Liontrust Asset Management Plc · LSE:LIO
Liontrust Asset Management — FY2024 Earnings Presentation
46 slides from Liontrust Asset Management's earnings presentation, June 2024
Slide 1: Liontrust Asset Management PLC Full Year Results
Liontrust Asset Management PLC Full Year Results June 2024
Slide 2: Business developments
Business developments 01 02 03 04 05 Strong Adjusted Global equities Strong Senior UK sales New front office operating team and fund long-term fund hires and systems and margin of 35.5% launches performance expanding technology and client international engagement distribution Source: Liontrust Asset
Slide 3: Full year highlights
Full year highlights Past performance does not predict future returns Net flows AuMA Adjusted Strong Full Year profit capital Dividend before tax position maintained £(6.1)bn £27.8bn £67.4m £79.1m 72.0p 12 months to 31 As at 31 March 12 months to Surplus capital as at Second Interim March 2024 2024
Slide 4: Financial performance
» LIONTRUST COURAGE - POWER: PRIDE Financial performance
Slide 5: Full Year Results | Year ended 31 March 2024
Full Year Results | Year ended 31 March 2024 Past performance does not predict future returns Strong capital position with surplus capital of £79.1 million as at 31 March 2024 (£86.5 million as at 31 March 2023) Gross Profit £186.1 million (31 March 2023: £229.8 million) down 19%. Excluding performa
Slide 6: Reconciliation of adjusted profit to profit before tax
Reconciliation of adjusted profit to profit before tax | Year ended 31 March 2024 31 Mar 2024 31 Mar 2023 £’000 £’000 Change (Loss) / Profit before tax (579) 49,301 Write back of Majedie acquisition provision - (1,848) Severance compensation and staff reorganisation costs 3,198 3,995 (20%) Professio
Slide 7: Income statement (adjusted)
Income statement (adjusted) 31 Mar 2024 31 Mar 2023 £’000 £’000 Change Revenue excluding performance fees 187,480 224,855 (17%) Cost of sales (11,828) (13,569) (13%) Gross profit excluding performance fees 175,652 211,286 (17%) Performance fees 10,409 18,484 (44%) Gross profit 186,061 229,770 (19%)
Slide 8: Maintaining a strong capital position
Maintaining a strong capital position | Increasing surplus supporting growth and dividends Regulatory Capital The updated capital position for the Group is shown below: The ICARA process included a review of the capital calculation shown left. The £m Mar-24 Mar-23 Group had previously not adjusted t
Slide 9: Capital allocation framework
Capital allocation framework | Disciplined capital allocation policy Maintain appropriate net cash balance: Organic 1 investment Investment in selected growth areas, alongside cost discipline and driving efficiencies 2 Dividend Progressive dividend policy, aligned to growth in earnings 3 Inorganic o
Slide 10: Business Update and Strategy
Business Update and Strategy
Slide 11: Our purpose
OUR PURPOSE To help clients enjoy a better financial future through the power of active management and distinct investment processes
Slide 12: Liontrust's values
Liontrust’s values COURAGE POWER PRIDE Liontrust does not follow the herd and Liontrust believes in the power of We take pride in seeking to act in the has the courage to have independence of promoting diversity and inclusion across best interests of clients and delivering thought the business, brin
Slide 13: Liontrust | Core strengths
Liontrust | Core strengths Brand People, Planet & Society Investor experience Investment proposition Distribution Operating platform 12
Slide 14: Brand | Distinctive and high profile
Brand | Distinctive and high profile Liontrust rated 3rd best asset manager by financial advisers and 8th by DFMs in 1st quarter Investment proposition 2024 Liontrust is 1st for unprompted advertising recall among retail investors1 Operating platform From February 2023 to February 2024, Liontrust’s
Slide 15: Broaden distribution
Broaden distribution Market-leading UK Wholesale distribution Expanding European and International distribution Investment proposition 9 regional Sales Managers with strong Jeremy Roberts appointed Global Head of relationships Distribution (ex-UK) Operating Including new hires Gary Higgs and Kyle Mi
Slide 16: Operating platform | Efficient and scalable
Operating platform | Efficient and scalable Efficient & scalable platform to support Improving profitability as AuMA has increased Investment proposition strategic growth objectives 42% ● Centralised operations supporting fund teams Operating 39% platform ● Remuneration approach linked to fund perfo
Slide 17: Investment proposition | AuMA by process and product
Investment proposition | AuMA by process and product (£m) SUSTAINABLE ECONOMIC MULTI GLOBAL INVESTMENT ADVANTAGE ASSET INNOVATION Investment proposition £10,433 £6,571 £4,344 £827 Operating platform ◼ UK Retail 9,624 ◼ UK Retail 5,998 ◼ UK Retail 4,220 ◼ UK Retail 827 Core strength ◼ Institutional 3
Slide 18: Liontrust fund performance to March
Liontrust fund performance to 31 March Past performance does not predict future returns 1 year 3 years 5 years Since inception/mgr inception 81% 82% 79% 77% 77% 78% 73% 74% 74% 68% 68% 63% 60% 60% 58% 58% 49% 38% 37% 31% 2020 2021 2022 2023 2024 2020 2021 2022 2023 2024 2020 2021 2022 2023 2024 2020
Slide 19: The UK market | The valuation opportunity
The UK market | The valuation opportunity Quest UK Market default valuation vs market capitalisation US market Market cap (aggregate) Equity value 41% 4.0 downside to intrinsic value £ trillion Europe ex UK market 2.0 0 3% downside to intrinsic 09 10 11 12 13 14 15 16 17 18 19 20 21 22 23 Current va
Slide 20: The Economic Advantage Team | Fund range
The Economic Advantage Team | Fund range Past performance does not predict future returns Liontrust UK Liontrust Liontrust UK Liontrust UK Smaller Special Micro Cap Growth Companies Situations £132m £1.1bn £3.8bn £1.0bn Inception: 09.03.16 Inception: 08.01.98* Inception: 10.11.05 Inception: 25.03.09
Slide 21: Liontrust Sustainable Future | Quartile Performance
Liontrust Sustainable Future | Quartile Performance Past performance does not predict future returns 6M 1Y 3Y 5Y 7Y 10Y Launch Liontrust SF Defensive Managed 2 Inc IA Mixed Investment 20-60% Shares 1st 2nd 4th 3rd 1st 1st Liontrust SF Cautious Managed 2 Inc IA Mixed Investment 40-85% Shares 1st 3rd
Slide 22: Delivering our Strategic Objectives
Delivering our Strategic Objectives CORE STRENGTHS STRATEGIC OBJECTIVES ⚫ 1,849 investors attended Liontrust roadshows in person in FY2024 Continue to enhance ⚫ Discretionary investor lunches, Virtual Conferences, one to one meetings Investment the client experience proposition ⚫ More than 2.3 milli
Slide 23: Appendices
Appendices 1. Board biographies 2. Company information 3. Key metrics 4. Alternative Performance Measures
Slide 24: 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 25: Board biographies
Appendix 1 | Board biographies Vinay Abrol – 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 computing science from Imperial Coll
Slide 26: Board biographies
Appendix 1 | Board biographies Miriam Greenwood OBE – Non-Executive Director, Chair of the Remuneration Committee and member of the Nomination Committee, Audit and Risk Committee Joined the Board in November 2023. Miriam has spent more than 30 years working for a number of leading investment banks a
Slide 27: Company Secretary team
Appendix 1 | Company Secretary team Sally Buckmaster – Group Company Secretary and General Counsel 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
Slide 28: Key statistics
Appendix 2 | Key statistics Past performance does not predict future returns £bn £m 40 320 33.5 35 30.9 31.4 280 27.8 30 240 25 200 20 16.1 160 15 12.7 120 10.5 10 6.5 80 4.5 4.8 3.6 5 3.0 40 0 0 -5 -40 1 3 8 12 15 21 27 33 47 72 72 72 -10 -80 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23 F
Slide 29: Company information and shareholders
Appendix 2 | Company information and shareholders Market capitalisation: £422 million (US$523 million) as at 12 Top 15 external institutional shareholders April 2024* Shares No. Fund Manager % 31 Mar 24 Premium listing on the London Stock Exchange 1 Hargreaves Lansdown, stockbrokers (EO) 5,155,053 7
Slide 30: Key statistics
Appendix 3 | Key statistics Acquisition timeline ATI Neptune Architas Majedie FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23 FY24 AUMA (£bn) 3.6 4.5 4.8 6.5 10.5 12.7 16.1 30.9 33.5 31.4 27.8 % change 20% 25% 7% 35% 62% 21% 27% 92% 8% (6)% (12)% Revenue (£m) 28.4 36.8 44.9 51.6 76.8 84.6 106.6 16
Slide 31: Balance sheet 31 March 2024
Appendix 3 | Balance sheet 31 March 2024 31 Mar 2024 31 Mar 2023 £’000 £’000 Assets Non-current assets 84,301 132,593 Current assets Trade and other receivables 229,586 241,682 Financial assets 8,157 9,921 Cash and cash equivalents 104,318 121,037 Total current assets 342,061 372,640 Liabilities Non
Slide 32: Non-current assets – impairment breakdown
Appendix 3 | Non-current assets – impairment breakdown 31 Mar 2023 31 Mar 2024 Non-current assets £’000 Amortisation Impairment £’000 Intangible assets* 90,629 (12,094) (30,674) 48,472 Goodwill** 38,586 (6,391) 32,110 Property, plant & equipment 3,378 3,719 132,593 (12,094) (37,065) 84,301 Intangibl
Slide 33: FY14 to FY24 AuMA growth
Appendix 3 | FY14 to FY24 Past performance does not predict future returns Growth in AuMA by organic growth and acquisition 40 Architas Majedie 35 0.1 2.5 (4.8) 30 5.1 5.5 (6.0) (2.4) 2.4 25 Neptune 5.8 £bn 20 ATI 3.5 33.5 15 2.7 30.9 31.4 2.7 (2.0) 27.8 0.4 1.8 10 0.4 2.5 16.1 1.0 0.3 1.0 12.7 5 0.
Slide 34: Key metrics
Appendix 3 | Key metrics Percentage of NAV by region Percentage of NAV by asset class ◼ Americas 22% ◼ Bonds 10% ◼ Asia 2% ◼ Equities 74% ◼ Europe ex UK 21% ◼ Funds 12% ◼ UK 56% ◼ Cash & Derivatives 4% Bond NAV by region Equity NAV by region Funds of Funds NAV by region 8% 1% 27% 32% 20% 50% 2% 71%
Slide 35: Product – Investment proposition
Appendix 3 | Product – Investment proposition Seven investment processes / teams By client type By product type Investment proposition Cashflow Solution Operating Economic Advantage platform Global Fundamental Core strength Distribution Global Innovation Global Fixed Income Brand By investment team
Slide 36: Brand – Power of marketing
Appendix 3 | Brand – Power of marketing Investment proposition Operating platform Core strength Distribution Brand People, planet and society Investor experience Source: Liontrust, March 2024. All use of company logos, images or trademarks in this presentation are for reference purposes only 35
Slide 37: People, Planet and Society
Appendix 3 | People, Planet and Society Our role in society Our people – diversity, equity and inclusion Investment proposition ⚫ Asset managers provide capital to enable businesses to grow ⚫ Attract and develop talent ⚫ Help investors to achieve their financial objectives ⚫ Heads of Department have
Slide 38: Investor experience
Appendix 3 | Investor experience We aim to provide our investors with exceptional service, support and communications, striving to be as transparent as possible Investment proposition Clear communication Thought leadership Operating ⚫ Dedicated regional salespeople platform ⚫ Clear investment proces
Slide 39: A compelling investment case
Appendix 3 | A compelling investment case Established Strong and Efficient and and evolving recognised scalable operating product set brand platform Leading UK Platform for Disciplined wholesale further capital allocation distribution consolidation 38
Slide 40: Liontrust – Who we are
Appendix 3 | Liontrust – Who we are Established 28 years. Listed on Headquartered in London with Established and experienced the London Stock Exchange for offices in Luxembourg and management team 24 years Edinburgh £27.8bn Eight distinct active £27.8 billion AuMA as at £422 million market investmen
Slide 41: 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, impairment, and non-recurring items (which include: professional fees relating to acquisitions; restructuring and severance compensa
Slide 42: APMs (continued)
Appendix 4 | APMs (continued) Adjusted operating margin Definition: Adjusted operating profit divided by Gross profit. Reason for use: This is used to present a consistent year on year measure of adjusted operating profit compared to gross profits, identifying the operating gearing within the busine
Slide 43: APMs (continued)
Appendix 4 | APMs (continued) Dividend margin Definition: This is the dividends declared for the year divided by the Adjusted diluted earnings per share excluding performance fees. Reason for use: This is used to identify the dividend cover versus adjusted diluted earnings per share excluding perfor
Slide 44: Key risks
Key risks Past performance does not predict future returns. You may get back less than you originally invested. We recommend any fund is held long term (minimum period of 5 years). We recommend that you hold funds as part of a diversified portfolio of investments. The Funds managed by the Economic A
Slide 45: Key risks (continued)
Key risks (continued) • May encounter liquidity constraints from time to time. The spread between the price you buy and sell shares will reflect the less liquid nature of the underlying holdings. • Outside of normal conditions, may hold higher levels of cash which may be deposited with several credi
Slide 46: 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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