Trading Statement

RNS Number : 8334T
Liontrust Asset Management PLC
11 January 2017
 

Embargoed until 7am on 11 January 2017

 

Stock Exchange Announcement

LIONTRUST ASSET MANAGEMENT PLC

Trading Update

 

Liontrust Asset Management Plc ("Liontrust" or the "Group"), the specialist independent fund management group, is today issuing a trading update for the period from 1 October to 31 December 2016 (the "Period").

 

Highlights

 

·     Net inflows of £190 million in the Period and net inflows for the financial year to 31 December 2016 of £282 million

 

·     Assets under Management ("AuM") as at close of business on 31 December 2016 were £6.0 billion, up 25% compared to our AuM at 31 March 2016

 

·     Proposed acquisition of the Alliance Trust Investments Limited ("ATI"), which was announced in December 2016 and is expected to complete in April 2017, will add £2.3 billion of AuM (as announced in December 2016)*

 

* ATI AuM not included in the 31 December 2016 AuM figures or the net inflows for the Period/financial year to 31 December 2016

 

Commenting, John Ions, Chief Executive, said:

 

"We enjoyed a strong last three months of 2016 with net inflows of £190 million and our AuM breaking through £6 billion. This continued growth reflects the excellent long-term performance across our fund management teams and is a testament to our focus on robust investment processes and expanding our client base.

 

"Our acquisition of ATI, which is expected to complete in April 2017, is anticipated to add around £2.3 billion to our AuM and extends further our investment capability while broadening our distribution.

 

"The asset management industry is facing a number of significant challenges and opportunities as we enter 2017, including through regulatory, political and economic changes. We are well placed to deal with the challenges and to exploit the opportunities during this unprecedented environment given the ongoing development of the business.

 

"This includes the investment in our internal infrastructure, including a new dealing system, fully integrating our sales and marketing systems, notably through our CRM, and Ian Chimes joining in February as Head of Global Distribution. This gives me great confidence that we will continue to grow the business whatever the challenges and opportunities we face."

 

 Assets under Management

 

On 31 December 2016, our AuM stood at £6,009 million (30 September 2016: £5,685 million and 31 March 2016: £4,791 million).

 

 A reconciliation of fund flows and AuM over the Period is as follows:

 

Process

Total

Institutional

UK Retail

MPS*

Offshore Funds

 

(£m)

(£m)

(£m)

(£m)

(£m)

Cashflow Solution

813

520

235

-

58

Economic Advantage

3,462

223

3,190

-

49

Macro-Thematic

743

331

383

-

29

European Income

265

-

265

-

-

Asia

81

-

73

-

8

Structural Opportunities

23

-

-

-

23

Multi-Asset

573

329

-

244

-

Indexed

49

-

49

-

-

Total

6,009

1,403

4,195

244

167

 

* Managed Portfolio Services are where we act as discretionary fund manager to a range of model portfolios which are marketed to advisory intermediaries in the UK.

 

Funds Flows

 

Liontrust recorded net inflows of £190 million in the Period (1 October to 31 December 2015: £53 million). Net inflows for the financial year to 31 December 2016 were £282 million (1 April to 31 December 2015: £163 million).

 

A reconciliation of net flows and AuM over the Period is as follows:-

 

 

Total

Institutional

UK Retail

MPS*

Offshore Funds

 

£m

£m

£m

£m

£m

 

 

 

 

 

 

Opening AuM - 1 October 2016

5,685

1,355

3,973

229

128

 

 

 

 

 

 

Net flows

190

15

128

13

34

 

 

 

 

 

 

Market and Investment performance

134

33

94

2

5

 

 

 

 

 

 

Closing AuM - 31 December 2016

6,009

1,403

4,195

244

167

 

A reconciliation of net flows and AuM over the financial year to 31 December 2016 is as follows:-

 

 

Total

Institutional

UK Retail

MPS*

Offshore Funds

 

£m

£m

£m

£m

£m

 

 

 

 

 

 

Opening AuM - 1 April 2016

4,791

1,138

3,330

204

119

 

 

 

 

 

 

Net flows

282

91

132

23

36

 

 

 

 

 

 

Acquisitions

272

-

272

-

-

Market and Investment performance

664

174

461

17

12

 

 

 

 

 

 

Closing AuM - 31 December 2016

6,009

1,403

4,195

244

167

 

* Managed Portfolio Services are where we act as discretionary fund manager to a range of model portfolios which are marketed to advisory intermediaries in the UK.

 

Fund Performance (Quartile ranking)

 

Our funds continue to deliver strong long-term performance. Seven out of eleven of our UK unit trusts are in the first quartile of their respective sectors since launch or since the current managers took over the running of the funds.  

 

 

Quartile ranking - Since Launch/Manager Appointed

Quartile ranking - 5 year

Quartile ranking - 3 year

Quartile ranking - 1 year

Launch Date/Manager Appointed

Liontrust UK Growth Fund

1

2

1

1

25/03/2009

Liontrust Special Situations Fund

1

1

1

1

10/11/2005

Liontrust UK Smaller Companies Fund

1

1

1

1

08/01/1998

Liontrust UK Micro Cap Fund

3

-

-

-

09/03/2016

Liontrust Macro Equity Income Fund

1

3

3

3

31/10/2003

Liontrust Macro UK Growth Fund

1

4

4

4

01/08/2002

Liontrust European Growth Fund

1

3

1

1

15/11/2006

Liontrust Asia Income Fund

1

-

2

1

05/03/2012

Liontrust European Income Fund

3

3

2

3

12/12/2005

Liontrust European Enhanced Income Fund

3

4

4

4

30/04/2010

Liontrust Global Income Fund

3

-

4

1

03/07/2013

 

Source: Financial Express, total return, bid to bid, net, to 31 December 2016 unless otherwise stated, data is accurate as at 6 January 2017.  The above funds are all UK authorised unit trusts (primary share class). Liontrust FTSE 100 Tracker Fund (index fund) not included. Liontrust Global Income Fund's investment objective changed to Global Income on 3 July 2013. Past performance is not a guide to the future; the value of investments and the income from them can fall as well as rise. Investors may not get back the amount originally subscribed.

 

For further information please contact:

 

Liontrust Asset Management Plc                              020 7412 1700

John Ions                                                                             www.liontrust.co.uk

Vinay Abrol

Simon Hildrey - Chief Marketing Officer

 

Numis Securities Limited                                             020 7260 1000

Corporate Broking & Advisory - Charles Farquhar, Andrew Holloway

 

Macquarie Capital (Europe) Limited                       020 3037 2000

Advisory - Jonny Allison, Kavita Choitram
Corporate Broking - Alex Reynolds, Nicholas Harland

 

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 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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