Earnings Release • Mar 27, 2013
Earnings Release
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RNS Number : 9487A
Liontrust Asset Management PLC
27 March 2013
Embargoed until 7am on 27 March 2013
Stock Exchange Announcement
LIONTRUST ASSET MANAGEMENT PLC
Year End Trading Update
Liontrust Asset Management PLC ("Liontrust" or the "Group"), the specialist independent fund management group, today issues its year end trading update.
Highlights
· Net inflows of £233 million in the current quarter, over 3.2 times the equivalent period last year
· Net inflows of £486 million in the financial year to 25 March 2013, over 3.2 times the inflows in the financial year ending 31 March 2012
· Assets under management increased to £3 billion as at close of business on 25 March 2013 from £1.5 billion on 31 March 2012
· Eight out of nine of our actively managed UK retail funds are in the first quartile of their respective IMA sectors since launch or manager inception to 28 February 2013
· Liontrust won Best Specialist Fund Group at the MoneyMarketing Awards last week, voted for by 1,000 financial advisers who were asked to name, unprompted, the best asset manager
Commenting, John Ions, Chief Executive, said:
"A near doubling of our starting year AuM of £1.5 billion to £3 billion by 25 March 2013 demonstrates the substantial progress made in this financial year. To have recorded 11 successive quarters of net inflows and broken through £2.2 billion in UK retail AuM is testament to the continual progress the business has made over the last three years.
"While stock markets have made a strong start to 2013, the investment outlook, at best, could be considered challenging. With strong investment processes across all our fund management teams, this focus will enable us to remain constant in our investment stance and not be blown off course by short-term reactions. We believe this is why we have demonstrated such good performance over the long term.
"The implementation of RDR (Retail Distribution Review) on 31 December 2012 at least initially appears to have contributed to lower net industry sales. In January, for example, net retail sales were less than half of those in December 2012 and the lowest since August 2012, according to the Investment Management Association. I am confident this will improve as advisers and clients get to grips with the new charging structures.
"We had a very successful launch of the Dublin-based Liontrust GF Global Strategic Bond Fund, managed by Michael Mabbutt, in February. Investors have been attracted by the flexible mandate of the Fund which allows it to alter asset allocation between different segments of the global credit, bond and currency markets.
"The profile of Liontrust continues to grow and it is gratifying to have received a great deal of independent recognition of our success over the past year through awards and fund ratings, including being named Best Specialist Fund Group at last week's MoneyMarketing Awards."
Funds under Management
On 25 March 2013, our assets under management ("AuM") stood at £2,993 million and were broken down by type and process as follows:-
| Process | Total (£m) |
Institutional (£m) |
UK Retail (£m) |
Offshore Funds (£m) |
| Cashflow Solution | 826 | 413 | 407 | 6 |
| Economic Advantage | 1,358 | - | 1,352 | 6 |
| Macro Thematic | 500 | 85 | 415 | - |
| Asia | 12 | - | 12 | - |
| Global Credit | 241 | - | - | 241 |
| Indexed | 56 | - | 56 | - |
| Total | 2,993 | 498 | 2,242 | 253 |
Funds Flows
Liontrust has recorded net inflows of £233 million in the current quarter to 25 March 2013 (2012: £72 million). The net inflows for the financial year to 25 March 2013 are £486 million (2012: £152 million).
A reconciliation of fund flows and AuM over the current quarter to 25 March 2013 is as follows:-
| Total | Institutional | UK Retail | Offshore Funds | |
| (£m) | (£m) | (£m) | (£m) | |
| Opening AuM - 1 January 2013 | 2,530 | 542 | 1,978 | 10 |
| Net flows | 233 | (87) | 78 | 242 |
| Market movement | 230 | 43 | 186 | 1 |
| Closing AuM - 25 March 2013 | 2,993 | 498 | 2,242 | 253 |
A reconciliation of fund flows and AuM over the financial year to 25 March 2013 is as follows:-
| Total | Institutional | UK Retail | Offshore Funds | |
| (£m) | (£m) | (£m) | (£m) | |
| Opening AuM - 1 April 2012 | 1,529 | 388 | 1,088 | 53 |
| Net flows | 486 | (125) | 410 | 201 |
| Acquisition of Walker Crips Asset Managers Ltd * | 581 | 160 | 421 | - |
| Market movement | 397 | 75 | 323 | (1) |
| Closing AuM - 25 March 2013 | 2,993 | 498 | 2,242 | 253 |
* - Completed on 12 April 2012
Fund Performance (Quartile ranking)
The strength of Liontrust's fund management capability is shown by the fact that all bar one of its nine actively managed unit trust funds are in the first quartile since launch or since the fund managers were appointed to 28 February 2013.
| Quartile ranking - 1 year | Quartile ranking - 3 year | Quartile ranking - 5 year | Quartile ranking - Since Manager tenure | Launch / Manager appointed | |
| Liontrust Income Fund | 1 | 2 | - | 1 | 25/03/2009 |
| Liontrust UK Growth Fund | 3 | 1 | - | 1 | 25/03/2009 |
| Liontrust Special Situations Fund | 1 | 1 | 1 | 1 | 11/11/2005 |
| Liontrust UK Smaller Companies Fund | 1 | 1 | 1 | 1 | 08/01/1998 |
| Liontrust European Absolute Return Fund | 4 | 3 | - | 4 | 09/07/2009 |
| Liontrust European Growth Fund | 4 | 1 | 1 | 1 | 15/11/2006 |
| Liontrust Asia Income Fund | - | - | - | 1 | 05/03/2012 |
| Liontrust Macro Equity Income Fund | 3 | 3 | 1 | 1 | 31/10/2003 |
| Liontrust Macro UK Growth Fund | 4 | 4 | 2 | 1 | 01/08/2002 |
Source: Financial Express, total return, bid to bid, to 28 February 2013 unless otherwise stated. The above funds are all UK authorised unit trusts (retail 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.
Awards
We are proud to announce the following awards for Liontrust in the financial year to 25 March 2013:
· Liontrust has been named the "Best UK Equity Group" by Money Observer magazine in May 2012.
· Liontrust Special Situations Fund won the "Best UK Equity Growth Fund" Award from What Investment magazine in May 2012.
· The Liontrust Special Situations Fund won the "Best UK Growth Fund" at the Investment Week Fund Manager of the Year Awards in July 2012 for the second year running.
· Readers of Shares magazine voted Liontrust the "Fund Management Group of the Year" at the Shares 2012 Awards in November 2012.
· Liontrust Special Situations was named "Best Fund in the UK All Companies sector" at the Moneywise 2012 Fund Awards in November 2012.
· Liontrust Special Situations was named "Best UK Equity Fund" at the Portfolio Adviser Awards in January 2013.
· Liontrust won "Best Specialist Fund Group" at the MoneyMarketing Awards, voted for by 1,000 financial advisers who were asked to name, unprompted, the best asset manager in March 2013.
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 & Communications
N+1 Singer 020 7496 3000
Jonny Franklin-Adams
Jenny Wylie
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 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
This information is provided by RNS
The company news service from the London Stock Exchange
END
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