Half Year Trading Update

RNS Number : 0482P

Liontrust Asset Management PLC

28 September 2011

 



Embargoed until 7am on 28 September 2011

Stock Exchange Announcement

LIONTRUST ASSET MANAGEMENT PLC

Half Year Trading Update

Liontrust Asset Management PLC ("Liontrust", the "Company", or the "Group"), the specialist independent fund management group, is today issuing its half-year trading update for the period from 1 April 2011 to 27 September 2011 (the "Period").

Funds under Management

Assets under management ("AuM ") as at close of business on 26 September 2011 stood at £1,179 million, a decrease of 6.13% since 31 March 2011*. The fall in AuM has been mainly caused by market movements.  Over the same period, the FTSE All-Share Index (total return) has fallen by 12.43% and the STOXX Europe 600 Index has fallen by 21.59% on a GBP-adjusted basis.

AuM as at close of business on 26 September 2011 were broken down by type and process as follows:-

Process	Total (£m)	Institutional (£m)	UK Retail (£m)	Offshore Funds (£m)
Cashflow Solution	765	360	397	8
Economic Advantage	365	-	365	-
Indexed	49	-	49	-
Total	1,179	360	811	8

 * AuM as at close of business 31 March 2011 were £1,256 million after excluding the credit business related assets to produce like-for-like totals.

Funds Flows

Liontrust has recorded positive net sales of £45 million in the current quarter to date, the fifth successive quarter in which the Company has had positive net sales. The positive net sales for the Period are £58 million.

A reconciliation of fund flows and AuM over the current quarter to date is as follows:-

	Total	Institutional	UK Retail	Offshore Funds
	(£m)	(£m)	(£m)	(£m)
Opening AuM - 1 Jul 2011	1,309	414	883	12
Inflows	117	38	79	-
Outflows	(72)	(15)	(52)	(5)
Net flows	45	23	27	(5)
Market movement	(175)	(77)	(99)	1
Closing AuM - 26 Sep 2011	1,179	360	811	8

Performance fees

Performance fees of £167,000 were earned in the Interim Period (1 April 2010 to 28 September 2010: £153,000).

Fund Performance (Quartile ranking)

Retail Funds	3 months	1 year	Manager tenure	Manager appointed
Liontrust Income Fund	1	1	1	25/03/2009
Liontrust UK Growth Fund	1	1	1	25/03/2009
Liontrust Special Situations Fund	1	1	1	11/11/2005
Liontrust UK Smaller Companies Fund	1	2	1	08/01/1998
Liontrust European Absolute Return Fund	1	1	3	09/07/2009
Liontrust European Growth Fund	1	1	1	15/11/2006

Source: Financial Express, total return, to 31 August 2011, past performance is not a guide to the future.

Note: The above funds are all authorised unit trusts.

Summary

John Ions, Chief Executive of Liontrust, said: "We have continued the expansion of Liontrust over the past six months through our fifth consecutive quarter of positive net flows and the expected completion in October of the acquisition of Occam Asset Management. The continuation of positive net flows has been a significant achievement given the recent challenging market environment and the uncertain economic outlook that impacts on investor confidence.

"Our ability to deliver positive sales reflects the ongoing strong performance across our fund range. All of our actively managed unit trusts are in the first quartile of their respective sectors over one year to 31 August 2011 apart from the UK Smaller Companies Fund, which is in the second quartile.

"It has been very pleasing for our clients that our funds have performed both during positive and negative periods for equities. All of our actively managed unit trusts are first quartile over three months to 31 August 2011 and Liontrust European Absolute Return returned 3.84% between 30 June 2011 and 26 September 2011.  

"There has been a further broadening of our client base, with inflows coming from a greater number of intermediaries and our funds being placed on more buy lists by wealth managers, discretionary managers and financial advisers. This has been a key part of our strategy to diversify our business.

"Another strategic aim has been to diversify into new asset classes, which we will do on completion of the acquisition of Occam. Asia and Emerging Markets will be two of the fastest growing areas over the long term and our distribution will be broadened through being able to offer these asset classes. Distribution will also be enhanced through the addition of Occam's international client base.

"The asset management industry is enduring a challenging time, with no sign of an end to the market and economic turbulence. Despite this, we are looking forward with confidence as we attract inflows through fund performance, enhanced awareness of Liontrust and our products and a broader and more proactive sales strategy."      

Notice of Interim Results

The announcement of the Group's results for the six months ending 30 September 2011 will be made on 23 November 2011.

For further information please contact:

Liontrust Asset Management PLC                            020 7412 1700

John Ions                                                                             www.liontrust.co.uk

Vinay Abrol

Simon Hildrey - Head of Marketing & Communications

Altium                                                                                  020 7484 4040

Sam Fuller

Paul Chamberlain

Forward Looking Statements

This announcement contains certain forward-looking statements with respect to the financial condition, results of operations and businesses and plans of the Group. 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 Group'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 Services 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

 

END

 

 

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