Liontrust Asset Management PLC Trading Statement (8061L)

TIDMLIO

RNS Number : 8061L

Liontrust Asset Management PLC

06 October 2016

Embargoed until 7am on 6 October 2016

Stock Exchange Announcement

LIONTRUST ASSET MANAGEMENT PLC

Half Year End Trading Update

Liontrust Asset Management Plc ("Liontrust"), the specialist independent fund management group, today issues its half year end trading update for the six months ended 30 September 2016.

Highlights

-- Assets under management ("AuM") were GBP5.7 billion as at close of business on 30 September 2016 (31 March 2016: GBP4.8 billion), an increase of nearly GBP900 million or 19% over the 6 month period

   --     Net inflows of GBP92 million in the six months to 30 September 2016 

-- Acquisition of Argonaut Capital Partners LLP's European Income business completed on 8 July 2016 adding GBP272 million of AuM

   --     AuM as at close of business on 4 October 2016 was GBP5.823 billion 

Commenting, John Ions, Chief Executive, said:

"We have enjoyed a successful first half of our financial year with our AuM increasing by nearly GBP900 million through a combination of positive net flows, strong investment performance, market movements and completing the acquisition of Argonaut's European Income business.

"It has been very pleasing to deliver another quarter of positive net flows of GBP26 million at a time of political and economic uncertainty and a tough environment for selling UK equity funds. UK All Companies was the worst selling sector by net retail sales in February, March, April, May and July 2016, according to the Investment Association. Equity funds in general have suffered negative net retail sales in every one of the first eight months of 2016.

"We continue to benefit from having distinct and robust investment processes, which means our fund managers do not get distracted by market noise, strong fund performance and longevity of our fund managers.

"In November, the European Growth fund will celebrate its 10 year anniversary. This will become the 6(th) Liontrust fund which is more than 10 years old and for which at least one manager has been running the fund since launch. The European Growth Fund is ranked 5(th) out of 105 funds over one year to 3 October 2016.

"We have also enjoyed strong performance in our UK funds. UK Growth and Special Situations are ranked 3(rd) and 4(th) out of 267 funds in the UK All Companies sector over one year while UK Smaller Companies is ranked 4(th) out of 48 funds in the IA UK Smaller Companies sector.

"The acquisition of Argonaut's European Income business has further diversified our fund management capability and enhanced our equity income franchise. The Asia Income and Macro Equity Income funds offer historic yields of 4.45% and 4.47% respectively while the European Income and European Enhanced Income funds have target yields of 4.1% and 4.4% respectively.

"This broader range of fund management capability and strong fund performance gives me confidence that we will continue to grow the business over the rest of the financial year."

Funds under Management

On 30 September 2016, our AuM stood at GBP5,685 million and were broken down by type and process as follows:-

 
                                                                           Offshore 
          Process            Total    Institutional   UK Retail    MPS*      Funds 
                             (GBPm)      (GBPm)        (GBPm)     (GBPm)    (GBPm) 
 Cashflow Solution              747             491         227        -         29 
 Economic Advantage           3,192             215       2,930        -         47 
 Macro-Thematic                 768             325         416        -         27 
 European Income                271               -         271        -          - 
 Asia Income                     81               -          80        -          1 
 Structural Opportunities        24               -           -        -         24 
 Multi-Asset                    553             324           -      229          - 
 Indexed                         49               -          49        -          - 
 Total                        5,685           1,355       3,973      229        128 
 

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

On 4 October 2016, our AuM was GBP5.823 billion.

Funds Flows

Liontrust has recorded net inflows for the half year are GBP92 million (2015: GBP110 million). A reconciliation of fund flows and AuM over the half year 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                        92              77           4     10          1 
 
 Acquisitions                    272               -         272      -          - 
 Market and Investment 
  performance                    530             140         367     15          8 
 
 Closing AuM - 30 September 
  2016                         5,685           1,355       3,973    229        128 
 

The net inflows over the three months to 30 September 2016 are GBP26 million (2015: GBP117 million). A reconciliation of fund flows and AuM over the three months to 30 September 2016 is as follows:-

 
                                                                          Offshore 
                               Total   Institutional   UK Retail   MPS*      Funds 
                                GBPm            GBPm        GBPm   GBPm       GBPm 
 
 Opening AuM - 1 July 
  2016                         4,847           1,168       3,344    213        122 
 
 Net flows                        26              60        (33)      2        (3) 
 
 Acquisitions                    272               -         272      -          - 
 Market and Investment 
  performance                    540             127         390     14          9 
 
 Closing AuM - 30 September 
  2016                         5,685           1,355       3,973    229        128 
 

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

Fund Performance (Quartile ranking)

 
                                    Quartile       Quartile    Quartile    Quartile       Launch 
                                     ranking        ranking     ranking     ranking     Date/Manager 
                                     - Since        - 5 year    - 3 year    - 1 year     Appointed 
                                  Launch/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                     4              -           -           -        09/03/2016 
  Cap Fund 
------------------------------  ----------------  ----------  ----------  ----------  -------------- 
 Liontrust Macro Equity 
  Income Fund                           1              4           3           4        31/10/2003 
------------------------------  ----------------  ----------  ----------  ----------  -------------- 
 Liontrust Macro UK 
  Growth Fund                           1              4           3           4        01/08/2002 
------------------------------  ----------------  ----------  ----------  ----------  -------------- 
 Liontrust European 
  Income Fund                           3              3           3           4        15/12/2005 
------------------------------  ----------------  ----------  ----------  ----------  -------------- 
 Liontrust European 
  Enhanced Income Fund                  3              4           3           4        30/04/2010 
------------------------------  ----------------  ----------  ----------  ----------  -------------- 
 Liontrust European 
  Growth Fund                           1              2           1           1        15/11/2006 
------------------------------  ----------------  ----------  ----------  ----------  -------------- 
 Liontrust Asia Income 
  Fund                                  1              -           2           1        05/03/2012 
------------------------------  ----------------  ----------  ----------  ----------  -------------- 
 Liontrust Global Income 
  Fund                                  3              -           4           3        03/07/2013 
------------------------------  ----------------  ----------  ----------  ----------  -------------- 
 

Source: Financial Express, total return, bid to bid, net, to 30 September 2016 unless otherwise stated, data is accurate as at 1 July 2016. The above funds are all UK authorised unit trusts (primary share class). Liontrust FTSE 100 Tracker Fund (index fund) not included. The value of investments and the income from them can fall as well as rise. Investors may not get back the amount originally subscribed.

Notice of Half Year Results Announcement

Liontrust confirms that it will be announcing its half year results for the six months ended 30 September 2016 on Tuesday, 15 November 2016.

For further information please contact:

   Liontrust Asset Management Plc                              020 7412 1700 

John Ions www.liontrust.co.uk

Vinay Abrol

Simon Hildrey - Head of Marketing & Distribution Strategy

   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 Liontrust. 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 Liontrust'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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October 06, 2016 02:00 ET (06:00 GMT)