Liontrust Asset Management Plc · LSE:LIO
Liontrust Asset Management — FY2025 Earnings Presentation
47 slides from Liontrust Asset Management's earnings presentation, Jun 25, 2025
Slide 1: Liontrust Asset Management PLC Full Year Results Presentation
Liontrust Asset Management PLC Full Year Results Presentation 25 June 2025
Slide 2: Order
Order 1. Liontrust’s Purpose and Values 2. Financial headlines 3. Business backdrop 4. Market outlook 5. Building for growth • Distribution • Brand • Investment offering • Platform 6. Financial Results 7. Capital Allocation Policy 8. Outlook 1
Slide 3: Our Purpose
OUR PURPOSE To help clients enjoy a better financial future through the power of active management and distinct investment processes
Slide 4: Liontrust's values
Liontrust’s values COURAGE POWER PRIDE Liontrust does not follow the herd and The power of investment processes are We take pride in seeking to act in the has the courage to have independence of key to long-term performance and best interests of clients and delivering thought effective risk control
Slide 5: Financial headlines
Financial headlines AuMA Adjusted profit Full Year Business New Capital £22.6bn before tax Dividend Transformation Allocation As at 31 March 2025 maintained Programme Policy Net flows £48.3m 72.0p £6.0m Minimum 50% payout £(4.9)bn 12 months to Second interim Annualised costs ratio of adjusted dilute
Slide 6: Business backdrop | Last five years
Business backdrop| Last five years 2021 Continued growth in AuMA from £16.1bn to £30.9bn Reinforcement of Liontrust’s brand and investment philosophy 2022 Market volatility and macroeconomic uncertainty, emphasis on investment discipline Investment in infrastructure and focus on client engagement an
Slide 7: Market backdrop | American exceptionalism drives significant index share gains over 15 years
Market backdrop | American exceptionalism drives significant index share gains over 15 years US Equity and GDP shares versus the World 80% 70% 60% World Equities have returned 13% per annum over the last 10 years providing an 50% easy passive investing environment. 40% The US equity market has drive
Slide 8: Market backdrop | US index gains driven by concentration
Market backdrop | US index gains driven by concentration Weight of largest 7 companies in the S&P 500 35% 30% Performance of the M7 has driven 29% concentration to levels not seen over the 25% last 100 years. Passive inflows have further driven that 20% concentration. The narrow focus of investment
Slide 9: Market backdrop | US equities outperformed the MSCI World index in 12 of the last 15 years
Past performance does not predict future returns Market backdrop | US equities outperformed the MSCI World index in 12 of the last 15 years MSCI AC World Index performance 20% 15% Has the US outperformed for long 10% enough? If so, don’t be Passive. 5% In the years where US equities underperformed,
Slide 10: Market backdrop | The correlation between US equity outperformance and the US$ is clear
Past performance does not predict future returns Market backdrop | The correlation between US equity outperformance and the US$ is clear The US$ has been a good indicator of US equity out and under performance. Geo-political events together with ballooning public debt in the US make the US$ a less c
Slide 11: Market backdrop | A more Active management approach will be needed in the next 5-10 years
Market backdrop | A more Active management approach will be needed in the next 5-10 years Percentile since 1930 Goldman Sachs forecast for 10-year CAGR = 3% Concentration risk, profit margins and Market Market concentration £3,395 concentration 99% valuations are at multi decade highs in the US mark
Slide 12: Building for growth
Building for growth Investment case Source: Liontrust, June 2025 11
Slide 13: Distribution | Strategic and data-driven approach
Distribution| Strategic and data-driven approach • Building a distribution plan based on a combination of business and market intelligence • Execute the plan via a data-driven approach • Client interaction to be guided by robust analytics that pinpoints the firms and individuals most relevant to our
Slide 14: Distribution | Q1 calendar year 2025 coverage
Distribution| Q1 calendar year 2025 coverage UK sales team 1,082 Team Target: 960 Firm level – 85% of these meetings were with our key top tier firms Individual level – 70% were with a tier 1 or 2 client 47 client events and webinars; 682 clients attended these events and webinars Investment confere
Slide 15: Building for growth | Distribution
Building for growth Investment case Distribution Source: Liontrust, June 2025 14
Slide 16: Brand | Distinctive and high profile
Past performance does not predict future returns Brand | Distinctive and high profile Liontrust ranks 2nd according to Liontrust is perceived as the best professional intermediaries for UK manager for UK for Sustainable equities and Sustainable Investment among retail investors Investments and 3rd f
Slide 17: Building for growth | Brand
Building for growth Investment case Distribution Brand Source: Liontrust, June 2025 16
Slide 18: Product range | AUM by team
Product range | AUM by team SUSTAINABLE ECONOMIC MULTI GLOBAL INVESTMENT ADVANTAGE ASSET INNOVATION £8,137 £4,255 £3,829 £770 UK Retail 7,602 UK Retail 3,807 UK Retail 3,664 UK Retail 767 Institutional 309 Institutional 384 Alternative 73 International 3 International 226 Interna
Slide 19: Global Equities
Global Equities David Goodman Kevin Kruczynski Pieran Maru Ewan Thompson Thomas Smith Vanessa Sinclair Mark Hawtin Investment Manager Investment Manager Investment Manager Fund Manager Fund Manager Fund Manager 37 years 24 years 7 years 18 years 15 years 24 years Head of Global Equities Team 40 year
Slide 20: Cashflow Solution
Past performance does not predict future returns Cashflow Solution 500% Liontrust European Dynamic Fund 200% Liontrust GF European Strategic Equity Fund 432.8% 400% 150% 141.6% 300% 212.4% 109.8% 200% 100% 202.0% 100% 50% 19.0% 0% 0% -100% -50% 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Slide 21: Economic Advantage
Economic Advantage CFROC (%) CFROA (%) Gross margin (%) 15.0 31.2 47.8 32.5 6.7 7.9 Fund weighted average Market average Fund weighted average Market average Fund weighted average Market average Operating margin (%) Net debt/EBITDA Equilibrium growth rate (FCF growth) (%)1 1.4 20.5 5.4 13.5 0.4 1.5
Slide 22: Sustainable Future
Sustainable Future Peter Michaelis • MA in Physics from Oxford University Advisory committee Head of Sustainable • MSc in Energy & Environmental Engineering from Sussex Tony Greenham is the ESG Director at the British University Investment team Business Bank, the UK’s economic development bank • PhD
Slide 23: Global Fundamental
Past performance does not predict future returns Global Fundamental Emily Barnard Imran Sattar Deputy Portfolio Manager Portfolio Manager Cumulative performance since manager inception Established since 1889 140% Edinburgh Investment Trust plc NAV^ £1.13bn market capitalisation Edinburgh Investment
Slide 24: Liontrust Multi-Asset | Actively Different
Past performance does not predict future returns Liontrust Multi-Asset | Actively Different Active Active Active Management Enhancements Adviser Support All stages of the MA Investment process are • Position funds and portfolios for the • Adviser support tailored for client needs actively managed; f
Slide 25: Global Innovation | Differentiated approach to global equity investing
Past performance does not predict future returns Global Innovation | Differentiated approach to global equity investing Past performance does not predict future returns Liontrust Global Liontrust Global Liontrust Global Dividend Fund Innovation Fund Technology Fund Fund AUM £346m £231m £175m Compara
Slide 26: Building for growth | Disciplined process
Building for growth Investment case Distribution Brand Disciplined process Source: Liontrust, June 2025 25
Slide 27: Operating platform
Overhauled operating model Efficient & scalable Centralised operations supporting fund teams platform to support Single outsourced global fund administrator (BNY) strategic growth objectives Continual evolvement to maintain efficient operating platform Implementation of Aladdin’s enterprise
Slide 28: Building for growth | Platform
Building for growth Investment case Distribution Brand Disciplined process Platform Source: Liontrust, June 2025 27
Slide 29: Financial results
» LIONTRUST COURAGE - POWER: PRIDE Financial results
Slide 30: Full Year Results | Year ended 31 March 2025
Past performance does not predict future returns Full Year Results | Year ended 31 March 2025 Strong capital position with surplus capital of £57.5m as at 31 March 2025 (2024: £79.0m) Gross Profit £157.7m which includes £3.6m of performance fees (2024: £186.1m, which includes £10.4m of performance f
Slide 31: Reconciliation of adjusted profit to profit before tax
Reconciliation of adjusted profit to profit before tax | Year ended 31 March 2025 31 March 2025 31 Mar 2024 £’000 £’000 Change Profit/(Loss) before tax 22,292 (579) Severance compensation and staff reorganisation costs 2,756 3,198 (14%) Professional services 13,663 15,652 (13%) Intangible asset amor
Slide 32: Income statement (adjusted)
Income statement (adjusted) 31 March 2025 31 Mar 2024 £’000 £’000 Change Revenue excluding performance fees 166,148 187,480 (12%) Cost of sales (12,088) (11,828) (2%) Gross profit excluding performance fees 154,060 175,652 (12%) Performance fees 3,642 10,409 Gross profit 157,702 186,061 (15%) Net ga
Slide 33: Maintaining a strong capital position
Maintaining a strong capital position Regulatory Capital The updated capital position for the Group is shown below: £m Mar-25 Mar-24 The prudential capital assessment process included a review of the capital calculation shown left. Capital after regulatory deductions1 75.6 101.9 Regulatory Capital R
Slide 34: New Capital Allocation Policy - background
New Capital Allocation Policy - background The Board is focused on delivering returns to shareholders through capital and income. New CAP to enable delivery of Strategic Objectives Over the last five years we have generated £285m of post-tax adjusted net profits and distributed £210m of ordinary Con
Slide 35: New Capital Allocation Policy - five elements
New Capital Allocation Policy - five elements “Our new CAP will support the Group’s continued profitability with surplus capital applied to organic investment and inorganic opportunities”. Cash Maintain appropriate net cash balance and regulatory capital Dividend Minimum of 50% payout ratio of Adjus
Slide 36: Outlook
Outlook More positive environment for active managers Lower returns will drive need for investors to diversify geographically, by style and by market cap Highly regarded investment teams and funds will benefit from new environment Broadening Distribution team and fund range, especially institutional
Slide 37: Appendix
» LIONTRUST COURAGE - POWER: PRIDE Appendix
Slide 38: Appendices
Appendices 1. Board biographies 2. Company information 3. Alternative performance measures
Slide 39: Appendix 1 | Board biographies
Appendix 1 | Board biographies Luke Savage – Non-Executive Chair and Chair of the Nomination Committee Joined the Board in September 2024. Luke is an experienced Non-executive Director and Chair, as the Chair of Chesnara plc from February 2020 to date and a Non-executive Director of Deutsche Numis,
Slide 40: Appendix 1 | 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 41: Appendix 1 | 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 42: Appendix 2 | Company information and shareholders
Appendix 2 | Company information and shareholders £22.7bn Established 29 years. Headquartered in London Established and Seven distinct active £22.7 billion AuMA as at £22.6 billion market Listed on the London with offices in experienced management investment teams 17 June 2025 capitalisation Stock E
Slide 43: Appendix 3 | Alternative Performance Measures
Appendix 3 | 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 44: Appendix 3 | APMs (continued)
Appendix 3 | 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 45: Appendix 3 | APMs (continued)
Appendix 3 | 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 46: 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. All Liontrust Funds carry some degr
Slide 47: Disclaimer
Disclaimer Important notice This presentation is issued by Liontrust Asset Management PLC and Liontrust Investment Partners LIP (both 2 Savoy Court, London WC2R 0EZ). LIP is authorised and regulated in the UK by the Financial Conduct Authority (FRN 518552) to undertake regulated investment business.
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