Liontrust Asset Management Plc · LSE:LIO
Liontrust Asset Management — FY2023 Earnings Presentation
43 slides from Liontrust Asset Management's earnings presentation, June 2023
Slide 1: Liontrust Asset Management PLC Full Year Results
Liontrust Asset Management PLC Full Year Results June 2023 | John Ions & Vinay Abrol W inner Best Active Investme nt Solut ion Provider
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 60% 4 Expand distribution 5 Enhance the 6 Attract and 7 Develop the business and the client base investor ex
Slide 3: Financial year 22/23
» LIONTRUST COURAGE - POWER - PRIDE Financial year 22/23
Slide 4: Key points
Key points Net outflows of £2.0 billion1 in the three months to 31 March 2023 (“Period”) and £4.8 billion1 for the twelve months to 31 March 2023 (“Financial Year”) Assets under management and advice (“AuMA”) were £31.4 billion as at 31 March 2023, a decrease of 3.6% over the Period Adjusted profit
Slide 5: AuMA and flows
AuMA and flows On 31 March 2023, our AuMA stood at £31,430 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) Susta
Slide 6: Proposed acquisition of GAM Holding AG
Proposed acquisition of GAM Holding AG
Slide 7: Highlights
Highlights Creates a global investment manager with £52 billion in AuMA on a pro forma basis and accelerates the development of Liontrust by meeting all seven of our strategic objectives Broadens Liontrust’s fund range and asset classes, including in fixed income, thematic equities and alternatives;
Slide 8: Transaction status and progress | Rigorous strategic review led to Liontrust recommendation
Transaction status and progress | Rigorous strategic review led to Liontrust recommendation Liontrust have significant experience of successfully executing, completing and quickly integrating acquisitions and delivering There was an investment bank-led industry leading operating margins process duri
Slide 9: Diversification of asset classes, distribution and client base
Diversification of asset classes, distribution and client base Combined £31.8bn £20.5bn £52.3bn 20% 24% AuM per Product 10% 15% Fixed Income 27% 3% Equity As at 17 As at 31 44% 4% Alternatives Apr-23 6% Mar 23 Multi Asset 71% 23% 52% 5% 2% 3% 5% 4% AuM by source of funds 8% 27% Europe (ex UK) 9% UK
Slide 10: GAM performance
GAM performance % of GAM funds by AUM: 1st and 2nd quartile 1st quartile In the top decile Over 3 years to 31 March 2023 75% 46% 37% Over 5 years to 31 March 2023 75% 45% 40% Source: Company disclosures. FX rate as at 19 Apr 23 9
Slide 11: Transaction summary
Transaction summary Shareholder Benefits • Liontrust shareholders – a chance to benefit from scale, diversification and synergies • GAM shareholders – a chance to be part of a highly profitable FTSE 250 asset manager with strong distribution and share of synergies Acquisition Structure • All share o
Slide 12: Integration plan
Integration plan Integration Strategy • A detailed and well-designed plan developed in conjunction with Alpha FMC • Focus on limitation of disruption for investment management and distribution teams • Maintain positive experience for clients of both Liontrust and GAM • Utilise Liontrust’s existing i
Slide 13: Expected timeline
Expected timeline Publication of Supplementary Circular following Liontrust Final Results 23 June Completion / Settlement Q4 2023 Publication of Circular and Swiss Offer Document 09 June GAM Initial Offer Period 26 June – 21 July Aug-23 Sep-23 May-23 Jul-23 Jun-23 Oct-23 Liontrust Final Results Publ
Slide 14: Key metrics
» LIONTRUST COURAGE - POWER - PRIDE Key metrics
Slide 15: Key metrics – March 2023
Key metrics – 31 March 2023 AuMA by product AuMA by client type AuMA by process UK Retail Funds & MPS £25,721m 82% Financial Adviser 37% Sustainable Investment £11,210m 36% Institutional Accounts & Funds £2,394m 8% Wealth Manager 19% Economic Advantage £7,896m 25% International Funds &
Slide 16: 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 17: Key metrics
Key metrics Percentage of NAV by region Percentage of NAV by asset class Americas 19% Bonds 11% Asia 2% Equities 72% Europe ex UK 20% Funds 14% UK 58% Derivatives 4% Bond NAV by region Equity NAV by region Funds of Funds NAV by region 10% 1% 22% 38% 22% 3% 57% 62% 68% 18% Americas As
Slide 18: Investment performance
Investment performance Over three years to 31 March 2023, 23% of UK-domiciled funds were in the 1st or 2nd quartile of their respective IA sectors* Over five years to 31 March 2023, 84% of UK-domiciled funds were in the 1st or 2nd quartile of their respective IA sectors* At Incisive Media’s Fund Man
Slide 19: Sales momentum – the Pridham Report – Q4 2022
Sales momentum – the Pridham Report – Q4 2022 Top 10 gross retail sales in 2022 Top 10 gross retail sales in Q4 2022 £m £m BlackRock £28,621.00 BlackRock £6,823.60 Legal & General IM £16,342.20 Legal & General IM £4,510.70 Fidelity £15,618.60 Fidelity £3,217.50 HSBC AM £10,705.40 Royal London AM £3,
Slide 20: Liontrust | Power of marketing
Liontrust | Power of marketing 71% of wealth managers and financial advisers in the UK had 71% seen Liontrust advertising compared to an industry average of 37% (Source: Marketing Pulse, April 2023) Liontrust is regarded as having the best sustainable investment team among Best wealth managers/finan
Slide 21: Financials summary
» LIONTRUST COURAGE - POWER - PRIDE Financials summary
Slide 22: 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 23: 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 24: 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 25: 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 26: 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 27: Appendix – 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 28: Appendix – 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 29: Appendix – Company Secretary team
Appendix 1 – Company Secretary team Sally Buckmaster – 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 Colum
Slide 30: Appendix – 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 31: Appendix – AuMA by process and product as at March 2023 (£m)
Appendix 3 – AuMA by process and product as at 31 March 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 11,210 7,896 5,052 619 1,437 4,855 361 31,430 UK Retail 10,2
Slide 32: Appendix – Liontrust UK fund performance to May 2023
Appendix 3 – Liontrust UK fund performance to 31 May 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 -1.2% 0.4% - -1.1% 3 24.2
Slide 33: Appendix – Sustainable Investment team fund performance to 31 May 2023
Appendix 3 – Sustainable Investment team fund performance to 31 May 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 -8.9% -9.5% -7.5% 3 -8.2% -15.2% -11.9% 2 -3.2% -6.2% -3.3% 2 55.6% 59.5%
Slide 34: Appendix – Multi-Asset fund performance to May 2023
Appendix 3 – Multi-Asset fund performance to 31 May 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 4.5% -1.3% - 1 25.1% 16.6% - 1 26.5% 17.7% - 1 278.3% 198.7% - 2 01/03/2004 Liontrust
Slide 35: Appendix – Global Fundamental (ex Majedie) fund performance to 31 May 2023
Appendix 3 – Global Fundamental (ex Majedie) fund performance to 31 May 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 8.3% - - - 78.5% - - - 48.1% - - - 83.1% - - - 24/02/2012 Liontr
Slide 36: Appendix – Global Fundamental (ex Majedie) fund performance (Continued)
Appendix 3 – Global Fundamental (ex Majedie) fund performance to 31 May 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* 0.6% -1.7% -1.7% 1 10.9% 14.0% 14.0% 3 28.3% 15.8% 15.8% 1 9
Slide 37: Appendix – Non-UK UCITS performance to May 2023
Appendix 3 – Non-UK UCITS performance to 31 May 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 0.3% 1.6% - -1.6% 0.4% - 14.8% 33.9% - 124.7% 96.6% - 08/11/2012 Inst Acc GBP Liontr
Slide 38: Appendix – Alternative Performance Measures (“APMs”)
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 39: Appendix – 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 40: Appendix – 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 41: Appendix – 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 42: 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 43: 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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