Liontrust Asset Management PLC · LSE:LIO
Liontrust Asset Management — Q2 2023 Earnings Presentation
34 slides from Liontrust Asset Management's earnings presentation, August 2023
Slide 1: Liontrust Asset Management Plc Investor Presentation
Liontrust Asset Management Plc Investor Presentation August 2023 | John Ions & Vinay Abrol
Slide 2: Our strategy
» Our strategy LIONTRUST COURAGE - POWER - PRIDE | Be a responsible 2 Deliver market leading 3 Diversify the company and investor investment performance fund range over the longer term Ral #6 d% 4 Expand distribution 5 Enhance the 6 Attract and 7 Develop the business and the client base investor exp
Slide 3: Highlights
» LIONTRUST COURAGE - POWER - PRIDE Highlights
Slide 4: Key points
Key points Net outflows of £1.6 billion1 in the three months to 30 June 2023 Assets under management and advice (“AuMA”) were £29.5 billion as at 30 June 2023, a decrease of 6% over the Period. AuMA as at 12 July 2023 were £29.0 billion Adjusted profit before tax ahead of expectations for the FY23 o
Slide 5: AuMA and flows
AuMA and flows On 30 June 2023, our AuMA stood at £29,507 million and were broken down by type and investment process as follows: Institutional Investment UK Retail Funds & Alternative International Total Accounts & Funds Trusts MPS Funds Funds & Accounts Process (£m) (£m) (£m) (£m) (£m) (£m) Sustai
Slide 6: Key metrics
» LIONTRUST COURAGE - POWER - PRIDE Key metrics
Slide 7: Key metrics – June 2023
Key metrics – 30 June 2023 AuMA by product AuMA by client type* AuMA by process ◼ UK Retail Funds & MPS £24,723m 84% ◼ Financial Adviser 38% ◼ Sustainable Investment £10,831m 37% ◼ Institutional Accounts & Funds £2,240m 8% ◼ Wealth Manager 19% ◼ Economic Advantage £7,443m 25% ◼ International Funds &
Slide 8: Key statistics
Key statistics Acquisition timeline ATI Neptune Architas Majedie FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23 AUMA (£bn) 3.0 3.6 4.5 4.8 6.5 10.5 12.7 16.1 30.9 33.5 31.4 % change 20% 25% 7% 35% 62% 21% 27% 92% 8% (6)% Revenue (£m) 20.3 28.4 36.8 44.9 51.6 76.8 84.6 106.6 163.8 231.3 230.0
Slide 9: Key metrics
Key metrics Percentage of NAV by region Percentage of NAV by asset class ◼ Americas 18% ◼ Bonds 12% ◼ Asia 2% ◼ Equities 69% ◼ Europe ex UK 23% ◼ Funds 16% ◼ UK 57% ◼ Derivatives 3% Bond NAV by region Equity NAV by region Funds of Funds NAV by region 8% 1% 23% 21% 39% 3% 54% 61% 69% 20% Americas Asi
Slide 10: Investment performance
Investment performance Over three years to 30 June 2023, 22% of UK-domiciled funds were in the 1st or 2nd quartile of their respective IA sectors* Over five years to 30 June 2023, 78% of UK-domiciled funds were in the 1st or 2nd quartile of their respective IA sectors* At the Fund Manager of the yea
Slide 11: Liontrust | Power of marketing
Liontrust | Power of marketing Liontrust is regarded as having the best sustainable investment team among wealth Best managers/financial advisers (33%) and retail investors (27%). Source: Research in Finance, December 2022 LinkedIn followers reached 10,201 followers by early August 2023 and there ha
Slide 12: Financials summary
» LIONTRUST COURAGE - POWER - PRIDE Financials summary
Slide 13: Full Year results for the year ended March 2023
Full Year results for the year ended 31 March 2023 Full Year results: • Revenues £230 million (31 Mar 2022: £231 million) down 0.7% • Adjusted PBT of £87.1 million (31 Mar 2022: £96.6 million) down 10%1 • Adjusted diluted EPS of 109.78p (31 Mar 2022: 127.63p) down 14%2 • Adjusted operating margin of
Slide 14: Reconciliation of adjusted profit to profit before tax
Reconciliation of adjusted profit to profit before tax for the 12 months ended 31 March 2023 31 Mar 2023 31 Mar 2022 £’000 £’000 Change Profit before tax 49,301 79,291 (38) % Write back of Majedie acquisition provision (1,848) - n/a Severance compensation and staff reorganisation costs 3,995 704 467
Slide 15: Income statement (adjusted)
Income statement (adjusted) 31 Mar 2023 31 Mar 2022 £’000 £’000 Change Gross profit excluding performance fees 211,286 218,724 (3)% Performance fees 18,484 12,595 47% Gross profit 229,770 231,319 1% Net gains 2,466 26 Member/employee costs (106,530) (103,956) 3% Depreciation (3,883) (2,474) 57% Inta
Slide 16: Balance sheet as at March 2023
Balance sheet as at 31 March 2023 31 Mar 2023 31 Mar 2022 £’000 £’000 Assets Non current assets 132,593 106,406 Current assets Trade and other receivables 241,682 235,496 Financial assets 9,921 4,168 Cash and cash equivalents 121,037 120,852 Total current assets 372,640 360,516 Liabilities Non curre
Slide 17: Appendices
Appendices 1. Board biographies 2. Company information 3. Assets under management and advice and performance 4. Alternative Performance Measures 5. Adjusted profit before tax
Slide 18: Appendix 1 – Board biographies
Appendix 1 – Board biographies Alastair Barbour – Non-Executive Chair Joined the Board in April 2011. Alastair is a chartered accountant with 25 years’ experience spent auditing and advising boards and management of public companies in the UK and internationally, principally in the financial service
Slide 19: Appendix 1 – Board biographies
Appendix 1 – Board biographies Vinay Abrol – Chief Operating Officer and Chief Financial Officer Joined the Board in September 2004. Vinay is responsible for overseeing all finance, information technology, operations, risk and compliance of the Group. After obtaining a first-class degree in computin
Slide 20: Appendix 1 – Company Secretary team
Appendix 1 – Company Secretary team Sally Buckmaster – Group Company Secretary Sally joined Liontrust in April 2023 as Group Company Secretary, having previously held the same position at River and Mercantile Group Plc and most recently at AssetCo Plc. Prior to that, Sally worked as legal advisor at
Slide 21: Appendix 2 – Company information and shareholders
Appendix 2 – Company information and shareholders Market capitalisation: £499 million ($637 Top 25 external shareholders million) as at 20 June 2023* No. Fund Manager Shares % 31 Mar 23 1 Hargreaves Lansdown, stockbrokers (EO) 3,930,774 6.05% Premium listing on the London Stock 2 Sanford Deland Asse
Slide 22: Appendix 3 – AuMA by process and product as at June 2023
Appendix 3 – AuMA by process and product as at 30 June 2023 (£m) By process and product Sustainable Economic Global Fixed £m Investment Advantage Multi-Asset Global Innovation Cashflow Solution Global Fundamental Income Total Total AuMA 10,831 7,443 4,792 652 1,488 4,025 276 29,507 ◼ UK Retail 9,989
Slide 23: Appendix 3 – Liontrust UK fund performance to June 2023
Appendix 3 – Liontrust UK fund performance to 30 June 2023 Since Inception/Manager/ 1 Year 3 Years 5 Years Objective change* % change Fund CBM1 CBM2 Sector Q Fund CBM1 CBM2 Sector Q Fund CBM1 CBM2 Sector Q Fund CBM1 CBM2 Sector Q Date Economic Advantage Liontrust UK Growth I 5.4% 7.9% - 6.2% 3 26.5%
Slide 24: Appendix 3 – Sustainable Investment team fund performance
Appendix 3 – Sustainable Investment team fund performance to 30 June 2023 1 Year 3 Years 5 Years Since Inception % change Fund CBM Sector Q Fund CBM Sector Q Fund CBM Sector Q Fund CBM Sector Q Date Liontrust Sustainable Future -6.0% -7.5% -4.6% 3 -11.7% -18.1% -14.2% 2 -4.8% -7.3% -4.2% 2 52.3% 57.
Slide 25: Appendix 3 – Multi-Asset fund performance
Appendix 3 – Multi-Asset fund performance to 30 June 2023 1 Year 3 Years 5 Years Since Inception % change Fund CBM Sector Q Fund CBM Sector Q Fund CBM Sector Q Fund CBM Sector Q Date Liontrust MA Explorer 100 S Acc 9.6% 3.3% 3.3% 1 23.7% 14.7% 14.7% 1 29.8% 18.4% 18.4% 1 281.6% 199.7% 199.7% 2 01/03
Slide 26: Appendix 3 – Global Fundamental fund performance
Appendix 3 – Global Fundamental (ex Majedie) fund performance to 30 June 2023 1 Year 3 Years 5 Years Since Inception % change Fund CBM Sector Q Fund CBM Sector Q Fund CBM Sector Q Fund CBM Sector Q Date Liontrust Tortoise Fund C Acc GBP 12.1% - - - 72.0% - - - 47.5% - - - 84.7% - - - 24/02/2012 Lion
Slide 27: Appendix 3 – Global Fundamental fund performance (Continued)
Appendix 3 – Global Fundamental (ex Majedie) fund performance to 30 June 2023 (Continued) 1 Year 3 Years 5 Years Since Inception % change Fund CBM Sector Q Fund CBM Sector Q Fund CBM Sector Q Fund CBM Sector Q Date Liontrust Balanced C Acc* 8.1% 3.3% 3.3% 1 10.9% 12.4% 12.4% 3 33.6% 16.4% 16.4% 1 93
Slide 28: Appendix 3 – Non-UK UCITS performance
Appendix 3 – Non-UK UCITS performance to 30 June 2023 YTD 1 Year 3 Years Since Inception % change Fund CBM1 CBM2 Fund CBM1 CBM2 Fund CBM1 CBM2 Fund CBM1 CBM2 Date Economic Advantage Liontrust GF Special Situations C3 -1.2% 2.6% - 6.3% 7.9% - 15.3% 33.2% - 121.3% 98.6% - 08/11/2012 Inst Acc GBP Liont
Slide 29: Appendix 4 – Alternative Performance Measures
Appendix 4 – Alternative Performance Measures (“APMs”) The Group uses the following APMs: Adjusted profit before tax* Definition: Profit before taxation, amortisation, and non-recurring items (which include: professional fees relating to acquisitions; restructuring and severance compensation related
Slide 30: Appendix 4 – APMs (continued)
Appendix 4 – APMs (continued) Gross profit excluding performance fees Definition: Gross profit less any revenue attributable to performance related fees. Reconciliation: Note 4. Reason for use: This is used to present a consistent year on year measure of gross profits within the business, removing t
Slide 31: Appendix 4 – APMs (continued)
Appendix 4 – APMs (continued) Average Assets under Management and Advice Definition: The average of aggregate assets managed or advised by the Group during the financial year Reconciliation: Average AuMA for the year is the average of each month end aggregate AuMA during the period. Reason for use:
Slide 32: Appendix 5 – Adjusted profit before tax
Appendix 5 – Adjusted profit before tax Adjusted profit before tax is disclosed in order to give shareholders an indication of the profitability of the Group, non-cash (intangible asset amortisation and impairment) expenses and non-recurring (acquisition, restructuring and severance compensation rel
Slide 33: Key risks
Key risks Past performance is not a guide to future performance. The value of an investment and the income generated from it can fall as well as rise and is not guaranteed. You may get back less than you originally invested. All Liontrust Funds carry some degree of risk which may have an adverse eff
Slide 34: Disclaimer
Disclaimer Important notice This presentation is issued by Liontrust Asset Management Plc and Liontrust Fund Partners LLP (LFP) (both 2 Savoy Court, London WC2R 0EZ). LFP is authorised and regulated in the UK by the Financial Conduct Authority (FRN 518165) to undertake regulated investment business.
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