Liontrust Asset Management PLC Trading Statement (5706B)

TIDMLIO

RNS Number : 5706B

Liontrust Asset Management PLC

05 April 2017

Embargoed until 7am on 5 April 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 its financial year end trading update for the period from 1 January to 31 March 2017 (the "Period").

Highlights

-- Assets under Management ("AuM") increased by GBP1.7 billion or 36% over the financial year to GBP6.5 billion.

-- Net inflows of GBP200 million in the Period (2016: GBP92 million ) and net inflows for the financial year to 31 March 2017 of GBP482 million (2016: GBP255 million)

-- Alliance Trust Investments Limited ("ATI") acquisition completed on 1 April 2017 adding GBP2.5 billion to AuM.

-- Following completion of the acquisition of ATI, Liontrust's AuM as at close of business on 3 April 2017 was GBP9.1 billion

Commenting, John Ions, Chief Executive, said:

"It has been a successful year with a number of notable achievements. The addition of new fund management teams has broadened and strengthened the Liontrust client proposition. Gross sales of over GBP2 billion in the financial year demonstrate our distribution capability through a challenging period.

"The development of the Company over the last few years, both in terms of infrastructure and client proposition, and our clear, focused business enables us to start the new financial year with confidence that we will continue the success achieved so far.

"Our confidence is reinforced by the fund performance across a breadth of teams and our fierce commitment to active management. This is demonstrated by the fact that 96% of our actively managed unit trust funds by AuM have outperformed their benchmark since launch, objective change or fund manager inception.(1) "

(1) Source: Financial Express to 31.03.17, total return net of fees, bid to bid, based on primary share classes.

Assets under Management

On 31 March 2017, our AuM stood at GBP6,523 million (2016: GBP4,791 million) an increase of 36% over the financial year. A reconciliation of AuM as at 31 March 2017 is as follows:

 
                                                                     Offshore 
       Process         Total    Institutional   UK Retail   MPS(1)     Funds 
                       (GBPm)      (GBPm)        (GBPm)     (GBPm)    (GBPm) 
 Cashflow Solution        927             525         307        -         95 
 Economic Advantage     3,926             265       3,596        -         65 
 Macro Thematic           653             254         369        -         30 
 European Income          240               -         240        -          - 
 Asia                      94               -          85        -          9 
 Structural Opps           20               -           -        -         20 
 Multi-Asset              612             352           -      260          - 
 Indexed                   51               -          51        -          - 
 Total                  6,523           1,396       4,648      260        219 
 

(1) 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.

Following completion of the acquisition of ATI, our AuM as at close of business on 3 April 2017 was GBP9,051 million.

Funds Flows

Liontrust recorded net inflows for the Period of GBP200 million (2016: GBP92 million). A reconciliation of fund flows over the Period is as follows:-

 
                                                                         Offshore 
                            Total   Institutional   UK Retail   MPS(1)     Funds 
                            GBPm        GBPm          GBPm       GBPm      GBPm 
 
 Opening AuM - 1 January 
  2017                      6,009           1,403       4,195      244        167 
 
 Net flows                    200            (88)         236        9         43 
 
 Market and Investment 
  performance                 314              81         217        7          9 
 
 Closing AuM - 31 March 
  2017                      6,523           1,396       4,648      260        219 
 

Liontrust recorded net inflows of GBP482 million in the financial year to 31 March 2017 (2016: GBP255 million). A reconciliation of fund flows over the financial year is as follows:-

 
                                                                        Offshore 
                           Total   Institutional   UK Retail   MPS(1)     Funds 
                           GBPm        GBPm          GBPm       GBPm      GBPm 
 
 Opening AuM - 1 April 
  2016                     4,791           1,138       3,330      204        119 
 
 Net flows                   482               3         368       32         79 
 
 Acquisitions                272               -         272        -          - 
 Market and Investment 
  performance                978             255         678       24         21 
 
 Closing AuM - 31 March 
  2017                     6,523           1,396       4,648      260        219 
 

(1) 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. Eight out of eleven of our UK unit trusts are in the first or second 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 
  Cap Fund                             2                  -           -           2        09/03/2016 
-------------------------  ------------------------  ----------  ----------  ----------  -------------- 
 Liontrust Macro Equity 
  Income Fund                          1                  3           4           3        31/10/2003 
-------------------------  ------------------------  ----------  ----------  ----------  -------------- 
 Liontrust Macro UK 
  Growth Fund                          1                  4           4           4        01/08/2002 
-------------------------  ------------------------  ----------  ----------  ----------  -------------- 
 Liontrust European 
  Growth Fund                          1                  2           1           1        15/11/2006 
-------------------------  ------------------------  ----------  ----------  ----------  -------------- 
 Liontrust Asia Income 
  Fund                                 1                  1           2           2        05/03/2012 
-------------------------  ------------------------  ----------  ----------  ----------  -------------- 
 Liontrust European 
  Income Fund                          3                  3           3           4        15/12/2005 
-------------------------  ------------------------  ----------  ----------  ----------  -------------- 
 Liontrust European 
  Enhanced Income Fund                 4                  4           4           4        30/04/2010 
-------------------------  ------------------------  ----------  ----------  ----------  -------------- 
 Liontrust Global Income 
  Fund                                 4                  -           4           3        03/07/2013 
-------------------------  ------------------------  ----------  ----------  ----------  -------------- 
 

Source: Financial Express, total return, bid to bid, to 31 March 2017 unless otherwise stated, based on primary share classes. The above funds are all UK authorised unit trusts (primary share class). Liontrust FTSE 100 Tracker Fund (index fund) not included. 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

END

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April 05, 2017 02:00 ET (06:00 GMT)