Half Year Trading Statement
Embargoed until 0700 hours, 23 September 2009
Liontrust Asset Management PLC
Half Year Trading Statement
Liontrust Asset Management PLC ('Liontrust' or 'the Group'), the independent fund management group specialising in equities and fixed income, today publishes a trading update for the period from 1 April 2009 to 22 September 2009 (the 'Period').
Funds under management
On 22 September 2009, our funds under management stood at £1.279 billion and were broken down by type and process as follows:-
|
Process |
Total (£m) |
Institutional (£m) |
Retail & Offshore (£m) |
|
Cashflow Solution |
944 |
371 |
573 |
|
The Economic Advantage |
246 |
0 |
246 |
|
Fixed Income |
36 |
0 |
36 |
|
Indexed |
53 |
0 |
53 |
|
Total |
1,279 |
371 |
908 |
Performance fees
Performance fees of £724,000 were earned in the Period (1 April 2008 to 25 September 2008: £1,202,000). There are further potential performance fees owing in relation to the Liontrust Credit Fund and the Liontrust European Long/Short Fund which, if out-performance is maintained, will fall due for payment in separate parts before the end of the financial year ending 31 March 2010, with the first payment due on 30 September 2009 and further payments due up to the end of the current calendar year. As at 22 September 2009, these performance fees have an aggregate value in excess of £2.5 million. The realisation of any such performance fees is subject to continuing outperformance.
Funds flow
Since 1 July 2009, net redemptions of offshore and retail funds were £27 million*. Over the same period, net institutional assets amounting to £5 million were invested.
Net redemptions of offshore and retail funds were £103 million* in the Period. Net institutional assets amounting to £821 million were redeemed in the Period and most of these were withdrawn before our preliminary results for 2009 were released on 10 June 2009.
A reconciliation of fund flows and funds under management over the Period on a quarter by quarter basis is as follows:-
|
|
Total (£m) |
Institutional (£m) |
Retail & Offshore (£m) |
|
|
|
|
|
|
Opening FuM - 1 April 2009 |
1,888 |
1,069 |
819 |
|
|
|
|
|
|
Inflows |
85 |
18 |
67 |
|
Outflows |
(1,009) |
(839) |
(170)* |
|
Net flows |
(924) |
(821) |
(103) |
|
|
|
|
|
|
Market movement |
315 |
123 |
192 |
|
Closing FuM - 22 September 2009 |
1,279 |
371 |
908 |
* Includes £3.2m of redemptions related to the withdrawal by Liontrust of seed capital from the Liontrust European Long/Short Fund.
New fund managers and fund launches
On 22 June 2009, Liontrust announced that Ross Hollyman will be joining the Group from GAM in January 2010. His appointment has been very well received by clients and investors.
On joining Liontrust, Mr Hollyman will develop the Global Value, Global Earnings Surprise and Global Multi-Factor equity investment processes (the 'Global Equity Investment Processes') in order to diversify the Group's product range. This will include the launch of regional and global funds to be managed by Mr Hollyman's team, which comprises Nikki Martin, Rob Cornish and Tom Ayres and who will join Liontrust in October 2009.
On 8 July 2009, Liontrust launched the European Absolute Return Fund, which is a UCITS III version of the Liontrust European Long/Short Fund that is managed by the Group's European equity team using the Cashflow Solution investment process. The sterling share class of the Liontrust European Long/Short Fund, which is available to professional investors only, returned 56.4% from launch on 6 December 2006 to 31 August 2009.
Liontrust is planning other fund launches over the next few months. This is likely to include a UCITS III version of the Liontrust Credit Fund. From the start of 2009 to the end of August 2009, the euro share class of the Fund was up 24.3% while from launch in June 2000 to the end of August 2009 the Fund returned 80.5%.
Notice of Interim Results
The announcement of the Group's results for the six months ending 30 September 2009 will be made on 25 November 2009.
Nigel Legge, Chief Executive of Liontrust, said:
'Liontrust has begun to stabilise after the most challenging six months for the business since it was established in 1995. Net fund outflows slowed substantially in the second half of the Period, we are adding Ross Hollyman and his team to our existing fund management capability and we successfully launched the Liontrust European Absolute Return Fund in July, for which we have raised nearly £20 million in assets so far. Liontrust has also benefited from earning some healthy performance fees during the Period. We are confident of making progress during the financial year as a whole given the strong long-term track record of our fund managers, the planned expansion of our product range and healthy and encouraging dialogue with potential investors.'
For further information please contact:
Liontrust Asset Management PLC 020 7412 1700
Nigel Legge
Vinay Abrol
Simon Hildrey
Altium 020 7484 4040
Sam Fuller
Paul Chamberlain
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.
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.
END
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