Fund manager appointments and
Embargoed until 0700 hours, Tuesday 24 March 2009
Stock Exchange Announcement
LIONTRUST ASSET MANAGEMENT PLC
Fund manager appointments, directorate changes and trading update
Liontrust Asset Management PLC ('Liontrust', 'Company' or 'Group'), the independent fund management group, today announces the appointment of four fund managers to take over the funds managed by Jeremy Lang and William Pattisson, the recruitment of the European fixed income team from London-based Ilex Asset Management (UK) LLP ('Ilex'), directorate changes and a trading update.
Fund manager appointments
On 25 March 2009, Gary West and James Inglis-Jones will take over the management of the Liontrust First Income and the Liontrust First Large Cap Funds.
On the same day, Anthony Cross and Julian Fosh will take over the management of the Liontrust First Growth Fund.
Mr West and Mr Inglis-Jones will apply their Cashflow Solution investment process to managing the Liontrust First Income and Liontrust First Large Cap Funds.
The robustness of the Cashflow Solution is demonstrated by the excellent performance of the existing portfolios managed by Mr West and Mr Inglis-Jones.
The Liontrust Continental Europe Fund was in the first quartile of the Europe excluding UK sector over one year to 6 March 2009 and since launch on 15 November 2006.* The euro share class of the Liontrust European Long/Short Fund, which is an offshore domiciled hedge fund for professional investors only, returned 11.32% in 2008 and 47.34% from launch on 6 December 2006 to 28 February 2009.**
The long track record of the two managers includes running funds at JP Morgan and Polar Capital. Mr West, for example, managed equity income funds at Henderson Touche Remnant and Flemings, where he worked between 1987 and 2002.
Mr Cross and Mr Fosh, who manage the Liontrust Intellectual Capital Trust and the Liontrust First Opportunities Fund, will use the Economic Advantage investment process to manage the Liontrust First Growth Fund.
The Liontrust Intellectual Capital Trust was in the first quartile of the UK Smaller Companies sector from launch on 8 January 1998 to 6 March 2009 as well as over one and three years.* The Liontrust First Opportunities Fund was in the first quartile of the UK All Companies sector from launch on 11 November 2005 as well as over one and three years to 6 March 2009.*
Mr Fosh was co-manager of the Saracen Growth Fund between June 2004 and January 2008. Over this period, it was ranked 3rd out of 263 funds in the UK All Companies sector.
On 19 March 2009, Mr Cross was named the best performing UK All Companies manager for his risk adjusted returns over three years in Citywire's annual Britain's Top 100 Fund Manager survey.
'We are delighted that Anthony, Julian, Gary and James are to manage the Liontrust First Growth, Liontrust First Income and Liontrust First Large Cap Funds,' says Nigel Legge, chief executive of Liontrust.
'They have consistently delivered exceptional performance both at Liontrust and earlier in their careers. They are to implement documented and robust investment processes that are an evolution of those currently used by Jeremy Lang and William Pattisson to provide continuity for existing unit holders. The Cashflow Solution and Economic Advantage investment processes seek to identify companies that will surprise the market through earnings and profits growth before they start surprising.'
Recruitment of European fixed income team
The European fixed income team to move to Liontrust from Ilex consists of five partners - Simon Thorp (chief investment officer), James Sclater (senior portfolio manager), Paul Owens (co-head of research), Quentin Peacock (co-head of research) and Gareth Roblin (chief operating officer).
The team manages the Ilex Credit Fund (the 'Fund'), which was one of the earliest European long/short credit funds when it was launched in June 2000 and has £41 million in assets. Liontrust International (Guernsey) Limited, a subsidiary of the Company, has entered into an agreement with Ilex to acquire the investment management contract for the Fund for £1 million (such consideration to be satisfied in cash).
The team's ability to deliver absolute returns is demonstrated by the fact that since launch on 1 June 2000 to the end of 2008, the euro share class of the Ilex Credit Fund returned 44%. ***
Liontrust intends to launch a number of collective investment vehicles that will adopt the investment process used by the team, including further alternative investment funds, authorised unit trusts and offshore funds. In addition, Liontrust will offer the fixed income investment process to the institutional market via segregated accounts and pooled institutional funds.
'Recruiting Simon Thorp and the team is a key part of our future strategy,' says Mr Legge.
'We have previously stated that our objective is to broaden our product range and expand into new asset classes. Simon's team has vast experience gained at various companies over the years, including Akroyd & Smithers, SG Warburg, Salomon Brothers and NatWest Markets, and has delivered excellent performance through its Ilex Credit Fund.
'The Ilex team meets the five tests we set when deciding whether to recruit new fund managers. These are that new fund managers will not put at risk our existing business, they can produce a documented investment process, they can be sold into both the retail and institutional markets, they have small teams and are scalable at similar margins as our existing business.'
Mr Thorp says: 'We were attracted to Liontrust by the company's emphasis on documented investment processes and its commitment to transparent reporting. The culture at Liontrust is an excellent fit with our own and the existing infrastructure will give us greater access to the retail and institutional markets.'
Liontrust continues to evaluate opportunities to complement and enhance its fund management team and broaden its product offering.
Directorate Change
Following the announcement made on 13 January 2009 regarding the resignations of Jeremy Lang and William Pattisson, Liontrust today announces that Mr Lang and Mr Pattisson ceased to be directors of Liontrust on 23 March 2009 and that their employment with Liontrust will terminate on 15 April 2009.
Purchase of shares
In connection with the termination of their employment, the Company has entered into an agreement to acquire on 15 April 2009 the 28,500 B Ordinary Shares each held by Mr Lang and Mr Pattisson in Liontrust European Investment Services Limited ('LEIS'), a subsidiary of the Company, subscribed for by them pursuant to an investment agreement dated 16 June 2006 (the 'Investment Agreement'). The consideration payable to each of Mr Lang and Mr Pattisson by the Company for such shares is £271,351 (such consideration to be satisfied in cash).
As part of such arrangement, Mr Lang and Mr Pattisson have waived any right to exercise the put option, and the Company has waived any right to exercise the call option, granted over such shares pursuant to the Investment Agreement.
For the purposes of the Listing Rules of the UK Listing Authority (the 'Listing Rules'), the UK Listing Authority has confirmed that such acquisitions constitute smaller related party transactions under Chapter 11 of those Rules. Accordingly the Company has complied with its obligations under paragraph 11.1.10(2)R of the Listing Rules.
Trading Update
Liontrust also today publishes a trading update for its financial year ending 31 March 2009 ('the period').
Funds Under Management
On 23 March 2009, our funds under management stood at £1.907 billion and are broken down by type and process as follows:-
|
Process |
Fund Manager |
Total |
Institutional |
Retail & Offshore |
|
Cashflow Solution |
West / Inglis-Jones |
238 |
140 |
98 |
|
UK Growth - Lang Approach |
Lang |
358 |
171 |
187 |
|
UK Large Cap |
Pattisson |
792 |
766 |
26 |
|
UK Value - Value Dynamic |
Lang |
400 |
0 |
400 |
|
UK Small Cap - ICT |
Cross / Fosh |
77 |
13 |
64 |
|
Indexed |
|
42 |
0 |
42 |
|
Total |
|
1,907 |
1,090 |
817 |
Funds Flow
From 1 January 2009 to 23 March 2009, net redemptions of our unit trusts and offshore funds totalled £223 million. Institutional assets amounting to £979 million were withdrawn in the same period, with further net outflows of £50 million in transition.
Performance
Performance fees of £4.9 million were earned from 1 January 2009 to 23 March 2009. Accordingly, in the period performance fees of £15.8 million have been earned. Further accounts fall due for calculation of performance fees in respect of the period and further performance fees may be due on those institutional accounts that are in transition.
Summary
Our focus over the last fourteen years on investment process and performance, transparency in our reporting and a strong balance sheet without debt are playing an important part in preserving client confidence in this environment.
Preliminary Results and AGM
The Group's preliminary results for the year to 31 March 2009 are due to be announced on 10 June 2009 with the Company's annual general meeting scheduled for 15 September 2009.
* Source: Financial Express.
** Source: Liontrust International (Guernsey) Limited.
*** Source: Ilex Asset Management (UK) LLP.
Comment
For further information please contact:
|
Liontrust Asset Management PLC Nigel Legge Vinay Abrol Simon Hildrey - Head of Communications |
020 7412 1700 www.liontrust.co.uk 020 7412 1778 |
|
Altium Ben Thorne Sam Fuller |
020 7484 4040 |
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
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