Liontrust Asset Management PLC Trading Statement (4010B)

TIDMLIO

RNS Number : 4010B

Liontrust Asset Management PLC

10 January 2018

Embargoed until 7am on 10 January 2018

Stock Exchange Announcement

LIONTRUST ASSET MANAGEMENT PLC

Trading Update

Liontrust Asset Management Plc ("Liontrust"), the specialist independent fund management group, today issues a trading update for the period from 1 October to 31 December 2017 (the "Period").

Highlights

-- Assets under management ("AuM") were GBP10.6 billion as at close of business on 31 December 2017 (30 September 2017: GBP9.6 billion), an increase of GBP916 million or 9.5% over the Period.

-- Net inflows of GBP571 million in the three months ended 31 December 2017 and GBP749 million for the nine months ended 31 December 2017.

-- Donald Phillips joins the Global Fixed Income team from Baillie Gifford in February 2018 to work alongside David Roberts and Phil Milburn, who join from Kames Capital later this month.

Commenting, John Ions, Chief Executive, said:

"A strong quarter for fund flows has resulted in AuM now standing at GBP10.6 billion. Net inflows for the quarter of GBP571 million and GBP749 million for the financial year to date illustrate the excellent foundations the business has built.

The focus on and assets being invested in sustainable investing continue to increase. The Sustainable Investment team has been a significant contributor to the expansion of the business since joining Liontrust at the start of last April, with the AuM it is managing increasing by nearly GBP500 million to just shy of GBP3 billion.

The Sustainable Investment team's rigorous approach to investing and strong performance track record make it a compelling client proposition. Over one year to 31 December 2017, all 10 of the UK-domiciled funds managed by the Sustainable Investment team were in the 1(st) quartile of their respective IA sectors. Over three years, eight out of the 10 funds were in the 1(st) quartile.

We have expanded further our investment teams with the recruitment of David Roberts, Phil Milburn and Donald Phillips. This new Global Fixed Income team has a demonstrative track record of adding value to client portfolios and are highly regarded by investors in the UK and continental Europe.

Donald will be joining David and Phil in February from Baillie Gifford and is a significant addition to the Global Fixed Income team because of his experience, knowledge and insight, particularly of high yield bonds. Having previously worked together at Kames, David and Phil know Donald's strengths and how they complement each other.

Liontrust does not aim to offer all investment options but the working environment we provide for managers who have strong investment processes has never been more valued by investors.

A final mention must go to Anthony Cross who on 8 January celebrated 20 years of managing the UK Smaller Companies Fund. Continuing to manage the Fund for 20 years is a fantastic and rare achievement and is a testament to the robust Economic Advantage investment process."

Funds under Management

On 31 December 2017, our AuM stood at GBP10.556 billion and were broken down by type and process as follows:-

 
                                                                              Offshore 
         Process           Total    Institutional   UK Retail   Multi-Asset     Funds 
                           (GBPm)      (GBPm)        (GBPm)       (GBPm)       (GBPm) 
 Cashflow Solution            964             522         324             -        118 
 Economic Advantage         5,016             297       4,639             -         80 
 Macro Thematic               500             164         309             -         27 
 European Income              247               -         247             -          - 
 Asia                         117               -         106             -         11 
 Sustainable Investment     2,971              54       2,718             -        199 
 Multi-Asset                  692               -           -           692          - 
 Indexed                       49               -          49             -          - 
 Total                     10,556           1,037       8,392           692        435 
 

Funds Flows

The net inflows over the three months to 31 December 2017 are GBP571 million (2016: GBP190 million). A reconciliation of fund flows and AuM over the three months to 31 December 2017 is as follows:-

 
                                                                                 Offshore 
                               Total   Institutional   UK Retail   Multi-Asset      Funds 
                              (GBPm)          (GBPm)      (GBPm)        (GBPm)     (GBPm) 
 
 Opening AuM - 1 October 
  2017                         9,640             966       7,610           634        430 
 
 Net flows                       571              39         495            38        (1) 
 
 Market and Investment 
  performance                    345              32         287            20          6 
 
 Closing AuM - 31 December 
  2017                        10,556           1,037       8,392           692        435 
 

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           2        25/03/2009 
--------------------  ----------------  ----------  ----------  ----------  -------------- 
 Liontrust Special 
  Situations Fund             1              1           1           1        10/11/2005 
--------------------  ----------------  ----------  ----------  ----------  -------------- 
 Liontrust UK 
  Smaller Companies 
  Fund                        1              2           1           3        08/01/1998 
--------------------  ----------------  ----------  ----------  ----------  -------------- 
 Liontrust UK 
  Micro Cap Fund              3              -           -           4        09/03/2016 
--------------------  ----------------  ----------  ----------  ----------  -------------- 
 Liontrust Macro 
  Equity Income 
  Fund                        1              3           4           3        31/10/2003 
--------------------  ----------------  ----------  ----------  ----------  -------------- 
 Liontrust Macro 
  UK Growth Fund              2              3           4           2        01/08/2002 
--------------------  ----------------  ----------  ----------  ----------  -------------- 
 Liontrust European 
  Growth Fund                 1              2           2           4        15/11/2006 
--------------------  ----------------  ----------  ----------  ----------  -------------- 
 Liontrust Asia 
  Income Fund                 2              2           3           4        05/03/2012 
--------------------  ----------------  ----------  ----------  ----------  -------------- 
 Liontrust European 
  Income Fund                 3              3           4           4        15/12/2005 
--------------------  ----------------  ----------  ----------  ----------  -------------- 
 Liontrust European 
  Enhanced Income 
  Fund (Hedged)               4              4           4           4        30/04/2010 
--------------------  ----------------  ----------  ----------  ----------  -------------- 
 Liontrust Global 
  Income Fund                 4              -           4           3        03/07/2013 
--------------------  ----------------  ----------  ----------  ----------  -------------- 
 Liontrust Monthly 
  Income Bond 
  Fund                        1              1           1           1        12/07/2010 
--------------------  ----------------  ----------  ----------  ----------  -------------- 
 Liontrust SF 
  Absolute Growth 
  Fund                        4              1           1           1        19/02/2001 
--------------------  ----------------  ----------  ----------  ----------  -------------- 
 Liontrust SF 
  Corporate Bond 
  Fund                        1              1           1           1        20/08/2012 
--------------------  ----------------  ----------  ----------  ----------  -------------- 
 Liontrust SF 
  Cautious Managed 
  Fund                        1              -           2           1        23/07/2014 
--------------------  ----------------  ----------  ----------  ----------  -------------- 
 Liontrust SF 
  Defensive Managed 
  Fund                        1              -           1           1        23/07/2014 
--------------------  ----------------  ----------  ----------  ----------  -------------- 
 Liontrust SF 
  European Growth 
  Fund                        2              2           1           1        19/02/2001 
--------------------  ----------------  ----------  ----------  ----------  -------------- 
 Liontrust SF 
  Global Growth 
  Fund                        4              2           2           1        19/02/2001 
--------------------  ----------------  ----------  ----------  ----------  -------------- 
 Liontrust SF 
  Managed Fund                3              1           1           1        19/02/2001 
--------------------  ----------------  ----------  ----------  ----------  -------------- 
 Liontrust UK 
  Ethical Fund                2              1           1           1        01/12/2000 
--------------------  ----------------  ----------  ----------  ----------  -------------- 
 Liontrust SF 
  UK Growth Fund              2              1           1           1        19/02/2001 
--------------------  ----------------  ----------  ----------  ----------  -------------- 
 

Source: Financial Express, total return (income reinvested and net of fees), bid to bid, to 31 December 2017 unless otherwise stated, based on primary share classes. The above funds are all UK authorised unit trusts or UK authorised ICVCs (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. Quartile rankings correct as at 02/01/2018.

Global Fixed Income team

Liontrust has recruited Donald Phillips to join the Global Fixed Income team in February 2018. Donald is highly regarded and will further strengthen the team that will be formed this month when David Roberts and Phil Milburn join from Kames Capital.

Donald is an investment manager in the Credit team at Baillie Gifford and previously worked with David and Phil at Kames Capital for three years from 2005 to 2008. Donald has been co-manager of the Baillie Gifford High Yield Bond Fund since June 2010 and the US High Yield strategy since its launch in February 2017.

David and Phil have a long and successful track record of managing fixed income funds. David was Head of the Fixed Income team at Kames Capital, and Phil was Head of Investment Strategy of the team.

After the managers join Liontrust, we will launch Strategic Bond, High Yield Bond and Absolute Return Bond Funds, subject to appropriate regulatory approvals.

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

   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 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

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January 10, 2018 02:00 ET (07:00 GMT)