19 October 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 six months ended 30 September 2022.
Highlights
· Net outflows of £1.6 billion in the three months ended 30 September 2022 and £2.2 billion for the six months ended 30 September 2022.
· Assets under management and advice (“AuMA“) were £31.7 billion as at 30 September 2022, a decrease of 5.5% over the financial year (£33.5 billion as at 31 March 2022).
· AuMA as at 14 October 2022 were £31.2 billion.
Commenting, John Ions, Chief Executive, said:
“Despite the challenging period for markets and Liontrust that we have been experiencing this year, I am confident about the strengths of our business and the long-term value we can offer clients. We have rigorous processes across the business to enable us to achieve our long-term strategic objectives and create opportunities for growth.
After decades of low inflation and cheap liquidity, we have entered a new environment for investors. In the future, successful asset managers will be those that excel at distribution, have a strong brand and are innovative at product development for multiple distribution channels, in addition to strong investment management.
Over the last decade, we have been building an asset management business at Liontrust that centres around the client proposition in managing and delivering successful long-term solutions for the ever-important savings needs of our investors.
We continue to enhance our investment management and distribution capabilities both organically and via acquisitions. We continue to enhance our investment management and distribution capabilities both organically and via acquisitions. Our acquisitions over the years have demonstrated how they can deliver both immediate product development, such as sustainable investing and global equities, and diversification internationally and in the institutional market to generate future organic growth. The recent acquisition of Majedie focused on its institutional investment capability and client base. Combining these with a strong brand and product development capabilities provides a firm foundation for future growth.
We have great confidence in our robust investment processes, which is reflected in our long-term performance and the fact that, despite stock market de-ratings, operationally the majority of the companies that the teams hold continue to perform as the fund managers expect. The volatile markets, while challenging, are presenting opportunities to invest in many high-quality companies around the world on highly attractive valuations.
Our strong brand and continued positive engagement with clients are shown by the fact that our Sustainable Investment virtual conference in November is on target to eclipse the more than 700 professional intermediaries who signed up two years ago when this conference was last held.
Looking ahead, we will continue to focus on expanding our sales by funds, geographies and clients. With the excellence of our investment teams, distribution and brand, underpinned by our strong balance sheet, Liontrust is well positioned to generate future growth.”
Assets under management and advice
On 30 September 2022, our AuMA stood at £31,695 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 | 11,005 | 323 | – | 10,049 | – | 633 |
| Economic Advantage | 7,577 | 417 | – | 6,909 | – | 251 |
| Multi-Asset | 5,893 | – | – | 5,546 | 347 | – |
| Global Equity | 1,163 | 62 | – | 1,101 | – | – |
| Global Innovation | 535 | – | – | 535 | – | – |
| Cashflow Solution | 989 | 517 | – | 354 | 112 | 6 |
| Global Fundamental | 4,089 | 1,347 | 1,059 | 1,086 | 451 | 146 |
| Global Fixed Income | 444 | – | – | 166 | – | 278 |
| Total – 30 Sep 2022 | 31,695 | 2,666 | 1,059 | 25,746 | 910 | 1,314 |
AuMA as at 14 October 2022 were £31,221 million.
Flows
The net outflows over the three months to 30 September 2022 were £1,646 million (2021: net inflows £1,085 million). A reconciliation of fund flows and AuMA over the three months to 30 September 2022 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 Jul 2022 | 34,245 | 3,280 | 1,146 | 27,390 | 900 | 1,529 |
| Net flows | (1,645) | (522) | 0 | (1,003) | 53 | (173) |
| Market and Investment performance | (905) | (92) | (87) | (641) | (43) | (42) |
| Closing AuMA – 30 Sep 2022 | 31,695 | 2,666 | 1,059 | 25,746 | 910 | 1,314 |
The net outflows over the six months to 30 September 2022 were £2,187 million (30 September 2021: net inflows £2,088 million). A reconciliation of fund flows and AuMA over the three months to 30 September 2022 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 Apr 2022 | 33,548 | 1,408 | 0 | 30,113 | 370 | 1,657 |
| Net flows | (2,187) | (580) | 0 | (1,339) | 172 | (440) |
| Market and Investment performance | (4,814) | (473) | (180) | (3,906) | (27) | (228) |
| Majedie acquisition | 5,148 | 2,311 | 1,239 | 878 | 395 | 325 |
| Closing AuMA – 30 Sep 2022 | 31,695 | 2,666 | 1,059 | 25,746 | 910 | 1,314 |
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 | 1 | 1 | 25/03/2009 | |
| Liontrust Special Situations Fund | 1 | 1 | 1 | 3 | 10/11/2005 | |
| Liontrust UK Smaller Companies Fund | 1 | 1 | 1 | 1 | 08/01/1998 | |
| Liontrust UK Micro Cap Fund | 1 | 1 | 1 | 1 | 09/03/2016 | |
| Sustainable Future funds | ||||||
| Liontrust SF Monthly Income Bond Fund | 2 | 3 | 2 | 3 | 12/07/2010 | |
| Liontrust SF Managed Growth Fund | 2 | 1 | 1 | 4 | 19/02/2001 | |
| Liontrust SF Corporate Bond Fund | 3 | 4 | 4 | 4 | 20/08/2012 | |
| Liontrust SF Cautious Managed Fund | 1 | 2 | 4 | 4 | 23/07/2014 | |
| Liontrust SF Defensive Managed Fund | 1 | 2 | 3 | 4 | 23/07/2014 | |
| Liontrust SF European Growth Fund | 2 | 4 | 4 | 4 | 19/02/2001 | |
| Liontrust SF Global Growth Fund | 3 | 1 | 1 | 4 | 19/02/2001 | |
| Liontrust SF Managed Fund | 1 | 1 | 1 | 4 | 19/02/2001 | |
| Liontrust UK Ethical Fund | 2 | 2 | 4 | 4 | 01/12/2000 | |
| Liontrust SF UK Growth Fund | 2 | 3 | 4 | 4 | 19/02/2001 | |
| Global Innovation funds | ||||||
| Liontrust Global Dividend Fund | 2 | 1 | 1 | 4 | 20/12/2012 | |
| Liontrust Global Innovation Fund | 1 | 3 | 3 | 4 | 31/12/2001 | |
| Global Equity funds1 | ||||||
| Liontrust Balanced Fund | 1 | 1 | 1 | 4 | 31/12/1998 | |
| Liontrust China Fund | 4 | 4 | 3 | 4 | 31/12/2004 | |
| Liontrust Emerging Market Fund | 2 | 4 | 3 | 3 | 30/09/2008 | |
| Liontrust Global Smaller Companies Fund | 1 | 1 | 2 | 4 | 01/07/2016 | |
| Liontrust Global Alpha Fund | 1 | 1 | 1 | 4 | 31/12/2001 | |
| Liontrust Global Technology Fund | 3 | 2 | 2 | 3 | 15/12/2015 | |
| Liontrust India Fund | 4 | 4 | 1 | 3 | 29/12/2006 | |
| Liontrust Japan Equity Fund | 2 | 2 | 1 | 1 | 22/06/2015 | |
| Liontrust Latin America Fund | 2 | 2 | 3 | 4 | 03/12/2007 | |
| Cashflow Solution funds | ||||||
| Liontrust European Dynamic Fund2 | 1 | 1 | 1 | 1 | 15/11/2006 | |
| Global Fixed Income funds | ||||||
| Liontrust Strategic Bond Fund | 2 | – | 3 | 2 | 08/05/2018 | |
| Global Fundamental Team funds3 | ||||||
| Liontrust UK Equity Fund | 1 | 4 | 3 | 3 | 27/03/2003 | |
| Liontrust UK Focus Fund | 1 | 4 | 4 | 4 | 29/09/2003 | |
| Liontrust Income Fund | 1 | 1 | 2 | 1 | 31/12/2002 | |
| Liontrust UK Equity Income Fund | 2 | 4 | 4 | 4 | 19/12/2011 | |
| Liontrust US Opportunities Fund | 1 | 1 | 2 | 3 | 31/12/2002 | |
| Edinburgh Investment Trust Plc4 | 2 | – | – | 1 | 27/03/2020 | |
| Liontrust Global Equity Fund | 1 | 1 | 1 | 1 | 30/06/2014 | |
| Liontrust Global Focus Fund | 1 | 1 | 1 | 1 | 30/06/2014 | |
| Liontrust GF US Equity Fund | 3 | 3 | 3 | 3 | 26/06/2014 | |
| Liontrust GF UK Equity Fund | 4 | 4 | 3 | 3 | 03/03/2014 | |
| Liontrust GF International Equity Fund | 3 | – | – | 4 | 17/12/2019 |
Source: Financial Express to 30 September 2022 as at 06 October 2022, bid-bid, total return, net of fees , based on primary share classes. Edinburgh Investment Trust Plc NAV source: Morningstar. 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, or Irish authorised OEICs (primary share class).
1 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.
2 Liontrust European Growth Fund changed its name to Liontrust European Dynamic Fund on 11 July 2022.
3 The onshore and offshore Tortoise funds are not included as they are not in IA sectors.
4 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 2022 on Friday, 18 November 2022.