Liontrust Asset Management Plc Moving Towards The Next Stage Of Progress

Business Overview

Liontrust Asset Management PLC (LIO) is the United Kingdom-based holding company and is involved in the specialist fund management business, which takes pride in having a unique approach and culture to managing money. The company was launched in 1995 and got listed on the London Stock Exchange (LSE) in 1999.

The company is an independent business with no corporate parent, though it has two key operating subsidiaries: Liontrust Fund Partners LLP and Liontrust Investment Partners LLP.

The company markets its portfolios and funds to wealth managers, institutional investors, private investors, and financial advisors in the United Kingdom, while the group’s focus outside the UK is on wealth managers, private banks, family offices, and multi-managers in several countries, including Malta, Italy, Germany, Benelux, and the Nordic region.

Product Offering - Gamut Of UK And Non-UK Domiciled Funds To Choose From

The company provides a gamut of UK and Non-UK domiciled funds, like the Global Alpha, Global Dividend, Global Equity, Asia Income, Balanced and European Growth etc.

The company has nine fund management teams, six of them invest in the United Kingdom, Asian, European, and global equities, while one of the company’s team invests in Global Fixed Income. It is also having a Sustainable Investment team offering fixed income, equity and managed funds, and another one which looks after the target risk and Multi-Asset portfolios.

Further, the company’s fund managers are divided into 10 Teams: Asia team, Cashflow Solution team, Economic Advantage team, European Income team, Global Equity team, Global Fixed Income team, Macro-Thematic team, Multi-Asset team, Sustainable Investment team – Equities, and Sustainable Investment team - Fixed Income.

The company primarily works with two main objectives: first to invest in what it believes are the best companies around the world, providing businesses with capital to grow and to invest money on the clients’ behalf to try to help the clients to reach their financial goals.

The other major objective of the company is to treat customers, employees, members, suppliers, investors, and other shareholders fairly and with respect. It is devoted to the Principles of TCF, a major principle of the FCA (Financial Conduct Authority).

Awards and Recognitions

(Source: Company Website)

Liontrust Asset Management PLC and its different funds have regularly been featuring in different award functions, scooping prominent awards, the latest being the AJ Bell Fund and Investment Trust Awards 2019, FT Adviser 100 Club Awards 2019, Morningstar Awards 2019, and Portfolio Adviser Fund Awards 2019.

Outstanding Financial Performance Despite Difficult Time For The Fund Industry

Financial Highlights (For The Six Months Ended 30 September 2019)

For the six months ended 30 September 2019, the company’s reported revenue surged to £53.1 million from £46.3 million reported for the same period last year. Gross profit for the first half of 2020 stood at £46 million, an increase of 12 per cent against the same period last year. In H1 FY20, the adjusted profit before tax rose by 17 per cent to £17 million against the £14.5 million reported in H1 FY19, while the reported profit before tax was up by 19 per cent to £9.3 million in H1 FY20. The reported profit before tax includes £7.7 million of costs relating to the amortisation of the related intangible asset and other non-recurring and non-cash costs.

The group’s Board declared the first interim dividend per share of 9 pence for the year, payable on 3rd January 2020 to shareholders who are on the register as at 29th November 2019, with shares going ex-dividend on 28th November 2019. The group had a DRIP (Dividend Reinvestment Plan) that allows investors to reinvest dividends to purchase additional shares in Liontrust.

In the current financial year, the company till now has reported strong performance, with the success of the business reaffirming the continued plan of investing in the fund management distribution, administration, capability, and brand. The company posted the 3rd highest total net onshore sales in the United Kingdom in Q3 FY19 (as per the Pridham Report). For the third quarter of 2019, the company also stood second for gross and total net ESG (Environmental, Social and Governance) sales in the UK. The company’s achievements are a testament to the investment talent as they were achieved in a difficult time for the fund industry in the country.

The encouraging net inflows for the company reflects the enduring appeal of active fund management. Over the past few years, the company’s investment shows that it is well-positioned to drive the group forward during the next stage of the progress.

The vision of the company is to be one of the prominent fund management businesses in the United Kingdom and across the globe, viz-a-viz it is involved in various social welfare issues and is working with several partners to develop the community engagement programme like the- Durham County Cricket Club, the Ruaha Carnivore Project (RCP), Newcastle United Foundation, and ZSL London Zoo.

Share Price Performance- Strong Double-Digit Return Of 56.70 Per Cent (YTD)

 (Source: Thomson Reuters)

Liontrust Asset Management PLC stock last traded at a price of GBX 927 as on 21st November 2019 (GMT: 8:20 AM). Stock's 52 weeks High and Low are GBX 945.84 and GBX 530.00 respectively. The company’s stock beta was 0.88, implying lower volatility as compared to the benchmark index. The stock has a total market capitalisation of around GBP 499.35 million, with a dividend yield of 3.18 per cent.

Over a period of the past twelve months, the company’s stock has outperformed the benchmark index and has given a robust return of 47.57%. On a Year to Date basis, the stock has generated 56.70% return for the investors.

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