Liontrust Asset Management PLC Trading Statement (8334T)

TIDMLIO

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 GBP190 million in the Period and net inflows for the financial year to 31 December 2016 of GBP282 million

-- Assets under Management ("AuM") as at close of business on 31 December 2016 were GBP6.0 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 GBP2.3 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 GBP190 million and our AuM breaking through GBP6 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 GBP2.3 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 GBP6,009 million (30 September 2016: GBP5,685 million and 31 March 2016: GBP4,791 million).

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

 
                                                                           Offshore 
          Process            Total    Institutional   UK Retail    MPS*      Funds 
                             (GBPm)      (GBPm)        (GBPm)     (GBPm)    (GBPm) 
 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 GBP190 million in the Period (1 October to 31 December 2015: GBP53 million). Net inflows for the financial year to 31 December 2016 were GBP282 million (1 April to 31 December 2015: GBP163 million).

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

 
                                                                         Offshore 
                              Total   Institutional   UK Retail   MPS*      Funds 
                               GBPm            GBPm        GBPm   GBPm       GBPm 
 
 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:-

 
                                                                         Offshore 
                              Total   Institutional   UK Retail   MPS*      Funds 
                               GBPm            GBPm        GBPm   GBPm       GBPm 
 
 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       Quartile    Quartile    Quartile       Launch 
                             - Since Launch/Manager    ranking     ranking     ranking     Date/Manager 
                                   Appointed           - 5 year    - 3 year    - 1 year     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                    3                  -           -           -        09/03/2016 
  Cap Fund 
-------------------------  ------------------------  ----------  ----------  ----------  -------------- 
 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

This information is provided by RNS

The company news service from the London Stock Exchange

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January 11, 2017 02:00 ET (07:00 GMT)