LEI: 549300XVXU6S7PLCL855

For immediate release

18 October 2023

Stock Exchange Announcement

LIONTRUST ASSET MANAGEMENT PLC

Trading Update

Liontrust Asset Management Plc ("Liontrust", the "Company", or the "Group"), the specialist independent fund management group, today issues its trading update for the three months ended 30 September 2023 (the "Period").  

Highlights

·    Net outflows of £1.6 billion in the Period.

·    Assets under management and advice ("AuMA") were £27.7 billion as at 30 September 2023, a decrease of 6.3% over the Period.

·    AuMA as at 12 October 2023 were £27.5 billion.

Commenting, John Ions, Chief Executive, said:

"Successful asset management companies are built on the quality of their people. I am proud to be Chief Executive of Liontrust with our excellent investment teams and talent across the Group, who will see the business through tougher times like now and drive it forward over the long term.

"After more than a decade of significant growth for Liontrust, the past year or so has been more challenging. Like many other asset managers, Liontrust continues to face the headwind of current investor sentiment.

"Liontrust has been impacted by our bias towards equities, the quality growth style, mid and small caps and the broad negative sentiment towards the UK. The UK All Companies sector has been the worst net selling retail sector in the UK for six of the past seven quarters, according to the Investment Association (IA).  

"Investor sentiment continues to be negatively affected by rising interest rates and the increased yield available on cash. But holding cash over the long term is not a strategy for delivering real growth for savers. In time, cash will leave savings accounts and money market funds to return to investment markets. We are striving for Liontrust to be in the best position possible to attract investors' savings and to benefit when sentiment changes.

"We have full confidence in the investment teams and processes at Liontrust which have delivered for investors over the long term. Since launch or fund manager inception, 42% of the UK-domiciled retail funds (excluding Multi-Asset) are in the first quartile of their respective Investment IA sectors and 66% are in the first or second quartile.

"What the last year has shown, however, is the importance of Liontrust achieving our strategic objectives of broadening the fund range by asset classes and investment styles and expanding geographical distribution to enable us to perform through the cycles of demand. We have seen recently growing demand from markets outside the UK such as South America, for example.

"The proposed acquisition of GAM would have accelerated our strategic objectives; without GAM, they do not change and our belief in them has only strengthened. The knowledge and insight gained through the GAM process is also helping us shape our future operating model for the long-term growth of the Liontrust business. This will lead to restructuring and efficiencies in some areas of the business. Our flexible remuneration model for fund managers and other staff remains unchanged in light of the headwinds we are facing; in particular, the revenue share model for fund managers ensures they are fully aligned with the business and investors.

"As one leading analyst has said, the absence of a step forward is not the same as a step backward.

"Liontrust's strategy has never only been solely focused on M&A activity. Liontrust has successfully grown AuMA over the long term through attracting inflows for current investment teams and this will remain a key focus going forward. This organic growth has been demonstrated most recently with the AuMA of the European Dynamic Fund increasing from around £350 million a year ago to £950 million. Following interest from clients, we intend to launch, subject to regulatory approvals, an Ireland-domiciled version of the European Dynamic Fund to be marketed in continental Europe.

"Central to achieving AuMA growth is strong client engagement. Liontrust's investment teams will be presenting to hundreds of clients and potential clients in the UK and internationally at  events throughout the autumn, including our annual virtual Sustainable Investment conference and an adviser roadshow around the UK.

"The hard work and dedication of everyone at the Company through this period will benefit Liontrust over the months and years ahead. Combining a great level of service and investor experience with excellent investment teams and processes, a pre-eminent brand, strong financial position and the ability to attract further talent continues to give me great confidence about the outlook for Liontrust."

Assets under management and advice

On 30 September 2023, our AuMA stood at £27,650 million and were broken down by type and investment process as follows:

AuMA as at 12 October 2023 were £27,480 million.

Flows

The net outflows over the Period were £1,583 million (2022: £1,646 million). A reconciliation of fund flows and AuMA over the Period is as follows:

The net outflows over the six-month period to 30 September 2023 were £3,213 million (2022: £2,187 million). A reconciliation of fund flows and AuMA over the six-month period to 30 September 2023 is as follows:

UK Retail Fund Performance (Quartile ranking)

Source: Financial Express to 30 September 2023 as at 4 October 2023, bid-bid, total return, net of fees, based on primary share classes. Past performance is not a guide to future performance, investments can result in total loss of capital. The above funds are all UK authorised unit trusts, OEICs, Irish authorised OEICs (primary share class) or UK listed investment trusts. Liontrust Russia Fund is not included as it is currently suspended and in an IA sector that is not rankable (e.g., Specialist) so it would not be a fair comparison to make. The onshore and offshore Tortoise funds are not included as they are not in IA sectors. Edinburgh Investment Trust Plc uses the IT UK Equity Income sector.

Notice of Half Year Results Announcement

Liontrust confirms that it will be announcing its half year results for the six months ended 30 September 2023 on Thursday, 16 November 2023.

For further information please contact:

Teneo (Tel: 020 7353 4200, Email: [email protected])

Tom Murray

Liontrust Asset Management Plc (Tel: 020 7412 1700, Website: liontrust.co.uk)

John Ions: Chief Executive

Vinay Abrol: Chief Financial Officer & Chief Operating Officer

Simon Hildrey: Chief Marketing Officer

David Boyle: Head of Corporate Development

Singer Capital Markets (Tel: 020 7496 3000)

Corporate Broking: Charles Leigh-Pemberton

Corporate Finance: Justin McKeegan

Panmure Gordon (Tel: 020 7886 2500)

Corporate Broking: David Watkins

Corporate Advisory: Atholl Tweedie

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