Liontrust Asset Management Share Discussion Threads

[ozzietom] 22/6/2022 08:20

Their stated dividend policy, is that they grow dividend progressively in line with adjusted EPS (excluding performance fees) and cashflow, while taking macro environment, balance sheet and future plans (assuming potential acquisitions) into account. Obviously, if the market pulls back severely, then their profits and cashflow falls and therefore the dividend could be pared back inline. In the short term, there is no guarantee that the dividend will be sustained, but even if it falls back somewhat for next FY year, it should continue to grow over the years ahead. I am no expert (just an amateur investor), so DYOR. But I am comfortable with the medium to long term picture at these prices.

[se81] 22/6/2022 07:58

thanks OzzieTom- and you'd concur that the yield looks sustainable?

[ozzietom] 22/6/2022 07:53

Yes, I think a slight beat on revenue expectations and at this price, the dividend yield is 7.75%, which is very attractive.
There has been 0.5 billion of outflows since year end and with the market drawdown their FUA have fallen back to 34.2.
The performance related component of revenue was 12.6 million, which will probably not be repeated next year, but the 5.2 billion extra FUM inherited through the Majedie takeover, should compensate.
Overall, I think mid to long term as the market recovers and their reputation as a leading manager for ESG funds, should mean that the investment flows should come back. It's a great capital light business with good cash flow and strong balance sheet and with a yield above 7%, I am happy to hold for the long term.

[se81] 22/6/2022 07:35

That's an impressive set of results- dividend increase looks very confident

[spectoacc] 20/6/2022 20:19

I bought too soon, clearly - and didn't take the opportunity to top-slice on the dcb.

Can see LIO going either way from here - OK results and a market dcb, or continued market weakness and joining the "deep value, dirt cheap, but going lower" club populated by the likes of the housebuilders.

Conclusion: "It's either going up or going down" :)

[riverman77] 07/6/2022 11:38

Several of their big funds (which make up a large part of AUM) seem to be struggling recently - for instance, weak performance for Sustainable Global Growth and UK Special Situations. Combination of market falls and outflows could have quite a large impact in profits. It was very overvalued before, but still not tempted.

[undervaluedassets] 27/5/2022 09:36

Premier Miton had very respectable half year results today.

I think it is logical to expect the same here.

[spectoacc] 12/5/2022 08:15

Likely too soon if it's crash time, & little support, but LIO around £10 looks good to me & have bought in.

[growthpotential] 07/5/2022 22:07

Expected full year EPS for financial year to 31-MAR-2022?

[undervaluedassets] 13/4/2022 07:54

Finance industry tables show Liontrust's funds to be consistently in the number 1 or 2 spot.

This is a leveraged play on share price performances in general.

[weemonkey] 12/4/2022 15:27

As the TS showed their funds are best in class. No doubt this explains why AUM continue to grow.

The share price recovers in time.. too good at what they do for it not to.

[topvest] 12/4/2022 10:10

Agreed - fairly positive. Majedie was a very good deal at that price. Their investment style is coming back into favour. I think this will make a material difference to Liontrust medium term in terms of growing their institutional and possibly their investment trust business.

[undervaluedassets] 12/4/2022 08:55

Not a lot wrong with that statement.

[growthpotential] 04/4/2022 20:39

Only a matter of time before this takes off. I guess if that takes us to the next earnings update so be it!

[gsbmba99] 01/4/2022 11:58

From Singers note this morning: "The Majedie acquisition has now completed, adding £5.2bn AuM (vs £5.8bn at announcement). Yes, AuM has been subject to headwinds (geopolitical uncertainty) but has fallen only 7% to £33.4bn vs £36bn at 14/1. We expect more detail at the Q4 AuM Update (exp’d 12/4), when we will update our forecasts formally, but estimate that marking our model to this Q4 AuM will reduce our FY23e EPS by 10-15% to 115-120p (no FY22e impact). We do not feel that a mechanical EPS downgrade of this size warrants the 40% YTD share price decline, when evidently flows may have slowed but there is no sense that AuM growth has more than paused."

[topvest] 31/3/2022 15:56

Their Majedie acquisition is a very good deal in my view. Not happy being a Majedie shareholder, but they will be good for Liontrust on the other side. Value investing is also back and plays to Majedie's strengths!

[thelongandtheshortandthetall] 31/3/2022 14:49

Good work undervalueassets.

[undervaluedassets] 29/3/2022 12:37

I have bought a few.

(I should say a few more. I have had a sliver from 2014.)

Liontrust is off some 50% since the start of the year.

However I graphed the performance of all the Liontrust funds (all 299 of them) using Sharescope . They are down only 8% since the start of the year. (But up 180% since 2009 (inc pedestrian bond funds)). A stellar performance

I think it safe to say that with underlying funds only down 8% and the shares off 50%, the shares are a value proposition

[thelongandtheshortandthetall] 29/3/2022 08:30

£300,000.
A very confident purchase by someone connected to management!
:)

[growthpotential] 17/3/2022 17:39

Dude, there's almost twice the dividend cover

[pyemckay] 11/3/2022 16:49

every 5% decline in equity markets=9% decline in LIO EPS 👀.

[arja] 10/3/2022 21:29

high p/e and earnings barely cover the dividend . still seems overvalued after a quick look at the financials / . had a writeup in City Wire .

[its the oxman] 03/3/2022 15:43

Bought a few today sub 1300p.

[topvest] 01/3/2022 15:28

About £50m in a Russian fund from what I can work out, which has been suspended. Yes, massive sell-off. Seems overdone to me!