) (18)
Market and Investment
performance (274) 38 48 (362) 1 1
Closing AuMA
- 30 September
2023 27,650 1,932 1,122 23,393 292 911
The net outflows over the six-month period to 30 September 2023
were GBP3,213 million (2022: GBP2,187 million). A reconciliation of
fund flows and AuMA over the six-month period to 30 September 2023
is as follows:
Institutional Investment UK Retail Alternative International
Accounts Trusts Funds Funds Funds
Total & Funds & MPS & Accounts
(GBPm) (GBPm) (GBPm) (GBPm) (GBPm) (GBPm)
Opening AuMA
- 1 April 2023 31,430 2,394 1,139 25,721 1,084 1,092
Net flows (3,213) (524) (33) (1,760) (748) (148)
Market and Investment
performance (567) 62 16 (568) (44) (33)
Closing AuMA
- 30 September
2023 27,650 1,932 1,122 23,393 292 911
UK Retail Fund Performance (Quartile ranking)
Quartile Quartile Quartile Quartile Launch
ranking - ranking ranking ranking Date/ Manager
Since Launch/Manager - 5 year - 3 year - 1 year Appointed
Appointed
---------------------------- ---------------------- ---------- ---------- ---------- -----------------
Economic Advantage funds
-----------------------------------------------------------------------------------------------------------
Liontrust UK Growth
Fund 1 1 2 3 25/03/2009
---------------------------- ---------------------- ---------- ---------- ---------- -----------------
Liontrust Special
Situations Fund 1 2 3 4 10/11/2005
---------------------------- ---------------------- ---------- ---------- ---------- -----------------
Liontrust UK Smaller
Companies Fund 1 1 3 4 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 1 12/07/2010
---------------------------- ---------------------- ---------- ---------- ---------- -----------------
Liontrust SF Managed
Growth Fund 2 1 4 3 19/02/2001
---------------------------- ---------------------- ---------- ---------- ---------- -----------------
Liontrust SF Corporate
Bond Fund 1 3 3 1 20/08/2012
---------------------------- ---------------------- ---------- ---------- ---------- -----------------
Liontrust SF Cautious
Managed Fund 2 3 4 4 23/07/2014
---------------------------- ---------------------- ---------- ---------- ---------- -----------------
Liontrust SF Defensive
Managed Fund 1 3 4 4 23/07/2014
---------------------------- ---------------------- ---------- ---------- ---------- -----------------
Liontrust SF European
Growth Fund 3 4 4 4 19/02/2001
---------------------------- ---------------------- ---------- ---------- ---------- -----------------
Liontrust SF Global
Growth Fund 3 2 4 4 19/02/2001
---------------------------- ---------------------- ---------- ---------- ---------- -----------------
Liontrust SF Managed
Fund 2 1 4 3 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 2 20/12/2012
---------------------------- ---------------------- ---------- ---------- ---------- -----------------
Liontrust Global
Innovation Fund 1 4 4 3 31/12/2001
---------------------------- ---------------------- ---------- ---------- ---------- -----------------
Liontrust Global
Technology Fund 3 2 2 2 15/12/2015
---------------------------- ---------------------- ---------- ---------- ---------- -----------------
Global Fundamental Global Equity funds
-----------------------------------------------------------------------------------------------------------
Liontrust Balanced
Fund 1 1 3 2 31/12/1998
---------------------------- ---------------------- ---------- ---------- ---------- -----------------
Liontrust China Fund 4 3 3 2 31/12/2004
---------------------------- ---------------------- ---------- ---------- ---------- -----------------
Liontrust Emerging
Market Fund 3 4 3 4 30/09/2008
---------------------------- ---------------------- ---------- ---------- ---------- -----------------
Liontrust Global
Smaller Companies
Fund 1 3 4 3 01/07/2016
---------------------------- ---------------------- ---------- ---------- ---------- -----------------
Liontrust Global
Alpha Fund 1 1 4 2 31/12/2001
---------------------------- ---------------------- ---------- ---------- ---------- -----------------
Liontrust India Fund 4 3 1 2 29/12/2006
---------------------------- ---------------------- ---------- ---------- ---------- -----------------
Liontrust Japan Equity
Fund 2 1 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 3 08/05/2018
---------------------------- ---------------------- ---------- ---------- ---------- -----------------
Global Fundamental
funds
---------------------------- ---------------------- ---------- ---------- ---------- -----------------
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 3 2 31/12/2002
---------------------------- ---------------------- ---------- ---------- ---------- ---------------
Liontrust UK Equity
Income Fund 2 4 3 1 19/12/2011
---------------------------- ---------------------- ---------- ---------- ---------- ---------------
Liontrust US Opportunities
Fund 2 3 4 4 31/12/2002
---------------------------- ---------------------- ---------- ---------- ---------- ---------------
Edinburgh Investment
Trust Plc 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 3 1 2 1 26/06/2014
---------------------------- ---------------------- ---------- ---------- ---------- ---------------
Liontrust GF UK Equity
Fund 3 3 2 1 03/03/2014
---------------------------- ---------------------- ---------- ---------- ---------- ---------------
Liontrust GF International
Equity Fund 4 - 4 4 17/12/2019
---------------------------- ---------------------- ---------- ---------- ---------- ---------------
Source: Financial Express to 30 September 2023 as at 4 October
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. 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. The onshore and offshore Tortoise
funds are not included as they are not in IA sectors. Edinburgh
Investment Trust Plc uses the IT UK Equity Income sector.
Notice of Half Year Results Announcement
Liontrust confirms that it will be announcing its half year
results for the six months ended 30 September 2023 on Thursday, 16
November 2023.
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: Charles Leigh-Pemberton
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
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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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