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
2nd over five years to 31 March 20241.
The Global Technology Fund is the best performer in its IA sector
over one year and ranked 7th over three
years1.
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 1st quartile of their respective IA sectors over one
year and another two are in the 2nd
quartile1.
Of the eight Sustainable Investment
team's funds with a 10-year tracked record, four are in the
1st quartile and three are in the 2nd
quartile1.
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.
ENDS