Liontrust Asset Management PlcLSE: LIO

Annual report 2024

· Issued by Liontrust Asset Management Plc

C O U R A G E · P O W E R · P R I D E

A N N U A L R E P O R T A N D F I N A N C I A L S TAT E M E N T S 2 0 2 4

L I O N T R U S T A S S E T M A N A G E M E N T P L C

OUR PURPOSE

To help clients enjoy a better financial future through the power of active management and distinct investment processes.

INSIDE THIS REPORT

Financial highlights

Financial Statements - Group and Company

Highlights and Key performance measures

4

Consolidated Statement of Comprehensive Income

Consolidated Balance Sheet

Strategic Report

Consolidated Cash Flow Statement

Chair's Statement

12

Consolidated Statement of Changes in Equity

Chief Executive Officer's report

14

Notes to the Financial Statements

Our Strategy

16

Company Financial Statements

Our Business Model

23

Company Notes to the Financial Statements

Financial review

28

Independent auditor's report to the members of Liontrust

Principal Risks and Mitigations

38

Asset Management PLC

Shareholder Information

Our People

54

Glossary

Responsible Capitalism

62

Governance

Board of Directors

70

Risk management and internal controls report

75

Corporate Governance report

78

Directors' report

89

Directors' responsibility statement

94

Nomination Committee report

96

Audit & Risk Committee report

102

Remuneration report

106

148

149

150

151

152

186

189

194

201

202

2 LIONTRUST ASSET MANAGEMENT PLC ANNUAL REPORT AND FINANCIAL STATEMENTS 2024

LIONTRUST ASSET MANAGEMENT PLC ANNUAL REPORT AND FINANCIAL STATEMENTS 2024

3

FINANCIAL HIGHLIGHTS

HIGHLIGHTS

ASSETS UNDER MANAGEMENT AND ADVICE*

NET FLOWS*

31 March

31 March

2024

12%

2024

£27,822 million

£(6,083) million

31 March

31 March

2023

2023

£31,430 million

£(4,841) million

GROSS PROFIT

PROFIT/ (LOSS) BEFORE TAX

ADJUSTED PROFIT

BEFORE TAX*

19%

101%

23%

£229.8m

£186.1m

£49.3m

£(0.6)m

£87.1m

£67.4m

2023

2024

2023

2024

2023

2024

DILUTED EARNINGS

ADJUSTED DILUTED

TOTAL DIVIDEND

PER SHARE

EARNINGS PER

PER SHARE

SHARE*

109%

28%

0%

61.21 pence

(5.46) pence

109.78 pence

79.16 pence

72 pence

72 pence

2023

2024

2023

2024

2023

2024

*These are Alternative Performance Measures. The disclosure, definition and nature of adjustments to GAAP measures to the disclosed APMs is a judgement made by management and is a matter referred to the Audit & Risk Committee for approval prior to issuing the financial statements. See Page 32 for further details.

4 LIONTRUST ASSET MANAGEMENT PLC ANNUAL REPORT AND FINANCIAL STATEMENTS 2024

FINANCIAL HIGHLIGHTS

ASSETS UNDER MANAGEMENT AND ADVICE

On 31 March 2024, our AuMA stood at £27,822 million and were broken down by type and investment process as follows:

Institutional

International

Accounts &

Investment

UK Retail

Alternative

Funds &

Total

Funds

Trusts

Funds & MPS

Funds

Accounts

Process

(£m)

(£m)

(£m)

(£m)

(£m)

(£m)

Sustainable Investment

10,433

323

-

9,624

-

486

Economic Advantage

6,571

450

-

5,998

-

123

Multi-Asset

4,344

-

-

4,220

124

-

Global Innovation

827

-

-

827

-

-

Cashflow Solution

2,184

556

-

1,404

112

112

Global Fundamental*1

3,267

412

1,135

1,706

-

14

Global Fixed Income

196

-

-

36

-

160

Total

27,822

1,741

1,135

23,815

236

895

1The Global Fundamental Global Equity Funds moved to Mark Hawtin's new Global Equity Team in May 2024.

NET FLOWS

The net outflows over the Financial Year were £6,083 million (2023: £4,841 million). A reconciliation of fund flows and AuMA over the Financial Year is as follows:

Institutional

International

Accounts &

Investment

UK Retail

Alternative

Funds &

Total

Funds

Trusts

Funds & MPS

Funds

Accounts

£m

£m

£m

£m

£m

£m

Opening AuMA - 1 April 2023

31,430

2,394

1,139

25,721

1,084

1,092

Net flows

(6,083)

(925)

(92)

(3,999)

(821)

(246)

Market and Investment performance

2,475

272

88

2,093

(27)

49

Closing AuMA - 31 Mar 2024

27,822

1,741

1,135

23,815

236

895

LIONTRUST ASSET MANAGEMENT PLC ANNUAL REPORT AND FINANCIAL STATEMENTS 2024

5

FINANCIAL HIGHLIGHTS

KEY PERFORMANCE MEASURES

Fund management ability and investment performance

The strength of Liontrust's fund managers and investment processes is shown by the fact that over the period from launch or fund manager appointment to the end of each of the last three financial years, on an AuMA weighted basis, we have had over 60% or more of our actively managed UK retail AuMA in first quartile funds (see Figure 1).

AuMA*

Our AuMA has decreased by 12% from 31 March 2023 to 31 March 2024 and decreased by 17% from 31 March 2022 to 31 March 2024, reflecting market performance and net flows (see figure 3).

Figure 3 - AuMA by investor type £'million

Figure 1 - AuMA weighted quartile ranking since launch or manager inception (covers 75% of AuMA).

100%

90%

80%

70%

60%

50%

40%

30%

20%

10%

0%

FY22

FY23

FY24

40,000

35,000

30,000

25,000

20,000

15,000

10,000

5,000

0

FY22

FY23

FY24

UK Retail Funds & MPS (£'m)

Alternative Funds (£'m)

Institutional Accounts & Funds (£'m)

International Funds & Accounts (£'m)

Investment trusts (£'m)

First Quartile

Third Quartile

Second Quartile

Fourth Quartile

1net of fees and income reinvested.

Net flows*

Net flows in the year falling to £(6,083) million from +£2,488 million two years ago and from £(4,841) million last year.

Adjusted profit before tax*

Our adjusted profit before tax has decreased by 23% from 31 March 2023 to 31 March 2024 and by 30% from 31 March 2022 to 31 March 2024.

Figure 4 - Adjusted profit before tax £'million

100

Figure 2 - Net flows £'million

£4,000

80

£3,000

£2,000

60

£1,000

40

£0

(£1,000)

20

(£2,000)

(£3,000)

0

(£4,000)

(£5,000)

(£6,000)

(£7,000)

FY22

FY23

FY24

FY22

FY23

FY24

*These are Alternative Performance Measures. The disclosure, definition and nature of adjustments to GAAP measures to the disclosed APMs is a judgement made by management and is a matter referred to the Audit & Risk Committee for approval prior to issuing the financial statements. See Page 32 for further details.

6 LIONTRUST ASSET MANAGEMENT PLC ANNUAL REPORT AND FINANCIAL STATEMENTS 2024

SPLIT OF AUMA

BY CLIENT TYPE

Financial Adviser 37%

Wealth Manager 17%

Life & Pensions 15%

Institutional 10%

D2C/Execution only 8%

Platform 8%

Fund Manager 4%

Other 2%

FINANCIAL HIGHLIGHTS

BY PRODUCT TYPE

UK Retail Funds & MPS 86%

£27.8bn

AuMA

Instl. Accounts & Funds 6%

Investment Trusts 4%

Int. Funds & Accounts 3%

Alternative Funds 1%

FUND PERFORMANCE

Since inception /

1 year

8.9%

8.7%

20.9%

(4)

(8)

(9)

17.8%

35.6%

17.4%

(20)

(6)

47.8%

(8)

20.9%

(7)

(9)

19.6%

(9)

14.0%

44.4%

26.7%

(6)

(20)

(6)

15.2%

(7)

13.3%

(6)

23.9%

54.3%

44.2%

(11)

(25)

(19)

28.9%

24.5%

(13)

(13)

13.0%

(6)

2020

2021

2022

2023

2024

3 years

7.9%

9.3%

21.1%

(3)

(4)

24.4%

26.7%

(8)

13.2%

14.0%

(5)

(12)

(11)

(6)

15.8%

(6)

26.3%

27.9%

26.7%

(10)

(12)

(12)

42.2%

(19)

24.4%

63.2%

(11)

(24)

52.6%

48.8%

13.3%

(20)

(21)

(6)

17.8%

24.4%

(11)

(8)

2020

2021

2022

2023

2024

5 years

11.8%

8.1%

13.2%

(3)

15.8%

16.3%

(4)

10.8%

(5)

(6)

(11)

20.6%

(4)

5.3% (2)

8.1%

(4)

(3)

23.7%

26.3%

23.3%

(10)

(10)

(9)

17.6%

(6)

13.2%

23.3%

(5)

(10)

73.0%

(27)

57.9%

50.0%

(22)

44.7%

(17)

37.2%

(17)

(11)

2020

2021

2022

2023

2024

manager inception

13.6%

6.8% (3)

8.9%

11.1%

10.6%

(6)

(4)

(5)

(5)

15.9%

13.3%

14.9%

18.2%

(4)

(6)

28.9%

(7)

(8)

22.2%

(13)

22.7%

15.9%

(10)

(10)

29.8%

(7)

17.8%

(14)

(8)

52.3%

54.5%

55.6%

(23)

(24)

(25)

42.2%

44.7%

(19)

(21)

2020

2021

2022

2023

2024

1st quartile

2nd quartile

3rd quartile

4th quartile

Source: Liontrust, FE Analytics,31.03.24. Share classes are total return, net of fees, income reinvested. Quartiles as at 31.03.24, generated on 17.04.24. Details of the benchmarks can be found on the fund pages of the Liontrust website. Single strategy Liontrust funds both UK and offshore funds versus benchmark and those given an FE Analytics benchmark.

LIONTRUST ASSET MANAGEMENT PLC ANNUAL REPORT AND FINANCIAL STATEMENTS 2024

7

FINANCIAL HIGHLIGHTS

Fund Performance (Quartile ranking)

Detailed quartile rankings by fund over one, three and five years and since launch date or fund manager appointment are shown in the table below:

Quartile ranking

- Since Launch/

Quartile

Quartile

Quartile

Launch Date/

Manager

ranking

ranking

ranking

Manager

Appointed

- 5 year

- 3 year

- 1 year

Appointed

ECONOMIC ADVANTAGE FUNDS

Liontrust UK Growth Fund

1

1

1

3

25/03/2009

Liontrust Special Situations Fund

1

2

3

4

10/11/2005

Liontrust UK Smaller Companies Fund

1

1

2

3

08/01/1998

Liontrust UK Micro Cap Fund

1

1

1

2

09/03/2016

SUSTAINABLE FUTURE FUNDS

Liontrust SF Monthly Income Bond Fund

1

1

2

1

12/07/2010

Liontrust SF Managed Growth Fund

2

1

2

1

19/02/2001

Liontrust SF Corporate Bond Fund

1

2

2

1

20/08/2012

Liontrust SF Cautious Managed Fund

2

3

4

3

23/07/2014

Liontrust SF Defensive Managed Fund

1

3

4

2

23/07/2014

Liontrust SF European Growth Fund

3

4

4

4

19/02/2001

Liontrust SF Global Growth Fund

3

2

3

2

19/02/2001

Liontrust SF Managed Fund

1

1

3

1

19/02/2001

Liontrust UK Ethical Fund

3

4

4

3

01/12/2000

Liontrust SF UK Growth Fund

3

4

4

2

19/02/2001

Liontrust GF SF US Growth Fund

2

-

-

- -

- -

07/07/2023

GLOBAL INNOVATION FUNDS

Liontrust Global Dividend Fund

2

1

2

1

20/12/2012

Liontrust Global Innovation Fund

1

2

4

1

31/12/2001

Liontrust Global Technology Fund

2

2

1

1

15/12/2015

GLOBAL FUNDAMENTAL GLOBAL EQUITY FUNDS1

Liontrust Balanced Fund

1

1

1

1

31/12/1998

Liontrust China Fund

4

3

4

3

31/12/2004

Liontrust Emerging Market Fund

3

4

3

1

30/09/2008

Liontrust Global Smaller Companies Fund

1

3

3

1

01/07/2016

Liontrust Global Alpha Fund

1

3

4

2

31/12/2001

Liontrust India Fund

4

2

1

1

29/12/2006

Liontrust Japan Equity Fund

2

1

2

1

22/06/2015

Liontrust Latin America Fund

3

4

4

3

03/12/2007

Liontrust US Opportunities Fund

1

3

3

1

31/12/2002

Liontrust GF US Equity Fund

2

1

3

1

26/06/2014

Liontrust GF International Equity Fund

4

-

-

4

4

17/12/2019

8 LIONTRUST ASSET MANAGEMENT PLC ANNUAL REPORT AND FINANCIAL STATEMENTS 2024

FINANCIAL HIGHLIGHTS

Quartile ranking

- Since Launch/

Quartile

Quartile

Quartile

Launch Date/

Manager

ranking

ranking

ranking

Manager

Appointed

- 5 year

- 3 year

- 1 year

Appointed

CASHFLOW SOLUTION FUNDS

Liontrust European Dynamic Fund

1

1

1

1

15/11/2006

GLOBAL FIXED INCOME FUNDS

Liontrust Strategic Bond Fund

3

3

3

3

08/05/2018

GLOBAL FUNDAMENTAL TEAM FUNDS

Liontrust UK Equity Fund

1

3

2

1

27/03/2003

Liontrust UK Focus Fund

1

4

3

1

29/09/2003

Liontrust Income Fund

1

1

1

1

31/12/2002

Liontrust GF UK Equity Fund

4

3

2

1

03/03/2014

Edinburgh Investment Trust Plc

1

- -

1

1

27/03/2020

1The Global Fundamental Global Equity Funds moved to Mark Hawtin's new Global Equity Team in May 2024.

Source: Financial Express to 31 March 2024 as at 4 April 2024, bid‐bid, total return, net of fees, based on primary share classes. Past performance is not a guide to future performance, investments can result in total loss of capital. The above funds are all UK authorised unit trusts, OEICs, Irish authorised OEICs (primary share class) or UK listed investment trusts. Liontrust Russia Fund is not included as it is currently suspended and in an IA sector that is not rankable (e.g. Specialist) so it would not be a fair comparison to make. Liontrust GF Tortoise Fund is not included as it is not in an IA sector. Edinburgh Investment Trust Plc uses the IT UK Equity Income sector.

LIONTRUST ASSET MANAGEMENT PLC ANNUAL REPORT AND FINANCIAL STATEMENTS 2024

9